A NATIONAL CENTRE FOR DECARBONISATION OF HEAT

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A NATIONAL CENTRE FOR DECARBONISATION OF HEAT
A N AT I O N A L C E N T R E F O R
D E C A R B O N I S AT I O N O F H E AT
A NATIONAL CENTRE FOR DECARBONISATION OF HEAT
N ATI O N A L C E N T R E FO R
D E C A R BO N I SAT I O N O F H E AT – C R E AT I N G
W E S T M I D L A N D S LE A D E R S H I P I N TH E
N ATI O N A L H E AT I N G TR A N S ITI O N
The decarbonisation of heat is the major energy challenge that the UK faces
over the coming decades and for the West Midlands region, this presents a major
opportunity. Britain has committed to achieving net-zero by 2050, but the climate
crisis has a habit of imposing ever-tighter deadlines. It may turn out that we need
to convert all of Britain’s housing to low-carbon heating and high-spec insulation
in 20 years or fewer. In any event, it is an enormous challenge.

It is recognised across the political divide that   The West Midlands is the hardest-hit region in      There is an opportunity for the West Midlands
this is a national infrastructure programme         England, in both health and economic terms,         region to take a leading role in the development
that will draw in investment running to ~£500       from the pandemic. A rise in unemployment           of this sector. It is home to a number of major
billion. It will touch every citizen, every home    triggered by the crisis is impacting vulnerable     companies (eg, Worcester-Bosch and Baxi),
and every region. It will be a programme which      households disproportionately, exacerbating         state-of-the-art manufacturing expertise through
requires the regions to step-up. Converting 26      existing high levels of inequality. This is the     the Manufacturing Technology Centre, the
million homes to low-carbon heating systems         exemplar of a UK region in need of investment       Energy Systems Catapult, Energy Capital and
is an enormous challenge – which is not simply      to reduce inequalities. It is also home to some     a powerful network of Midlands universities
technological. Like Covid-19, decarbonising         of the most deprived, fuel-poor communities         through the Energy Research Accelerator.
domestic heat demands wartime mobilisation          whose homes are some of those which most
of manufacturing, supply chains and skills.         urgently need to be made thermally efficient.       To secure the regional leadership and drive
                                                                                                        the decarbonisation agenda, the Manufacturing
A national heat programme will be established       The scale of intervention mirrors that which        Technology Centre, Energy Systems Catapult
over the coming decade to deploy a new range        happened in the Offshore Wind sector. This          and the Energy Research Accelerator are
of ways of generating heat and to dramatically      delivered a sectorial transition by recognising     advocating the development of a National Centre
improve the thermal insulation of the UK housing    that a scale-up and cost reduction programme        for the Decarbonisation of Heat, NCDH. This
stock. Simultaneously, a massive infrastructure     required the development of a programme             should be based in the West Midlands.
upgrade will be required to ensure that the         that oversaw the definition of standards, the
electricity grid and gas distribution network, at   development of supply chains, co-ordination         The NCDH aims to create new programmes
street-by-street level, are able to cope with the   of planning, scaling of the manufacturing           designed to allow Britain to catch up quickly.
enhanced electricity load and the distribution      capability and working with business to allow       Not by funding yet more R&D, but by clearing
of hydrogen.                                        them to transition into the sector. This has seen   the industrial and commercial roadblocks to
                                                    the UK become a world-leader for Offshore           the rapid growth of promising technologies
This programme will require a dramatic scaling      Wind and has driven economic growth in              and business models. This, in turn, would
up of manufacturing of heat pumps, new              several regions. It is the exemplar that heat       create tens of thousands of skilled jobs.
boiler designs and housing retrofit solutions,      needs to follow.
the skilled workforce to develop, design and
install new heat systems and a new service          The UK government will announce its heat
industry to support the new heat infrastructure.    strategy in the autumn 2020 and are consulting
Though an extraordinary challenge, it is also       on the components of that strategy presently.                       over
a very significant opportunity for developing       The University of Birmingham, Energy System
a new industrial sector and in particular for a     Catapult and utility experts such as Cadent are
region with a skills and productivity deficit and   working with the CBI on a Policy Commission                         generated
                                                                                                                      from heating
potentially industrial sectors for which there      to feed into the development of the heat policy.
may be reduced demand post-Covid.
A NATIONAL CENTRE FOR DECARBONISATION OF HEAT
The strategic direction for low-carbon heating
                                                                                                       Digital Mfr.
– heat pumps, hydrogen, biomass, district
                                                                                                       WM-DMCA
heating – is not yet clear and will emerge
through the national heat policy. But whichever
                                                                  Standards and
technology, or mix of technologies, eventually
                                                                   Verification
predominates, all face the challenges of scaling
up: manufacturing capacity, supply chains and
a skilled workforce. These are the problems the
NCDH will help to solve.

The NCDH will, therefore, include the elements:
                                                                                            NCDH                               Business
                                                                                                                               Incubator
n Manufacturing acceleration                                                                                                      D4E
n Skills academy
n Business incubator                                                       Building
n Building integration and living lab                                    Integration
n Standards and verification                                             and Living
                                                                             Lab
The NCDH would be based at Tyseley Energy
                                                                                                          Heat Skills
Park in Birmingham, located in the East                                                                   Academy
Birmingham North Solihull corridor, which is
identified through the East Birmingham Inclusive
Growth Strategy and Power to the People,
as a priority area for investing in fuel poverty    n The definition of integration standards             The NCDH Heat Skills Academy will help
communities. This part of the West Midlands           and manufacturing standards is an area of           coordinate and train existing and new heating
location is an ideal test-bed as it is surrounded     expertise of the Manufacturing Technology           engineers in heat pumps, hydrogen boilers,
by large amounts of poorly insulated housing          Centre presently being deployed into the            smart system controls, digital platforms,
stock and high levels of fuel poverty.                construction sector.                                building integration, energy efficiency,
                                                    n The design of manufacturing processes that          retrofit coordination and surveying, building
The five components of the NCDH are all               are linked to systems integration is a crucial      performance assessment and monitoring.
essential ingredients of a joined-up heat             component of delivering whole systems               The Energy Systems Catapult is working
deployment programme. They would be                   solutions for retrofit. One option being            with several partners including BEAMA and
headquartered in a new facility at Tyseley            presently explored is providing a ready-            TrustMark to build on existing skills and training
Energy Park, but link regionally and nationally.      to-install roof assembly, which has a fully         capabilities to support the new academy and
                                                      integrated energy solution.                         the Manufacturing Technology Centre has a
DIGITAL/SMART MANUFACTURING:                                                                              well-developed programme, and associated
Decarbonising heat will mean retrofitting 26        The NCDH Manufacturing Accelerator would              facilities, of apprenticeship training across a
million homes at a likely cost of ~£500 billion.    work with the heat technologies manufacturing         number of sectors.
This ‘thermal transition’ means we must both        sector to support the rapid scale-up and fast
scale-up the manufacturing of existing low-         deployment of heating solutions. It would
carbon heat technologies, and develop designs       embed regional expertise including the
and standards that allow next-generation            Manufacturing Technology Centre, the Energy
technologies to integrate into the evolving         Systems Catapult and the eight Midlands
energy systems.                                     universities that make up the Energy Research
                                                    Accelerator. It would work closely with the
One way to speed up the thermal transition          UK’s Active Building Centre to help deliver
is to standardise and automate wherever             the technologies it has developed.
possible. This creates a huge opportunity for
smart manufacturing techniques and rapid            SKILLS:
scale-up of manufacturing solutions.                Converting 26 million homes to low-carbon
                                                    heat, the scaling up of manufacturing and
n The Manufacturing Technology Centre               the associated supply chains and the service
  and Energy Research Accelerator have              industry that follows will require tens of
  developed a rapidly deployable, Industry 4.0,     thousands of newly skilled workers. As a
  manufacturing process operated by robots          benchmark, the existing workforce installs
  and controlled remotely, making it possible       around 1.5 million gas boilers each year under
  to produce components efficiently and close       business as usual. To decarbonise heat, boilers
  to market. It has already been demonstrated       will have to be replaced by a wider range of
  through the flexible production of pipe           novel technologies, and the replacement rate
  assemblies, which are ubiquitous in heating       will need to accelerate dramatically. There
  systems. It has also been designed around         is then the need for the development of the
  thermal storage systems.                          service sector to maintain the new ‘boilers’
                                                    and support the customers.
A NATIONAL CENTRE FOR DECARBONISATION OF HEAT
Tyseley Energy Park

                                                                                                                                Low-carbon
                                                                                                                               refuelling hub

                                                                                            Innovation Hub,
                                                                                              LEP funded

                         Available plot
                                                                           Biomass plant

BUILDING INTEGRATION AND LIVING LAB:               the dynamic nature of heat decarbonisation         shortly publish a feasibility study showing the
Decarbonising heat will require far greater        and future industry needs, and could potentially   need for a physical energy incubator in the UK,
integration of energy systems – electricity,       be part of a larger, more extensive, place-        called D4E, and the benefits of locating it in
heat, storage, controls – than ever before.        specific retrofit programme. This unit will also   the West Midlands.
Many of these systems will be both digital and     ensure new software, control systems, AI and
smart. Combined with the capital expense           machine learning are factored into other NCBH      STANDARDS AND VERIFICATION:
of some elements, such as heat pumps and           capabilities such as digital manufacturing,        The low-carbon heating market will soon
whole-house retrofits, this means energy           business incubation and standards.                 need national standards to help it expand
providers will have to develop new business                                                           quickly. Here the NCBH can play a central
models such as ‘comfort as a service’. It will     BUSINESS INCUBATOR:                                role in coordinating standards organisations
be important to compare a range of concepts        The role of the NCDH is not to support R&D         such as BSI, BEAMA and IEEE to develop
and innovations to find the appropriate balance    but to help demonstrate prototypes get to          the right standards and verification structures.
between opportunity and risk, considering the      market quickly. The NCDH Business incubator        The definition of not only the performance
views of all relevant parties, and managing        would do this by drawing on the Centre’s           standards, but standardising interfaces
the inevitable conflict between them. This,        system integration, skills and manufacturing       between system components is crucial for
in turn, means that decarbonising heat will        expertise to help SME innovators bring their       ensuring greater market access and hence
depend on familiarising consumers with             products and services to market in time            scale-up, but also that it is possible to bring
both new technologies and new commercial           to help achieve our climate targets. The           new technological approaches into the
relationships. One high priority will be to        incubator would build on the Energy Systems        deployed systems. The NCDH would work
nurture new services and business models           Catapult Innovator Support and International       with the standards bodies and industry to
that prioritise and protect those who are          Platforms, which have already helped 25            help ensure the standards are defined, met
experiencing fuel poverty.                         SMEs commercialise over the past two years.        and implemented. The NCDH will also provide
                                                   Through the ERDF-funded business support           a range of facilities which will be used to test
The NCDH Building Integration and Living           programmes, the Energy Research Accelerator        and validate the efficiency and performance
Lab unit will build on the Energy Systems          partnership is working with over a thousand        of new technologies.
Catapult’s expertise in systems integration,       regional energy SMEs, which can be funnelled
local area energy planning, and consumer and       into the business support and incubation
fuel poverty trials in real-world homes. This      programmes. Expanding this approach with
will provide capability to test and demonstrate    the physical capabilities of the NCDH would
                                                                                                      One high priority will be
energy innovations, market arrangements,           ensure the UK captures the wider economic
policy and regulations with real consumers –       benefits domestically and internationally. To      to nurture new services
as we move towards a Net Zero carbon future.       support businesses, the NCDH will house a          and business models that
It will also help address the challenges of        team of business support specialists who can       prioritise and protect those
retrofitting new products into existing building   advise on market potential, systems integration,
stock. The agile and scalable approach to          finance, IP protection, business models and        who are experiencing
building the unit lends itself to responding to    mentoring. The Energy Systems Catapult will        fuel poverty.
KEY:
                                                                                                          1. TEP: Central Birmingham Energy Innovation
                                                                                                             Zone, linked to the LEP-funded Innovation Hub
                                                                                                          2. UOB: Innovation in next-generation energy
                                                                                      Future homes with
                                                                                      EV charging and
                                                                                                             technology and robotics and AI solutions
                                                                                                                                Combined heat
                                                                                                                                and power plant
                                                                                                                                                                                       Wind turbines
                                                                                                                                                   Low-carbon

                                                                                                          3. MTC: State-of-the-art manufacturing solutions
                                                                                      solar
                                                                                                                                                   research
                                                                                                                                                   facilities   Hydroelectric
                                                                                                                                                                power generation

                                                                                                             and the Smart Manufacturing Accelerator                                              EV charging

                                                                                                          4. Black Country Energy Innovation Zone                                                 points                                        Retail

                                                                                                          5. UK Central Energy Innovation Zone
                                                                                                          6. South Coventry Energy Innovation Zone

                       4
                                     1                                                                                                                                             Energy                                         Very light rail
                                                                                                                                                                                   storage
                                                                                                                                                                                   batteries

                                2
                                                     5    3    6

                                                                                                           ne
                                                                                                                c

                            NORTH SOLIHULL
                            THE HUB
                            SOLIHULL TOWN CENTRE

West Midlands Digital Manufacturing Cleantech Accelerator
The West Midlands has a track record of
innovation through its Energy Innovation Zones

WHY THE WEST MIDLANDS,                               Zones (EIZ) and the West Midlands                              establish a Living Lab in 100s of homes
WHY TYSELEY?                                         Local Industrial Strategy.                                     in nearby communities across the East
n Clean energy focus: the West Midlands has        n Need: Tyseley is surrounded by poor-quality                    Birmingham North Solihull Corridor.
  the highest number of companies (10,000)           housing stock and high levels of fuel poverty
  providing low-carbon goods and services            and provides an ideal location for piloting                    We estimate the capital costs of the facility
  after London, with 56,000 people working           what needs to be achieved nationally.                          would cost £40 million in total, the programmes
  in the energy and cleantech sectors. Some        n Tyseley Energy Park is within the Tyseley                      of activity is estimated to be a further £30
  of the country’s biggest and most important        Environmental Enterprise District, which                       million over five years. Industrial partners in the
  energy businesses are headquartered in the         makes it an ideal location for businesses                      region include Engie, CoGen, Orsted, ITM,
  region, including manufacturers such Baxi          to co-locate.                                                  WPD, Siemens, Webster and Horsfall. They
  and Worcester Bosch, whose capacity will         n Momentum: Tyseley Energy Park has                              have/are investing an estimated £0.4 billion
  be vital for scaling up production of new          already been designated an EIZ, received                       associated with heat decarbonisation in the
  heating technologies.                              £7 million investment from GBSLEP, built                       Central Birmingham Energy Innovation Zone
n Academic expertise: the Energy Research            low-carbon energy assets, and plans to                         (Tyseley Energy Park) where the NCDH will
  Accelerator, with eight universities across        build an innovation hub to scale-up low-                       be based. Excluding the £0.5 billion industry
  the Midlands, three of which are within the        carbon energy products and services.                           component, the consortium brings over £35
  West Midlands (Aston, Birmingham and                                                                              million of leveraged regional funding. Longer-
                                                                                                                                                                                                       21346 © University of Birmingham 2020.

  Warwick).                                        SCALE:                                                           term, the National Centre for Decarbonisation
n National innovation assets including the         The NCDH would need to establish 5,000–                          of Heat would develop a sustainability model
  Manufacturing Technology Centre and              10,000m2 of space at Tyseley Energy Park                         based on industry funding services and projects
  Energy Systems Catapult.                         to house its activities, including 1,000m2 of                    from the centre. Given the existential importance
n Political backing of the West Midlands           incubation space and 1,000m2 of training                         of the challenge, the return on this investment
  Combined Authority, expressed though             facilities and laboratories for systems integration              will be significant for the region.
  Energy Capital, the Energy Innovation            testing, verification and validation. It will also

                                                                                                                    Designed by
  CONTACT: Professor Martin Freer, Director of the Birmingham Energy
  Institute and Energy Research Accelerator. m.freer@bham.ac.uk
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