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How wind power can fan the Merseyside economy

Will Merseyside grab its chance to bag a part of the fast-growing wind energy industry?, asks Peter Elson

Liverpool is a city famous for the production of hot air – usually forming big clouds which, like morning dew, never amount to any substance. But, luckily, Mother Nature also blows plenty of wind around the Mersey estuary and Irish Sea of a much more permanent and useful nature. All very alluring when the buzzword in the energy world is “renewable”.

At a time when fossil fuels are becoming more inaccessible and nuclear power is still regarded with unease, trapped wind is the answer – not the problem. However, Britain typically lost out 25 years ago at the birth of the European wind power energy industry. After initial interest, Britain pulled out whereas Denmark, Germany, Spain and the US seized the chance to develop and manufacture wind turbine technology. Yet, in 10 years’ time, wind and marine energy will supply more than 30% of the UK’s electricity, resulting in more than £60bn of investment and 70,000 new jobs.

Geographically, Liverpool sits in the centre of the west coast area, with wind farms already whirring away at Burbo Bank, North Hoyle and Rhyl Flats, in the Crown Estate Round 1 and 2 projects. As part of Round 3, a huge Irish Sea wind farm, between Liverpool and the Isle of Man, has been licensed by The Crown Estate to Centrica British Gas. Not visible from the shore, the turbines will be the equivalent of 80 storeys high.

Industry trade association RenewableUK attracted 1,700 delegates to its Offshore Wind Conference at Liverpool’s BT Convention Centre last week. Feedback was so good it plans to return next year. The delegates consisted of representatives of European energy companies, manufacturers and financiers involved in renewable energy, with a spending power of around £100bn. Its importance is shown by the support from energy producers Dong, EDF, E.ON and RWE; leading wind turbine manufacturers Siemens UK, Clipper, Vattenfall and Vestas (the world’s largest).

Maria McCaffery, RenewableUK chief executive, from Kirkby, hopes Merseyside will meet the wind power challenge. She “applauded” The Mersey Partnership’s initiative to pull together the resources of Peel Ports, Cammell Laird and Stobart Group to showcase the existing local supply chain. “We will deploy our influence to develop interest in the Port of Liverpool as principal hub for North West offshore wind,” said Ms McCaffery. Concrete, steel, paints, expensive gearboxes, blades and transmission cabling are all needed to create wind farms. The components also have to transported to a central assembly point and onto their destination. “For every £1 spent on a turbine, £1 is spent on distribution,” said Mark Knowles, The Mersey Partnership low carbon economy manager. “There is a huge new market for existing companies as well as new firms, for building and maintenance.” Bibby Line Group, of Liverpool, is building Bibby Tethra, a survey ship for charter to Osiris Projects, Bromborough, to research potential wind farm sites. Three of the UK’s main cable makers are on Merseyside, such as Tratos, Knowsley, and North West Control Cables, Ellesmere Port. Other beneficiaries could include suppliers like diving and support company Hughes Sub Surface Engineering, West Derby, and motor maintainers Rewinds & J Windsor (RJW), Liverpool.

What of wind power’s cost – surely it compares unfavourably with fossil or nuclear fuels? “Wind power is expensive compared to nuclear, but it won’t be in 20 years’ time,” said Christian Egal, EDF’s UK energy renewable chief executive officer. “By that time, oil, gas and coal could be much more expensive and wind will become the cheapest energy of all.” EDF, the UK’s leading energy company, has a target to develop one gigawatt by 2015 from its onshore and offshore wind farms, such as Teesside, off the east coast. “The wind turbines will come from abroad, as there are no UK makers,” said Mr Egal. “Wind energy has to be supported by some kind of government mechanism to make it happen over the next decade and profitable for private companies. “This public money is an investment for the future as we need to have a mix with carbon-free energies.”

One of the conference’s sponsors, Sub Ocean Marine Cable Installation, of Aberdeen, has just completed the undersea cabling for Rhyl Flats Wind Farm. Keith Johnston, Sub Ocean’s tendering manager and a conference delegate, said: “Wind power and renewables are the new oil and gas industry. “The industry started small and is growing year on year. It’s not big yet, but is beyond its infancy and will be huge. “This conference has been very worthwhile for making a lot of contacts.”

Dennis Henderson, Peel Ports group business development director, said: “The Liverpool city region has some real natural assets for supporting offshore wind farms in the Irish Sea and west coast. “This could be a very big and exciting project. While the biggest Round 3 sites are on the east coast, it does not have the manufacturing capability. “We shouldn’t be disappointed as there are more contracts to win and the core manufacturing of turbines and blades could easily be done in this area. “Cammell Laird is the perfect site and has the skill-sets, but is not quite big enough for an entire wind hub. “Combined with Peel’s Bridgewater Paper Mill site, at Port Ince, we could locate the wind farm supply chain along the Manchester Ship Canal with Laird’s for final assembly and shipment to the Irish Sea. “Stobarts Group’s Mersey Multimodal Gateway site at Widnes is significant, as not all components will be made locally. “Many of the wind turbine manufacturers are in Germany and the Port of Liverpool has services from Bremerhaven.” Peel’s Medway port of Sheerness could also be linked by barges to Liverpool to service both east and west coasts, he said. “This is a winning combination, as it means just extending our existing facilities, not building from scratch as on Humberside,” said Mr Henderson.

David Williams, Cammell Laird business development manager, said: “We’re extremely interested in these offshore wind power developments. “This is a new and emerging market with new technology, but the engineering cost-effective level is very important. “We believe Cammell Laird has a unique geographical location for bringing in components, assembly and final distribution, “The shipyard has unique facilities with a harbour structure and a non-tidal wet basin. “The migration of our dynamic, skilled shipyard workforce is very effective in wind power engineering and its heavy fabrication. “What’s out there comes from Europe, but the key is we can have a very cost-effective base if we get organised. “This is a not a gold rush scenario, but a long-term opportunity for business and industry throughout the North West.” Merseyside’s best-known windfarm is at Burbo Bank, with twenty-five, 137m-high wind turbines, built for a 20-year lifespan.

Owner Dong Energy, the leading Danish utility company, is undertaking a year-long negotiation with the Crown Estate to extend Burbo Bank Wind Farm, possibly tripling its size.

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