Simon Brett at the Port of Tyne argues the region is well placed to play a leading role in the UK's green recovery
Almost half of all the electricity generated in Britain between January and March 2020 originated from renewable sources and 30 per cent came from wind power. In particular, a surge in the use of wind power for electricity generation helped to set a new record for clean energy production, according to official government data.
All over the UK, a massive expansion in the use of renewables is planned as part of the UK's green economic recovery. It is simply too good an opportunity to be missed and will help the country achieve its goal of net zero emissions by 2050.
Overall, offshore windfarms powered the largest increase in renewable energy production, climbing by 53 per cent compared with 2019 and onshore wind generation grew by a fifth. In Tyneside, the seeds for recovery through investment in renewables has already been sown - Port of Tyne will become home for the world's largest offshore wind farm, at Dogger Bank and we have ambitious plans for onshore wind power too.
It's the start of a new era for the port and it will be transformational for the local South Shields economy, given that government policy is to ensure 60 per cent home grown content in contracts for the provision of offshore wind projects. This means new, well paid local jobs, apprenticeships and new professional career pathways for young people who now face an economic climate that even harsher than the 2008 recession. In the same way that Grimsby transformed itself during the Noughties - from beleaguered fishing town to one of the UK's most successful hubs of renewable energy generation - South Shields and the surrounding areas are tipped to now follow suit. All thanks to the potential of offshore wind energy. It couldn't have come at a better time, given that the whole north east region has been heavily impacted by the Covid-19 pandemic.
Globally, the impact of renewable energy on GDP will be transformational and expected to generate GDP gains of £80 trillion between now and 2050, according to the International Renewable Energy Agency (Irena). Locally in Tyneside, it means an immediate 200 plus jobs based at the new Dogger Bank wind farm. Added to this the multiplier effect that the arrival of the Port's initial anchor tenant will inevitably have, by stimulating the vertical and horizontal renewable energy supply chain.
This optimism isn't unrealistic and can be validated by returning to Grimsby as a case study. The arrival of wind farms there has resulted in around 2,000 direct and potentially 5,000 indirect jobs, bringing in excess of £50m into the local economy. The same impact could be seen in Tyneside, where the Port of Tyne's activities already sustain 12,000 jobs and add £621m to the regional economy each year. Creating an offshore wind hub in Tyneside could generate up to 10 per cent of the UK's electricity and based on Grimsby's success, another 5,000 employment opportunities within the next decade.
The Port of Tyne is ideally placed to lead this transition. It has 75 hectares of readily available land, deep-water, lock-free access, a mature logistics and transport infrastructure, plus proximity to available seabed sites including Dogger Bank, Sofia and Seagreen. It can also offer exclusive and restriction free berthing access. 83 per cent of the world's largest cargo ships can be accommodated at the Port of Tyne, making it ideally placed to become a major hub for the manufacture and maintenance of vessels and equipment to service the emerging offshore supply chain.
It's also a site for continuous innovation and home to the first ever 2050 Maritime Innovation Hub. This is an active partnership of organisations from maritime, logistics, technology and academia, led by Port of Tyne, who want to collaborate on advanced projects using autonomous systems, AI, smart sensors, block-chain and big data analytics, to advance maritime innovation. Since the start of the lockdown, the Innovation Hub has been running virtually, with fortnightly meet-ups on Zoom to share success stories, new research and build the partnerships needed for ongoing collaboration.
Aside from facilitating innovative thinking, Port of Tyne's 2050 Maritime Innovation Hub has another critical role - helping to achieve the UK government's wind farm funding goal of having 60 per cent local content. One of the ways we can do this is by becoming a test bed for clean energy trials in the next five years. Any organisations - and especially local entities - who want to trial renewables technology and other 'green initiatives' relevant to the maritime sector are invited to partner with Port of Tyne to demonstrate a strong business case. It's a totally new way of working for the port sector as a whole and means that we can potentially trigger more investment into the local South Shields economy. At the same time, we have the opportunity to identify viable ways to achieve our other strategic goals - to be Net Zero GHG (green house gas) emitters by 2030 and an all-electric port by 2040.
Thinking differently and more broadly is what we believe has enabled us to provide this economic regeneration opportunity for the local community. Our wider strategy to transform the port's operations is creating sustainable value for the Port of Tyne as a trust port and the maritime sector as a whole. We believe very exciting times are ahead for our region.
Simon Brett is commercial director for port services at the Port of Tyne
