UK could be at forefront of green Industrial Revolution with carbon cluster plans – and here’s why
If you crack open a bottle of something – be it wine, water or soft drinks – over the festive season, there’s a good chance the glass came from the Encirc factory in Cheshire.
Here, on the banks of the River Mersey, you will find one of the world’s largest glass factories. They take sand from Norfolk, soda ash created from the salt sitting beneath the Cheshire countryside and a lot of recycled glass and throw it into two of the biggest glass furnaces in the world.
There, in the furnace, at temperatures of around 1,600 degrees centigrade, the sand melts and becomes a liquid river of molten glass. It is a chemical reaction humans learnt thousands of years ago, but here at Encirc it’s carried out on a gargantuan scale.
This factory alone produces two billion bottles and containers a year, a number which is hard to process, until you note that it includes around 40% of all the wine bottles consumed in the UK.
That includes a significant proportion of all the New World wines we consume here, by the way. Mostly, the wine from Australia, California and Chile arrives not pre-bottled, but in large bags inside shipping containers, which are then emptied into metal vats at Encirc, from where they are pumped into bottles made here in the UK.
It’s an extraordinary site – a place which says a lot both about our appetite for liquids (both alcoholic and not) and our ability to turn raw materials into sophisticated products.
The struggle to get to net zero
But turning sand into glass is an enormously energy intensive process. Some of the heat in the furnace can be created by electric elements which heat the bottom of this enormous oven. But glassmakers like Encirc say it’s impossible to do what they do – making glass on a vast scale – without blasting that furnace with a very hot flame.
At the moment that flame is produced using methane – natural gas – with the upshot that this glassmaking facility produces rather a lot of carbon dioxide. And even if you could find a way of running their furnace without a naked flame it would still be producing a sizeable amount of CO2, since some of it derives from the chemical reaction as sand turns into glass.
In short, this glass factory is a pretty good illustration of how tricky it is to get to net zero. Much of the energy use in this country can be shifted from fossil fuels to green electricity – whether that’s vehicles or home heating. Sometimes the cost will be high; sometimes in the long run, going green will be cheaper than the status quo.
But for a handful of important industries it’s far, far harder. Glassmaking is one of those industries. You can run small furnaces on electric power but not the big ones you need to feed a massive glass container factory like this one.
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All of which is why they are seeking another alternative. The most obvious route to allow this plant to decarbonise is to replace those methane flames with hydrogen ones, and then to collect all the CO2 coming out of the chimney and sequester it below the ground.
And, as it happens, the technology is pretty much there. We know how to make hydrogen both from natural gas and from electricity (the former still involves some carbon emissions; the latter is extremely expensive, so these options are not without their issues). We know how to capture carbon dioxide.
But there’s a couple of problems which have always deterred businesses like this from taking the leap. The first is that it hasn’t made any economic sense. Capturing carbon is expensive, so why do it when it’s cheaper to pay for carbon credits and carry on burning gas?
Location, location, location
The second is that the infrastructure isn’t yet there. Right now if you collected carbon dioxide from your chimney, there’s nowhere to put it. Someone needs to lay the pipes out to the depleted gas reservoirs under the sea where we might be able to store it. That’s also expensive.
All of which brings us to one of the least discussed, but arguably most important topics in the green energy transition: clusters. In short, if businesses like this glassmaker are going to green it is far more likely to happen if they can do so alongside other heavy industry players.
Look at the geography of the UK’s industries and the idea makes quite a lot of sense. Many of the country’s biggest polluters happen to be clustered relatively near each other on the coast. Alongside Encirc you’ll find one of the country’s biggest oil refineries, as well as the Inovyn (part of Ineos) chemicals plant, not to mention a major gas power station and, some miles further away in North Wales, a cement manufacturer.
All of these businesses have big energy demands. They would all benefit either from carbon capture or hydrogen. Squint a little bit into the future and you can envisage a world where they share pipes both taking the carbon away and delivering the hydrogen.
How to make it happen?
But how to create these clusters? How to finance them? How to coordinate the businesses that all want to make profits while fulfilling their commitments to reduce or eliminate their carbon emissions?
It’s a question no one has yet been able satisfactorily to answer, but whoever does will have that most precious of things: a blueprint about how to decarbonise the trickiest bit of the world’s carbon budget.
And guess what: it so happens the UK is further ahead of most other countries around the world in planning its blueprint for clusters. It now has detailed plans for how to fund, construct and run a series of major clusters: one around the Encirc factory (the Net Zero North West Cluster Plan), another in the Tees Valley (Tees Valley Net Zero), as well as plans for Scotland, for the Humber, for the Black Country and South Wales.
An area where the UK is genuinely leading
Thanks in part to government funding, which began in 2019, Britain’s clusters expertise is admired far and wide. While the US is widely seen as having taken the lead on industrial decarbonisation, thanks to its enormous Inflation Reduction Act set of subsidies, Americans – and many from Europe – have been regularly visiting the UK to understand how to do clusters.
There are many areas where UK politicians claim (without much basis) to be world leaders, but here is an area where it does actually have a world-beating proficiency. However, the government funding for clusters is coming to an end in March, and those working here are nervous that this could be another area where the country squanders an early lead and soon becomes a laggard.
While the cluster in Cheshire looks likely to become a physical reality, with companies soon laying the pipes that will connect plans to hydrogen and carbon dioxide pipes, those in the Black Country and elsewhere are much less advanced.
It’s something to ponder as you have a drink over the festive season. It’s tempting to assume that Britain no longer makes much of anything any more. However, visit plants like the Encirc one, and you realise that that is very far off the mark.
And there’s a prospect that this country, which brought the world the Industrial Revolution, could be at the forefront of managing the green Industrial Revolution. In a few years’ time that glass could be truly low carbon – maybe in due course it could be zero carbon. But it will take a lot more work – especially on clusters – to make it a reality.
The UK economy shrank more than expected in April as the worst of President Trump’s tariffs hit.
The standard measure of economic output (GDP) contracted a sharp 0.3% in April, data from the Office for National Statistics (ONS) showed.
During the month, Mr Trump’s so-called “Liberation Day” applied steep tariffs to countries around the world and sparked a trade war with China, the world’s second-largest economy.
The outcome is worse than expected by economists. A contraction of just 0.1% had been forecast by economists polled by the Reuters news agency.
It’s also down from the growth of 0.2% recorded in March.
Blow for Reeves
It’s also bad news for Chancellor Rachel Reeves, who has made the push for economic growth her number one priority. Speaking to Sky News following the news, she described the figures as “disappointing”.
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Reeves refuses to rule out tax rises
Additional costs on businesses were also levied during the month, as higher minimum wages and employer national insurance contributions took effect, which businesses told the ONS played a part in their performance.
Why?
The biggest part of the economy, the services sector, contracted by 0.4%, and manufacturing dropped 0.9%.
There was the largest ever monthly fall in goods exported to the United States, the ONS said.
Decreases were seen across most types of goods due to tariffs, it added.
Higher stamp duty depressed house buying and meant legal and real estate firms fared badly in the month.
After a strong showing in the first three months, car manufacturing performed poorly.
Business
Spending review: More cash for schools, NHS and defence expected as chancellor unveils plans
The chancellor will unveil the spending review at lunchtime – with plans to invest billions of pounds across the UK.
However, Rachel Reeves will admit that “too many people” are yet to feel the benefits of the government’s work so far.
In the House of Commons, she will confirm the budgets for each government department over the next three years – with boosts expected for schools, defence and the NHS.
Ms Reeves will vow to spend vast sums of money across the country to “ensure that renewal is felt in people’s everyday lives, their jobs, their communities”.
She is also pledging to set out “reforms that will guarantee towns and cities outside London and the South East can benefit from new investment”.
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Chancellor Rachel Reeves will set out the government’s spending plans for the next three years. Pic: Reuters
Ms Reeves is expected to say: “This government is renewing Britain. But I know too many people in too many parts of the country are yet to feel it.
“This government’s task – my task – and the purpose of this spending review – is to change that … So that people can see a doctor when they need one. Know that they are secure at work. And feel safe on their local high street.
“The priorities in this spending review are the priorities of working people. To invest in our country’s security, health and economy so working people all over our country are better off.”
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What to expect from the spending review
Watch live coverage of the spending review on Sky News from 12pm
Ms Reeves will formally confirm “the biggest-ever local transport infrastructure investment in England’s city regions” – worth £15.6bn – as well as £86bn to “boost science and technology”, including by building the Sizewell C nuclear power station.
She will also announce the extension of the £3 cap on bus fares, Sky News understands. The cap – which Labour lifted from £2 – was due to expire at the end of this year.
Meanwhile, £39bn for a new Affordable Homes Programme over the next 10 years is set to be unveiled, with the government seeking to ramp up housebuilding to hit its manifesto pledge of 1.5 million new homes by the end of this parliament.
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‘You are everyone’s worst enemy’
The chancellor will argue: “The choices in this spending review are possible only because of the stability I have introduced and the choices I took in the autumn.”
One of those choices included cutting the winter fuel allowance for almost all pensioners – a decision the government has now U-turned on at a cost of £1.25bn. However, she is not expected to explain where that money will come from until the budget this autumn.
Ms Reeves will tell MPs: “I have made my choices. In place of chaos, I choose stability. In place of decline, I choose investment. In place of retreat, I choose national renewal.
“These are my choices. These are this government’s choices. These are the British people’s choices.”
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But shadow chancellor Sir Mel Stride said this will be “the ‘spend today, tax tomorrow’ spending review” – arguing that the government is “spending money it doesn’t have, with no credible plan to pay for it”.
He said in a statement: “Rachel Reeves talks about ‘hard choices’ – but her real choice has been to take the easy road. Spend more, borrow more, and cross her fingers. This spending review won’t be a plan for the future – it will be a dangerous gamble with Britain’s economic stability.”
He went on: “Today, we’ll hear slogans, spin and self-congratulation – but not the truth. Don’t be fooled. Behind the spin lies a dangerous economic gamble that risks the country’s financial future.”
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