North South Tees Industrial Development Framework

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North South TeesIndustrial Development Framework

• Presentation of findings
• 9th October 2009

Mark Reynolds Partner
Paul Noble Associate Director
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Contents

• Stage 1 Scope and Constraints
• Stage 2 Developing the Framework
• Project concepts and spatial issues
• Proposed Interventions
• Stage 3 The way forward - establishing benefits
  and priorities

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Context

• Overall objective - maximise effectiveness of
  public sector resource to
• safeguard current industry
• attract future investment
• The North South Tees IDF sets out
• Core infrastructure across the study area
• Constraints on existing and future industry
• Potential growth sectors
• Public sector interventions to address
  constraints

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Stage 1Scoping and identifying constraints
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Stage 1 Scope of Works

• Land Registry Data
• Employment Land Data
• Health Safety Zones
• Gas network
• Utility networks and capacity
• Pipeline corridors
• Cavities
• 16 sites individual sites
• Historical industrial land use

• Private utilities
• Utilities demands
• Geological interpretation
• Made ground areas
• Flood Risk
• Ecology Archaeology
• Land Quality data
• Water discharge consents
• Logistics

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Key Issues and Constraints

• Physical
• Private land ownership
• Land condition
• Electricity grid
• Access to pipelines
• Health safety consultation zones
• Flood risk
• Services costs (e.g. energy)
• Protected sites

• Other
• World demand levels / economic conditions
• Access to finance and markets
• Non strategic sites for owning companies
• Leadership role and coordination
• Information

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Stage 2Developing the Framework
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Strategic scenarios

• Database of project concepts
• Known requirements
• Specific constraints opportunities
• Assessment of location drivers
• Fixed
• Flexible
• Analysis of integration potential
• Potential future key sites and clusters

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Proposed Interventions

• Sector development plans
• Framework ownership and delivery
• Energy and Infrastructure
• Transport and Logistics

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Intervention - Sector Development Plans
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Example of Sector Interaction
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Intervention - Framework Ownership and Delivery

• Framework ownership
• Provision of Infrastructure
• Provision of knowledge and expertise
• Developing funding models and arrangements
• Leading on promotion / branding / lobbying
• Support to specific development projects

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Example provision of knowledge and expertise

• Grant access and funding
• Electrical grid connection issues
• Flood risk
• Health safety consultation zones
• Contamination / geotechnical
• Protected sites

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Intervention - Energy and Infrastructure proposals

• Improve availability of key wayleave corridors
• Options for integrating energy use
• Action plan to develop district heat network(s)
  e.g. at Wilton and Billingham
• On-site energy optimisation Organic Rankine
  Cycle (ORC) power generation
• Influencing service costs

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Example Improve Availability of wayleave
corridors

• Key strategic corridors identified (see below)
• Opportunities to move products around the study
  area (e.g. hydrogen, syngas, carbon dioxide,
  steam)
• North South Tees team to engage in de-risking,
  for example
• Purchase of pipeline bundles and competitive
  lease
• Purchase or optioning followed by onward
  divestment to new operators once projects are
  delivered
• Coordination and influence to remove project
  constraints
• Strip out redundant pipework to free up capacity.
• 1st phase recommendation (although this dependent
  on latest project development portfolio) is to
  link South Tees with coastal location to enable
  CCS network

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Intervention - Transportation and Logistics

• Develop a River Management Database
• Promote gauge clearance between Teesside and ECML
  and on ECML North of Doncaster
• Formation of a rail users group include public
  sector, industry, network rail and rail operators
• Encourage and support relocation of national
  distribution centres
• Annual review of Penelope Model

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Stage 3The way forward establishing
benefits and priorities
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The strategic approach

• Limited direct intervention in the short term
• Requires a re-think identify long term
  strategic economic direction
• Transition to a Low Carbon economy
• Different way of doing things across all industry
  sectors
• Powerful message North South Tees has the
  opportunity to deliver this approach

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Why? the long term benefits

• Long term economic re-positioning drawing on
  existing strengths and linked to new sector
  opportunities
• Sets out a clear role and function for North
  South Tees strategic direction
• Supports national and regional policy and long
  term deprivation
• Improves the physical environment
• Long term custodian approach strong message
  private sector

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Priorities

• Management/championing/Coordination key task
• Several immediate priorities
• Sector Development Plans further research,
  develop opportunity and key actions
• Bulk chemicals
• Steel
• CCS
• Offshore wind
• Decommissioning

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Next steps

• Support to key projects including de-risking
  activities and lobbying
• Develop the Economic Strategy and Delivery Plan
• Agree and implement the overarching leadership
  and coordination function
• Develop a clear and consistent message more
  effective engagement with regional and national
  bodies
• Agree the land use planning protocol protect
  the key sites and coordinate infrastructure
  improvements

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North South TeesIndustrial Development Framework