The
Low Carbon Economic Area (LCEA) will be focused in
South Wales, extending as far as Swindon in the
South West.
The LCEA designation is intended to position the region as leading centre for driving forward the industrial production and use of hydrogen and fuel cells as well as developing renewable alternative fuels for the auto sector. South Wales is the sixth LCEA to be announced by the Government. Earlier this week it announced the Midlands would become a lead centre in the development of low carbon automotive engineering. LCEAs aim to accelerate the development of priority low carbon sectors by focussing on geographic areas of the UK where there are existing strengths.
A “hydrogen highway”, running from South Wales along the M4 corridor into the South East, will enable vehicles to refuel with hydrogen and other alternative fuels as well as aim to attract companies at the cutting edge of hydrogen and fuel cells technology development to the region. One company to already have benefited from the Government’s £7.2 million Fuel Cells and Hydrogen Demonstration Programme, first announced in September 2009, is global chemicals company Johnson Matthey, which has established a Fuel Cells base in Swindon.
Central to the LCEA announcement is the news the University of Glamorgan, a key academic partner, is investing £6.3 million to develop new hydrogen industries, new hydrogen energy processes, products and services, including a hydrogen combustion engine test facility at Baglan.
Commenting on the LCEA designation on Friday, Deputy First Minister Ieuan Wyn Jones, said: “[The LCEA] will position Wales globally as a leading centre for driving forward this technology and provide us with a competitive advantage when attracting new investment and research and development into next generation technologies.”
Fuel Cells and Hydrogen Demonstration programme
On Friday, the Government also announced that 15 demonstrator projects would be created under its Fuel Cells and Hydrogen Demonstration programme.
Devised by Department of Energy and Climate Change (DECC) and the Technology Strategy Board (TSB), the programme aims accelerate the demonstration of products for both the stationary power and transport markets.
The Government wants to position the UK as a world leader in hydrogen and fuel cells technologies because of their potential to help drastically reduce carbon emissions and help the UK meet climate change targets, whilst providing significant global market opportunities for British companies.
Fuel cells can be more efficient that an internal combustion engine and are a quiet source of power, and when fuelled by hydrogen, emit no pollutant by-products. They can be used to power homes and offices as well as commercial and light vehicles. Fuel cells can also be tailored to accept a wide range of fuels, including biogas, significantly lowering pollutant levels, or adapted for multi-fuel capability.
“Hydrogen presents exciting opportunities for low carbon energy and we want the UK to be at the forefront,” said Business Secretary Peter Mandelson. “The Government is committed to encouraging and supporting growth through our low carbon industries, skills base and supply chain.”
Johnson Matthey developing fuel cells technology
Energy Minister Lord Hunt unveiled Johnson Matthey would be one of the companies sharing the £7.2 million funding while visiting its fuel cells division in Swindon on Friday.
“Cleaning up our energy supply and the fuel we use for transport will give the UK the opportunity to develop the low carbon industries of the future […] Through this boost for hydrogen, innovative businesses like Johnson Matthey are well placed to benefit from the move to low carbon,” he said.
Stephen Peacock, executive director at the South West Regional Development Agency, which will work to support regional business to exploit opportunities around the LCEA, added: “The hydrogen highway, running from South Wales along the M4 corridor into the South East, will help attract more cutting edge companies like Johnson Matthey into the area, allowing the South West to build infrastructure and expertise in another major form of low carbon power generation.”
Iain Gray, chief executive of the TSB, said the Fuel Cells and Hydrogen Demonstration programme would provide “significant global opportunities” for British companies by providing capital funding to collaborate to commercialise fuel cell and hydrogen technologies. “Covering both the transport and stationary market applications, the funding will support and take forward already successful research, development and prototyping projects,” he said.
Alternative Fuels Infrastructure Grant Programme
This week, the Government also revealed the winners in the latest round of the Department for Transport’s grants to encourage refuelling or recharging stations for alternative fuels, including biogas, hydrogen and electricity, through its Alternative Fuels Infrastructure Grant Programme. Among the beneficiaries of the £500,000 of funding are the University of Glamorgan, Chesterfield Biogas, Air Products and Royal Mail.
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