Decarbonising industry in south Wales could 'unlock billions of pounds in investment, cut carbon emissions by 40% by 2040 and secure over 100,000 jobs in the region'. That is according to a new cluster plan report unveiled today by the South Wales Industrial Cluster (SWIC), a partnership between Welsh industry, energy suppliers, infrastructure providers, academia, legal sector, service providers and public sector organisations.
The report, led by CR Plus and entitled “South Wales Industry - A Plan for Clean Growth”, sets out a plan to collectively decarbonise the region following over 2 years’ of work by around 40 Welsh businesses, academia and public bodies. It is the result of funding by the 海角视频RI’s Industrial Decarbonisation programme in 2021 to map out what is needed to support South Wales in becoming a net zero carbon region by 2050.
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The report outlines 30 policies that SWIC believes is vital to decarbonise the industry while reversing the decline of heavy industry and creating economic prosperity for Wales. This includes boosting the competitiveness of key industrial regions and driving inward investment, creating and protecting jobs for a low-carbon global economy with growing low-carbon export markets.
Its key priority areas include:
Ensuring energy and carbon policies, plus support mechanisms, are internationally competitive.
The provision of business model support for electrification and Carbon Capture and Utilisation (CCU).
The urgent development of the south Wales electricity grid and hydrogen infrastructure.
SWIC and CO2 shipping needs to be included in the 海角视频 Government’s cluster sequencing program to accelerate carbon capture, usage and storage infrastructure for the region and the south of the 海角视频.
If implemented the SWIC said the policies would achieve net zero industries in south Wales by 2040, equating to 40% reduction of current Welsh CO2 emissions. It would also retain 113,000 existing jobs and potentially create new skilled jobs, while unlocking £30bn investment opportunities in the region and growing the £6bn GVA from south Wales industry.
South Wales is the second largest industrial emitter in the 海角视频, releasing the equivalent of 16 million tonnes of carbon dioxide per year across industry and energy generation. The region has a significant industrial base including the Valero Pembroke oil refinery, the 海角视频’s largest integrated steelworks, and the only nickel refinery in the 海角视频.
It also has a large and diverse energy supply sector including large combined cycle gas turbine (CCGT) power stations plus numerous on-shore wind sites and two liquefied natural gas (LNG) terminals which supply over 20% of the 海角视频’s natural gas demand.
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However, if the 海角视频 and Wales are to hit their net zero ambitions, new ways of heating homes, powering businesses and heavy industry and fuelling transport need to be found. This requires reducing emissions as far as possible using methods such as: energy efficiency, fuel switching and carbon capture utilisation and storage (CCUS); plus offsetting the residual carbon dioxide by other means, such as negative emissions technologies.
Dr Chris Williams, head of industrial decarbonisation at Industry Wales – who has been leading SWIC since its inception in 2019 – said: “This report sets out a step-by-step roadmap for the decarbonisation south Wales industry and the infrastructure required to achieve net zero. It could potentially unlock an unprecedented £30bn investment in south Wales, creating new industries, producing tens of thousands of jobs and securing thousands more.
“Our industries need a solid plan, backed by supportive policies, to enable them to carry out their own individual decarbonisation journeys, which in turn will support our south Wales communities and future generations.”
He added: “We have unique opportunities in south Wales with the Port of Milford Haven - which supplies 20% of the 海角视频’s energy supply - to be at the forefront of decarbonisation activities in the 海角视频. To do nothing now would mean we are always playing catch up and that is simply not an option.
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“This report is key for the future of Welsh industry. To get to this point is hugely important and will forever be marked in history as the start of a new economic revolution for south Wales Industry.”
Managing director of CR Plus Tony Parton said: “The overriding message of this report is that we have to do something now – the current state of play isn’t sufficient to ensure that Welsh industry is competitive on a global scale.
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“This is the culmination of more than two years of work where SWIC examined in detail what is needed to help our industries decarbonise and safeguard hundreds of jobs for the region. Now it is imperative that we work collaboratively with 海角视频 and Welsh Governments to deliver these policies to unlock necessary investments to reach net zero by 2050 or sooner.”
David TC Davies MP, Secretary of State for Wales, said: “The 海角视频 Government is pleased to fund projects like the South Wales Industrial Cluster that bring together industry to develop pathways to decarbonisation. We want to make sure the economy of Wales is fit for the future, providing skilled jobs, and driving prosperity alongside achieving our net zero targets. We look forward to working with partners and stakeholders to help us achieve these goals.”
Vaughan Gething, Minister for Economy for the Welsh Government, said: “Today marks an important opportunity to recognise the work and commend all those involved in delivery of the South Wales Industrial Cluster Plan, and I look forward to learning more about their findings.”
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