This week sees the UK and international renewable energies communities beating a path to Aberdeen for All-Energy, now in its 13th year.
Not long after the first show was founded in Aberdeen, the city council launched a number of focus groups to look at various potential sunrise opportunities for the city and wider north-east.
Ultimately, just one survived. Its focus was renewable energy and the possibility of firmly anchoring a capability in Europe’s Oil & Gas Capital. This was to evolve into today’s AREG, the chief officer of which is Morag McCorkindale.
Here she traces the rise of the Granite City as a force to be reckoned with, especially in maritime renewables though much of the business conducted is quietly below the radar.
Aberdeen Renewable Energy Group (AREG) is celebrating a milestone year by marking its official 10th anniversary.
This is a considerable achievement for an organisation that was set up when renewables were barely on the UK agenda.
AREG was established by Aberdeen City Council which enthusiastically started to embrace renewables more than 15 years ago after recognising the sheer scale of opportunity that the sector presented – an exciting new growth industry that could create significant economic and community benefits which would underpin our City’s long-term future prosperity for generations to come.
The renewables industry is now estimated to be worth hundreds of billions of pounds – not just in Europe but in markets around the globe – with Aberdeen City and Shire proving a leading international force in the sustainable energy revolution.
AREG was set up with the mission to develop and build a sustainable local renewables industry – in short, to make Aberdeen City and Shire as famous for renewables as it is for oil and gas. Over the last decade, we have marked a number of significant achievements, building renewables momentum in the region along the way.
Through successfully applying transferable offshore oil and gas expertise, the region is now recognised as a centre of excellence for offshore renewables and is also supporting the growth of the wave and tidal sector. The region has also built industry-leading credentials in areas as diverse as biomass and hydrogen fuel cell transport.
Earlier this year, a Scottish Renewables survey revealed that the north-east is Scotland’s largest employer in offshore wind by some margin and the country’s third largest in wave and tidal.
This is a strong indication of the growing maturity of Scotland’s renewables industry and demonstrates how Aberdeen City and Shire is supporting the country’s world-leading position through investment in the industry’s infrastructure and a crucial contribution to developing the supply chain.
It is also a huge testament to the subsea skills of our companies which are not only being applied to deliver UK ambitions in renewables but are also being exported around the world. It is increasingly recognised that Aberdeen’s energy skills are eminently suited to the development of most renewables projects whether onshore or offshore and can be applied to solve challenges anywhere in the world.
Over the last decade, AREG has become one of the longest established renewable development organisations in Britain and is widely recognised as an influential player and key enabler in the Scottish, UK and wider European renewable energy marketplace.
Membership has grown significantly to more than 170 members with AREG actively working to assist member companies to capitalise on the growing business opportunities in renewables.
AREG has helped its member companies understand and capitalise on the growing business opportunities in renewables. In total, it has helped lever £48million in local renewable energy activity.
Among its other achievements, AREG has helped develop the now internationally recognised annual All-Energy conference. All-Energy is of significant economic value to the local supply chain and economy – in 2013, All-Energy attracted over 600 exhibiting companies, 7,650 thousand visitors from 48 countries and generated £4million for the local economy.
Facilitating the entry of industrial partners, securing EU funding for and taking the European Offshore Wind Deployment Centre (EOWDC) to planning consent was another major milestone for AREG and the City. AREG was also behind the original concept for the project which is a joint venture with Vattenfall plus consortium partner, Technip Offshore Wind.
The project will not only deliver renewable energy to the National Grid but will bring an estimated £230million worth of investment in Scottish renewables infrastructure.
AREG is also a partner in the £25million strategic H2 Aberdeen initiative, which is being supported by Aberdeen City Council.
The expectation is that this initiative will stimulate further innovative hydrogen technology projects and high level investment in the area, realising Aberdeen’s aspiration of becoming a world-leading energy and hydrogen city.
The region’s successful biomass infrastructure is another renewables sector where AREG has played a key role; projects in Aberdeen City and Shire have a current capital value of £25.5million and local wood fuel production is worth £8.7million to the local economy.
Biomass is a key resource as a driver for the local economy and the potential for local job creation is considerable.
Much has been achieved by Aberdeen City and Shire over the past 10 years but as the world we live in continues to change at a rapid pace so do global markets. Energy is no exception and AREG has adapted in line with the evolving renewable energy landscape.
In order to build on our achievements, AREG has changed its operational structure to increase its resources to enhance its membership services and accelerate the development of the region’s renewables supply chain.
Our restructuring will see the organisation working even more closely in partnership with Aberdeen City Council. Together, we will work to identify and help facilitate the delivery of projects that could provide new renewable energy infrastructure in the region, bring significant economic benefits and support the region’s ambition of becoming a global sustainable energy hub.
Among new initiatives, AREG is opening up membership to companies and organisations outwith Aberdeen City and Shire to increase our network and enable more companies and organisations to capitalise on new opportunities in the domestic and international renewables’ marketplace.
Orkney Islands Council (OIC) has already joined the organisation as a result. Through its membership, OIC will gain access to a wide network of supply chain expertise, innovation and global connections while AREG and its members will benefit by gaining access to valuable new contacts and opportunities in a region which is building substantial renewables credentials.
Despite a time when there are challenges and uncertainties in the marketplace, Aberdeen City and Shire is increasingly engaging with the industry and continuing to create and win new business and opportunities across the UK, Europe and further afield.
This is a strong indication of a rise in the number of developers realising the value and cost effectiveness of using upstream oil and gas expertise and know-how.
Announcements such as the Scottish Government’s formal approval of two offshore windfarm applications in the outer Moray Firth – the Moray Offshore Renewables Limited and the Beatrice Offshore Windfarm Limited – are also expected to generate huge opportunities for the region, especially for the supply chain, while also benefiting the Scottish economy by up to £2.5billion.
Aberdeen City and Shire’s “can do” attitude and entrepreneurial spirit, which have maintained its position as a world-class energy hub for more than 40 years, are key drivers for ensuring the region continues to build on its global status as an internationally competitive economic power house.
AREG looks forward to building upon the region’s energy credentials and an unrivalled, industry focused membership – ensuring the region and its people benefit from being at the cutting edge of future energy industry developments – and performing a strategic role in Scottish and UK energy ambitions.
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