An unprecedented week of UK defence spending and the Green Industrial Revolution
Ben Sawford, Vice President for Advisory Consulting at KBR, responds to the recent spending plans announced by the UK Government to create a leading global position in green energy, conflated with the modernisation of its essential defence operations.
A week in politics must sometimes feel like an eternity for parliamentarians, usually not the good weeks. Then there must be times when the hard work and long journey of forming new policy and alignment of future spending make it all worthwhile.
The coronavirus pandemic has been hugely distressing for such a wide range of reasons, but there are some sparks of light at the end of the tunnel. Vaccine development, in conjunction, globally, with nations making bold post-COVID stimulus plans, provides a slither of silver lining. The latest and possibly greatest that I have seen, stems from recent rallying cries to both modernise UK defence and a Ten Point Plan to promote a green industrial revolution.
Some reading this may wonder why I’m conflating a defence spending review with the green industrial revolution. Actually, the two can be linked far more easily than you might imagine. As a carbon emitter, the UK Ministry of Defence (MOD) is responsible for over 55% of all greenhouse gas emissions from the UK Government’s portfolio of operations. Staggering isn’t it? So, looking at both announcements from a sustainability perspective is not as far-fetched as first it sounds.
The golden thread of the Ten Point Plan is one of decarbonisation across our economy, involving energy revolutions such as hydrogen, electrification, nuclear power and a green transportation pivot, from cycling to public transport, and crucially shipping to ’jet zero‘. Also key is a firm position on advancing technology, greener buildings, industrial carbon capture and advancements in power production for off-shore wind.
Perhaps more in the depths of the plan, but key to unlocking future success, is the financing approach and project finance innovation. Geographically, investments and project evolution, as many of us know, started some years ago. Projects in Leeds, the Humber and Teesside, all boast excellent examples of a green agenda for the domestic challenge to decarbonise our own energy demands, alongside adapting to meet the climate challenges impacted by existing infrastructure.
For me, one of the two greatest opportunities here relate to increasing the GDP of “UK Plc”. Yes, there was a nod to the fact that the £12Billion investment would likely be matched three times over by the private sector, something we certainly see in other global regions adopting such strategies. However, whilst admirable to green the domestic agenda, as a nation we have one of the best wind resources on the planet in the North Sea. Our capability to innovate and apply scientific advancements and engineering prowess are second to none. We have the opportunity to take clean electrons to manufacture clean molecules and incorporate these into existing manufacturing supply chains; for example, petrochemicals to hydrochemicals using decarbonised hydrogen from multiple sources (nuclear; wind; wave and solar; carbon capture, utilization and storage, etc.).
The use of advances in technologies and, indeed, the development and investment in evolving technologies, such as liquid air storage, advanced electrolysers, green ammonia technologies, hydrogen fuel cells, and carbon capture and storage, has the potential to place the United Kingdom on the world stage in this market, taking a true leadership position. What a great entry to COP26.
Countries around the world, including Singapore, Australia, Japan, Canada and Korea, are committing significant time, resources and finances to the development of energy transition strategies. KBR have been heavily involved in government-to-government-to-business positioning across this transition. Working with the likes of the Green Ammonia Consortium (GAC) in Japan, we are all too aware of the speed of transition underway in key demand and supply locations around the world. The transition is well underway Prime Minister — it is intrinsic — and heartening to see the UK now on that train (hydrogen powered of course).
So, what of the link with the UK’s recent defence spending review? Well, take all this ground-breaking technology, apply some of this to the recently published sustainability defence white paper, and combine it with other aspects, including green buildings, 3D-printed buildings, carbon-neutral cements, and advances in hydrogen and ammonia as energy vectors, and you may well have one of the most cost efficient, agile, modern, nimble and of course sustainable defence operations on the planet — whilst building the Green Industrial Revolution.
The opportunity described by the UK Prime Minister to ‘build back better — to invest in making the UK a global leader in green technologies’ is indeed a welcome break from the doom of the past year — acting as the solid foundation to build an economy needed for the estimated £1 trillion spending required to deliver Net Zero.
The UK joins an impressive group of countries taking a first mover advantage. But it also has the opportunity to do what it does best and take a leadership position.
