Boosting ‘green-tech’ innovation in the UK and globally at COP29

The Government’s new strategy for ‘Rebuilding the British Economy’ will be good for – and benefit from – a new generation of innovative green technologies that RedCAT actively promoted recently in Azerbaijan at COP29 as part of its practical but proven commercialisation approach which takes great ideas across the notorious ‘valley of death’ void to success in targeted world markets.

After a year of intense election campaigning, it is very encouraging that new-in-post political leaders are promoting the UK economy through a new sharp focus on: – finance and investment; infrastructure planning; clean energy development; and a progressive low carbon industrial strategy.

The new sum total is good for innovation – and particularly good for advanced green-tech innovation. However, we believe it can be made better still.

As we hope to show here, well-commercialised green innovation is good for a future-proofed, sustainable economy and can also meet the daunting challenges of a rapidly warming world.

Specifically, we consider below: – implications of the new Industrial Strategy and National Wealth Fund. Our ‘November thoughts’ explain how RedCAT Scale helps innovators to identify their first proper business home. We also look at Budget effects on transport, COP29, and SME finance.

The Government hosted a successful International Investment Summit in October; its new Clean Power 2030 strategy should meanwhile see a major expansion in offshore and onshore wind energy resources, plus solar power. The UK Innovation Strategy was designed in 2021 to create a robust and agile economy ‘fit for future generations’.

October also saw the launch of Invest 2035: the UK’s modern industrial strategy.

This will ‘focus on tackling barriers to growth in our highest potential growth-driving sectors and places, creating the right conditions for increased investment, high-quality jobs and ensuring tangible impact in communities right across the UK’.

It adds, ‘There is rapid change in the global economy, and the case for governments to roll up their sleeves and shape markets rather than step back in the face of these challenges is stronger than ever.’

We agree!

It is exciting to see a government talk about industrial strategy and a real globally-facing inward investment plan.

However, the proof of the pudding must be in the eating, and we will need to see whether much-needed investment is attracted to the UK to support both the full commercialisation and the manufacture of innovative products needed by present and future markets.

It will also be vital to eliminate barriers to infrastructure investment. A key problem is that poor infrastructure is holding back investment in other critical areas. This is why good transport links that allows products to be moved easily between locations are vital – as mentioned again later.

The new strategic approach helpfully identifies key sectors that need low carbon energy. This must lead to real funding linked to real economic benefits for Lancashire, the Northwest, and the whole UK. We cannot afford to have simply a conversational strategy!

Conventionally, government thinking has focused on developments around cities.

That does not serve regions like ours with mature but advanced industrial and manufacturing sectors which geographically resemble strings of pearls connecting groups of towns and supply chains.

We are looking for change here.

Early finance is where RedCAT’s funding record for innovations that deliver real returns is an important case study in how concrete results can be achieved.

Sudden inspiration can lead to innovation. However, experience shows that commercialisation is usually a long, slow, expensive journey. ‘If it was easy, everyone would do it’ is a good maxim here.

The problem with finance in generally is not a shortage, but that commercialisation requires early-stage funding when innovators and young companies are most vulnerable, from funders who are not totally risk-adverse or looking for an uber-fast buck.

RedCAT Ventures helps to provide this.

Many of our technology innovators are finding funding overseas. Congratulations. However, in some cases that means their first manufacturing plants follow their funding to other shores.

Part of our goal through RedCAT Scale is to keep innovation in the UK.

RedCAT has a strong track record for taking innovations across the commercialisation ‘chasm’ to new and emerging markets. To do so, we need funding that is patient and in it for the long -term.

For many companies, early-stage funding from public sources is vital to develop new products and build demonstrator units that prospective buyers can see.

They do not need public support for their tenth product when venture finance is already secured!

We believe the Government must provide more early-stage finance for innovations that will eventually pay the UK back in spades – this is a key message for Ministers and Secretaries of State.

Another key development is October’s announcement of a new national wealth fund designed to mobilise billions of pounds of investment in world-leading UK clean energy and growth industries while supporting the new Industrial Strategy.

RedCAT’s view is that this must focus on the delivery and benefits of successful commercialisation by investing in products and schemes that bring real economic returns.

It was depressing to hear that the Government’s first budget is eager to electrify the TransPennine rail line under the misapprehension this makes up for not fully-funding Northern Powerhouse Rail.

It is essential that we have more capacity to move freight by rail and shorten travel to work times. Fortunately, there will be no extra constraints on the new Manchester route which is completely funded.

We must make our products more efficiently and move them more cheaply. But we cannot become more competitive without more transport capacity.

Electrification alone will not do the job!

In October, RedCAT CEO Prof. Miranda Barker OBE DL described how RedCAT Scale helps innovators ready to launch into real manufacturing space to identify their first proper business home.

We do this by putting them in touch with the correct local authority contacts and describing their specific economic needs clearly. This month, Miranda looks at wider scale requirements.

Geographical location is often important to young or expanding companies that want to work in or be based in a certain location and this may start with a desire to immerse themselves in the midst of their supply chain, surrounding themselves with their development partners.

But additional assets must match their needs too.

This includes access to adequate and reliable power. A supply chain providing components which innovators need to manufacture their ‘kit’, plus the right transport network, are also essentials. Even small factors, such as building and workshop size, plus cranage height, can be make or break issues.

It is also possible that other supply chain members could be future development partners with complementary skills. In fact, the whole surrounding ecosystem – including RedCAT – is important.

In addition, there needs to be a fully-trained and continuously updated local skills base to meet both present and future needs. We will look at more of these issues in the New Year.

On the power issue, we have a real problem in the UK – and especially the North and Lancashire. Many manufacturing firms and sites have insufficient power for existing operations and expansion plans, let alone brand-new plants – or indeed the whole electrification journey for cars and heating.

The Government’s new strategic approach to energy will redress this by investing in large-scale infrastructure, removing ‘zombie’ projects from the long connection waiting list, and giving preference to high-priority projects.

We seriously hope they are successful because this will be a generational step-change.

All of the above centres on rewiring Britain for a complex transition from a limited number of old fossil-fuel power plants to a multiplicity of low-carbon renewable energy sources via a modern distribution system where critical local supply decisions can be made digitally in seconds.

Energy secretary Ed Miliband promises to take on ‘nimbys’ opposing a new rollout of wind turbines (including onshore at last thank goodness!), solar farms and pylons which he describes as a matter of “national security”.

He adds, “The faster we go, the more secure we become. Every wind turbine we put up, every solar panel we install, every piece of grid we construct helps protect families from future energy shocks.”

Eight new experts on the Clean Power 2030 Advisory Commission will help to speed up UK power grid decarbonisation. A new authority – the National Infrastructure and Service Transformation Authority (NISTA) – will streamline key projects.

Meanwhile, the National Infrastructure Commission (NIC) anticipates cost reductions of 10%-25%.

The National Grid Electricity System Operator (ESO) is now the National Energy System Operator (NESO) in public ownership.

It will oversee the holistic planning of Britain’s gas and electricity networks to improve coordination and unblock the current connections bottleneck to deliver a ‘clean power system by 2030’ (CP2030).

The aim is also to increase investor certainty to raise the scale and pace of network redevelopment. But NESO must move from a system based on traditional coal fields with a central transmission spine and regional distribution networks to one connecting many potentially weather-dependent renewable sources – some on business and domestic premises – plus more energy storage capacity.

This will include smart grids that use digital technologies, sensors and software to match real time power supply and demand with minimum costs and continuous grid stability and reliability.

When complete, the new system should provide sustainable energy-efficient opportunities for both buying and selling clean energy back to the national or local grid.

Meanwhile, finding a site with the right power supply, or a guaranteed date for a boosted connection, is vital.