Marine renewable energy – A business and LEP perspective Nick Ames – Managing Director, Supacat/ LEP Board member 19 February 2013

Agenda  Supacat  Why Renewable energy?  LEP and Low Carbon initiatives

Heritage Diversification – HMT launched – The beginning  Supacat Ltd established on ATMP and Glider winch programmes  UK MoD business channelled through Primes (Fairey, Alvis)  Utility vehicle ‘Capability Gap’ recognised – HMT concept  RNLI relationship established based on trailer products  First HMT4x4 order (UK MoD) for 65 won in 2001 with Supacat as Prime Contractor  Wider markets identified and exports achieved – USA, Denmark, Australia  HMT 4x4 taken into UK Regular Army  First Renewable Energy contract  15 Staff  £2m Turnover  60 Staff  £10m Turnover  100 Staff  £20m Turnover

Business Process Value CreationValue GenerationValue RealisationValue Add Marketing & Sales Design & Engineering Programme Management Customer Support Services Support Processes Opportunity and concept development Turning Concepts into Reality Delivering Reality Supporting the Customer

Agenda  Supacat  Why Renewable energy?  LEP and Low Carbon initiatives

Diversification Desire to make sure the business has a sustainable platform for the future ”Renewable energy – without the hot air” – S MacKay Desire to play a greater role in the region Identification of good partners to assist, Regen SW and MEM Long process and needs patience, but so does oil & gas There is a requirement for new skills Geography degree

SW England – A great place for offshore renewable energy……. Peninsula location Port assets – Plymouth, Bristol, Falmouth, Appledore and others Universities with Marine and Engineering specialisms Wave Hub – a unique asset Grid connections – net importer Coastal experience SW Marine Energy Park Location of UK’s first windfarm Low carbon communities MET office Engineering supply chain

The SW Offshore Renewable Energy resource bed Tidal Wave WInd Source data: ORRAD report, 2010

Agenda  Supacat  Why renewable energy?  LEP and Low Carbon initiatives

Benefits to the SW of Offshore Renewable Energy Sustainable jobs

South West Capital Expenditure Source: ORRAD 2010 £3.5 Billion SW Capex spend on offshore renewable energy by 2030

SW Operational Expenditure Source: ORRAD 2010 Over £350m per annum by 2030

GVA (Value Add) to the Economy Technology – – in planningTotals Direct GVA Tidal CAPEX Tidal OPEX Wave CAPEX Wave OPEX Wind CAPEX Wind OPEX Totals £4.8bn GVA by 2030 Source: ORRAD 2010

South West Jobs – all technologies Source: ORRAD 2010 Over 80% wind related O&M Over 5,000 O&M posts by 2030

Low Carbon Special Interest Group  Now established with remit to: “.. involve and work with partners in the public and private sector, organisations such as Regen SW and Institution of Civil Engineers to define our position, shape our policy, and enable progress towards the first low carbon LEP by capturing funding for the region’s projects”  Region holds many Low Carbon energy programmes, such as: Hinkley Point, Atlantic Array, Cranbrook housing heating, Numerous Waste to Energy programmes, Langridge Bio

Summary KEY POINTS  Low cost  Collaborate  Innovative  South West is well served with good SME businesses  Offshore renewables offers the chance for these to buy into a global industry at the outset  The SW is well served with support organisations and we should support them