Latest industry news – June 2023

Revving Up Sustainability: Formula 1 Goes Green with Biofuel 

Formula 1 racing has been heavily criticised for its negative impact on the environment due to the high level of emissions produced by the cars and transport trucks. However, Formula 1 have been taking steps in recent years to reduce its carbon footprint. 

F1 have turned to biofuel to reduce its logistics emissions. They published their first sustainability strategy in 2019 which outlines their commitment to net zero by 2030. This report stated that F1 is responsible for approximately 256,000 tonnes of CO2 each year, resulting in them having a significant carbon footprint. To reduce these emissions, at this year’s FIA Formula One World Championships, the trucks will be powered by biofuel.  

Biofuel is a type of fuel that is produced from organic materials, such as plants or from agricultural, domestic or industrial biowaste. Formula 1, in partnership with DHL, has opted for hydrotreated vegetable oils for the source of fuel. In comparison to standard fuels, this will decrease carbon emissions by a minimum of 60%, ensuring that the industry is taking a step towards a more sustainable future. 

Ofgem Net Zero Mandate 

In recent news, Ofgem has been granted a net zero mandate by the government. The UK government have a goal of achieving net zero emissions by the year 2050, and this mandate has the capacity to unlock billions of pounds and accelerate the shift towards a low carbon future.  

Many trade bodies have expressed their support for this mandate, including the Renewable Energy Association (REA) and Solar Energy UK. This mandate has been praised as it indicates that the government are taking strong action to address climate change and reduce overall carbon footprint. In doing so, both consumer and environmental interests are prioritised.  

The net zero mandate is expected to reduce consumer and business’s bills as it promotes energy efficient practices and encourages the use of renewable energy sources, which are cheaper and much more sustainable than traditional energy sources such as fossil fuels. In addition, the mandate will aid decarbonisation efforts and result in increased investments, job creation and growth. 

How Energy Efficiency is Paving the Way for a Job Revolution 

In order to meet international climate change goals, the global rate of energy efficiency improvements needs to double within the next 10 years, according to the International Energy Agency (IEA), who published a report which assesses global energy efficiency. As a result, almost a billion people will be needed for new jobs within this sector.   

The report claims that after the recent weak performance, due to the pandemic, energy efficiency progress needs to be accelerated by almost double. The report suggests a policy approach with three key elements: regulation, information, and incentives.  

Geothermal Energy: The Key to Unlocking the UK’s Clean Energy Future 

Conservative MP Kieran Mullan has reported that the UK can advance its energy security by developing a network of geothermal energy plants. Within this report, Mullan identified 45 sites in the UK that are appropriate for the development of deep geothermal energy infrastructure.  

Geothermal energy refers to the heat that is generated and stored within the Earth’s core. This energy can then be harnessed and used to produce electricity or to heat and cool buildings. These geothermal projects require drilling a borehole to a depth of approximately two miles to circulate cold water through hot rocks. The heat generated from this can then be extracted and converted into electricity.  

Due to the lack of government support, there are currently only a few geothermal projects that are in development in the UK. An increase in geothermal projects will be beneficial, not only because they produce clean and sustainable renewable energy, but will also potentially create more than 280,000 jobs. 

Rishi Sunak, the current Prime Minister, has commissioned this report and stated that these findings will be used by Ministers to assess whether more investigation is required to further develop geothermal energy. 

Small and Medium Businesses Hit Hard as Energy Bills Soar by 500% 

According to a report by Energy Systems Catapult, small and medium-sized enterprises (SMEs) in the West Midlands are experiencing financial difficulties as their energy bills have significantly increased anywhere from 167% to 500%.  

In response, the UK government introduced the Energy Bills Discount Scheme to support non-domestic energy users. However, almost 71% of the businesses interviewed had doubts about how effective this scheme was.  

Renewable energy technology solutions are becoming increasingly attractive options with 86% of the SMEs surveyed looking towards the possibility for solar PV so that they might generate their own energy and be less grid dependant.   

As these businesses deal with these financial hardships, they look to the government for additional financial support with bills.