Connect with us

Published

on

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.

Read more from Sky News:
The key economic graphs that define 2023
Big differences in house prices changes across the UK

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.

Continue Reading

Business

M&S tells agency workers to stay at home after cyberattack

Published

on

By

M&S tells agency workers to stay at home after cyberattack

Marks & Spencer (M&S) has ordered hundreds of agency workers at its main distribution centre to stay at home as it grapples with the unfolding impact of a cyberattack on Britain’s best-known retailer.

Sky News has learnt that roughly 200 people who had been due to undertake shift work at M&S’s vast Castle Donington clothing and homewares logistics centre in the East Midlands have been told not to come in amid the escalating crisis.

Agency staff make up about 20% of Castle Donington’s workforce, according to a source close to M&S.

Money latest: Vet hits back at critics of prices

The retailer’s own employees who work at the site have been told to come in as usual, the source added.

“There is work for them to do,” they said.

M&S disclosed last week that it was suspending online orders as a result of the cyberattack, but has provided few other details about the nature and extent of the incident.

In its latest update to investors, the company said on Friday that its product range was “available to browse online, and our stores remain open and ready to welcome and serve customers”.

“We continue to manage the incident proactively and the M&S team – supported by leading experts – is working extremely hard to restore online operations and continue to serve customers well,” it added.

Read more from Sky News:
Deliveroo shares surge 17% as takeover looms
UK growth could be ‘postponed’ for two years, report warns

It was unclear on Monday how long the disruption to M&S’s e-commerce operations would last, although retail executives said the cyberattack was “extensive” and that it could take the company some time to fully resolve its impact.

Shares in M&S slid a further 2.4% on Monday morning, following a sharp fall last week, as investors reacted to the absence of positive news about the incident.

M&S declined to comment further.

Continue Reading

Business

Deliveroo shares surge 17% as £2.7bn takeover looms

Published

on

By

Deliveroo shares surge 17% as £2.7bn takeover looms

Shares in meal delivery platform Deliveroo have surged by 17% as investors react to news of a £2.7bn takeover proposal.

The company revealed after the market had closed on Friday that it had been in talks since 5 April with US rival DoorDash.

Deliveroo suggested then it was likely the 180p per share offer would be recommended, though full terms were yet to be agreed.

Money latest: Vet hits back at critics of prices

At that price, the company’s founder and chief executive, Will Shu, would be in line for a windfall of more than £170m.

Deliveroo further announced, before trading on Monday, that it had suspended its £100m share buyback programme.

The opening share price reaction took the value to 171p per share – still shy of the 180p on the table – and well under the 390p per share flotation price seen in 2021.

More from Money

Deliveroo’s shares have weakened nearly 50% since their market debut.

The deal is not expected to face regulatory hurdles as it provides DoorDash access to 10 new markets where it currently has no presence.

But a takeover would likely represent a blow to the City of London given the anticipated loss of a tech-focused player.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “If the deal is done at that price, the company will fail to shake off the ‘Floperoo’ tag it was saddled with after its disastrous IPO debut in 2021.

“Even though Deliveroo has finally broken through into profitable territory, the prolonged bout of indigestion around its share price has continued.

“The surge in demand for home deliveries during the pandemic waned just as competition heated up. Deliveroo’s foray into grocery deliveries has helped it turn a profit but it’s still facing fierce rivals.”

She added: “The DoorDash Deliveroo deal will be unappetising for the government which has been trying to boost the number of tech companies listed in London.

“If Deliveroo is purchased it would join a stream of companies leaving the London Stock Exchange, with too few IPOs [initial public offerings] in the pipeline to make up the numbers.”

Continue Reading

Business

US trade deal ‘possible’ but not ‘certain’, says senior minister

Published

on

By

US trade deal 'possible' but not 'certain', says senior minister

A trade deal with the US is “possible” but not “certain”, a senior minister has said as he struck a cautious tone about negotiations with the White House.

Pat McFadden, the Chancellor of the Duchy of Lancaster, told Sunday Morning with Trevor Phillips there was “a serious level of engagement going on at high levels” to secure a UK-US trade deal.

However, Mr McFadden, a key ally of Sir Keir Starmer, struck a more cautious tone than Chancellor Rachel Reeves on the prospect of a US trade deal, saying: “I think an agreement is possible – I don’t think it’s certain, and I don’t want to say it’s certain, but I think it’s possible.”

He went on to say the government wanted an “agreement in the UK’s interests” and not a “hasty deal”, amid fears from critics that Number 10 could acquiesce a deal that lowers food standards, for example, or changes certain taxes in a bid to persuade Donald Trump to lower some of the tariffs that have been placed on British goods.

Politics latest: UK has ‘recognised all along’ that Russia is aggressor – minister

And asked about the timing of the deal – following recent reports an agreement was imminent – Mr McFadden said: “We’ll keep working with the United States and keep trying to get to an agreement in the coming weeks.”

As well as talks with the US, the UK has also ramped up its efforts with the EU, with suggestions it could include a new EU youth mobility scheme that would allow under-30s from the bloc to live, work and study in the UK and vice versa.

Mr McFadden said he believed the government could “improve upon” the Brexit deal struck by Boris Johnson, saying it had caused “an awful lot of bureaucracy and costs here in the UK”.

He said “first and foremost” on the government’s agenda was securing a food and agriculture and a veterinary agreement, saying it was “such an important area for the UK and an area where we’ve had so much extra cost and bureaucracy because of Brexit”.

He added: “But again, as with the United States, there’s no point in calling the game before it’s done. We’ve still got work to do, and we’re doing that work with our partners in the EU.”

The Cabinet Office minister also rejected suggestions the UK would have to choose between pursuing a trade deal with the US and one with the EU – the latter of which has banned chlorinated chicken in its markets – as has the UK – but which the US has historically wanted.

Read more:
Chancellor Rachel Reeves outlines red lines for US trade deal
Green Party co-leader denies split over trans rights

On the issue of chlorinated chicken, Mr McFadden said the government had “made clear we will not water down animal welfare standards with either party”.

“But I don’t agree that it’s some fundamental choice beyond where we have to pick one trading partner rather than another. I think that’s to misunderstand the nature of the UK economy, and I don’t think would be in our interests to put all our eggs in one basket.”

Also speaking to Trevor Phillips was Tory leader Kemi Badenoch, who said the government should be close to closing the deal with the US “because we got very close last time President Trump was in office”.

She also insisted food standards should not be watered down in order to get a deal, saying she did not reach an agreement with Canada when she was in government for that reason.

“What Labour needs to do now is show that they can get a deal that isn’t making concessions, so we can have what we had last month before the trade tariffs, and we need serious people doing this,” she said.

Continue Reading

Trending