hhic july 2013
DESCRIPTION
This issue is bursting with top contributors. If you enjoyed the new series of BBC's Springwatch then you might have noticed that we have one of its presenters on the cover. I cornered Chris Packham at oneof his Wild Night Out talks when he was stuck behind a desk and asked him for an interview. Being a kind chap he agreed and has provided us with an honest and inspiring interview.TRANSCRIPT
JULY 2013 ISSUE 20
HHICCCO
THE RT HON EDWARD DAVEY MP | PROFESSOR MIKE BRADSHAWDR TONY WATERSTON | THE CARBON TRUST | 2OC
Rebelwith a causeTV Naturalist Chris Packham
shouts above the noise
Rebelwith a cause
01 Cover.indd 2 13/6/13 16:53:56
HHIC Camden House, Warwick Road, Kenilworth Warwickshire CV8 1THT: 01926 513777 F: 01926 511923E: [email protected]: www.centralheating.co.uk
SECRETARIATDirectorRoger Webb T: 01926 513740E: [email protected]
Deputy DirectorChris Yates T: 01926 513744E: [email protected]
Technical ManagerGlyn Thomas T: 01926 513746E: [email protected]
Membership Services ManagerIsaac Occhipinti T: 01926 513742E: [email protected]
Communications ManagerJodie Wiltshire T: 01926 513743E: [email protected] Administrator Natalie Flay T: 01926 513741E: [email protected]
PUBLISHINGPublishers & Printers Warners Group Publications plc, The Maltings, West Street, Bourne, PE10 9PH. T: 01778 393313 F: 01778 394748
DEVELOPMENT PUBLISHER Juliet Travis
DESIGNAdy Braddock
ADVERTISINGAdvertising Sales Katrina Browning T: 01778 395022 E: [email protected]
Production Co-ordinator Sue Woodgates T: 01778 392062E: [email protected]
HHIC is a division of Energy and Utilities Alliance (EUA)
This issue is bursting with top contributors. If you enjoyed the new series of BBC’s Springwatch then you might have noticed that we have one of its presenters on the cover. I cornered Chris Packham at one of his Wild Night Out talks when he was stuck behind a desk and asked him for an interview. Being a kind chap he agreed and has provided us with an honest and inspiring interview. The Rt Hon Edward Davey MP talks about keeping the bills down and protecting the planet. Have you ever considered the impact of your carbon footprint on health? Well, if the answer is no, then find out more from Dr Tony Waterston, a retired paediatrician and clinical lecturer. The Chancellor of the Exchequer, George Osborne’s ‘dash for gas’ phrase is
WELCOMEFROM YOUR EDITOR
If you are interested in submitting editorial for HHIC Journal, please contact the Editor, Jodie Wiltshire on 01926 513743 or e-mail [email protected] Editor reserves the right to withhold or edit any material submitted for publication. The Editor’s decision is final.Views expressed in HHIC Journal are not necessarily the official view of the Heating & Hotwater Industry Council.The inclusion of advertising, circulation of any advertising literature or enclosures with HHIC Journal does not signify HHIC endorsement of any of the products or items concerned.
32
18
bandied about the media. But what is the future of natural gas in the UK? Professor Mike Bradshaw debates this issue. HHIC has produced some major new research called, ‘Pathways for Domestic Heat’ and Roger Webb in ‘Matter in Question’ reveals more. Are you worried about your brand reputation? James Persad from The Carbon Trust says it is time to get tough on brand crime. I hope you are not eating chips as you read my words. Have you considered what happens to all that fat? Andrew Mercer from 2OC is turning fatbergs into energy to heat schools. Hmmm wonder how many schools I would heat if you melted me down.
Jodie Wiltshire, [email protected], Twitter: @HHIC
CONTENTS
JULY 2013 HEATING & HOTWATER INDUSTRY COUNCIL02
Cover image: Chris Packham www.chrispackham.co.uk
2_3 Contents.indd 2 21/6/13 09:59:03
Chris PackhamChris Packham spent his undergraduate days at the Zoology department of Southampton University. He also embraced Punk Rock and played in a band. Post-graduation and a cancelled PhD, he began taking still photographs and trained as a wildlife film cameraman. The photography continues with exhibitions and invitations to judge prestigious competitions but the camerawork gave way to presenting. Chris began with the award winning ’Really Wild Show’ in 1986 and has been working ever since. Credits include Postcards from the Wild’, ‘Hands on Nature’, ‘Nature’s Calendar’, ‘Springwatch’, ‘Autumnwatch’, and ‘Secrets of our Living Planet.’
Edward David MP Edward Davey was appointed Secretary of State for Energy & Climate Change in February 2012. He is the Liberal Democrat MP for Kingstonand Surbiton.
Professor Mike Bradshaw Professor Mike Bradshaw is currently leading a UKERC-funded research project on global gas security. He is Professor of Human Geography at the University of Leicester and soon takes up the post of Professor of Global Energy at Warwick Business School.
Dr Tony Waterston Tony is a retired consultant paediatrician and clinical senior lecturer whose working life was spent mainly in community paediatrics in inner city Newcastle upon Tyne. He is an editor of the Journal of Tropical Pediatrics and is project director for the Royal College of Paediatrics and Child Health Palestine programme, which is about to establish an MA in a Child Health course for primary care doctors, nurses and trainee paediatricians with Al Quds medical school in the occupied Palestinian territories. Currently he leads the climate change and health campaigning group in Medact (Medical Action for Global Security) and is a local council candidate for the Green Party.
FEATURES
REGULARS
04
10
THIS IS WHO I AM BBC Naturalist Chris Packham shoots from the hip on a range of
issues from biofuel to pests
KEEPING BILLS DOWN AND PROTECTING THE PLANET Rt Hon Edward Davey MP debates what the government
is planning to do
GAS BY DESIGN OR GAS AS DEFAULT?The future of natural gas in the UK Professor Mike Bradshaw on the future role of gas in the UK’s energy system
THE NATURE OF BUSINESS Read a review of Giles Hutchins must read book for everyone
involved in the business of the future
IS YOUR BRAND VALUE AT RISK? James Persad from The Carbon Trust reveals how important brand is
to your business
CARBON, CLIMATE CHANGE AND HEALTH – NOT ALL BAD NEWSDr Tony Waterston explains the impact that your carbon footprint has
on your health
18
CONTENTSJULY 2013 ISSUE 20
CONTRIBUTORS
24
28
1232 MATTER IN QUESTIONRoger Webb reveals some major new research called HHIC Pathways
for Domestic Heat to help meet the government’s emission targets
WHERE THERE’S MUCK THERE’S MAGIC Andrew Mercer CEO from 20C reveals how they make renewable
energy from fats and oils
WWW.CENTRALHEATING.CO.UK JULY 2013 03
38
2_3 Contents.indd 3 21/6/13 09:59:34
BY JODIE WILTSHIRE
JULY 2013 HEATING & HOTWATER INDUSTRY COUNCIL04
CHRIS PACKHAM
Naturalist and wildlife presenter, Chris Packham is not afraid to speak his mind. He has a ferocious intelligence that he uses to deliver passionate but reasoned opinions. These are fuelled by growing
up listening to music which challenged communities with its nihilistic anger, providing alienated youth with an ideology. It is not always easy to say what you really think, to go against the grain. It
takes bravery and an inner � ght to do so – Packham seems to have both.
Packham reveals: “I was watching a programme I recorded on TV with a load of old punk tunes. It was the sound of the seventies or something. The � rst thing that was apparent not that I needed my
memory refreshing very much was how much energy was involved compared to contemporary music. There was a huge amount of energy, anger and honesty. What I like about this mode of
communication is that it is designed to be immediate. I � nd that motivational and I still listen to this genre of music as it does make me want to get up and do something rather than thinking someone
else will sort the problem out.”
Chris Packham
04 Chris Packham.indd 4 21/06/2013 17:03
WWW.CENTRALHEATING.CO.UK JULY 2013 05
TO ME, PUNK IS ABOUT AN INDIVIDUAL AND GOING AGAINST
THE GRAIN AND STANDING UP AND SAYING, ‘THIS IS WHO I AM.’
Joey Ramone
“PUNK WAS DEFINED BY AN ATTITUDE RATHER THAN A MUSIC STYLE”. David Byrne
04 Chris Packham.indd 5 21/06/2013 17:03
JULY 2013 HEATING & HOTWATER INDUSTRY COUNCIL06
CHRIS PACKHAM
One of the greatest threats to the natural world is
climate change and over-population. According
to WWF’s Living Planet Report, humanity’s
overconsumption of food, material goods, fossil fuels, and
non-renewable resources is putting a huge toll on the planet,
exceeding its capacity to sustain us. But many of us refuse to
see the bigger picture and focus much closer to home on our
immediate environment.
Packham believes that this is the case because it is a
global issue and not a local one. “We know that some of the
climate changes we are seeing in the UK are in� uenced by
events in other parts of the planet. For example, our current
wet spring, the shifting of the jet stream, the warming of the
Northern oceans, all these sorts of things are big issues and it
is dif� cult for people to see the tangibility. If we all had a week
in the space station looking down upon the planet, we would
realise just how small it is and how many of us are contributing
to this phenomenon. We just can’t get our heads around the
fact that we only have one planet and what is happening next
door on that planet is having an in� uence on us.
“The primary issue is to keep the planet in a liveable
state for ourselves and all the other species. The luxury of
disagreement over religion and politics will vanish, when
we realise that the main issue is about us surviving. We are
living in a student squat at the moment in abject squalor,
with no regards to tomorrow. We need to think like a � rst
time buyer, with lots of concern about how we are going to
look after our home for the next few years.”
In an ideal world nature and business behaviour would
be more bene� cial to each other. As a society we take so
much from nature and yet not want to conserve it. One of the
issues at the moment is about the folly of pursuing biofuels
at such an environmental cost. Chris Packham loathes
biofuels with a passion. “I wander in a complete cloud of
incomprehension when it comes to biofuels. It was years
ago that the United Nations put its hands up and said that
they had made a massive mistake and biofuels were not
working and we need to get out as quickly as possible. This
has not happened because they had invested in it � nancially.
If you make a mistake you have to put your hand up and
own up to it and try and rectify it. Because they have built
processing plants and integrated so much of it into our lives,
they are incapable of pulling the plug on it.
“And as a consequence of that decision, we have this
immensely destructive force in our environment and it is not
just the palm oil plantations of the Far East. A signi� cant
proportion of the crops planted in � elds in France where I
live are planted for biofuel. They are heavily fertilised and
intensely sprayed and for what? It is criminally insane and no
one has the guts to say we need to stop this.”
Packham feels strongly that economic growth equals
planetary disaster because you cannot continue to grow
when you have a limited resource. “A limited resource is the
diameter of the earth and it is not getting any bigger. You
cannot continue to grow, it really is this simple. Economists
need to take their heads out of their computers and look out
the window and realise that we live on a biosphere that is
not getting any bigger.”
But there are some organisations that appreciate that
business is less about unethical short cuts in the name of
pro� t, and more about value creation through sustainability.
Chris Packham is keen on the Velvet Toilet tissue project
that is part of the SCA group. This project, called the ‘Three
Trees’ Promise, plants three trees for each one used. It
means the company has surpassed the standard industry
practice of other industry tissue manufacturers, and since
2009 it has planted more than three million extra trees.
Packham explains: “This project replants an extra tree
in the ground in Brazil. The organisation is involved with a
Brazilian sustainable forestry company called Amata that
is sanctioned by the Brazilian government and universities.
To date they have put in four million trees into the ground
in a series of projects looking into how they can replant
rainforests so that they will be harvestable. This will create
more wealth for communities who live there. It involves local
communities from the beginning to clear the land, plough and
“ If we all had a week in the space station looking down upon the planet, we would realise just how small it is and how many of us are contributing to this phenomenon.”
04 Chris Packham.indd 6 21/06/2013 17:04
WWW.CENTRALHEATING.CO.UK JULY 2013 07 04 Chris Packham.indd 7 21/06/2013 17:04
JULY 2013 HEATING & HOTWATER INDUSTRY COUNCIL08
CHRIS PACKHAM
“I believe what we need to do is generate a greater
tolerance of all these animals because whether we like them
physically or fear them is immaterial - we need them.”
04 Chris Packham.indd 8 21/06/2013 17:04
WWW.CENTRALHEATING.CO.UK JULY 2013 09
Read more about the ‘Three Trees’ Promise at www.velvetttissue.com Series to watch out for: The Burrowers, BBC2 Summer 2013
Inside the Animal Mind, BBC2 Spring 2014
plant trees and then harvest the trees with the fruit they produce.
A key component is at least a third of the acquired land will be
pristine rainforest to keep those species.
“I am championing this project for two reasons. Firstly, if a
company such as SCA decides to spend this much money
and effort they must be applauded because that is part of the
impetus. We want companies to see it pays for them to take
this approach. Secondly, without their funding conservationists
could not achieve these projects on this scale.”
As Packham notes, the most successful large scale
conservation projects are not funded by government but
are privately supported by corporations and philanthropic
individuals. He continues: “If we enter a dialogue and
processes with these people then we have the ability to
communicate the urgency and the need for action. We need
to be in the same room with them but not in bed with them,
and it is critical that this is not the case. You never want to
watch your words.”
Seeing the effects of global warming � rst hand is quite
a sobering and frightening experience. Packham has seen
many examples of how the natural world is buckling under the
warming of the planet. He presented a highly acclaimed series,
BBC Operation Iceberg as part of a team on an expedition
to the Arctic. It investigated the unknown world of icebergs,
exploring the creation, life and death of these frozen behemoths
for the � rst time. Being part of Operation Iceberg was an
incredible experience for Packham. “When we watched those
giant glaciers disintegrate and compared data from previous
years which showed that just a short while ago there was a
much more extensive body of ice you can see the speed of
the retreat yourself. The retreat is happening in our lifetime and
it is very profound. Yes, it was a very poignant moment and I
thought to myself that I had been reading about this since my O
levels and here it is actually happening before my very eyes. It
was very beautiful and extremely terrifying at the same time.”
But does it make Packham angry that some people still
deny the planet is warming? “I have side-lined climate change
deniers, to be quite honest with you.” He adds: “Initially, we
were the mavericks going back for years now, saying that the
climate is warming. There has been a complete polarisation
here. I think those people who deny the planet is warming
and deny that we are to blame or play a role in it are now the
mavericks. I think the vast majority of the population and
certainly the thinking population, understand that to deny it is
happening is nonsense. They no longer get to me.
“They are a diminishing number of people who have
insidious vested interests, in the sense they are involved with
the petro- chemical industry or some other industry that is
contributing signi� cantly to global warming. This is becoming
transparent and their believability is fading fast. They are of no
consequence really.”
Not surprisingly, considering what people are doing to the
planet and the natural world, Packham is not a great fan of
the human race. “I see them as a disease on the planet. While
there are some � ne human beings and I enjoy the company of
my friends and family, as a species I � nd us very dif� cult to like.
There are too many of us and it is becoming worse. We have to
do something to regulate our population globally, as otherwise
we are doomed. This is not an opinion, it is a fact. Our inability to
address the problem is dangerous and embarrassing.”
As an interviewee, Packham gives the impression he has
no time for sentimentality, nimbyism and people who like
to put the animal kingdom into boxes. He does not care for
people who hold subjective opinions about what is a good or
bad animal. He is scornful of the cute factor and its opposite
- labelling the outsiders of the natural world as ‘pests.’ This is
simply not in his vocabulary. He does not see animals as pests
but considers them successful at our expense.
“We need to understand that in order for ecosystems
to remain sustainable and stable, we need the greatest
complement of species to live there and this includes the so-
called pests. Cockroaches, pigeons, wasps and rats all play
a role. If we decide that we do not like them and want to take
them out of the equation that is a very dangerous precedent.
They have evolved to do a speci� c job,” he adds.
“And typically one thing that we struggle to live with, in
many if not all parts of the world, are large predators. We
want to take them out of the equation too, because they
con� ict with our interests, such as by eating our farm stock. I
believe what we need to do is generate a greater tolerance of
all these animals because whether we like them physically or
fear them is immaterial - we need them.”
Packham seems the type to always rage against the machine
and we need more people like him. Music, like nature, has
inspired him to want a better world. “One particular track which
I have always liked is by a band called Penetration and the track
is called, ‘Shout Above The Noise.’ The mantra of the piece is
that if you want to make a difference you’ve got to get up and
do it yourself. I have listened to that track for the past 35 years of
my life. Every time I hear it, I say yes, that is what it is all about.
It is about not being intimidated and refusing to take a no for an
answer. It is about � nding the energy to make that difference.”
04 Chris Packham.indd 9 21/06/2013 17:04
Image: Robert Shuttleworth
JULY 2013 HEATING & HOTWATER INDUSTRY COUNCIL10
ED DAVEY MP
The government has a duty to help keep bills down and help people to manage the cost of living – and that’s what we are relentlessly focused on doing.
There’s a lot of help available to the most vulnerable, such as the Green Dealand the Energy Company Obligation, and the Warm Home Discount. and the Energy Company Obligation, and the Warm Home Discount.
KE
EPING BILLS DOWN AND
PR
O
TECTIN G T H E PLA
NE
T
The Green Deal is designed to
improve the energy effi ciency
of the nation’s housing stock
and help households save money on
their bills. It’s a scheme that will be
in place for the long-term, but fi gures
are showing a very encouraging
start. Already, more than 18,000
people have had assessments
carried out on their homes.
Under the Warm Home Discount,
two million households were helped
this winter and more than one million
low income pensioners received £130
off their bills.
But my Department has been
concentrating on keeping bills as low
as possible over the long-term - and
for everyone. Already our policies are
keeping bills lower than if government
did nothing – by an average of £65.
Some people think climate change
policies to support things like wind
farms are what are behind high bills.
But they couldn’t be
more wrong.
The biggest single factor driving bills
higher is global oil and gas prices. They
have been rising remorselessly, fuelled
by demand in growing economies like
China. And, they’re likely to keep rising.
55% of people’s gas bills and 37%
of their electricity bills are made up of
wholesale energy costs alone.
The government can’t control the
global market and drive down these
international wholesale prices.
What we can do is take steps to
put a cushion between these global
prices and the bills we all pay at
home – insulating our economy as
well as our homes and businesses.
Through investment in domestic
sources of low carbon energy like
nuclear, wind and wave power, and
other renewables, we are looking to
diversify supply and help cushion
consumers from volatile fossil fuel
prices in the future.
“Some people think climate change policies to support things like wind farms are what are behind high bills. But they couldn’t be more wrong.”
10 Ed Davey.indd 10 21/6/13 10:14:08
Image: Robert Shuttleworth
WWW.CENTRALHEATING.CO.UK JULY 2013 11
KE
EPING BILLS DOWN AND
PR
O
TECTIN G T H E PLA
NE
T
The reforms we are making to the
electricity market through the Energy
Bill will help incentivise £110 billion
investment from the private sector,
with a focus on home-grown clean
energy infrastructure.
The policies we have in place are
not just about building new power
stations; they are about improving the
energy effi ciency of our housing stock
and our businesses.
Through the Green Deal we are
encouraging people to improve their
homes, make them warmer and save
money on their heating and electricity
bills. The Energy Company Obligation
will ensure that the households and
properties that need it the most benefi t
from energy effi ciency improvements.
Smart metering will help households
manage their energy usage, and
provide more accurate billing.
We’re also helping those who
aspire to generate their own electricity
through the feed-in tariff, under which
solar panels still represent a fantastic
long-term investment.
And while support for renewable
heat is not funded through consumer
bills, over 10,000 householders have
already taken advantage of money
off renewable heating kit through the
Renewable Heat Premium Payment.
We recently announced an increase
to voucher levels under the scheme.
Money off vouchers available have
been increased to £2,300 for ground
source heat pumps, £2,000 for
biomass boilers, £1,300 for air source
heat pumps and £600 for solar
thermal systems.
In 2020, bills will on average be
around 11 per cent lower, than they
would be if we were doing nothing.
And that assumes fossil fuel prices
do not rise radically, in which case
savings would be even larger.
Let’s be clear - bills will still likely
be higher than they are today. But
they will be £166 lower than if we sat
on our hands, left ourselves exposed
to global price shocks and left future
generations to deal with the threat of
climate change.
This government is proving that
helping to tackle climate change, and
diversify energy supply, doesn’t have
to cost the earth.
In fact it creates green growth and
green jobs. These are benefi ts that
will stretch across the country, as
low carbon supply chains spring up
and make some of our once-thriving
industrial heartlands prosper again.
The move to a clean energy
sector will place the UK at the
leading edge of a new global green
energy market worth around £3.3
trillion. This is a revolution the UK
cannot afford to pass up.
So, our policies are not only about
tackling climate change, diversifying
supply and creating jobs, but also
about saving money on bills too, with
the interests of the consumer front
and centre.
“The biggest single factor driving bills higher is global oil and gas prices. They have been rising remorselessly, fuelled by demand in growing economies like
China. And, they’re likely to keep rising.”
BY EDWARD DAVEY MP,SECRETARY OF STATE FOR ENERGY AND CLIMATE CHANGE
10 Ed Davey.indd 11 21/6/13 10:14:20
MATTER IN QUESTION
JULY 2013 HEATING & HOTWATER INDUSTRY COUNCIL12 JULY 2013 HEATING & HOTWATER INDUSTRY COUNCIL12 WWW.CENTRALHEATING.CO.UK JULY 2013 13 Matter in Question.indd 12 13/6/13 17:07:45
WWW.CENTRALHEATING.CO.UK JULY 2013 13
BY ROGER WEBB, HHIC DIRECTOR“Thi
s di
stan
t, al
l or n
othi
ng s
olut
ion
appe
ars
deta
ched
from
the
curr
ent r
ealit
y, fa
ils
to o
ffer a
sta
ged
appr
oach
in fa
iling
to
reco
gnis
e th
e co
ntin
uing
role
of n
on-e
lect
ric
sour
ces
of s
uppl
y, a
nd ta
kes
no a
ccou
nt o
f th
e fo
rces
whi
ch d
rive
hum
an b
ehav
iour
.”
Heat is the single biggest reason we use energy in our society. According to the government’s 2012 report: The Future of Heating – A Strategic framework for low carbon heat in the UK, we use more energy for heating than for transport or the generation of electricity. We in the UK will spend around £33 billion on heat across our economy.
JULY 2013 HEATING & HOTWATER INDUSTRY COUNCIL12 WWW.CENTRALHEATING.CO.UK JULY 2013 13 Matter in Question.indd 13 13/6/13 17:08:07
JULY 2013 HEATING & HOTWATER INDUSTRY COUNCIL14 WWW.CENTRALHEATING.CO.UK JULY 2013 15
MATTER IN QUESTION
Matter in Question.indd 14 13/6/13 17:08:31
JULY 2013 HEATING & HOTWATER INDUSTRY COUNCIL14 WWW.CENTRALHEATING.CO.UK JULY 2013 15
Professor David Mackay, chief
scientific advisor to the Department of
Energy and Climate Change (DECC)
devised a model for 2050. It presents
a zero carbon electric pathway to a
low carbon future. Mackay believes
that within 40 years transport, heating
and industry need to be electrified,
electricity supply may need to double,
and the grid must be decarbonised
and able to cope with intermittent
renewable generation.
This distant, all or nothing solution
appears detached from the current
reality, fails to offer a staged approach
“The industry requires consistent and clear policy making rather than the
mixed signals, delays and confusion of recent years. We would like to
work in partnership with DECC to develop a framework to deliver this.”
in failing to recognise the continuing
role of non-electric sources of supply,
and takes no account of the forces
which drive human behaviour.
So what isthe problem?Well let’s start with putting you in
the picture clearly and simply.
By 2027 the government’s target
for domestic heating is 50.2 million
tonnes of carbon dioxide emissions.
We are currently on 80 million
tonnes of CO2.
One of the problems is that the
UK has one of the oldest stocks of
residential buildings in Europe. These
homes are not energy efficient and all
add to higher carbon emissions that
are detrimental to the planet. With
these differing property types a one
size fits all approach will not work
when it comes to installing suitable
technologies. Today, 1.5 million
boilers are sold every year. To meet
the government’s 2027 target, only
500,000 boilers should be sold, with a
mix of other technologies.
This is a huge change. Part of this
adjustment will require consumers
to come on board and play their
part. But human behaviour is hard
to influence and it may mean that
to create the right kind of demand
the carrot of incentives needs to be
backed up with the stick of regulation.
Matter in Question.indd 15 13/6/13 17:08:54
JULY 2013 HEATING & HOTWATER INDUSTRY COUNCIL16
MATTER IN QUESTION
Our scenarioHHIC has come up with its
own scenario on behalf of the
industry to take the UK towards
a decarbonised society. We
commissioned research and
analysis for Pathways for Domestic
Heating from Delta Energy and
Environment. This research
supports our view that we need to
keep a number of options open for
as long as possible.
Despite Professor Mackay’s
modelling, DECC itself has released
an updated view for domestic heat
to 2050, concluding that gas will be
an important part of the energy mix
to 2030 and beyond. Our scenario
includes heating products that will
lower the carbon emissions through
their energy efficiency. As part of
our research, we looked at different
property types and with the help of
our industry came up with products
that would be suitable.
It is vital that we have a mix of
energy products and we believe
that the government needs to
acknowledge this openly. The
industry could produce these
modern products by 2027 at
volumes which would support
progress to the 2050 target. This is
why we have opted for a balanced
mix of technologies that can be
taken to 2030. Timing is critical to
ensure that the UK is on the correct
trajectory for meeting the binding
2050 targets.
Our research pathway shows the
government how the industry can
help them meet the figure of lower
carbon emissions through product
development. The government must
be serious about meeting these
targets as to deliver our scenario
will require huge investment from
industry to develop new and
innovative products. But the pace
that the government is prescribing
means that industry also has to do
this much faster too.
Being part of this change will
also require consumers to come on
board and play their part. But human
behaviour is hard to influence and
it may mean that to create demand
once incentives have been offered,
regulation is the next best step.
There will be greater opportunity
for consumers to choose specialist
technologies that will be suitable for
their properties.
But we cannot kick-start any of
this into action if the government only
present a long-term ambition without
any realistic intermediate targets.
They need to instil confidence to our
industry. For our manufacturers to
bring new low carbon technologies
to the marketplace they need to
be certain that the government is
committed to its targets.
What do we require the government to do?We require that it puts an
intermediate scenario in place,
a pathway to get to 2030 that
would provide industry with more
security. The heating industry needs
assurance that government policy
will be in place before they invest
heavily in product development
and innovation. If this does not
happen then under business as
usual, the market will continue
to demand condensing boilers
with less numbers of renewable
and low carbon products. Electric
heating and heat networks have a
strong role to play but so do low
carbon gas appliances. Current
government policy is not giving
us the confidence and we cannot
make the necessary investments
because the government has not
yet developed a credible pathway
and set of policies that enabled us
to meet the 2030 target.
What do we want?The industry requires consistent and
clear policy making rather than the
mixed signals, delays and confusion
of recent years. We would like to
work in partnership with DECC to
develop a framework to deliver this.
The framework can consist of a mix
of interventions, such as incentives,
regulation, finance solutions such as
the Green Deal, or tilting the playing
field through taxes. A good example
is the car industry that the European
Commission has set output based
performance standards for vehicles.
If we are given this assurance
to invest and with the right
interventions from the government
to help create demand, then we will
invest and innovate.
We will play our role in offering
solutions to the market.
For further information on the HHIC Pathways
for Domestic Heat contact Roger Webb at [email protected]
12 Matter in Question.indd 16 21/06/2013 12:30
WWW.CENTRALHEATING.CO.UK JULY 2013 17
“Our research pathway
sho
ws
the
gove
rnm
ent h
ow th
e ind
ustry can help them meet the figure of low
er carbon emissions through product development.”
Matter in Question.indd 17 13/6/13 17:12:40
BY PROFESSOR MIKE BRADSHAW
PROFESSOR MIKE BRADSHAW
or gas as
JULY 2013 HEATING & HOTWATER INDUSTRY COUNCIL18 18 Gas by Design.indd 18 21/6/13 10:29:27
In recent months there has been a good deal of discussion about the
future role of gas in the UK’s energy system. The debate has been
prompted by numerous government policy statements and reports,
worries about the imminent closure of coal-fi red power stations and the need to import expensive liquefi ed
natural gas (LNG), and by the growing controversy surrounding
the prospect of domestic shale gas. Has all of this activity created any greater certainty about the future
role of gas in the UK?
To address this question it is necessary to adopt a ‘whole systems approach.’
This is because future demand for gas—and the need to invest in its associated
infrastructure—will largely be determined by the success or failure of the
government’s wider energy strategy. This has at least fi ve key elements: energy
effi ciency and demand reduction, the development of renewable energy,
the electrifi cation of the economy, the construction of a fl eet of new nuclear
power stations, and the deployment of carbon capture and storage (CCS).
The problem is that, while we have numerous strategies, plans and road maps
that will deliver an 80 per cent reduction in emissions by 2050, we are already
behind where we need to be on just about every element. For example, there is
currently no private sector commitment to build the next generation of nuclear
power stations. Equally, progress on CCS is delayed. There is also considerable
distance yet to travel if the UK is to meet its 2020 target of 15 per cent of energy
production from renewable sources. Finally, although demand reduction and
“There is alsoconsiderable distance yet to
travel if the UK is to meet its 2020 target of 15 per
cent of energy production from renewable sources.”
WWW.CENTRALHEATING.CO.UK JULY 2013 19 Gas by Design.indd 19 13/6/13 17:13:45
JULY 2013 HEATING & HOTWATER INDUSTRY COUNCIL20
PROFESSOR MIKE BRADSHAW
energy effi ciency programmes are the
logical things to do, history suggests
that they seldom realise anything like
their full potential.
Any delay in the implementation of
the various elements of the strategy
will mean more gas in the UK’s
energy mix for longer than expected.
The high level of uncertainty is
abundantly clear in National Gird’s
projection for future gas requirements.
The difference in required gas
supplies in 2019-20 between their
‘Gone Green’ projection—(realisation
of the government’s energy strategy)
and their ‘Slow Progression’
strategy—(more limited progress
on key elements of the strategy)—is
25.1 bcms. That is, between just
under 73.8 bcm and 98.9 bcm of
gas supply. By 2030 the difference
is even more signifi cant: 56.8 bcm in
Gone Green and 88.5 bcm in Slow
Progression. This uncertainty about
future demand presents a major
challenge for those seeking to source
gas for the UK market, for those who
need to invest in future gas-fi red
power generation capacity, and for
those who need to invest in new
pipelines and processing and storage
facilities. All of these are in the private
sector and need a sound business
case on which to base their decisions.
On the power generation side
of the equation, the government’s
response is the Gas Generation
Strategy and the creation of a
Capacity Market. The recently
appointed Minister for Energy,
Michael Fallon, has described the
Capacity Market as an ‘insurance
policy’ to ensure continued security
of electricity supply. The aim is
to pay generators to ensure that
there is suffi cient future generating
capacity to meet all eventualities.
The idea is that new gas power
generation capacity will be needed,
but that the load on that capacity
will be signifi cantly lower than today
Fracking - Roan Plateau near Rifl e, Colorado
Gas by Design.indd 20 13/6/13 17:18:32
WWW.CENTRALHEATING.CO.UK JULY 2013 21
“The physical availability of gas will probably not be the issue,
the price that consumers have to secure that gas may well be.”
Gas plant in Norway
Gas by Design.indd 21 13/6/13 17:19:07
JULY 2013 HEATING & HOTWATER INDUSTRY COUNCIL22
PROFESSOR MIKE BRADSHAW
because gas will primarily be acting
as back up to intermittent wind
energy. In effect the CCGT operators
will be paid to install capacity, and
then generate at much lower loads
than is currently economical.
Unfortunately, the industry’s
response has been to postpone
decisions on future investment
in gas power. However, the
insurance policy is just as likely to
be needed to compensate for the
non-replacement of nuclear base
load in a timely fashion and/or the
failure of renewable energy sources
to expand as quickly as anticipated.
In other words, it is an insurance
against policy failure, but even
more worryingly for some, it also
creates the possibility of a change
in direction.
In such a scenario, in the absence
of CCS, high levels of unabated gas
fi red generation beyond the mid-
2020s will certainly compromise the
government’s emission reduction
targets. There are those, such as
the Committee on Climate Change,
who advocate that the government
should hold its nerve and press
ahead with the rapid development
of low carbon energy. Others,
including the Chancellor of the
Exchequer it would seem, advocate
further development of gas power
generation as a more cost effective
means of reducing emissions. The
two camps are probably arguing
at cross purposes, short-term gas
can contribute to decarbonisation
if it replaces coal, longer-term gas
as fossil fuel can only really remain
in the mix with CCS if emission
targets are to be met. However, if
CCS is available then gas will have
to compete against coal and much
will depend on the relative cost of the
or gas as
Gas in the desert – Quatar
Gas by Design.indd 22 13/6/13 17:39:53
WWW.CENTRALHEATING.CO.UK JULY 2013 23
two fuels, the cost of carbon and the
cost-ef� ciency of CCS when applied
to the power generation plant.
The argument that I have made
thus far is that there is signi� cant
uncertainty about future gas demand
and that this is a source of insecurity,
as it makes future investment dif� cult
to commit to. The government hopes
that its capacity market will address
this situation. However, there are
also legitimate concerns about the
cost of future gas security of supply.
Natural gas production in the UK
peaked in 2000 and the UK became
a net natural gas importer in 2004.
In a very short period of time the UK
has become a substantial importer
of natural gas, though the situation
at present is complicated by the
impact of economic recession and
resurgence of coal. Nonetheless,
provisional � gures from DECC
for 2012 show that indigenous
production covered about 53 per
cent of domestic demand, down
from 58 per cent the previous
year. This is because although
domestic gas demand fell by 5.6
per cent during 2012, domestic
production fell by 14.1 per cent.
All of the projections suggest that
domestic conventional production
will continue to fall, so the level
of imports will be determined by
what happens to demand. Both the
Gone Green and Slow Progression
scenarios discussed earlier show
gas import dependency reaching
80 per cent by 2030; the key
difference is the physical volume of
gas demand and thus the absolute
amount of gas that will need to be
sourced from external suppliers.
The rapid growth in UK gas
exports has been enabled by
a reorientation in the national
transmissions system, the
construction of new pipelines from
Norway and interconnectors to
Europe and the development of three
LNG terminals. Therefore, the UK
now has the necessary infrastructure
in place to deliver substantial
amounts of imported gas to market.
The one issue that remains is
storage. It is generally accepted
that as the UK can no longer surge
production from the North Sea in
times of high demand, so additional
storage capacity should be built.
Who should pay for it remains an
unresolved issue.
The UK gets its gas from four
sources: by pipeline from the
UK continental shelf, by pipeline
from Norway, by pipeline from
continental Europe (identi� ed in the
statistics as from Belgium or the
Netherlands) and as LNG. Each
of these supply vectors exposes
the UK to a rather different set of
risks. To simplify the situation we
can say that, one the one hand, the
UK is now increasingly exposed to
developments in EU gas markets
through imports and exports via the
two interconnectors; on the other
hand the UK is increasingly exposed
to developments in the global LNG
market. In 2012 only 27 per cent of
UK gas imports were in the form of
LNG. However, the year before, the
share was 46 per cent and 80 per
cent of those imports came from
Qatar. In fact, in 2011 two countries,
Norway and Qatar, accounted for
80 per cent of the UK’s gas imports.
Thus, while the UK has the capacity
to source gas imports from multiple
sources, these imports are currently
highly concentrated geographically.
Moving forward, there are concerns
that as LNG imports increase, as
they are likely to do as coal is forced
out of the mix, UK consumers will
have to pay higher prices to attract
LNG cargoes. It is noteworthy that
Centrica recently signed a deal with
Cherniere Energy to deliver LNG
from the US for 20 years starting in
2018. This came after Centrica failed
to reach a long-term agreement
with Qatar, which has increased
its exports to Japan in the wake of
the Fukushima disaster. For the
moment supplies from Norway
are seen as secure and could
even increase in the near future to
maximise the infrastructure that
has been put in place, however,
there is uncertainty into the 2020s
as the � elds supplying the UK
pipelines decline, production
moves further north and Norway
prioritises Continental European
markets. Of course, the hope is that
by then the UK will have access to
indigenous shale gas production.
But the scale and pace of UK shale
gas development is itself far from
certain and it would be imprudent to
assume that it will compensate for
declining conventional domestic gas
production. Equally, domestic biogas
can help to sustain indigenous
production, but the reality is that
the UK’s gas import dependence
will continue to increase through
the remainder of this decade and
will remain high thereafter. The key
uncertainty is the level of future
gas demand and thus the absolute
amount of gas the UK industry
will need to source from external
markets. Whatever the volumes,
UK policy makers and the suppliers
and consumers of natural gas now
need to pay far more attention to
developments in the European gas
market and the global LNG market
than they have in the past.
The reality is that certainty about
future gas demand in the UK will
remain elusive. This is because it
is dependent on the wider success
or failure of the government’s
energy strategy. All of the current
indications are that key elements
of that strategy will be delivered
late and some possibly not at all.
Thus, we will have need of more gas
for longer and we should now be
planning for that eventuality, rather
than assuming that it will always
be available as the default position.
The physical availability of gas will
probably not be the issue, the price
that consumers have to secure that
gas may well be.
“There are those, such as the Committee on Climate Change, who advocate that the government should hold its nerve and press ahead with the rapid development of low carbon energy.”
18 Gas by Design.indd 23 27/06/2013 11:04
JULY 2013 HEATING & HOTWATER INDUSTRY COUNCIL24
THE NATURE OF BUSINESS
The
of Business
The
of Business
Book Review.indd 24 13/6/13 16:55:09
25 WWW.CENTRALHEATING.CO.UK JULY 2013
of Business
“If we do not conduct our business within the constraints of the system, we will inevitably
go out of business.”
Redesigning for resilience
We need real change in our world and this is why Hutchins’s book sets out a new business paradigm. It is not written in meaningless business jargon as the structure takes the form of nine easy-to-read modules and you can just dip leisurely in and out.
Author, Giles Hutchins presents the challenge to the prevailing ‘business as usual’ model, explains the pressing need for transformational change, and reveals the concepts and mindsets necessary to
inspire the businesses of tomorrow.
Book Review_Nature of Business.indd 25 13/6/13 17:44:52
JULY 2013 HEATING & HOTWATER INDUSTRY COUNCIL26
THE NATURE OF BUSINESS
Book Review.indd 26 13/6/13 16:55:35
WWW.CENTRALHEATING.CO.UK JULY 2013 27
Going beyond current approaches
to responsible and green business,
Hutchins focuses on the emergence
of new ways of operating and
creating value in an increasingly
volatile and interconnected world.
He makes the compelling case that
businesses should seek to mimic
behaviours and organisations found
in nature, which offer fi tting models
for businesses capable of fl ourishing
in chaotic and uncertain times.
It is teeming with case stories
from UK-based giants such as
Apple, Coca Cola, Nike, Toyota,
Unilever, Nokia and Virgin. These
examples illustrate practically
how companies are integrating
sustainability as part of their
business plan. They are all hugely
successful, household names that
realise it is important to replenish
what is taken out. The reason
for this is not only for profi t but
to create better partnership roles
with charities that could benefi t
communities in other parts of the
world. M&S has joined forces with
Oxfam, Kenco with the Rainforest
Alliance and Unilever with the
National Childbirth Trust.
The idea of the ‘aware’ company is
explained. The more thoughtful values
and behaviour of employees who
connect with those of the business,
the more conscious that business will
become. This is more powerful than
any business goals or targets.
The fi rm of the future, he argues,
will build resilience, optimise, adapt,
integrate systems, navigate by
values and support life-building
activities. It will be a business
inspired by nature for the greater
good and ultimately the well-being of
our planet.
The Author:Giles Hutchins is a management consultant with over 15 years of business and IT transformation experience, formerly with KPMG and Atos International. His
passion is exploring ways of applying nature’s inspiration to sustainable business transformation. Drawing on a range of theories and practices (such as biomimicry,
cradle-to-cradle and industrial ecology),he applies them to the challenges businesses face today, providing practical insight
and guidance to help organisations redesign for resilience in these volatile times. Giles blogs at http://thenatureofbusiness.org
Join in the online discussion atwww.businessinspiredbynature.com/natureofbusiness
Book Review_Nature of Business.indd 27 13/6/13 17:47:58
JULY 2013 HEATING & HOTWATER INDUSTRY COUNCIL28
THE CARBON TRUST
Use your detective skills to investigate worrying areas
28 Brand at Risk.indd 28 21/06/2013 17:17
29
BY JAMES PERSAD
A small but critical role of a Head of Brand has forever been to ensure that their business and its associated partners are adhering to correct, consistent and proper use of the brand assets available to them. If necessary we or one of our team are required to intervene in order to make sure something heinous looking or sounding doesn’t make it out of the door into the public domain.
WWW.CENTRALHEATING.CO.UK JULY 2013
But what about the biggest
brand asset of all, the actual
product or service being
sold? As the horsemeat scandal
developed into a full blown supply
chain crisis, you may have read
the recent headlines about the
contents of what certain brands
have been making and selling, their
very products and services, and
shuddered at the thought of a major
environmental, health or safety related
breach of trust with your customers;
the impact this has on your
favourability scores, the damage to
your businesses share price and the
erosion of a reputation that you have
nurtured over the months and years.
From what speci� c ingredients go
into your products if you’re a food
and drink brand, to your damage to
the environment if you’re a petro-
chemical brand, the impacts of an
environmental, health or safety related
“Public trust in all sorts of institutions, including business, as well as politics and the media, has been at an all-time low for a few years, having been eroded by various scandals.”
28 Brand at Risk.indd 29 21/06/2013 17:17
JULY 201330
THE CARBON TRUST
breach of trust can be far reaching.
Indeed a major crisis of trust can
sometimes spell the end of the line
for individual employees, for business
areas and occasionally for entire
brands themselves, as you know.
In a world where even relatively
minor misdemeanours are shared
with unforgiving speed around the
globe, no brand is safe.
Public trust in all sorts of
institutions, including business, as
well as politics and the media, has
been at an all-time low for a few
years, having been eroded by various
scandals. The signs are that this trust
is stabilising, however, and brand
guardians need to do much more to
make sure that this trust is respected,
fed and watered to ensure it blooms.
Edelman, a corporate affairs
agency, has just published its global
trust barometer. “...the number one
reason reported for trusting business
less over the last year was wrong
incentives driving business decisions
(28%)”(Source: Edelman Trust
barometer 2013).
It is no longer good enough from
a governance point of view for brand
guardians to claim ignorance of
what is going on in their wider
business from a reputational
and environmental risk
perspective. The technology
and retail brands employing
workers overseas in far eastern
supply chains have suffered
knocks to their reputations
over the welfare of these
employees, as have those car
brands that end up having to
recall a model because of the
corporate drive to put out new
cars without the nuts and bolts
being properly road tested.
It is all very well having
a crisis management plan
in place but by that time
it is often too late and the
brand damage is done. Trust in a
brand takes an age to develop and
moment to destroy. It is the brand
team’s responsibility to poke their
noses in, often where they are not
necessarily wanted, to ensure that
the organisation is staying honest
to its customers and stakeholders,
and behaving in a way that is
sustainable. Taking responsibility for
breaches of trust applies to CEOs
as we have seen in the banking and
petro-chemical world. This should
also apply to Heads of Marketing
and Brand, who are uniquely
positioned with the media budgets
at their command to ensure that
good governance practices and
suitable corporate behaviour is
taking place across their organisation
and deep into their supply chains.
It is made easier with the tools and
expertise available to help guide
these interrogations and make them
relatively simple to conduct - even
across a large organisation, its
seemingly complex supply chain and
into its customers use and disposal
of the products or services they buy
from you.
what is going on in their wider
workers overseas in far eastern
employees, as have those car
corporate drive to put out new
cars without the nuts and bolts
“It is all very well having a crisis management plan in place but by that time it is often too late and the brand damage is done. Trust in a brand takes an age to develop and moment to destroy.”
28 Brand at Risk.indd 30 27/06/2013 10:38
WWW.CENTRALHEATING.CO.UK JULY 2013 31
Use your detective skills to investigate worrying areasEnvironmental, Health & Safety
risks are top of many corporate
risk registers. These are a classic
method of monitoring a variety of
risk likelihoods and impact levels
within an organisation. Ownership
of these registers is often only
con� ned to compliance or company
secretariat roles though, which
do not traditionally contain the
deeper understanding of the brand
required to appropriately appraise
or score certain risks from a brand
damage perspective.
It would be wise for heads of
brands to ensure they are involved
in the development of the EH&S
risks being measured and reviewed
and also in the monitoring and
scoring process, as they may well
be able to spot an impending brand
risk sooner than other members of
the team.
At this point they need to clearly
describe the brand value at risk
resulting from the risk identi� ed, and
go and communicate this description
in writing and verbally to the
appropriate colleagues so that they
are left in no doubt about the potential
consequences if the risk materialises.
In this way wider team members
will understand more about the
brand risks associated with their
activities, the impacts that these can
have on their roles, their business
areas and the company itself should
those risks materialise, and take the
appropriate steps to mitigate against
them before they happen.
“It is no longer good enough from a governance point of view for brand guardians
to claim ignorance of what is going on in their wider business from a reputational and
environmental risk perspective.”
James joined the Carbon Trust in 2009 as a Marketing Manager to
provide expertise on data driven marketing campaigns. Since then he has
expanded his marketing role across other areas of the organisation and
into brand awareness activity alongside data driven comms.
Prior to joining the Carbon Trust, James was a Director at a Digital
and Direct marketing agency in Covent Garden. He delivered award
winning campaigns in global and London based agencies for 11 years,
across many sectors (FS, auto, travel, retail, FMCG, B2B, tech, charity)
and disciplines including Advertising, DM, Digital and Sales Promotion.
James has a BSc in Management Sciences from the LSE.
Brand police – make sure your brand is in order
28 Brand at Risk.indd 31 21/06/2013 17:18
BY DR TONY WATERSTON
DR TONY WATERSTON
JULY 2013 HEATING & HOTWATER INDUSTRY COUNCIL32
NOT ALL BAD NEWS
AND HEALTH
Dr T.indd 32 13/6/13 17:22:27
BY DR TONY WATERSTON
WWW.CENTRALHEATING.CO.UK JULY 2013 33
NOT ALL BAD NEWS
AND HEALTH“Air pollution is already a major
menace in large cities and is the result primarily of the burning
of oil, coal and gas. Increased motor traffic and particularly
diesel fumes are high in particulates and very polluting.”
Dr T.indd 33 13/6/13 17:22:43
JULY 2013 HEATING & HOTWATER INDUSTRY COUNCIL34
DR TONY WATERSTON
As a paediatrician interested in public health, I am a member of the Climate and Health Council, the UK’s leading independent
organisation of health professionals campaigning on climate change. See the website at: www.climateandhealth.org
On the website you can fi nd many articles and illustrations about the health effects of climate change.
http://www.climateandhealth.org/health_impacts.html
If you were to ask the average member of the British public about how he or she will be affected by the excessive use of fossil fuels, I suspect their health would be low on the list of answers. I would surmise that their responses from the more aware would include global warming, melting icebergs, sea level rise, reduction in car use, species extinction. Others might say, it’s not my problem, or that oil will last a long time yet. In fact health will be hugely affected, and for the better, if we can reduce our fossil fuel dependence. Health will be incrementally worse if we carry on as we are.
What are the results of excessive use of fossil fuels?This may seem an obvious question but the effects of their excessive use of
fossil fuels are multiple:
• Depletion of oil, coal, gas
• CO2 rise with consequent
climate change
• Pollution of the atmosphere in cities
• Production of waste which does not degrade
• Obesity owing to heavy use of motor vehicles
The top two effects are fi rstly
so-called ‘peak oil’, which means
that we have reached the maximum
rate of extraction and reserves are
diminishing. Secondly, climate change
owing to the greenhouse effect.
Peak oil which will be
accompanied by pressure on
reserves of all non-renewable
products including minerals and
water will lead to energy price rises
which will affect fuel and transport
costs. This will have a knock-on
effect in increasing prices of most
other services including food.
The poorest will be most affected
since a higher proportion of their
income is spent on food and they are
less able to absorb price increases.
Hence, there will be increasing
malnutrition unless renewables
quickly take over from oil as an
energy supply. For transport this
means greatly increased investment
in electric cars, buses and trains.
Air pollution is already a major
menace in large cities and is the
result primarily of the burning of oil,
coal and gas. Increased motor traffi c
and particularly diesel fumes are high
in particulates and very polluting.
This pollution increases the burden
of respiratory infections and asthma
and is a likely cause of the recent
increase in asthma in children living
in urban environments.
The production of non-degradable
waste such as plastics is also
damaging to health, particularly
plastic bags whose use is increasing
exponentially in countries which do
not regulate their use.
Obesity as a result of less active
travel is covered below.
How will healthbe affected in low income countries?Already the impact of climate
change in Asia and Africa
is considerable though little
publicised. The seminal Lancet
paper of 2009 which headlined
climate change as the greatest
global threat to health of the 21st
century is a major source of data:
http://issuu.com/climateandhealth/
docs/ucl-lancet_-_managing_the_
health_ef/1
AN
D H
EALT
HA
ND
HEA
LTH
Let me set out what these impacts are likely to be, and how we could improve our health and wellbeing through a carbon
reduction programme.
32 Dr T.indd 34 21/6/13 10:42:47
WWW.CENTRALHEATING.CO.UK JULY 2013 35
“Glacier melting in the Himalayas is
projected to increase flooding and will
affect water resources within the next two to
three decades.”
Dr T.indd 35 13/6/13 17:23:13
JULY 2013 HEATING & HOTWATER INDUSTRY COUNCIL36
DR TONY WATERSTON
The health effects of climate changein low income are?
• Increasing malnutrition owing to drought and increasing costs of fertiliser
and imported food
• Increasing vector borne disease (eg malaria, trypanosomiasis) as higher
temperatures will favour insect spread
• Increased water borne diseases
• Direct impact on health of increased temperatures
• Higher ozone levels leading to respiratory involvement
• Sea level rises leading to fl ooding of low lying states
• Weather extremes affect crop growth and yield.
There will be a differentially
greater impact on the most
vulnerable in the community,
namely children, mothers and the
elderly. Also the poorest will suffer
most and hence there will be a
widening of health inequalities.
A useful reference on climate
change in Africa is: http://know.
climateofconcern.org/index.
php?option=com_content&task=a
rticle&id=105
In Asia too, we see marked
changes and the World Bank has
stated that ‘Climate change is
no longer an issue for the distant
future. Climate change is already
taking place, and the South Asian
countries, particularly the poorest
people, are most at risk.’ For
example, glacier melting in the
Himalayas is projected to increase
fl ooding and will affect water
resources within the next two to
three decades; crop yields could
decrease up to 30% in South
Asia by the mid-21st century;
mortality due to diarrhoea primarily
associated with fl oods and
droughts, will rise in South Asia.
See: http://go.worldbank.
org/0XAV4BYO60
“The impact of changing weather on agriculture and food growth leads to higher
food prices and malnutrition.”
Dr T.indd 36 13/6/13 17:24:05
WWW.CENTRALHEATING.CO.UK JULY 2013 37
It has been suggested by the
Faculty of Public Health in its
report called: ‘Sustaining a Healthy
Future’, that there is a close
connection between fossil fuels,
climate change and obesity in
that as we drive and fl y more, we
walk and cycle less. The sedentary
behaviour we see now in the rich
North and which the well off in the
South are now mimicking is one of
the main determinants of obesity,
which has now reached epidemic
status. Active travel on foot or by
bike (the ultimate green machine
with a zero carbon footprint) is likely
to lead to much lower obesity rates
which were of course, the norm in
the past. They are also benefi cial
to mental health and to community
social capital (the interaction
between people which generates
a greater sense of community spirit).
So, the health impact of the
present profl igate overuse of
carbon is already great and will
become ever more obvious in both
rich and poor countries, affecting
the most vulnerable fi rst. On the
other hand, the health benefi ts of
carbon reduction are huge. If we
can bring this case to the decision
makers, as well as to the general
public, the course for the future
becomes very clear.
How will health be affected in the UK and Europe?The health effects of climate change in high income countries are more subtle
and less easy to directly ascribe to the origin and development of humans
(anthropogenesis). A World Health Organisation report in 2008 set out the likely
effects and the need to introduce urgent protection measures. See:
http://www.euro.who.int/__data/assets/pdf_fi le/0016/74401/E91865.pdf
The health effects of climate change in Europe:
• Extreme weather events such as heat waves, hurricanes and fl ooding
• High temperatures leading to direct heat events
• Increased infectious disease vectors
• Impact of changing weather on agriculture and food growth leading to
higher food prices and malnutrition
• Increase in the frequency of respiratory diseases due to higher ground-
level ozone concentrations in urban areas.
• Changes in pollen distribution related to climate change.
So in low income countries,
climate change will massively affect
health. The impact is already being
felt and is being described by major
organisations such as the World
Bank yet the rest of the world seems
to be ignoring it.
These changes are more gradual
and insidious, and hence less easy
to ascribe to a single cause. For
example, in Newcastle last year we
had three episodes of severe fl ooding
an exceptional occurrence. However,
people complained it has not kick-
started any behavioural changes in
relation to carbon conservation, nor
to calls for action on climate change.
How can we reduce the excessive use of fossil fuels?Friends of the Earth covered some of the
issues in relation to energy companies in
the article in HHIC in 2011. The answers
are clear and the policies available and
include investment in renewable energy
and conservation measures, domestic
carbon trading, pollution charging,
promotion of sustainable transport
and measures to reduce motor traffi c.
The continued search for economic
growth rather than sustainability has
to be challenged. All that is required is
the political will and this is singularly
lacking in the present government.
What would be the health impact of such action?The Climate and Health Council
has clearly spelled out that
measures to promote low carbon
living will be hugely benefi cial to
health. The health benefi ts of low
carbon living are:
• Reduction of air pollution
leads to less respiratory
infections and asthma
• Reduction in motorised
traffi c leads to less vehicle
accidents and less pollution
• More active travel leads to
less cardiovascular disease,
less obesity and better
mental health
• Reduction in meat intake
will lead to lower carbon
emissions, less cardiovascular
disease and stroke, and less
bowel cancer.
See also http://www.bmj.com/
content/344/bmj.e1018
AND HEALTHAND HEALTH
Dr T.indd 37 13/6/13 17:25:38
JULY 2013 HEATING & HOTWATER INDUSTRY COUNCIL38
2OC
It started as a chat between three friends who wondered if it would be possible to build a profitable business and to help tackle climate change. That was nearly seven years ago, but in May 2013 work finally began on 2OC’s Combined Heat and intelligent Power plant (CHiP) at Beckton in East London. Intelligent, because it makes use of heat in the adjacent gas Pressure Reduction Station (PRS) run by National Grid.
Fatbergs.indd 38 13/6/13 17:26:28
39 WWW.CENTRALHEATING.CO.UK JULY 2013
By Andrew Mercer
Fatbergs.indd 39 13/6/13 17:26:50
JULY 2013 HEATING & HOTWATER INDUSTRY COUNCIL40 WWW.CENTRALHEATING.CO.UK JULY 2013 41
2OC
Image courtesy of Thames Water
Fatbergs.indd 40 13/6/13 17:27:11
JULY 2013 HEATING & HOTWATER INDUSTRY COUNCIL40 WWW.CENTRALHEATING.CO.UK JULY 2013 41
Our renewable power and
heat will be fuelled by
fats/oils and greases
(FOGs) derived from restaurant
chains and food manufacturers and
scraped from the walls of London’s
109,000km of sewers. FOGs coat
sewage tunnels like cholesterol
in a blood vessel and every year
are responsible for around half
the 80,000 blockages which cost
Thames Water £1m per month to
clear. A dedicated team of ‘fl ushers’
hack and chip the hardened fats from
the walls, which then fl oat as so-
called ‘fatbergs’ down to traps and
fi lters where they can be recovered.
But where there’s muck, there’s
power and heat, - lots of it.
Thames Water has signed a
£200m Power Purchase Agreement
with 2OC to provide renewable
power and heat for the country’s
biggest sewage works and its only
desalination plant. Our CHiP plant,
using a 2-stroke marine diesel engine
will generate 135GWh of renewable
electricity. Only a 2-stroke has the
tolerances required to burn the FOGs
derived fuel. Thames will take just
over half of that power, the rest being
sold into the National Grid. Waste
heat from the engine will be used in
the sewage works, and there should
be a surplus for any local housing
scheme nearby.
What makes the 2OC platform
unique is the use of heat in the PRS.
The huge drop in pressure at the
Beckton plant requires the gas to be
pre-heated. This is currently done
by two colossal gas boilers. When
the CHiP plant becomes operational
in the fi rst quarter of 2015, waste
heat from the engine will provide the
pre-heating and a turbo-expander will
recover that renewable thermal energy
to generate even more power. 2OC
owns the IP on this application, which
gives the plant world beating overall
effi ciency in the high 90s per cent.
So, how did such a smart idea,
take so long? An initial £400m joint
venture with National Grid to roll
out 8 CHiP plants came to grief in
2010 when the looming Renewable
Energy Directive prevented energy
distributors from owning generation
assets. 2OC acquired the old joint
venture for £1, halved its workforce
and set about the task of refi nancing.
With the fi nancial crisis into its third
year and biting ever deeper and
seemingly endless tinkering with
the Renewables Obligation, this
was not the ideal time to be seeking
investment into a new project.
Thankfully, Deutsche Bank and
iCON infrastructure were both
impressed with the technology and
the team that was putting it together
and provided the debt and equity
“Thames Water has signed a £200m Power Purchase Agreement with 2OC to provide renewable power and heat for the country’s biggest sewage works and its only desalination plant.”
38 Fatbergs.indd 41 21/6/13 10:28:46
2OC
needed to get the fi rst project away.
With a blue chip customer like
Thames Water and 2OC’s inclusion
within the Renewables Obligation,
the deal that was put together in
March 2013 was the one positive bit
of investment news in a sector where
doubt and uncertainty over the
Electricity Market Reform (EMR) has
left many projects in limbo.
2OC still has licenced consent
from Ofgem to roll out its technology
on another seven PRSs. The team is
currently focused on getting Beckton
built and operational by the end of
March 2015.
But we are also looking to the future.
Will we stay in renewables, or should
we concentrate on gas? How about
fuel cells? Could we do something
in partnership with wind and help its
problems with intermittency? One
thing is for certain - future projects will
not take quite so long.
JULY 2013 HEATING & HOTWATER INDUSTRY COUNCIL42 WWW.CENTRALHEATING.CO.UK JULY 2013 43 38 Fatbergs.indd 42 21/6/13 10:45:35
The author: Andrew Mercer is CEO of 2OC Ltd, the renewable
energy company he helped to found. An accountant by profession
and entrepreneur by instinct, he sold his software company
One Meaning to Oracle in the 90’s dotcom boom. He is also
the founding Chairman of Footdown, a business leadership and
mentoring company. Here he describes how a conversation at a
Footdown meeting led to a multi-million pound deal involving a
really smart use of waste heat.
www.2oc.com
JULY 2013 HEATING & HOTWATER INDUSTRY COUNCIL42 WWW.CENTRALHEATING.CO.UK JULY 2013 43 Fatbergs.indd 43 13/6/13 17:28:10
THE RT HON EDWARD DAVEY MP | PROFESSOR MIKE BRADSHAWDR TONY WATERSTON | THE CARBON TRUST | 2OCINDUSTRY COUNCIL
HEATINGHOTWATER
01 Cover.indd 1 27/06/2013 11:00