Driving Green Growth in
Annual Review 2010/11
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Carbon Trust Scotland Annual Review 2010/11
Commendation “I welcome the Carbon Trust’s ongoing support of our efforts to cut Scotland’s energy consumption and emissions and to help capture the wider benefits of a low carbon economy.”
Commendation
“This has been another successful year for the Carbon Trust in Scotland. With Scottish Government support, the Carbon Trust helped businesses and the public sector cut emissions even further than the previous year. “Last year we continued to implement the Climate Change (Scotland) Act. This includes a new Energy Efficiency Action Plan, setting an ambitious 12% energy reduction target by 2020, and our Low Carbon Economic Strategy, which crystallises our approach to creating up to 60,000 new green jobs by the same year.
John Swinney, Cabinet Secretary for Finance, Employment and Sustainable Growth
“The Carbon Trust has been a valued partner in this work, for example through our new single Scottish Energy and Resource Efficiency Service, which encourages businesses to take a more holistic approach to their low carbon transition. I am also delighted to see that emissions savings in the Scottish public sector were once again strong and that the Carbon Management programme continues to evolve, enabling the sector as a whole to lead by example.
“We are redoubling our efforts on renewables and the Carbon Trust’s work in this area continues to help us maximise Scotland’s competitive advantage in clean energy, whether through helping to bring down deployment costs for offshore wind, or demonstrating best practice in biomass installations. “I welcome the Carbon Trust’s ongoing support of our efforts to cut Scotland’s energy consumption and emissions, and to help capture the wider benefits of a low carbon economy.”
Performance assessment Alexander Ross Holdings Ltd
Forth Ports plc
Renfrewshire Council
Shetland Island Council
University of Stirling
Datec Technologies Limited
GE Caledonian Ltd
Royal Bank of Scotland Group
St Enoch Trustee Company Ltd
West Lothian Council
Edinburgh Napier University
Johnston Press Plc
Scottish Midland Co-Operative Society Ltd
University of Aberdeen
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FMC Technologies Ltd
NHS Lothian
Scottish Power Ltd
University of Glasgow
additional Carbon Trust Standard bearers
Developed to encourage good practice in carbon measurement, management and reduction by businesses and public sector organisations, the Carbon Trust Standard certifies organisations for real carbon reduction and commitment to ongoing reductions. Since its launch in 2008, 44 Scottish businesses and public sector organisations have achieved the Carbon Trust Standard.
Our activities are designed to have a material impact in terms of CO2 emission reductions. We have always aimed to maximise the cost effectiveness of our activities, now and in the future. By measuring our impact we learn how to improve our services. Full details of our assessment and reporting methodology are set out in the Carbon Trust 2010/11 Performance Assessment Methodology, which is available from our website (www.carbontrust.co.uk). As in previous years, we commissioned PricewaterhouseCoopers LLP (PwC) in 2010/11 to provide a limited assurance on the application of our performance assessment methodology to selected performance data. Their report can be found on pages 54–55 of the Carbon Trust’s 2010/11 Annual Report. Please note that, as stated in our last annual review (Carbon Trust Annual Review for Scotland 2009/10), in this 2010/11 annual review we are reporting all our results based on the updated model for calculating the expected impact and persistence of measures implemented by our customers. Possible changes to impact assessment methodology in 2011/12 and beyond During 2011/12 the Carbon Trust will be reviewing potential alternative approaches to measuring our impact and our impact assessment methodology. As a missiondriven company, measuring and reporting our impact robustly and objectively is and will remain essential; though our current approach may require modification in light of substantial changes which have taken place in Carbon Trust’s operating model and services in England and at UK level.
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Performance assessment
Carbon Trust Scotland Annual Review 2010/11
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Carbon Trust Scotland Annual Review 2010/11
Scotland’s roll of honour “ The Carbon Management programme is playing a vital role in helping to realise the Scottish Government’s energy efficiency and climate change priorities.”
Roll of honour
John Swinney MSP, Cabinet Secretary for Finance, Employment and Sustainable Growth
Anniesland College
Ayr College
Central Scotland Fire and Rescue Service
Central Scotland Police
Cumbernauld College
Dumfries & Galloway Constabulary
Dumfries & Galloway Fire and Rescue Service
Fife Constabulary
Fife Fire & Rescue Service
Golden Jubilee National Hospital
Grampian Fire and Rescue Service
Grampian Police
Highland Birchwoods
Highlands & Islands Enterprise
Highland & Islands Fire and Rescue Service
Historic Scotland
Inverness College
Keep Scotland Beautiful
Kilmarnock College
Lothian & Borders Police
Lothian & Borders Fire and Rescue Service
Moray College
NAFC Marine Centre UHI
Newbattle Abbey College
NHS Orkney
NHS Shetland
Northern Constabulary
Oatridge College
Sabhal Mòr Ostaig
Scottish Fire Services College
Scottish Funding Council
Scottish Police Services Authority
Shetland College
Tayside Police
Sportscotland
Transport Scotland
Strathclyde Fire and Rescue
UHI Millennium Institute
Tayside Fire and Rescue
39
additional Carbon Management graduates in Scotland
During 2010/11, a further 39 Scottish organisations graduated from the Carbon Management programme, including eight of Scotland’s fire and rescue services, 10 further education establishments and eight police organisations.
Carbon Trust Scotland Annual Review 2010/11
03
Who we are
We help to cut carbon emissions now by: • providing specialist advice and finance to help organisations cut carbon • setting standards for carbon reduction. We reduce potential future carbon emissions by: • opening markets for low carbon technologies • leading industry collaborations to commercialise technologies • investing in early-stage low carbon companies.
Overview
The Carbon Trust is a not-for-profit company with a mission to accelerate the move to a low carbon economy.
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Carbon Trust Scotland Annual Review 2010/11
In this Annual Review...
Contents
Overview Commendation 02 Who we are 03 Highlights in Scotland 2010/11 05 Summary of the year 06 Carbon now 08 Supporting business & industry: SMEs 10 Supporting business & industry: larger companies 12 Public sector leadership 14 Public sector leadership 16 Renewable heat 18 Carbon future 20 Offshore wind 22 Marine energy 24 Roll of honour 26 Performance assessment 27
Measuring carbon emissions In industrialised countries 80% of greenhouse gas emissions are carbon dioxide (CO2), released into the atmosphere mostly from the burning of fossil fuels. Other greenhouse gases produced by industrial and agricultural processes include: methane (CH4); nitrous oxide (N2O); hydrofluorocarbons (HFCs); perfluorocarbons (PFCs) and sulphur hexafluoride (SF6). In order to produce a uniform measurement of greenhouse gas emissions, greenhouse gases other than CO2 are converted into units of carbon dioxide equivalent (CO2e), and this is what we use in our report. ‘Carbon’ is a shorthand unit derived from CO2 and CO2e, used by governments in international climate change negotiations. One tone of carbon is equivalent to 3.66 tonnes of CO2 or CO2e.
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Carbon future
Carbon Trust Scotland Annual Review 2010/11
Case study: Aquamarine Power Aquamarine Power is one of three Scottish technology developers to benefit from the Marine Renewables Proving Fund (MRPF), launched by the Carbon Trust in 2010 to accelerate the development of renewable marine energy technology by providing financial and technical support. The MRPF provided Aquamarine Power with £4.7m of grant funding. This enabled the company to take its prototype, the Oyster, hailed as the world’s largest grid-connected hydro-electric wave energy converter to the next stage of development. The grant has contributed towards the design, fabrication and installation of a full-scale, grid-connected 800kW Oyster demonstration device, known as Oyster 800. This second generation Oyster 800 device will be installed at the European Marine Energy Centre (EMEC) in Orkney in summer 2011. The MRPF funding has also helped Aquamarine Power to attract another £11m of inward investment from private companies, such as Scottish & Southern Energy and ABB. Martin McAdam, CEO of Aquamarine Power commented: “The Carbon Trust is an important organisation which has been able to undertake objective, industry-wide assessments of the leading marine technologies available. This has enabled them to make independent, informed decisions on the types of projects to support. The MRPF funding has been fundamental to us as a business.”
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Carbon Trust Scotland Annual Review 2010/11
“ The MRPF is an essential initiative to push the development of new renewable marine energy technologies towards commercialisation and has been instrumental for Hammerfest Strøm. The close cooperation through project management support and technical services by the Carbon Trust has added significant value with its focus on timely and cost efficient delivery.”
Carbon future
Stein Andersen, Managing Director, Hammerfest Strøm UK
Case study: Marine Energy Accelerator Our Marine Energy Accelerator (MEA) ran from 2007 to 2010, focussing on reducing the cost of energy from wave and tidal stream technologies. It identified pathways towards continued cost reduction and towards full exploitation of the UK marine energy resource. The MEA invested a total of £3.5m and in Scotland worked with a range of partners, including device developers such as Aquamarine Power, AWS Ocean Energy and Pelamis Wave Power, component technology manufacturers (including Midlothian-based MacTaggart Scott), engineering consultants, including offshore experts based in Aberdeen and academic researchers at the University of Edinburgh.
£40m
private sector funding the Marine Renewables Proving Fund has leveraged into new wave and tidal technologies
Marine energy The waves and tidal streams of the seas around Scotland’s coast offer an unrivalled wealth of natural energy resources which could be harnessed to generate clean, renewable electricity. We have been working for a number of years to accelerate the development of marine energy technology within the UK and particularly in Scotland, to help secure the low carbon energy supply and economic growth opportunities that this presents. In 2009 we designed and launched the £22.5m Marine Renewables Proving Fund (MRPF). The MRPF provided financial and technical support aimed to transform the UK’s marine energy industry by assisting the deployment of full-scale prototypes of leading wave and tidal stream devices. In 2010/11 we provided MRPF grant support of £13.3m to six wave and tidal energy companies. In total the MRPF has leveraged over £40m of private sector funding into the projects it has supported. Three Scottish companies benefitted from MRPF funding, including Edinburgh based Aquamarine Power and Pelamis Wave Power, along with Glasgow based Hammerfest Strøm UK. Set against a shortage of funding in the sector, the finance made available through the MRPF has bridged a gap which was stifling progress and has created more certainty around the technical performance of each technology, triggering more confidence in the sector.
Pelamis Wave Power, with its project partner E.ON, received £4.9m to manufacture, deploy and test the company’s second generation Pelamis P2 machine, an offshore wave energy converter which absorbs the energy of ocean waves and converts it into electricity. Officially unveiled in Leith Docks in May 2010 by the First Minister, the device was then transported to the European Marine Energy Centre (EMEC), Orkney, for installation and testing at sea. Hammerfest Strøm UK was awarded a grant of £4.3m from the MRPF towards the design and manufacture of the HS-1000, a 1MW gravity based three bladed tidal device, which will be deployed in Autumn 2011. Aquamarine Power received £4.7m towards the construction of their Oyster 800 device. Of the six devices supported by the MRPF five will be deployed at EMEC.
Carbon Trust Scotland Annual Review 2010/11
05
Achievements in 2010/11 in Scotland
Achievements to date in Scotland
In 2010/11 our customers implemented projects which will reduce their energy bills by over
Since we were formed 10 years ago, the Carbon Trust has helped customers in Scotland to put in place projects reducing their energy bills by up to
£205m 2.3m and cut emissions by
tonnes CO2
over the lifetime of those projects
1100
Scottish SMEs received our expert advice and information to reduce their energy bills and carbon emissions
7
Biomass Heat Accelerator exemplar system installations are being implemented in Scotland
£40m
Offshore Wind Accelerator expanded to a collaboration of eight international energy companies
450
submissions from across the world to our Offshore Wind Access competition
3
of Scotland’s leading marine energy technology companies received grants of several £m from our Marine Renewables Proving Fund
£916m 11.4m and cutting emissions by up to
tonnes CO2
over the lifetime of those projects
130
public sector bodies and educational institutions in Scotland have worked with us to develop a Carbon Management Plan
44
Scottish businesses and public sector organisations have now achieved the Carbon Trust Standard
Highlights
Highlights in Scotland 2010/11
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Carbon Trust Scotland Annual Review 2010/11
Summary of the year
Summary of the year
“ In 2010/11, every £1 of Scottish Government money invested by the Carbon Trust delivered over £38 of energy bill savings to our clients.”
Paul Wedgwood, Manager, Carbon Trust Scotland
Since the Carbon Trust was established 10 years ago our mission to accelerate the move to a low carbon economy has been at the heart of everything we do. This resonates strongly with the Scottish Government’s ambitions to deliver sustainable green growth while reducing Scotland’s energy consumption and addressing climate change.
Delivering savings in Scotland now In October 2010 the Energy Efficiency Action Plan for Scotland was published by the Scottish Government, including the national target of a 12% reduction in energy demand. The Action Plan recognised the expert role of the Carbon Trust in providing advice and support to business and the public sector.
Transition to a low carbon economy is now one of the six strategic priorities in the Scottish Government Economic Strategy, which focuses on the key actions to accelerate recovery and drive sustainable growth. This recognises the need to decouple trends in carbon emissions levels from trends in economic growth and seeks to capitalise on the industries of the future. These ambitions require expertise and focus on energy efficiency and a major shift towards renewable energy.
We help organisations to contribute towards achieving this target: in 2010/11 our customers implemented projects delivering direct cost savings of over £205m from their energy bills and lifetime carbon savings of 2.3MtCO2.
Our small team of experts in the Carbon Trust Scotland office, based in East Kilbride, play a key role in helping organisations to grasp opportunities in energy efficiency, low carbon energy and high value low carbon technologies, products and services. These will reduce costs and create jobs and wealth, while addressing climate change and concerns about our nation’s energy security.
At a time when minimising costs and increasing competitiveness across Scotland’s economy is more important than ever, our expert support must continue to play a key role. We strive to deliver great value for money: the lifetime cost-effectiveness of our work is exceptional, at between £1.6-£1.7/tCO2 abated. In 2010/11, every £1 of Scottish Government money invested by the Carbon Trust delivered over £38 of energy bill savings to our clients, over the lifetime of implemented recommendations. There will be challenges ahead, however, we are not exempt from the pressures of declining government spending, coupled with scarcity of funds for both private and public organisations. This may lead to our services in Scotland being offered on a part- or fully-paidfor basis and see us developing commercial partnerships to enable us to carry on our work. For example, though we are no longer able to offer interest-free small business loans, our recently announced partnership with Siemens Financial Services will inject up to £550m of private finance for energy efficiency investment in the UK and we encourage clients in Scotland to take advantage of this opportunity.
Carbon Trust Scotland Annual Review 2010/11
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Case study: Working with Scotland’s offshore engineering expertise
This has led to some notable successes. Aberdeen-based Wood Group, together with Dutch company SPT Offshore, was one of the designers of four robust, cost-effective turbine foundation designs for use in deeper water – a major factor in driving down the cost of offshore wind. The four designs were selected from 104 entries to the OWA’s foundation competition, and the designs have been further developed and de-risked over the last 18 months. Other Scottish-based companies have been instrumental in the success of the development process – Technip and BiFab have provided independent costs for the installation and fabrication of turbine substructures; Atkins and DNV have respectively led the electrical and marine access systems research areas for the OWA, and a substantial number of designs submitted to the OWA Access Competition have come from Scottish companies. Andrew Donaldson, Offshore Engineering Manager at SSE Renewables, said: “The OWA competitions have successfully facilitated collaboration between the oil and gas industry and the burgeoning offshore wind industry, with one lending expertise to the other. This collaboration is accelerating the development of key technologies and services to reduce the costs and risks of offshore wind.”
Image courtesay of: chpv.co.uk/SSE/RWE
Carbon future
SSE has been working with oil and gas companies in Aberdeen for some time, recognising their expertise can be transferred to the offshore wind industry. SSE has helped the Carbon Trust to deepen engagement with the oil and gas industry through the Offshore Wind Accelerator (OWA) and these companies have been using their expertise to benefit offshore wind by contributing to the OWA.
Carbon future
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Carbon Trust Scotland Annual Review 2010/11
Case study: SSE Renewables SSE has found the Carbon Trust’s Offshore Wind Accelerator (OWA) to be invaluable in developing their involvement in the offshore wind industry. It is already delivering tangible results: wake effects tools developed through the OWA are used in the design of their offshore wind projects, whilst the OWA foundations competition has identified lower cost options for foundation designs in far-shore, deeper waters. Andrew Donaldson, Offshore Engineering Manager at SSE Renewables, said: “The OWA has been extremely useful, bringing benefits to us and Scottish companies we work with to reduce the cost of offshore wind. We are well on course to meet our ambitious capital cost reduction targets.”
£2bn
estimated global market opportunity for innovative access solutions for offshore wind sites
Offshore wind The Scottish Government has set the European Union’s most ambitious renewable energy target, aiming to meet 100% of Scotland’s demand for electricity from renewable sources by 2020. Mass deployment of offshore wind, which could deliver as much as 25% of the UK’s electricity by 2020, has a critical role to play if targets are to be met. This presents a significant economic opportunity for Scotland, which has around 25% of Europe’s potential offshore wind resources – not only in terms of the business and job creation to build and operate offshore wind farms in Scottish waters, but also in supplying the rest of the UK and the North Sea basin with technologies and services. However, offshore wind needs to become a more attractive investment proposition – energy yields must be higher and construction and maintenance costs lower, while also being able to install and operate safely and cost-effectively further from shore in deeper waters and harsher weather conditions. Our Offshore Wind Accelerator (OWA) is a ground-breaking research, development and demonstration programme in which we are working with eight leading energy companies to reduce the cost of offshore wind by at least 10% by 2020. Our international industry partners include SSE Renewables, ScottishPower Renewables, Mainstream Renewable Power and E.ON. Within Scotland we have collaborated with companies for their offshore engineering expertise from the oil and gas industry, such as Aberdeen-based Wood Group and BiFab in Fife.
The OWA focuses in four areas of innovation: the development of robust, cost effective turbine foundation designs; new solutions for cost effective operations and maintenance; understanding wake effects and optimising energy yield from the layout of turbine arrays; and cost effective electrical systems to minimise power losses. In autumn 2010 we launched an Offshore Wind Access competition to find ways to get maintenance engineers on to offshore wind turbines in far-shore sites, where wave and weather conditions are often challenging. We are seeking solutions for a 50% increase in the number of days on which it is possible to access and maintain turbines at these sites, thereby maximising the time turbines are operational and productive. The global market opportunity for these access solutions is estimated at over £2 billion by 2020. We are currently in negotiations with a shortlist of leading entries, including Scottish companies, and will work with them in 2011/12 to develop the best ideas.
Green growth: Developing renewable energy Increasing energy efficiency goes hand-inhand with the development of renewable energy. New technologies are needed to harness Scotland’s unrivalled natural energy resources and we have delivered targeted innovation support, for example through our Marine Renewables Proving Fund, which had a transformational impact in 2010/11 for three of Scotland’s leading marine energy technology companies. Our Offshore Wind Accelerator (OWA) demonstrates our capabilities in convening partnerships of major players, such as ScottishPower Renewables and SSE Renewables, in order to tackle barriers blocking the progress of new low carbon technologies. The OWA is playing a critical role in driving innovation and cost reduction. Scotland’s offshore engineering and supply chain companies have a major part to play in these initiatives, furthering prospects for Scotland to be a world leader: owning, developing and manufacturing key offshore wind technologies – part of the global green growth opportunity which is estimated by the UK Government to be worth over $5 trillion. Meanwhile, in 2010/11 we took further steps to support industry and public bodies in delivering the Scottish Government’s renewable heat targets. Heating currently accounts for around half of Scotland’s energy use and switching to renewable sources can offer substantial carbon and financial savings. The first exemplar installation of a heating system delivered through the Carbon Trust’s Biomass Heat Accelerator (BHA) was commissioned in March 2011 in Fort William. We are now harnessing the work of the BHA to offer new on-the-ground support packages for Scottish organisations making the switch to renewable heat technologies.
Working together, delivering results We continue to be highly regarded by our customers. Market research in Scotland in 2010/11 confirmed that we are seen as a collaborative and trusted advisor on energy saving and carbon reduction. We will draw upon this strength to meet the challenges ahead and will be guided by the unique combination of our founding mission and not-for-profit status. The notable achievements outlined in the following pages have been delivered during difficult times for the economy and are testament to the dedication and professionalism of the Carbon Trust team in Scotland and beyond – and of the client organisations with whom we work. This will help us continue to achieve our goals in the times ahead. It is my privilege to take over leadership of the Carbon Trust Scotland team from my predecessor John Stocks, who set up our operations in Scotland nine years ago. I would like to thank John, our team in Scotland, our colleagues elsewhere in the UK, our customers, partners and funders for their continued support. Paul Wedgwood, Manager, Carbon Trust Scotland
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Summary of the year
Carbon Trust Scotland Annual Review 2010/11
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Carbon Trust Scotland Annual Review 2010/11
Carbon now
We are helping Scottish businesses and public bodies realise the benefits of moving to a low carbon economy and take positive action on climate change. We do this by providing specialist advice and support. We set clear standards to help organisations reduce their energy use, cut costs and carbon emissions, and measure and communicate their achievements – ultimately helping them become more sustainable, profitable businesses that are better able to compete and lead in the move to a global, low carbon economy.
We help you cut carbon
now
Carbon Trust Scotland Annual Review 2010/11
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100%
of Scotland’s demand for electricity to be met from renewable sources by 2020 (Scottish Government target)
What we’re doing to cut future carbon emissions in Scotland According to the UK Government, the low carbon market is worth £3 trillion a year globally and, crucially, is set to increase by approximately 20% over the next five years. The global economic and carbon prizes are potentially huge for those who can develop and commercialise low carbon technologies, companies and services. Scotland is ideally placed to develop world-leading renewable energy and other low carbon technologies, founded on its wealth of natural resources, and research and engineering expertise. The Carbon Trust plays a central role in accelerating the commercialisation of low carbon technologies. We are opening new markets, bringing together industry leaders to work collaboratively to cut the cost of new technologies and accelerate their deployment. We also provide support to the UK’s best innovators and entrepreneurs to help develop new companies that will deliver the next generation of technologies and low carbon economic growth. We have also provided early stage investment to some of the UK’s most promising low carbon technology companies. Entrepreneurs Fast Track launched In 2010/11 we launched the Entrepreneurs Fast Track (EFT) – a support service to help the UK’s best low carbon entrepreneurs bring their ideas to market. This builds on the success of our previous Business Incubation and Applied Research services to provide early stage companies with a customised package of expert advice and networking opportunities. Innovative small companies in Scotland have already benefitted, including Heriot-Watt University spin-out Petroc Technologies Ltd, which is working on specialised solutions for the secure storage of CO2 in geological reservoirs. EFT support is being tailored for a number of other early stage technology companies in Scotland and this will roll out in 2011/12.
In December 2010 we were delighted to see Midlothian-based Artemis Intelligent Power conclude a deal to be acquired by Mitsubishi Heavy Industries. Artemis is a small, highly innovative company which the Carbon Trust has supported for a number of years through our specialist low carbon technology commercialisation activities. Mitsubishi will take forward Artemis’ unique Digital Displacement technology for use in a new generation of offshore wind turbines and various other applications. Accelerating Scotland’s offshore renewables Scotland’s potential for renewable offshore wind and marine energy offers significant low carbon economic growth opportunities and the prospect of being a world leader in these technologies. As illustrated in the following pages, we have been working with companies in Scotland and beyond to pursue these opportunities. Our Offshore Wind Accelerator, Marine Energy Accelerator and Marine Renewables Proving Fund support research and development for innovative technology solutions which will reduce costs and risks.
Carbon future
Carbon future
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Carbon Trust Scotland Annual Review 2010/11
Carbon future
Scotland and the UK are ideally placed to lead the transition to a global low carbon economy, with excellent academic teams, industrial expertise and great natural renewable resources. The Carbon Trust’s vision is for the UK to become a hub of low carbon innovation and investment, developing low carbon technologies, products and services and exporting them to the rest of the world. Scotland has a major part to play: we are working with Scottish entrepreneurs, innovators, academics and industry to reduce the cost of future low carbon technologies and accelerate their development and deployment. In doing so we are helping to create a sustainable, prosperous low carbon economy for Scotland’s future.
We will cut carbon in the
future
Carbon Trust Scotland Annual Review 2010/11
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130
Scottish public sector bodies have developed a Carbon Management plan since the Carbon Management programme began in 2003
What we’re doing to cut carbon emissions in Scotland now The transition of Scotland’s industries, firms and public sector to low carbon processes, products and services is both an economic and environmental imperative. It offers business the potential to stimulate and benefit from rapidly expanding global markets. At the same time, the Scottish Government has set ambitious carbon reduction targets, as outlined in the 2009 Climate Change (Scotland) Act and all Scotland’s business and public organisations will need to contribute to the achievement of these targets. The Carbon Trust plays a key role. Our expert account managers and specialist consultants help Scottish business and public sector customers to cut energy costs, manage risks, identify opportunities and gain competitive advantage. We work with all types and sizes of organisation in Scotland, ranging from small to medium-sized enterprises to major public sector organisations and larger manufacturing companies. By taking informed action to reduce their energy use and carbon emissions the organisations we work with can become more efficient, more sustainable and ready for green growth in Scotland’s move to a low carbon economy.
Our specialist advice is provided through direct, on-site consultancy support using Carbon Trust accredited consultants providing advice tailored to customer needs; and indirect engagement, which focuses on knowledge transfer, raising awareness and self-help tools and guidance. Each year we offer hundreds of individual on-site services to customers in Scotland, helping them to save tens of millions of pounds. Meanwhile, we provide wider assistance through thousands of engagements via our website, publications, helpline and training events. In line with the Scottish Government’s ambition that the public sector should adopt a leadership role in the transition to a low carbon economy, we have helped over 130 Scottish public bodies develop a Carbon Management plan since the Carbon Management programme began in 2003. We also play a key role in supporting industry and the public sector in Scotland deliver towards the Scottish Government targets for renewable heat. We have the expertise to help businesses and public organisations identify and assess cost-effective opportunities to convert to low carbon heat sources such as biomass and enable them to take advantage of the financial support available.
Carbon now
Carbon now
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Carbon Trust Scotland Annual Review 2010/11
“ The advice I received from the Carbon Trust has been invaluable. Yes, we’re helping the planet but at the end of the day the environmental decisions we’ve made make good financial sense.”
Carbon now
William Twaddle, Proprietor, Tayside Hotel
Case study: Tayside Hotel William Twaddle and his family bought The Tayside Hotel in Perthshire in 2007 and soon became aware that the cost of energy was a significant overhead to the business. William attended a series of Carbon Trust workshops in 2009, with the aim of improving the overall energy efficiency of the hotel to save money. He began implementing his energy efficiency plan in 2010, which included measures such as switching to low-energy LED light bulbs, resetting the temperatures of the hotel’s freezers and a programme of staff engagement. William has plans to install a biomass boiler in autumn 2011.
Supporting Scottish business & industry: SMEs We work with hundreds of Scotland’s small and medium-sized enterprises (SMEs), providing specialist advice and practical support to help them take action and make savings to improve their competitiveness by reducing their energy use and carbon emissions. We achieve this through a combination of direct and indirect engagements. Our direct engagement is a ‘hands on’ approach where our accredited expert consultants deliver cost-effective, tailored, on-site carbon surveys to help SMEs identify multiple areas in which practical energy savings and emissions reductions can be made. During 2010/11 we supported in the region of 200 SMEs in Scotland in this way, helping them cut their emissions by an estimated 49,000tCO2 and save over £3.9m from their annual energy bills. Our indirect engagements are a range of services designed to meet the needs of our SME customers. These include a dedicated customer helpline, a wide range of publications and training workshops, designed to empower employers to take action. This year has also seen the launch of our dedicated website for the Carbon Trust in Scotland (www.carbontrust.co.uk/scotland).
£3.9m
saved on 200 SME energy bills, helped by the Carbon Trust
Our technical training workshops, low carbon buildings masterclasses and ‘carbon coaching’ workshops provide Scottish businesses with the confidence to embark on emissionsreduction projects. Feedback received from technical training workshops has been extremely positive, indicating that over three-quarters (79%) of delegates who attended workshops in 2010/11 now have an energy saving plan upon which the Carbon Trust has had a significant influence, while 67% have implemented changes outlined in the workshops. Carbon coaching workshops, run in collaboration with Scottish Enterprise, have been instrumental in educating companies in Scotland about the benefits of saving energy. These workshops were specifically geared towards the needs of smaller businesses, with topics including low-cost/no-cost energy saving tips and demonstrations of our free online energy management tools. Of the companies that attended the carbon coaching workshops, 74% were classified as SMEs, with almost 50% employing less than 50 employees. As a partner organisation of the forthcoming single Scottish Energy and Resource Efficiency Service (SERES) we are working with other business advice specialists in Scotland to make it even easier for SMEs to get the help they need to cut costs and reduce their carbon footprints. We look forward to delivering this new approach to support sustainable low carbon business growth in Scotland.
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Carbon now
Carbon Trust Scotland Annual Review 2010/11
Case study: Auchrannie Leisure Ltd Auchrannie Leisure Ltd owns two hotels and 30 holiday lodges on the Isle of Arran. The Carbon Trust carried out an energy audit two years ago which outlined a number of measures the company could undertake to reduce its energy spend. Auchrannie was also interested in considering a biomass boiler, taking advantage of fuel supplies available from local wood-chip company Arran Woodfuels. The Carbon Trust outlined the benefits of an installation, including an anticipated annual saving of £21,000. In June 2010, a biomass boiler was installed at Auchrannie House Hotel at a cost of £195,000. The Carbon Trust advisor helped to identify sources of financial support such as the Scottish Government’s Scottish Biomass Heat Scheme. The biomass boiler provides energy for Auchrannie House Hotel’s heating systems, including heating for all on-site laundry and the hotel’s swimming pool. Ronnie Mann, Finance and Development Director at Auchrannie Leisure Ltd said: “The biomass boiler has already exceeded expectations, with our energy bills for Auchrannie House Hotel halved within a year of operation. With over £23,000 already saved we anticipate a 4–5 year payback period. “The Carbon Trust has been instrumental in helping us understand the tangible benefits of installing a biomass boiler. We will be looking into expanding the use of biomass further, particularly with the introduction of the Renewable Heat Incentive.”
1818 Carbon Trust Scotland Annual Review 2010/11
“ The technical and financial support received through the Carbon Trust’s Biomass Heat Accelerator enabled us to take our first step into renewable energy. The expert advice we have received through the Carbon Trust has been instrumental in enabling us to roll out the use of biomass across our UK sites.”
Carbon now
Vera Tens, Product and Process Support Manager, BSW Timber
Case study:
Leading sawmill firm BSW Timber needed to sustainably increase its dry timber production and in October 2010 began the installation of a 5MW biomass boiler at its site at Dalbeattie, in south-west Scotland. This project followed on from a biomass boiler installation at BSW’s Welsh site, supported by the Carbon Trust’s Biomass Heat Accelerator. The new Dalbeattie biomass boiler will deliver estimated annual cost savings of almost £1m and carbon savings of 4,000tCO2. With the payback period expected to be just over a year, BSW now has plans to install two 5MW biomass boilers at its Fort William site and is investigating options at its Boat of Garten location.
7
of the 20 Biomass Heat Accelerator exemplar installations are in Scotland
Renewable heat We are supporting industry and the public sector in Scotland to deliver towards the Scottish Government targets for renewable heat, as outlined in the Renewable Heat Action Plan. Heating currently accounts for around half of Scotland’s energy use and by 2020 the aim is that at least 11% is to be generated from renewable sources. Renewable heat, with its substantial carbon and financial savings potential, will continue to be a significant focus for the Carbon Trust in Scotland. We can be instrumental in helping achieve ambitious targets. Currently over 90% of Scotland’s renewable heat is generated from wood biomass, typically being the most cost-effective option. With our expertise in this area we can help business and the public sector in Scotland take full advantage of the financial support offered through the forthcoming introduction of the UK-wide Renewable Heat Incentive. Our experienced account managers and accredited consultants guide organisations in their efforts to reduce reliance on carbonintensive and increasingly expensive fossil fuel supplies for heating. We help them identify and assess cost-effective opportunities to convert to low carbon heat sources. We provide specialist independent guidance with financial and technical insight, making robust assessments of how to successfully implement renewable heat plans and projects.
At a strategic level, our UK-wide Biomass Heat Accelerator (BHA) is catalysing the growth of the medium-scale commercial and industrial biomass heating market by identifying how to reduce costs, demonstrating best practice and addressing supply chain risks. In 2010/11 the BHA entered a new phase, providing targeted development support to the delivery of around 20 installations, over one third of which are in Scotland. These installations will be exemplars showing that it is possible to design, procure, install and operate biomass heating systems, across public and private sectors, that are cost effective, high performance and supported by robust fuel supply chains. Our first BHA exemplar installation went live in March 2011 and is at Highland Council’s Lochaber Leisure Centre. Going forward we will be piloting an offering of specific technical support packages to ensure successful early implementation of several more exemplar biomass heating projects at sites across Scotland, which will give further impetus to the market.
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Carbon Trust Scotland Annual Review 2010/11
Case study: Fife Joinery Manufacturing Ltd Fife Joinery Manufacturing Ltd produces double-glazed roof windows in Glenrothes and is the UK manufacturing arm of the Velux Group. The 200-person company was keen to reduce energy consumption and its carbon footprint, so asked the Carbon Trust to undertake an energy audit on-site. One of the recommendations from the energy audit was to implement a staff awareness programme, which began in 2010. To date over 97% of staff have undertaken the training, which encourages staff to use less energy and increase recycling on-site. The appointment of energy champions has also helped to make further improvements to company practices. Reducing materials sent to landfill is a key initiative, with waste wood fuelling the biomass boiler on-site. The company’s goal is to reduce energy consumption by 20% by 2012 and 50% by 2020 and to date has managed to far exceed this target by decreasing its energy consumption by 47%, with approximately 1,000 tCO2 saved annually, which includes savings achieved through the awareness programme. Garry Farmer, Environmental Co-ordinator at Fife Joinery, said: “The support received from the Carbon Trust has been second to none. The awareness raising activity has been a huge success with staff, helping us save almost £80,000 per year on energy bills.”
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“The Carbon Trust recommendations we have implemented are already showing great returns both for carbon emission reduction and financial savings. We have also been encouraged by the Carbon Trust and are currently working towards a hydro power scheme in Inverness-shire, which is currently in pre-planning.”
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Charles Toyn, Company Secretary, Hillhouse Quarry Group Ltd
Case study: Hillhouse Quarry Group Ltd Ayrshire based Hillhouse Quarry Group Ltd is one of the largest privately owned quarries in Scotland, producing a range of building materials. A site visit from the Carbon Trust looked at where energy and carbon savings could be maximised. Having implemented a number of the resulting recommendations, the company is saving 538tCO2 per year. Compressors were relocated and reduced in number; sheds built to keep fine aggregates dry, saving on heating preparation for coating; an inefficient aggregate dryer was replaced; even lightbulbs were changed!
Supporting business & industry: larger companies The UK government’s CRC Energy Efficiency Scheme (formerly known as the Carbon Reduction Commitment) came into force in April 2010. Focused on larger organisations which are not already included in Climate Change Agreements or the EU Emissions Trading Scheme, it aims to significantly reduce UK carbon emissions. With the first annual CRC emissions reports due in July 2011, we have been working hard with larger organisations in Scotland to help them respond positively to the CRC and realise a sustainable reduction in their carbon emissions and energy costs. We assist larger companies with opportunity assessments and feasibility studies, identifying and developing cost-effective projects which will significantly cut down on carbon emissions and make a real impact on their energy spend. Advice offered by our expert account managers is highly valued because it is completely objective and impartial and, with the on-site assistance of our accredited specialist consultants, is entirely tailored to customers’ needs. We help companies shape the direction and implementation of their energy saving plans and projects through expert analysis, technical and financial insight. This typically leads to the development of a sound business case which companies can then take forward.
Over the years we have worked with many leading companies across Scotland, helping them to improve their energy efficiency and ultimately helping them to save money. DSM Nutritional Products, global market leader in vitamins and other key ingredients for food, feed, pharmaceutical and personal care products, is an important employer in Ayrshire at their Dalry site. They have received advice and support from us for a number of years and recently the company worked with us on the design and implementation of a monitoring and targeting system at the site’s vitamin C plant, which it is estimated will reduce the company’s annual carbon footprint by 8%. Another example of our work in 2010 is with whisky manufacturer John Dewar & Sons Ltd, who benefitted from a Carbon Trust opportunities assessment at their bottling plant in Glasgow. A number of the recommendations have been implemented, including measures to reduce compressed air leakage, upgrading controls and improving energy management practices. It is expected these measures will save approximately 650tCO2 annually.
Carbon Trust Scotland Annual Review 2010/11
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Case study: East Renfrewshire Council East Renfrewshire Council embarked on the Carbon Trust’s Carbon Management programme in 2007, establishing a five-year plan to reduce its carbon emissions by 25%. The financial downturn meant that many capital intensive projects in the Carbon Management plan were unable to progress, instead the Council focused on energy saving measures requiring minimal investment to progress the plan.
Derek Jarvie, Senior Environment Officer at East Renfrewshire Council said: “The pilot ran from February 2010 to March 2011 and resulted in an 8.5% reduction in electricity use. Due to this success, we are now rolling out the programme to all schools in East Renfrewshire, with the aim to reduce energy usage by 10% by March 2012. The Carbon Trust has provided invaluable support all along the process, enabling us to make significant savings.”
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The Council made good use of the Carbon Trust’s publication ‘A Whole School Approach’, which addresses how the whole school can get involved in reducing its carbon footprint. A pilot energy efficiency project was set up at St Luke’s Secondary School in Barrhead, with the main thrust to change behaviour in energy use. Pupils became energy monitors, ‘Energy’ as a teaching topic was reinforced and a school audit was undertaken to see where energy use could be cut.
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“ Building procurement support from the Carbon Trust was a great help to review and understand the problems with delivering a low carbon building brief. It clarified the specification requirements considerably for our new high school project and future schools projects.”
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Eddie Boyd, Principal Engineer, Highland Council
Case study: Tayside Fire and Rescue In a cohesive approach to carbon emission reduction, Tayside Fire and Rescue and every other Scottish Fire and Rescue Service signed up to the Carbon Management programme in 2010. Tayside Fire and Rescue set an overall target to reduce its carbon emissions by 20% by 2015, which is expected to translate into an anticipated gross saving of £197,000 by year five. Examples of actions undertaken include energy efficiency plans being incorporated into new building proposals and a team of environmental champions appointed to reduce environmental impact in the workplace.
Public sector leadership We help public sector organisations in Scotland save money and achieve their carbon emissions reduction targets by providing them with support and advice, including on-site energy efficiency surveys, feasibility studies, technical and financial insight and analysis into on-site renewable energy opportunities. In 2010/11 we ran a project with 17 local authorities to identify how they could improve on-site controls in a wide variety of buildings across their estates. Some impressive savings were identified, including 3,000tCO2 which could be achieved at the sites visited through no cost and minimal cost measures. Wider replication of such measures will deliver significant energy cost and carbon savings. We also ran an energy saving awareness programme with six local authorities, from Shetland in the north to South Lanarkshire, teaching Councils how to implement a successful awareness campaign across their workforce. Carbon emissions associated with the use of energy in buildings account for by far the largest proportion of the public sector’s carbon footprint. In 2011 we ran three masterclasses highlighting low carbon buildings which are exemplars in their field. These included Angus Council’s Seaview Primary School, winner of our 2010 low carbon new building award. The school’s design and construction has created an environment which exploits natural light and is appropriately ventilated and air tight.
£51m
will be saved by Scottish public bodies over the lifetime of projects implemented in 2010/11 from their Carbon Management plans
It includes building management controls which have minimised energy wastage at the school. The educational experience for pupils and staff has improved through the intelligent design. We are increasingly involved in supporting public bodies through the specification and procurement process for their new build and refurbishment projects, focusing on delivery of low energy, high performance productive environments. Through our Building Procurement Support service we helped Highland Council examine and quantify problems with a new school building, addressing concerns about its operational, energy and carbon performance. Working with the Council’s in-house architect team we then provided advice and support for a much tighter specification for a subsequent new school project. Developing from such engagements and in response to the Scottish Government’s Energy Efficiency Action Plan, published in October 2010, we have been working with the Scottish Government, public bodies and the design and construction industry to develop guideline publications which will assist public sector organisations in the detailed processes required for successful specification and delivery of low energy, low carbon and high performance new build and refurbishment projects.
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Carbon Trust Scotland Annual Review 2010/11
Case study: Michelin Leading tyre manufacturing company Michelin called on the Carbon Trust in 2009 for energy efficiency advice at its Dundee factory, responsible for producing 22,000 car tyres a day for export across the world. A Carbon Trust consultant undertook an on-site carbon survey and identified several areas across the factory which could be improved in terms of energy efficiency. A number of the recommendations were implemented in 2010, with further guidance from the Carbon Trust. These included the installation of variable speed drives at selected pumps, reducing heat loss from boilers, recovery of low-grade heat from steam vents and the installation of new cooling towers and circulation pumps. Significant focus was also placed on reducing out-of-hours energy consumption through a change in the monitoring of the site’s electricity and gas use, which is now done every half hour. It is estimated that 1,443tCO2 annual savings will be made from the recommendations implemented. Gerry Bannister, Energy Manager at Michelin’s Dundee site, commented: “We are delighted with the savings made so far and can attribute all the progress made to the expert advice of the Carbon Trust, who have made the process of identifying and implementing energy efficiency measures simple and effective.”
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Carbon Trust Scotland Annual Review 2010/11
“We have been gathering data and encouraging green behaviour since 2008. The Carbon Management programme has provided the missing piece of the jigsaw, a means of producing a formal action plan and the tools to identify a baseline and set targets. HIE’s overall target is a carbon reduction of 20% by March 2014, equating to savings of around £115,000.”
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Forbes Duthie, Director of Finance and Corporate Services at Highlands & Islands Enterprise
Case study: National Library of Scotland The National Library of Scotland (NLS) graduated from the Carbon Management programme in September 2010 with a commitment to reduce its carbon emissions by 30% by 2015, with anticipated annual financial savings of £160,000. A number of projects have been planned to help the organisation achieve this projected saving, all of which will change the way NLS operates. This includes ongoing live studies to establish new regimes for storing and preserving the National Collections with reduced levels of artificial temperature and humidity control. Tom Proudfoot, Coordinator, NLS Green Group said: “The excellent workshops, website and professional help from the Carbon Trust have all helped the NLS exceed our challenging targets and helped us reduce our carbon footprint. “We have already achieved a 15% reduction in carbon dioxide emissions and this has been due to the creativity, knowledge and energy of staff, contractors and unions working at all levels and in innovative ways.”
Public sector leadership Following the Climate Change (Scotland) Act which came into force in 2009, the Scottish Government has placed a significant emphasis on Scotland’s public sector taking the lead towards ensuring Scotland meets the ambitious carbon reduction targets outlined in the Act. This is coupled with the fact that many of Scotland’s larger public bodies also now need to adhere to the CRC Energy Efficiency Scheme. At the Carbon Trust we are committed to helping public sector organisations become leaders in carbon reduction and make substantial savings in their energy bills. We have continued to expand our service offering to public bodies. Since it began in 2003, our Public Sector Carbon Management programme has delivered extensive strategic support to over 130 Scottish public bodies. This service is designed to help public bodies embed sustainable low carbon practices within their organisations by assisting them in the production of their own Carbon Management plan. This plan establishes their current baseline emissions, assesses opportunities and risks, and develops a robust strategy to reduce carbon emissions over a specified period of time, usually five years. A further 39 organisations have recently graduated from the Carbon Management programme, including 10 further education establishments and eight fire and rescue services.
Carbon management is an iterative process and strategies need to remain relevant as a public body’s responsibilities and processes change. We now offer ‘Carbon Management Response’ services which are tailored towards each individual organisation’s needs, enabling them to refresh and further implement their Carbon Management plans. This includes a support programme for energy efficiency awareness training, which was successfully piloted in 2010/11 with a group of six Scottish local authorities. We also offer the Carbon Management Revisited programme, which provides an expert review of an organisation’s energy saving plans and projects and recommends how these could be optimised and enhanced. During 2010/11 this helped 18 organisations go to the next stage, further embedding carbon management practices within their day-to-day activities. Salix Finance Salix Finance Limited is an independent company set up by the Carbon Trust to provide finance for public bodies to invest in energy efficiency projects such as insulation, heating and lighting systems. Further education colleges in Scotland can apply to a ‘rotating’ project loan fund, SEELS Scotland, which is managed by Salix Finance. Money consequently saved from their energy bills is used by the college to repay the loan. This in turn means Salix Finance can recycle the capital to offer new loans. Eight Scottish universities also have dedicated funds managed by Salix on a similar basis. During 2010/11, 75 new energy saving projects in Scotland’s education sector were committed with Salix Finance funding, with a total value of over £2m. These will generate lifetime emissions reductions of 48,000tCO2.
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Carbon Trust Scotland Annual Review 2010/11
Case study: Strathclyde Partnership for Transport (SPT) Strathclyde Partnership for Transport (SPT), the public body responsible for planning and co-ordinating the public transport system in Strathclyde, devised a Carbon Management plan in conjunction with the Carbon Trust at the end of 2010, with a view to reducing its carbon emissions by 20% over a five-year period. The Carbon Management plan focuses on projects that reduce emissions from the operational side of the organisation, namely the delivery of subway and bus services across the west of Scotland. SPT has already completed a lighting upgrade over 15 subway stations, involving a switch from T12 and T8 mains frequency lighting to T5 high frequency lighting. To date the project has yielded £50,000 of financial savings and over 300 tonnes of CO2 savings. In addition, measures have been taken to install a specially designed sophisticated lighting control system at Shields Road Park and Ride. It is anticipated the upgrade, which will use LED fluorescent tubes, will help cut energy bills there by up to 70%. John MacDonald, Planning and Project Officer at SPT, said: “The Carbon Trust’s assistance in the development of our Carbon Management plan has been invaluable. It has helped demonstrate our commitment to UK and Scottish climate change legislation, as well as making a contribution to sustainable transport.”
www.carbontrust.co.uk/scotland 0800 085 2005
The Carbon Trust receives funding from Government including the Department of Energy and Climate Change, the Department for Transport, the Scottish Government, the Welsh Assembly Government and Invest Northern Ireland. Whilst reasonable steps have been taken to ensure that the information contained within this publication is correct, the authors, the Carbon Trust, its agents, contractors and sub-contractors give no warranty and make no representation as to its accuracy and accept no liability for any errors or omissions. Any trademarks, service marks or logos used in this publication, and copyright in it, are the property of the Carbon Trust. Nothing in this publication shall be construed as granting any licence or right to use or reproduce any of the trademarks, service marks, logos, copyright or any proprietary information in any way without the Carbon Trust’s prior written permission. The Carbon Trust enforces infringements of its intellectual property rights to the full extent permitted by law. The Carbon Trust is a company limited by guarantee and registered in England and Wales under Company number 4190230 with its Registered Office at: 6th Floor, 5 New Street Square, London EC4A 3BF. Printed on 80% recycled paper containing a minimum of 60% de-inked waste fibre. Printed in the UK: October 2011 Š The Carbon Trust 2011. All rights reserved. CTC804