The smart future

INTERNATIONAL SUSTAINABILITY AND INVESTMENT CENTRE

11 June 2015

Capital working for sustainability

THESMART FUTURE Special 20-page supplement

Inside π Future Proof: Nine megatrends our planet must be ready for π Smart Is The New Green: the Irish irms leading the world in clean and smart technology π Sustainability: Why It Matters From investment to education

Supported by

Introduction

Stephen Nolan

I

magine a world where farmers control their crops by remote control, where city centre skyscrapers are lit using nothing but wind power and where polluting emissions are a thing of the past.

Well, in many respects the smart future is already here and most of these once unimaginable goals will soon be part of daily life.

The business of clean technology and investment in sustainable products and services is advancing at a rapid rate as global nations embrace the absolute necessity of a low-carbon economy in which resources are preserved and used in new ways to sustain everyone that lives on this planet.

In Ireland alone we already have 640 businesses working to cut waste, generate energy from natural sources and create smart tech products that can make peoples lives easier and more comfortable.

In recognition of the present and future potential of this multi-trillion euro global sector, the government in 2011 backed the creation of Green IFSC, to accelerate the positioning of Ireland as a global leader in sustainability investment.

The success and evolution of our work has brought with it a new name; Green IFSC is now called the International Sustainability & Investment Centre (ISI Centre).

In this special edition of The Smart Future, we hope to explain the exciting role and mission of the ISI Centre and to showcase the dynamic work and future vision of Irish companies and agencies, working in the sustainability and investment areas.

These include the state forestry company Coillte, Bank of Ireland, KPMG and the Sustainable Energy Authority of Ireland (SEAI).

In support of the national competitiveness agenda, the vision of the ISI Centre is to facilitate companies innovating in the sustainability sector and investors - so that they understand each other. Ultimately, of course, we aim to help them to do business together.

As Ireland continues on the path to a robust national recovery, we understand that business supports Ireland’s job creation agenda. The country has a thriving sustainability sector with Irish companies leading the way.

In this supplement you will hear about some of these companies. We also bring you a detailed look at the growing clean technology sector and the emergence of Ireland as a go to location for environmental funds.

We hope that those who are new to this exciting area will learn a bit more about the innovations that Irish firms, entrepreneurs and universities are undertaking.

With knowledge and capital investment, they are building the businesses of the smart future.

Our brilliant

opportunity Ireland is uniquely positioned to lead the world into a cleaner, smarter future.

ISI Centre

Q&A INTERNATIONAL SUSTAINABILITY AND INVESTMENT CENTRE Capital working for sustainability

Stephen Nolan is CEO of the ISI Centre

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What is the International Sustainability & Investment Centre (ISIC)?

The International Sustainability Investment Centre (ISI Centre) is the new name for the Ireland’s sustainability hub which is fostering capital investment in sustainable enterprise. Rebranded from Green IFSC in March 2015, ISI Centre builds on Green IFSC’s earlier success in positioning Ireland as a global leader in sustainability investment. The ISI Centre is wider in focus than just finance - it recognises that what is really setting Ireland apart from international competition is the fusion of our sustainability enterprise and investment expertise. Irish human capital is increasingly managing and deploying international funds into local or international sustainability projects. Irish expertise is then successfully delivering on these projects. The ISI Centre is aiming to recognize this 26 county cluster spread under one holistic flag

that together can attract greater international capital and create new jobs.

Why is there is a need?

As countries around the world strive to meet the challenges of climate change, resource scarcity and energy security, the changes we will see in the next 10 years will be as profound as those experienced in the industrial revolution. Growing global affluence, climate change, population growth and increasing urbanisation will see an increasing demand for scarce resources. By 2030 it is estimated that resource needs will increase by 40pc for water and 50pc for both food and energy.

What type of investment is needed to meet these global challenges?

The investment opportunities presented by these

Irish Independent I 11 June 2015

ties that will produce an annual income, one that is attractive but is also provides global sustainable solutions.

John Mullins

C

hange in our world is accelerating in tandem with rapid advances in technology. The changes we will see over the next 20 years will be more profound as those experienced in the industrial revolution and represent a digital revolution unseen in our history.

Technology has changed the fundamentals of so many industries – records are replaced by streaming; taxis can be shared or ordered on Uber or Hailo and hotels can be replaced by Airbnb but what does the future hold for energy in how we produce it and how we consume it?

There are a number of demographic facts that will also determine change. The planet will have 9 billion people very soon.

More people will mean more pressure on already scarce supplies of water, food and energy.

Growing global affluence, climate change, the trading shift from west to east, population growth and increasing urbanisation will all add to the immense pressures being put on our planet.

But as Ireland and countries around the world strive to meet the twin challenges of climate change and energy security, there will be huge opportunities to do the right things; to contribute, to build, to develop – to sustain the world and this will be enabled by existing and future technologies. There are developments globally that are emphasising this rate of change. These are in the areas of energy production and distribution, land use and food to highgrowth areas such as energy management and emerging markets in clean technology and clean manufacturing.

Energy consumption will be a choice at the fingertips of the customer. They will decide how they want their energy rather than been told by the utility sector.

New sustainable businesses need investment and capital. The amount of investment required is globally significant. Globally investments in low carbon technologies will need to hit $500 billion per annum by 2020 and double to $1 trillion annually by 2030. In 2014 alone $310 billion was invested in clean energy, a 16pc increase on what was spent in 2013.

These trends are set to continue with global investors looking for alternative businesses and assets in which to invest.

They want secure investment opportuni-

changes are considerable. Globally investments in low carbon technologies will need to double to $500 billion annually by 2020 and double again to $1 trillion annually by 2030. In 2014 $310 billion was invested in clean energy, a 16pc increase on 2013 spend. The ‘green bond’ market trebled in size in 2014 to $35 billion, and is tipped for further growth this year to an estimated $100 billion as investors look for a green home for their capital.

In what areas?

Opportunities are across the whole spectrum in established areas such as Energy Production & Distribution, Land Use and Food and high-growth areas such as Smart Energy Management as well as emerging sectors such as Clean Web & Clean Manufacturing.

11 June 2015 I Irish Independent

Where does Ireland stand?

Ireland has a thriving sustainability sector and Irish companies have been leading the way in developing renewable, food and other sustainable projects on a global scale. There are more than 600 Irish based enterprise firms in this dynamic and rapidly-growing sector.

Ireland also has one of the most sophisticated investment management industries in the world with expertise in fund servicing, administration and asset management. The country also has well-developed and regulated services in this area. Ireland is currently servicing more than $3 trillion in funds.

The combination of the expertise in both sustainability enterprise and investment management has led to Ireland becoming a centre of choice for the establishment of green funds, which today stands at $35 billion.

The spread of expertise is truly national: Blackrock Renewable Power is headquartered in Dublin. Brookfield, one of Canada’s largest infrastructure investors has its European headquarters for renewables in Cork. Kleinwort Benson Investors manage one of the most successful water funds from Ireland. Our own firm Amarenco Solar has over €100 million under management investing in PV infrastructure with a pipeline of €300m on our books in Ireland and France.

A national competitiveness agenda Ireland’s unequalled talent pool with its expertise in sustainability investment puts us ahead of the curve in these sectors. We also have the tools in legislative, regulatory and tax areas that support the growth of sustainable enterprise and capital investment.

Bringing the above together into one coherent message helps to promote Ireland as the location of choice for international capital to invest in sustainability enterprise activities.

Such positive activity underpins Ireland’s national competitiveness agenda and supports jobs creation.

And at a time when sustainability is rapidly becoming a vital issue for the international financial community and policymakers it demonstrates real leadership.

International Sustainability Investment Centre, realising Ireland’s ambition The International Sustainability Investment Centre (ISI Centre) is the new name for the Ireland’s sustainability hub which is

Ireland’s Opportunity Ireland has a thriving sustainability sector and Irish companies have been leading the way in developing renewables, food and other sustainable projects on a global scale. Ireland also has one of the most sophisticated investment management industries in the world with expertise in fund servicing, administration and asset management. This combination has led to Ireland rapidly becoming a centre of choice for the management, deployment and servicing of environmental funds, which combined today stands at $35 billion in Ireland.

The development of the ISI Centre will ensure that Ireland will continue to lead enterprise, capital deployment and talent development in the sustainability space, ensuring jobs growth and economic growth across the country underpinning our national competitiveness.

fostering capital investment in sustainable enterprise.

Rebranded from Green IFSC in March 2015, the ISI Centre builds on Green IFSC’s earlier successes in positioning Ireland as a global leader in sustainability investment.

The concept for the original Green IFSC initiative was approved by Cabinet in 2011 and was a public-private output of the former Clearing House Group, under the auspices of the Department of the Taoiseach.

Following further work, Green IFSC gathered momentum in mid-2013. Originally established to promote and position Ireland as a global location for ‘green finance’ the ISI Centre is continuing on this work. But it has also evolved to include the financing and investing of sustainability enterprise sectors at a domestic and international level. This includes investment in research, technologies, programmes and projects as well as skills generation.

We recognise that this is what sets us apart from international competition. Irish human capital is increasingly managing and deploying international funds into local or international sustainability projects.

The ISI Centre is also promoting Ireland around the world in order to raise awareness of our nation’s unique skills in managing, servicing and deploying funds investing in sustainable industries.

We are focused on ensuring that the tools for success across talent development and an excellent business environment are in place.

We also want to identify the knowledge gaps and develop aims to position Ireland as a world leader in all things sustainable and a global centre of excellence for sustainable finance.

Our vision is to act as a conduit - both domestically and internationally - between those operating in the sustainability sector and capital investors.

In doing so, we offer a platform for those working right across the sustainability sector to come together, understand each other - and ultimately do business together.

We know that a strong, vibrant sustainable industry can contribute hugely to our long-term economic growth.

It can and will provide sustainable job creation, and continue to foster the emergence of world-class Irish companies in one of the fastest industrial sectors in the world – keeping our world as it is – sustained.

CONTENTS 4 KPMG on Megatrends The global challenge

5 Climate-Kic A Europe-wide initiative

6 Pat Cox The Sustainability Gathering

7 Ireland’s sustainability map The eco-system in stats

8 &9 Focus: Bank of Ireland The low-carbon economy

10 Just what is cleantech?

The sector explained

1 4 &1 5 Investment: Why Ireland?

Our expertise and talent

16 Cutting-edge Coillte How it is helping business

18 City of the Future Smart Vision of Dublin City Council

John Mullins is ISI Centre Chairman, CEO of Amarenco Solar and Chairman of the Port of Cork

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Megatrends: acting now will benefit us all Accounting firm KPMG is on a mission to change the way we look at the world and to help businesses innovate with sustainable products and investments

Graham Clifford

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s morning broke on February 12th, 2014 those living along Ireland’s western seaboard opened their front doors to be greeted with a sight of sheer devastation – some said what they witnessed resembled a ‘disaster-zone’.

Others waded through water in their hallways.

As they slept, or at least tried to, Storm Darwin with gusts of over 100 kilometers an hour, bashed our Atlantic Isle. There were power outages to 260,000 homes as well as wide-scale destruction of infrastructure, homes and businesses. As many as 7.5 million trees were felled.

But the majority of the damage was caused by flooding. The storm surges hit when tides were at their highest. The combination of factors resulted in the state and private insurance companies forking out tens of millions of euro to help repair the wide scale damage.

As the water level dropped and the winds eased people started asking why we’d made no provisions for this inevitability, had we sleep-walked into a disaster and left our coastal towns exposed – or perhaps some land should be evacuated permanently for fear of unstoppable flooding in the future?

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As I sit with Mike Hayes and Caroline Pope, leading KPMGs Sustainability practice, we talk about some of these likely changes and how Ireland’s people, government and businesses are preparing.

“We live in a world of finite resources - water, energy, food, land…. all of these things are restricted and we need to get ‘smart’ in the way we use them” says Caroline as she introduces me to some

WE LIVE IN A WORLD OF FINITE RESOURCES WATER, ENERGY, FOOD, LAND…. ALL OF THESE THINGS ARE RESTRICTED AND WE NEED TO GET ‘SMART’ IN THE WAY WE USE THEM

of the megatrends KPMG are discussing with their clients on a daily basis. “The global demographic is shifting, people are living longer, Africa is a developing at an incredible rate and alongside this, society’s awareness of ethics and values is also evolving – we’re holding companies and governments accountable for their management of our futures.”

KPMG has identified nine global ‘megatrends’ and analyzed how they will impact on world governments, businesses and citizens in a special report entitled ‘Future State 2030’.

Megatrends are long-term changes that affect governments, societies and economies permanently over a long period of time.

At first glance the pace of change, spelt out so clearly, sends shivers down the spine.

But Caroline believes we’re already adapting to these changes and designing our lives accordingly. “People are starting to think about where their food comes from, whether they need to wash their clothes at 60 degrees, which bin to put the empty milk carton in.” It seems we’re already bringing the smart future into our homes.

She said that “we at KPMG believe that government, business and citizens each have a role to play to counterbalance these mega trends or we and our descendants will face a very different future.”

And Partner at KPMG Mike Hayes told me that businesses, both large and small, shouldn’t ignore the changing environment and global developments.

He said: “Businesses and governments will do so at their peril. There are societies and businesses around the world that will be impacted either in a positive or negative way by these megatrends – but if they bury their heads in the sand and simply ignore them we believe it’s the worst single thing they can do.”

While some nations are slow to adopt sustainable policies Mike believes Ireland is internationally recognized as a leader in driving innovation and development in the sector: “The rate of change in Ireland in this whole area is phenomenal. We punch well above our weight globally, for example, Irish companies are at the forefront in building wind and solar facilities in places like South Africa, Ghana and South America. There’s a growing recognition that this is an opportunity for us, we’re an entrepreneurial people and many see that the future of sustainable energy and new technology in this area is brimming with possibilities.”

KPMG advises companies in the area of sustainable business and Mike explains that in boardrooms senior executives are starting to realize the need for sustainable policies and a shift in the way they look at the world.

Irish Independent I 11 June 2015

The Nine Megatrends 1

Demographics Higher life expectancy and falling birth rates are increasing the proportion of elderly people across the world, challenging the solvency of social welfare systems, including pensions and healthcare.

2

Rise of the individual Advances in global education, health and technology have helped empower individuals like never before, leading to increased demands for transparency and participation in government and public decision- making.

Also social mobility faster than ever.

3

Enabling technology A new wave of technological advances is now creating novel opportunities, while testing governments’ ability to harness their benefits and provide prudent oversight.

4

Economic interconnectedness The interconnected global economy will see a continued increase in the levels of international trade and capital flows.

5

Public debt Governments’ ability to bring debt under control and find new ways of delivering public services will affect their capacity to respond to major social, economic and environmental challenges.

6

Economic power shift Emerging economies are lifting millions out of poverty while also exerting more influence in the global economy.

With a rebalancing of global power, both international institutions and national governments will need a greater focus on maintaining their transparency and inclusiveness.

7

Climate change Rising greenhouse gas emissions (GHGs) are causing climate change and driving a complex mix of unpredictable changes to the environment while further taxing the resilience of natural and built systems.

8

Resource stress The combined pressures of population growth, economic growth and climate change will place increased stress on essential natural resources including water, food, arable land and energy.

9

Urbanization Almost two-thirds of the world’s population will reside in cities by 2030.

Urbanization is creating significant opportunities for social and economic development and more sustainable living, but is also exerting pressure on infrastructure and resources, particularly energy.

SHAPING CHANGE: KPMG’s Caroline Pope and Mike Hayes. Picture by Ronan Lang.

He said: “Around the world we are seeing the bigger businesses starting to grapple with this – this is starting to become a boardroom issue.”

But what about the individual, you and I, can we really make a difference? Will our actions have an impact on how our planet will look in half a century?

“Yes I believe they will. It’s not all about what big businesses or governments decide,” explains Caroline.

She adds: “For example we know that the Generation Y (often referred to as the Millennial Generation) are more socially and environmentally conscious than previous generations. They, as individuals and a group, will want to purchase more green products and sustainability is an important issue for them. If the corporate sector ignore this group, which is also their future workforce, their businesses will suffer so the actions of individuals can help to drive change without a doubt.”

Since 2002 (has it really been that long!)

Ireland has had a plastic bag levy in place which has not only brought in

Climate-Kic Eleanor Kennedy

11 June 2015 I Irish Independent

taxation for the government to be used on environmental policies but has also reduced the number of plastic bags circulating.

Bag usage has fallen from 328 bags per shopper here in 2002 to just 21 now. The success of this initiative, and recycling efforts, shows that our habits can change and that, with a little help from the state and business, we can become a greener and more forward looking nation.

“I really believe that we can help make Ireland a global Centre of excellence in this area,” says Mike, adding “We need to be smart both on a personal and business level. There are opportunities that exist and also we need to protect our planet and hand it onto our grandchildren in a better state than it’s been. Here at KPMG we are working hard to make that happen and I feel great getting out of bed every morning knowing that the advice and help we give businesses can help them to not only be successful but that we are also contributing in our own way to a smarter and more sustainable future for the next generation.”

C

limate-KIC is one of Europe’s leading associations working to address and tackle climate change, and the past two years has seen Ireland get in on the act.

Both Energy Cork and The Greenway Dublin are currently involved in projects which has seen them gain nearly €600,000 worth of funding to date.

Along with their partners in the West Midlands, UK, they are looking to deliver a suite of exciting opportunities in the lowcarbon sector for 2015.

Climate-KIC brings together partners large and small, local and global - between the private, public and academic sectors.

These partnerships integrate research, business and technology to transform innovative ideas into new products, services and jobs.

The organisation does this to address today’s challenges of climate change using the work of their three areas of expertise: innovation, education and entrepreneurship.

The partnership is unique in that it links entrepreneurs, businesses and students.

Various programmes and summer schools are offered to deepen and develop knowledge in climate change.

Some of the partnership’s projects across Europe include testing the

possibilities of using CO2 as industrial feedstock, reducing carbon omissions in the aviation sector and looking at business opportunities for sustainable coastal and river engineering.

The funding received in Ireland allows participants to facilitate a series of education, training, incubation and entrepreneurship programmes for the lowcarbon sector.

In 2015 combined, The Green Way Dublin and Energy Cork received €300,000 worth of funding.

This was the first time an Irish ‘community’ was selected to join ClimateKIC’s fight against climate change.

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A Gathering like no other Sustainability is the theme for a very special event in Dublin, writes Pat Cox

S

ustainability is rapidly becoming a vital issue for the financial community and policymakers.

The emerging response of governments and business to the challenge of climate change looks increasingly likely to divert capital away from carbon-intensive fossil fuels towards renewables and energy efficient technology.

In addition, as the global population increases from seven billion to nine billion between now and 2050, and the spending power of consumers in emerging markets rises, increasing strain will be put on the supply of food, energy and water. This will place further focus on the efficient use of resources.

Forward-thinking businesses and governments are already adapting to these trends – and are recognising that they present opportunities as well as risks.

market trebled in size in 2014 to $35 billion, and is tipped for further growth this year to an estimated $100 billion as investors look for a green home for their capital.

In addition, 2014 saw $310 billion invested in clean energy, a 16pc jump on 2013 spend.

SUSTAINABILITY RISES UP THE AGENDA Numerous developments in recent months have highlighted how sustainability is rising up the agenda.

For example, UN Secretary General Ban Ki-moon’s New York climate summit in September 2014 re-energised climate change negotiations, and was notable for the backing it received from ‘big business’.

The summit mobilised meaningful commitments, including a pledge from governments and players from across the financial sector to commit $200 billion to climate-related investments by the end of 2015.

Meanwhile, the fledgling ‘green bond’

IRELAND IN THE VANGUARD Ireland can position itself at the vanguard of the response to these trends, and is in many ways uniquely positioned to help address these challenges.

Dublin is emerging as a hub for environmental finance by attracting green-focussed asset managers, replicating its previous success attracting sectors such as aviation aircraft leasing and ICT. The country’s businesses, which have already innovated products and services in these fields, are increasingly looking overseas where their expertise is helping to finance, develop and construct sustainability related projects across the globe.

EMISSIONS ARE BECOMING MATERIAL EU politicians are making a concerted effort to fix the world’s biggest carbon market, and other emissions trading systems are springing up from California to South Korea. China will roll out a national carbon market in 2016.

The EU has agreed 2030 emission reductions targets while China and the US have advanced their dialogue on emissions cuts. The UN climate talks in Paris at the end of this year are expected to see further progress towards hammering out a policy response to tackle climate change.

THE SUSTAINABILITY GATHERING: CAPITAL WORKING FOR SUSTAINABILITY Ireland’s third Sustainability Gathering, which I am delighted to Chair, will provide an opportunity for hundreds of investors, entrepreneurs and policy-makers from Ireland and across the globe to explore the opportunities in this field.

This year we are celebrating Ireland’s leadership capacity in sustainability across innovation, finance and talent development. And we have much to celebrate! The sector is creating innovative, world-beating solutions. Irish firms are creating jobs and winning global investment.

We are regularly competing and winning against the best in the world.

With this year’s theme - Capital Working For Sustainability, the Sustainability Gathering is spread over three-days with the plenary session taking place on the 24th June in Dublin Castle. On the 22nd and 23rd June, separate events will focus on the financing of Irish cleantech startups and see the launch of Docklands 21, an innovative partnership between SEAI, Dublin City Council and ISIC to ensure that at a business level Dublin’s Docklands

are undertaking best in class resource efficiency measures. Against this backdrop there will be a number of important job and investment announcements.

These events will provide delegates with the opportunity to learn about the latest developments, and network with key players.

Ultimately, this year’s Sustainability Gathering aims to facilitate transactions that will steer capital towards investments that are environmentally, socially and financially sustainable in terms of their return. In doing so, the intention is to further consolidate Ireland’s emerging lead as a go-to location of choice for sustainability enterprise and finance activities, creating jobs and winning investment.

Pat Cox is the former president of the European Parliament and chairman of Sustainability Gathering 2015.

‘Sustainability no longer a fringe issue or optional extra’ The head of the organistion tasked with driving Ireland’s evolution to a clean economy says we are uniquely placed to maximise some brilliant opportunities, writes Ciaran Byrne

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ervusnet, a Cork ICT company, remotely monitors windfarms in Texas with a unique predictive maintenance system that greatly reduces costs.

A new street light technology, invented and manufactured in Ireland by SELC, is being deployed in locations as diverse as Orlando, Copenhagen and Paris.

Not only does it dramatically lower energy use, but it also acts as a wireless data relay network that can sell data and control services.

Sustainability is no longer a fringe issue or optional extra, but a major strategic driver in business globally. It is driving change, and change means opportunity.

“Ireland has a particular opportunity here,” says Brian Motherway, chief executive of the Sustainable Energy Authority of Ireland.

“This is partly because we have our own sustainability imperatives to address. We import billions of euros worth of fossil fuels, waste millions of euros in inefficient energy use, and emit millions of tonnes of polluting greenhouse gases.

“All of these unsustainabilities must be addressed, and that is the core mission of our energy policy. But we have gone further, and we have

aligned these energy policy imperatives with the enterprise opportunities that they create.

Motherway calls this a smart alignment, because sustainability has become a project of innovation centred in particular on Information and Communications Technology (ICT).

Irish firms are heavily involved in this important, growing area with activities in data analysis, remote sensing and communication, prediction and control, devices and software.

Innovators in all of these areas have realised the opportunity, says Motherway.

“Every day I meet entrepreneurs and innovators who see that their solutions can be quickly applied to, and monetised in, reducing users’ energy bills and carbon footprints. A technology that helps someone reduce their energy costs will sell not just in Ireland, but globally.”

Motherway mentions the story of Crowley Carbon, one of the fastest growing companies in this sector. Its intelligent analysis systems are reducing energy bills everywhere from food factories in the UK to office towers in Dubai, all done out of a control centre in County Wicklow.

In plotting our energy future, the key is to make the right decisions that play to our strengths.

Ireland has the advantage of a range of indigenous, clean energy sources, all of which play a part.

SEAI’s analysis shows that wind remains the cheapest and most beneficial way to decarbonise electricity supply.

It believes there is an opportunity to deploy bioenergy resources in local heat supply, and big names in industry – Aurivo, Astellas, De Puy to name but three – have already invested heavily.

Investment creates a strong local supply chain, supporting rural jobs in everything from forestry to boiler technology,” says Motherway.

“Meeting our 2020 renewable heat target, if we focus on local resources, will create a local supply chain worth €200 million per annum and support over 5000 jobs.

One of the major local resources Ireland can deploy is intellectual capital. Ireland has declared its ambition to be a centre of innovation for energy and sustainability.

“This apporach will reap rewards. We take our own sustainability challenges seriously, and we know we need to accelerate our action to address them,” adds Motherway.

“It would be folly not to maximise the economic and employment gains as we do so”

Irish Independent I 11 June 2015

SNAPSHOT OF IRELAND'S SUSTAINABILITY ECO-SYSTEM

INTERNATIONAL SUSTAINABILITY AND INVESTMENT CENTRE Capital working for sustainability

$36trillion $310BILLIOn $35BILLIOn

TO BE INVESTED INTO CLEANTECH BY 2050 (UN)

GLOBALLY INVESTED IN CLEAN ENERGY IN 2014

Energy Storage

ESTIMATED ANNUAL INVESTMENT IN THE IRISH SUSTAINABLE ENERGY SUPPLY CHAIN (SEAI)

IRELAND RANKED

7th globally FOR SUPPORTIVE GREEN TAX POLICY (KPMG)

3%

3%

4%

Energy Production & Distribution

Resource recovery

10% Cleanweb

7%

IN ENVIRONMENTAL FUNDS MANAGED, DEPLOYED OR SERVICED FROM IRELAND

€1.4BILLIOn

Agriculture & Forestry

Air

29%

640

TRADING ORGANISATIONS ACTIVE ACROSS 10 CLEANTECH HEADINGS

Water

8% Clean industry

Energy Efficiency & Management

27%

450

COMPANIES SIGNED UP TO THE BORD BIA ORIGIN GREEN INITIATIVE

6%

Transport

3%

18000

NUMBER OF DAIRY FARMS SIGNED UP TO SUSTAINABLE DAIRY ASSURANCE SCHEME

IRELAND RANKED

5TH OF 40 NATIONS

94 2nd OF 27eu nations 10TH OF 40 countries top 10 1st in the world IRISH ACADEMIC AND RESEARCH ORGANISATIONS IN THIS SPACE

FOR RD&I INPUTS – EU’S ECO OBSERVATORY INDEX

FOR AVAILABILITY OF SKILLED LABOUR

11 June 2015 I Irish Independent

IN THE 2014 GLOBAL CLEANTECH INNOVATION INDEX IN TERMS OF ITS EMERGING CLEANTECH INNOVATIONS

ACROSS ALL GLOBAL CLEANTECH INNOVATION INDICES

RANKING IN THE GLOBAL CLEANTECH INNOVATION INDEX 2014 CLEANTECH START-UP GENERATOR COUNTRIES

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Low carbon economy?

Welcome to our future Big investment in renewable energy and clean technology is a key pillar of Bank of Ireland’s long-term strategy, writes Ciaran Byrne

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RELAND’s businesses are more aware than ever before of sustainability and of the adverse impacts of climate change and resource scarcity.

It is no surprise, therefore, that Bank of Ireland sees more and more sustainable and ‘green’ businesses being established.

And, as Irish companies expand activities in this sphere, Bank of Ireland is playing a key role in supporting their growth and development.

As the largest lender to the Irish economy, the bank is focused on developing new business areas, supporting existing clients, and fostering enterprise across Ireland.

The growing trend towards “green

finance” has been a feature of the bank’s activities for some time.

“We have enjoyed a good track record in Renewable Energy financing for over a decade, building a portfolio of wind farms with an output capability in excess of 350MW – sufficient to power over 200,000 homes in Ireland,” says Paul Harris Head of Natural Resources at Bank of Ireland.

“As well as a pipeline of new wind energy transactions, the project finance team at Bank of Ireland is engaged with both the biomass and waste management sectors in support of growing the Irish economy.”

Another related area for the bank is the emergence of clean technology, known as

‘cleantech’ by those who work and invest in this sector.

Cleantech is the use by businesses of smart technology in areas as diverse as energy efficiency and agriculture.

Bank of Ireland has several partnerships with innovators in finance and business including Kernel Capital, which manages the Bank of Ireland Seed and Early Stage Equity Fund. In total the Bank’s Seed Fund has provided nearly €50 million for early stage enterprise across Ireland and, as part of that, has supported a number of indigenous cleantech companies, including Hybrid Energy, Resourcekraft, BioAtlantis, Monford Ag Systems and Silform Technologies.

In Ireland there are approximately one hundred companies compelled to balance their annual carbon emissions through both changes to business practices and the purchase of carbon credits.

The carbon market is complex and unique and over the last decade the Bank has successfully developed a trading expertise, enabling companies to effectively and efficiently manage their carbon exposures.

It has become one of the most pioneering activities undertaken by Bank of Ireland in the entire area of sustainability.

In 2005, the Global Markets division of the bank took a strategic decision to launch a dedicated unit to support corporate clients who fell within the EU

THE WILLINGNESS AND ABILITY TO CONSTRUCTIVELY RESPOND TO POLICY CHANGES IN THE SUSTAINABILITY AREA HAS BEEN KEY FOR BANK OF IRELAND

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Irish Independent I 11 June 2015

Bank of Ireland supports sustainable businesses including farming

Practising what they preach with a clean approach to business

B Emissions Trading Scheme.

This move has cemented the bank’s reputation in Europe as an innovative player in this important market – Bank of Ireland designed the first emissions-related derivative product in 2006 and it continues to create and deliver carbon-linked deposit products for customers.

According to Harris, the willingness and ability to constructively respond to policy changes in the sustainability area has been key for Bank of Ireland.

“The contribution to the Green IFSC (now ISIC - International Sustainability Investment Centre) – the public-private initiative launched initially to foster the development of green finance in Ireland –

provides a prime example,” says Harris.

Since the inception of Green IFSC in 2010, Bank of Ireland has given solid backing - including financial and intellectual support - to the aims of the Green IFSC in business, policy and employment objectives.

Over the next five-year period, Bank of Ireland will continue to support ISIC. “We see it as a critically important feature of Ireland’s economic recovery,” says Harris.

“We recognise the importance of emerging opportunities. We are well-placed in areas such as renewable energy, carbon emissions trading and “green lending” to meet the emerging challenges to help the country transition to a low carbon economy.”

ank of Ireland has long recognised that its business activities have an impact on the environment, both globally and locally.

It is the bank’s policy to minimise its impact.

It does that by focusing on pollution prevention by identifying, controlling and reducing significant environmental impacts.

These arise from the consumption of utilities including electricity, gas, oil, water and paper consumption and waste management.

“We undertake a process of continuous improvement of environmental performance by setting objectives and targets and developing environmental programmes,” says Paul Harris, Head of Natural Resources.

“We do that by measuring environmental performance on an ongoing basis, guiding and supporting staff, working with suppliers and sub-contractors to minimise their environmental impacts and auditing and monitoring operational and environmental risks.”

The bank is committed to supporting envi-

ronmental initiatives in society, the economy and the business community.

In 2001, it worked with Certification Europe (CE) and the Sustainable Energy Authority of Ireland (SEAI) to implement an integrated Environmental Management System (ISO14001) to manage energy right across the organisation.

These activities range from sourcing energy through to the purchase and operation of plant and equipment and the day-to-day operation of buildings. The initial focus for the programme was the Bank of Ireland IT and Operations Centre in Cabinteely.

The bank has implemented sophisticated real-time metering and monitoring systems across more than 300 buildings, allowing for the benchmarking of optimal consumption of electricity, gas and oil. This has significantly reduced the impact on the environment.

In addition, Bank of Ireland has achieved a 90pc waste recycling/reuse rate and has an effective furniture recycling facility based in Co. Wicklow.

Meet the man who’s changing mindsets

A

s Head of Natural Resource Risk Management at Bank of Ireland Global Markets, Paul Harris is immersed in sustainability and how it applies to business.

During his early career, he worked in a number of corporate and treasury banking roles across London and Dublin, where he recognised the emerging potential of environmental markets in a financial context.

His enthusiasm for this area was welcomed at Bank of Ireland, establishing a domestic carbon transactional capability.

Paul designed and transacted the first corporate emissions-linked derivative, constructed an award-winning UK carbon offset mortgage and devised Ireland’s first carbon-linked investment product.

Working closely with Irish and international businesses he creates and executes hedging solutions for energy commodities and nurtures

11 June 2015 I Irish Independent

practical, commercial knowledge on weather derivatives, environmental bonds, forestry and natural capital.

Over the last ten years, Paul has worked on a number of tax changes centred round forest carbon and served on a banking sub-committee tasked with designing a financial model for energy efficiency investment.

He was one of the principal architects of Ireland’s Green IFSC initiative, established to develop and foster the green finance capabilities of the IFSC. Paul holds a pivotal position on the Green IFSC Working Group and Chair of the Expert Carbon Group as well as Deputy Chair of the Irish Forum for Natural Capital.

An advocate for further learning in this area, he was instrumental in developing the postgraduate Certificate in Sustainable Energy Finance at DCU and writes extensively on natural capital from an economic and financial perspective.

THE SMART FUTURE

9

So, just what is Graham Clifford

H

ad you mentioned the ‘Green Economy’ in Ireland a couple of decades ago some eyebrows would have been raised and heads scratched.

But in recent years the cleantech sector has exploded on our shores and with potential for it to create 80,000 jobs and boost GDP by €3.9 billion here by 2020, it’s no wonder shrewd and environment conscious entrepreneurs are seizing these business opportunities with both hands.

The EY ‘Cleantech Ireland’ report, of 2012, pointed out that with clear Government-backed focus Ireland could become an international hub for the sector.

The Green Way - a body set up as Dublin’s cleantech cluster with the aim to stimulate economic growth and employment in the green economy, brought out its own ‘Cleantech in Ireland 2014’ report last year in which it pointed out how the country is starting to embrace this emerging sector.

CLEANTECH IS CERTAINLY CONTRIBUTING SIGNIFICANTLY TO IRELAND’S ECONOMIC RECOVERY YEAR ON YEAR

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‘cleantech’?

Ireland has established itself among the global leaders in this emerging market with over 650 firms operating in the sector. And according to Enterprise Ireland, potential for growth is limitless.

It told how Ireland was now ranked 5th of 40 nations in the 2014 Global Cleantech Innovation Index.

So what exactly is cleantech and how can it impact on the lives of ordinary Irish citizens?

The sector develops, produces and uses goods and services that help us become more resource-efficient. These can range from greener energy generation to more environmentally friendly transport options and new efficient waste water treatments.

There are around 650 companies operating in the cleantech sector in Ireland today giving employment to thousands.

Energy production and distribution is the largest cleantech sector in Ireland today followed closely by Energy efficiency and management.

By the time our children run their own households it’s believed the majority of the energy they will use will be green.

Indeed cleantech will reach into every facet of their lives - in many ways it already does. For example a new generation see recycling as a normal task – the thought of throwing plastic and paper into general waste is nonsensical. And as processes improve we, as a nation, will become less wasteful and more conscious of what happens with our rubbish.

Irish businesses can flourish as a result. One such Irish company is OxyMem based in Athlone.

Founded in 2013 the company solves

energy intensive wastewater treatment with what’s known as it’s Membrane Aerated Biofilm Reactor (MABR).

OxyMem’s Managing Director Wayne Byrne explains: “Conventional wastewater treatment, known as the Activated Sludge process, consumes two to three percent of a nation’s electricity production. But we can achieve superior energy performance over Conventional Activated Sludge, with lower sludge production, using less operator hours and by doing so make a fourfold saving on energy costs.”

Last year the company opened its first membrane manufacturing facility and currently employs 42 people. OxyMem has raised over €1.7M of equity to date.

A recent World Bank report estimated the opportunity for water-focused clean technologies at US$3.6trn (€3.2trn) in the developing world alone.

And Wayne Byrne believes that continued focus on and investment in the cleantech sector in Ireland can result in a major economic boost for the country.

He said: “Cleantech is certainly contributing significantly to Ireland’s economic recovery year on year. I’m certain that there’s a very healthy innovation pipeline in Irish higher education and research institutions so we have great potential for expanded growth in this category for at least the next decade.”

A United Nations report estimates that by 2050 some $36 trillion (or €32.7trillion) will be invested in clean

technologies worldwide so it’s vital Ireland is to the forefront of this exciting and developing business sector.

And government agencies such as Enterprise Ireland are doing their bit to assist new businesses in the sector who come to them with innovative cleantech inventions or service options – especially those proposals which will transfer well to the international market.

Tom Kelly, Divisional Manager for Cleantech, Electronics and Lifesciences with Enterprise Ireland explained the huge potential for Irish companies in this sector.

He said: “Ireland is uniquely positioned to avail of the opportunities that global cleantech markets present with excellent natural resources in the form of renewable energy sources like wind, wave, and tidal as well as developed research infrastructure and a solid skills base.

He added: “At present, cleantech is among Ireland’s fastest growing sectors.

We’re seeing that not only are more entrepreneurs and small business starting up in this area but that longer-standing companies are adapting their models and now offering more energy-efficient and sustainable products. The challenges posed by climate change and a scarcity of resources will require solutions and here at Enterprise Ireland we’re trying to do everything we can to help Irish businesses to come up with those, develop them and sell them across the world.”

Those involved in promoting and supporting the entire cleantech sector believe Ireland can rise to the challenge and innovate, develop and export goods and services to meet the demand of both the markets and the peoples of the world.

The challenge is huge - but the opportunities in the cleantech sector are vast and, to date, Irish businesses have responded to the opportunity.

Irish Independent I 11 June 2015

H

i-tech farmers are hungry for new technology, whether it’s self-driving tractors, self-milking cows, aerial drones to herd sheep, mobile phone apps to alert owners when cows are calving, or software that measures how fast grass is growing, With a vast array of gadgets already at their fingertips, Irish farmers are proving to be just as canny as their hi-tech hipster cousins in Dublin’s Silicon Dock when it comes to being early-adopters of technology - and they are reaping the benefits in terms of time-savings, cost-savings and reduced environmental impact.

Insiders suggest the global agtech industry may be about to enjoy the agrarian equivalent of a dot.com boom - with Ireland located at the epicentre of it.

Venture capitalists are pouring money into agtech companies focused on everything from big data to drone technology and ‘virtual fences’ using GPS technology and animal sensors.

Meanwhile, dozens of Irish companies are spending millions of euro to create the hardware or software to make farmland more productive and farming more efficient.

The massive growth of agtech has turned heads in Silicon Valley too: a two-day Silicon Valley Global Tech Summit organised by the Irish Technology and Leadership Group had a session called ‘The Agtech Revolution: Reinventing the Farm’.

Experts believe Ireland is perfectly poised to capitalise on the agtech boom given our hi-tech talent pool and our ‘lowtech’ farming expertise.

Agriculture is Ireland’s biggest indigenous sector, contributing €24bn to the Irish

Agri Smart

Irish farming is in the middle of a technological revolution. economy annually, representing almost 10pc of all exports and nearly 8pc of all employment.

The technology sector is responsible for €72bn of Ireland’s exports - 40pc of the national total - and four of the top five exporters in Ireland are technology companies.

Teagasc - the agriculture and food development agency - has just launched a new initiative to focus on identifying the key technologies that have the potential over the next 20 years to drive the Irish agtech sector.

One product that is likely to be a popular fixture of the ‘farm of the future’ is a grass measuring device being championed by

one Irish agtech entrepreneur.

Watching grass grow might not sound like much of a job but Steve Lock is hoping to become a millionaire from it. He is one of the brains behind GrassOmeter, a new device that measures grass growth and which has received €1.4m in R&D funding from the likes of Enterprise Ireland and food giant Glanbia.

The GrassOmeter, which is about to be launched on the market, is a mobile unit that is operated via an app on the farmer’s mobile phone. The phone’s GPS system tracks the farmer’s movement as the farm is measured and the results are uploaded to the cloud. Measurements are also instantly

linked to weather and other data.

In a further sign of Silicon Valley’s embrace of agtech, the GrassOmeter device is designed by legendary Apple designer Jerry Manock - the man who helped design the first Mac and is named on the Apple patent.

The GrassOmeter device is owned by Mayo-based Monford AG systems and is manufactured in Ashbourne, Co Meath.

Gerard Keenan, executive chairman of agricultural specialist Keenan Systems, says agtech is the future. Keenan’s is an agricultural feed technology firm that has annual turnover of €42m and exports to 50 countries.

“There is an emerging revolution going on in Ireland right now,” he said. “There is a lot of technology being developed, so right now, you are getting the early adopters. But you are soon going to see a bigger relevance to much more farmers. That is just about to happen.”

Keenan says cloud technology was the tipping point that transformed the global potential of agtech - and transformed his business.

Carlow-headquartered Keenan Systems has developed a standalone data management site in Kilkenny employing expert animal nutritionists to utilise the information gathered by its machines on a daily basis around the globe.

Keenan’s precision feeding technology is used by many of Ireland’s top milk processors to help their farmer suppliers improve milk composition through nutrition guided technology.

Tech-savvy farmers know that software and sensors that enable them to better collect and interpret farm data will be key to managing their operations more efficiently and maximising profit.

The clean technology industry is dominated by innovative, agile enterprises that are making a strong impact across the globe.

Here we look at some of the 640 Irish companies involved in the cleantech area and the 10 main areas they operate in, from energy efficiency to waste water and air.

1. Energy Production & Distribution

Bright future for the Irish firms driving innovation

› Gaelectric is a renewable energy group centered on four core areas of project development and operation in renewable energy onshore wind; off-shore wind development; biomass solutions; and energy storage systems successfully partnering with companies such as Tesla Energy.

›

Mainstream Renewable Power is the largest independent renewable energy power company generating, developing, financing, constructing and operating large-scale renewable energy plant for global consumer brands like IKEA, utilities and investment companies.

› BNRG Renewables operating globally specialize in utility-scale solar PV projects completing projects in a successful manner making them suitable investments for institutional and pension funds.

›

OpenHydro designs and manufactures marine turbines to generate renewable energy from tidal streams.

›

Power Capital focuses on sustainable energy global investments, mainly photovoltaics but also wind.

› Exergyn

has developed world-leading technology that converts low-grade waste heat to electrical or mechanical power.

2. Energy Efficiency & Management › Cylon is an international leader in Building Energy Management Systems, deploying technology solutions around the world.

› Frontline Energy, an innovative Irish Energy Services company, delivers district heating and smart energy management solutions across Ireland and the UK.

› SELC, a global leader in street lighting, pioneered the global expansion of SMART dimmable electronic ballasts, created long-life photocells, and innovative solar time switches.

› Complementing this are companies such as M2C, a leading

› FenestraPro provides a cloud-based software tool for architects

› Bord Gáis Networks is beginning to develop infrastructure for

to optimise design of non-domestic building facades in the early stages.

compressed natural gas (CNG) as a fuel of choice for Irish fleets, ultimately supporting lower emissions.

developer of EV charging technology.

7. Cleanweb › Innovative companies such as Liberator Aero harness the power of the web and data analytics to drive resource efficiencies in transportation.

› Hanley Energy specialises in the design, installation and support of energy management and critical power solutions for industry.

3. Waste 8 Agriculture & Forestry

› SmartBin provides intelligent monitoring solutions for many types of remote waste container assets. It is revolutionising how waste and recycling companies across the globe can service their remote assets.

›

› Compass Informatics applies core technology & GIS skills to

4. Energy Storage

a wide range of sectors including land, water and planning, and operates Ireland’s National Biodiversity Data Centre.

› Dublin-based REDT is leading the way with its Energy Storage Vanadium-Redox storage systems.

›

Glen Dimplex, the world’s largest manufacturer of electrical heating, is enabling energy storage at domestic level through its Smart Energy Thermal Storage Solutions (SETS), such as the Quantum storage heater.

5. Transport

Coillte Enterprise is leveraging the state’s national forests to deliver innovative sustainable product and services from biomass to wood panels, as well as the development of renewable energy projects.

9. Air 6. Water › OxyMem is revolutionising the wastewater industry globally with its smart aeration technology, which allows much more energyefficient treatment of wastewater.

› Carbon Control has received global recognition for its innovative software and Carbon Control Market.

10. Clean Industry

› Traditional utility companies such as ESB are driving innovation.

› Butler Manufacturing Services, a manufacturing and R&D

› Cube Cleantech is leading the charge in the clean industry sector,

ESB is deploying electric vehicle (EV) charging infrastructure as part of their E-car programme.

company, specialising in prefabricated wastewater treatment and surface water solutions for global application.

delivering sustainable laboratories and research environments, from design to delivery phases.

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Irish Independent I 11 June 2015

Investment opportunities and expertise: why Ireland is a solid bet for sustainable funds Investors like Ireland because of our vast asset and fund expertise, says Martha Kearns

C

limate change and a global demand for scarce resources like water and food is leading to a boom in investment in sustainable businesses and Ireland is at the forefront of the movement.

A virtuous circle has developed in the sustainability sector - with the growth of new businesses and the desire for investment in these enterprises feeding off each other.

Governments and businesses all over the world must now adhere to stricter regulations in order to reach sustainability requirements. Springing up around these needs are new businesses and exciting technologies in order to service both the public and private sectors’ need to meet their requirements.

And all these new businesses - who are striving towards excellency in the sustainability field - need investment and capital.

So who is going to invest?

Investors around the world are looking for new opportunities and sustainable finance looks like it could just be that next big thing.

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THE SMART FUTURE

Global investors, including institutional money, pension funds, life assurance money and insurance companies, are looking for alternative asset classes in which to invest.

There are a number of reasons for this – not least the knock-on effects of the global economic crisis.

Investors were burned by property, equity, bonds and other investments and are looking for more secure investment opportunities, at a time when the world is inevitably, because it must, transitioning to a low-carbon economy.

IN 2014, SOME $310 BILLION WAS INVESTED IN CLEAN ENERGY AND THE ‘GREEN BOND’ MARKET GLOBALLY TREBLED IN SIZE IN 2014 TO $35 BILLION

They are looking for asset classes that will produce an annual income, are long-term, stable and relatively certain in outlook and are not necessarily correlated to the wider financial market.

They also want diversification in their portfolio and there is a genuine interest in ‘being green’.

This has all led to capital increasingly being diverted away from carbon-intensive industries and towards renewables and energy efficient technology.

In 2014, some $310 billion was invested in clean energy and the ‘green bond’ market globally trebled in size in 2014 to $35 billion.

Why Ireland?

Most of the investors in sustainability are based in regions such as the US, Canada, Germany, the UK and Scandinavia. So, it may surprise some to find that Ireland is at the forefront of the movement.

This is because Ireland has already built up a credible reputation as a world leader in the area, which includes investment in the building of physical renewable energy plants on a global scale as well as the managing of environmental assets.

Ireland has one of the most sophisticated investment management industries in the world with expertise in fund servicing, administration and asset management.

The country is currently servicing more than €3 trillion in its wider funds industry - and growing - showing it is punching

well above its weight globally.

It is the number one hedge fund centre in the world looking after more than 40pc of the globe’s assets.

There is a body of professionals in Ireland who have been working in the industry for the last 20 years and have the necessary knowledge and expertise to support the investment activity of these funds.

Irish companies, organisations and people have the expert know-how to manage, service and deploy funds investing in sustainable industries: the country has an unequalled talent pool in this area putting Ireland ahead of the curve in these sectors.

The country also has well-developed and regulated services - including legislation, regulatory and tax - in this area which is a major attraction for investors.

Ireland has a thriving sustainability sector and Irish companies have been leading the way in developing renewables, food and other sustainable projects on a global scale.

It also has the potential to produce vast amounts of renewable energy, given Ireland’s abundant resources of wind, wave, tidal and solar power. The combination of the expertise in both sustainability enterprise and investment management has led to Ireland becoming the centre of choice for the establishment of green funds.

And it’s a sector that will grow significantly in the coming years as the world moves towards a better understanding of how to preserve our resources.

Irish Independent I 11 June 2015

Rich rewards in renewables Irish companies have been leading

the way in developing renewable, food and other sustainable projects on a global scale.

Ireland also has one of the most sophisticated investment management industries in the world with expertise in fund servicing, administration and asset management.

The combination of the expertise in both sustainability enterprise and investment management has led to Ireland rapidly becoming a centre of choice for the management, deployment and servicing of environmental funds.

With an unequalled talent pool and expertise in sustainability investment, Ireland is ahead of the curve in these sectors.

A snapshot of financing and investment players operating in the area of sustainability investment includes Bank of Ireland, AIB, Nord, Ulster Bank and Barclays.

OTHER KEY PLAYERS INCLUDE: Irish Strategic Investment Fund – a multi-billion euro fund established in December 2014 with a statutory mandate to invest on a commercial basis in support of Irish economic activity and employment.

Blackrock Renewable Power – renewable power investment business with a dedicated and industry experienced renewable power team and business unit headquartered in Dublin.

Greencoat Capital – managing the ESB €200 million private equity Novusmodus fund providing growth capital and management support to operating companies across the energy efficiency, resource efficiency, and renewable energy sectors.

Amarenco Solar – established in mid-2013 and focused on long-term utility scale solar PV infrastructure assets in France and Ireland, Amarenco Solar has over €100 million under management.

SDCL Ireland – managing Ireland’s €70 million energy efficiency fund.

Brookfield Renewable – one of Canada’s largest infrastructure firms, has made a major push into Europe with the purchase of 17 Irish wind-energy projects worth an estimated €700 million including the Bord Gais wind portfolio.

BVP Investments – an early stage investor in green businesses.

Mainstream Renewable Power – developing, financing, constructing and operating large-scale renewable energy plant, a recent venture is a $1.9bn panAfrican renewable energy platform with Actis.

NTR Plc – renewable energy investments with a particular focus on wind energy in Ireland and the UK.

Kleinwort Benson Investors (KBI) – since 2000 KBI have been pioneering environmental investment strategies and were one of the first investment firms globally to launch separate Water and Renewable Energy Funds, a product lineup that now includes Agribusiness and Cleaner Solutions.

BNRG Renewables – developing and constructing international utility scale solar PV parks for placement with pension funds and institutional investors.

Gaelectric – developing, financing and integrating wind energy, biomass and energy storage in Europe and North America, recently announced with Tesla Energy a collaboration to demonstrate first battery power utility-scale project in Ireland.

The State forestry company is playing a starring role in the development of our renewable energy plans.

C

oillte is Ireland’s national forestry company, the country’s largest manager of our natural resources with responsibility for over 445,000 hectares - a huge 7pc of Ireland’s entire landmass.

The company’s estate is at the heart of a very successful and highly profitable trade in products that come from forest timber.

Coillte supports that sector through the sustainable management of 50pc of Ireland’s commercial forests. It is also involved in the manufacture and export of sustainable wood panels for a range of construction and other uses in the UK and other international markets.

Mark Foley, the Managing Director of Coillte Enterprise points to the pivotal role of Coillte in the development of a vibrant renewable energy sector in Ireland over the last 20 years through the deployment of Coillte-managed assets, managed in a way that complements the core forestry business.

“Coillte’s role in renewables in Ireland is far reaching,” says Foley.

“We have enabled around 40pc of current installed wind generation capacity through the provision of high-quality sites and rights of way to third-party developers in support of the industry’s achievement of over 2,000 MW of built capacity at the end of 2014.

“The industry will deliver a further 1,600-1800 MW of generating capacity up to the end of 2018 which will ensure that Ireland’s target for electricity from renewable energy sources of 40pc, is met by 2020.”

Coillte, in conjunction with its partners, will deliver 330MW of generating capacity across six counties in Ireland over the next three years, and will support another 400 MW through the supply of sites to third parties in this timeframe.

In the period to 2020, Ireland is expected to lead the way in terms of the ability of the grid to accommodate renewables, rising from current levels of 50pc to as high as 70pc in the next decade.

“The success of wind energy in Ireland can be attributed to 3 factors,” says Foley.

These are: 1. The existence of viable incentive regimes, past and present, including the current REFIT 2.

2. The fact that Ireland’s planning environment strikes a delicate balance between national policy, the aspirations of the developer and the protection of both the environment and the community in which the development is proposed.

3. Strong technical and supply chain capabilities within the indigenous economy which have a proven record in delivering renewable energy projects of scale.

Foley says, however, that the story with Renewable Heat (RES-H) and Transport (RES-T) targets is less positive.

Ireland will at best achieve 8 to 9pc by 2020, significantly short of the target of 12pc and transport will also fall short of its own target of 10pc.

The net result for Ireland will be costly

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THE SMART FUTURE

Coillte: the cutting edge of our energy future in terms of penalties emanating from Europe.

In contrast, Britain has made enormous progress in respect of RES-H, primarily due to the launch of a Renewable Heat Incentive (RHI) in 2010.

“Ireland needs to act now and introduce its own RHI if any impact is to be made on Ireland’s trajectory to 2020,” says Foley.

As we look to the world after the year 2020, he says the case for renewables becomes more and more compelling: wind energy drives down the wholesale price of electricity, it reduces dependence on imported carbon intensive fuels, it helps mitigate the impacts of climate change

COILLTE’S ROLE IN RENEWABLES IN IRELAND IS FAR REACHING and the fuel is in abundance here in north western Europe.

Foley adds: “We are at a critical stage in

terms of Ireland’s energy future.

“Policy decisions which underpin the next White Paper on energy will have far reaching consequences for our future.”

“Our ambition for 2030 will be set in the medium term and this ambition will determine whether Ireland’s place in Europe is as a benign follower or whether we are prepared to step up, take control of our own destiny and provide leadership.

“That would be in placing Ireland as a shining example of how a peripheral nation can move from a dependency culture to one of energy independence, competitiveness and responsible leadership on the matter of climate change.”

Irish Independent I 11 June 2015

Eleanor Kennedy

V

ast data centres belonging to the biggest names in world tech are becoming increasingly common in Ireland.

Companies includung Microsoft, Google and Digital Reality have already established centres in the country, creating hundreds of jobs along the way.

So when Apple announced last February that they too would be taking the plunge, it was another vote of confidence in our ability to deliver on cleantech infrastructure.

More than 300 new jobs are expected to be created through the Apple development including 100 permanent positions once the facility is complete.

But why did Apple decide to add to their Irish facilities (Apple’s European headquarters is based in Cork), and even more so, why Athenry, Co Galway?

Ireland has the edge over a lot of countries environmentally, and that is why more and more of these US companies are setting up base here.

Data centres are hugely power hungry and are best located in temperate-neutral climates.

Less power is needed in cooler climates for air conditioning and temperature control systems, so locating in Ireland can literally be a power saver.

Apple’s 166,000-sq-metre centre will be built on a Coillte-owned greenfield site at Derrydonnell.

The company say that this site will be run entirely on renewable energy and also that it will “work with local partners to

Our d ta nation

develop new renewable energy projects from wind or other sources to power the data centres”.

They promise to restore native trees in the forest and recover lands that were

previously used for growing and harvesting non-native trees.

Apple’s decision to set up a data centre in Galway also accompanies a decision they took to set one up in Denmark’s

central Jutland region.

Costing €900m, Apple’s Athenry base will power online services including the iTunes Store, the App Store, iMessage, Maps and Siri for European customers.

Future proof: city council plots a new path for Dublin

By Paul Melia

D

UBLIN isn’t like other cities. To the north, large tracts of housing sit beside the Bull Island nature reserve, while to the south, swimmers bathe in pristine waters on blue flag beaches.

A nature park in Ringsend sits beside a wastewater treatment plant and a waste to energy plant which is under construction, while the capital boasts one of the largest urban parks in Europe, the Phoenix Park.

It’s that mix which the capital should be cashing in on, says Dublin City Council’s Green Business Officer Mark Bennett, showcasing how a large urban centre can also have amenities unheard of in other major cities.

Given that Ireland already enjoys a

WE HAVE A SMART CITIES FOCUS AND WE WANT COMPANIES TO COME HERE TO INNOVATE THEIR SERVICES

reputation as a ‘green’ nation, the idea of making Dublin into among the most sustainable cities on the planet “makes sense”.

“But we need to start making targets,” he warns. “Vancouver plans to be the most sustainable city on the planet, and Copenhagen has a zero carbon approach.

“Dublin City Council was the first to do a sustainability report, five years ago, which evolved to include social and economic indicators. It captured what the city authority was responsible for, including the well-being of citizens which is vitally important.

“But there’s no need to reinvent the wheel. We should look towards the high performing cities and replicate their success. That leadership has come to the fore.”

Making the city more sustainable and reducing its carbon footprint involves using existing technologies for services like housing and waste, as well as tapping into new ones. Much of the heavy lifting has already been done.

That includes planning flood defences, and retrofitting social housing, as has happened in York Street. The Dublin Port Tunnel has taken HGVs out of the city, while investment in cycling infrastructure has grown numbers by more than 14pc year-on-year. Pedestrian traffic is also on the rise, and the city is a more pleasant place to stroll around.

In addition, street lights are being upgraded to be more efficient and cheaper to operate, while Fr Collins Park in Donaghmede uses wind power for public lighting and electricity in sporting clubs.

Solar authority: Dublin City Council’s rooftop solar panels

The council is also involved in a project to install solar panels on the civic offices and some libraries, and hopes that they will become more common over time.

But Bennett sees the city’s role as more than just improving the services it oversees.

A key driver is working with companies to develop new technologies, and to facilitate networking between SMEs and multi-nationals.

“One thing which is very exciting is working with other actors. It used be that you had to know what technology you wanted before you’d procure it. That’s changed. We now state the issue, and invite companies to work with us to see how the city is run.”

Those partners include Intel which is doing work on sensors across the city, allowing the council to better manage public infrastructure and to understand how people move around the city; Arup is working on more efficient street lighting, IBM has its Smart Cities initiative which amongst other issues looks at traffic.

“We have a smart cities focus and we want companies to come here to innovate their services. We would say here are the challenges, and here’s what we’re willing to put in - staff or investment, for example, because if it’s in our interests we’re not afraid to co-invest.

“We’ve worked with a lot marquee names, but we’re also working with smaller, indigenous providers. If you have international companies with international networks, and introduce them to small companies, they can piggyback on each other.

“We’re like a broker. We’re networking

and we have an Economic Development Office, so it rounds out our role in the city.”

“If you’re talking about the war for talent, this matters,” he adds.

He says The Green Way initiative is one way to bring that expertise together.

Established in 2010 as Dublin’s cleantech cluster, its founding members include the Dublin Airport Authority, universities, two local authorities and the North Dublin Chamber of Commerce.

The development of the Docklands will show how buildings can be constructed to the highest standards, while the roll-out of electric vehicles (EVs) will also reduce emissions and improve air quality. But there is a problem with supply.

“They’re not all making it to Ireland because they’re being bought by the Nordics.

They have all the oil under the sun but are moving fastest on decarbonising.”

There is no reason why composters could not be made available in local communities to convert food waste into compost for allotments and gardens, he says. Irish people are already among the best recyclers in the world, and there’s no reason why behaviours cannot change.

“It’s about leadership. If you get the right people to come together to unite behind an agenda, it’s very doable. We have all the assets in place from big infrastructure, to community projects, to companies big and small. We’re just missing the targets and ambition.

“Government has a role too. Cities are going to be leaders of change. Dublin could raise its profile in a way that would help sell Ireland Inc. We are the Green State, but others are stealing a march on us because we haven’t staked our claim.”

DCC hopes to see more e-cars

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THE SMART FUTURE

Irish Independent I 11 June 2015

A 3D 3D view at DCU D

UBLIN City University’s (DCU) Innovation Campus on Glasnevin Hill has come a long way since it opened for business in early 2014. The campus site was first established in 1946 as the Institute of Industrial Research and Standards and was home to Enterprise Ireland, the SEAI and the NSAI until 2008.

For over 60 years the site functioned to encourage scientific research in areas such as timber technologies, construction materials and plastics innovation.

Today, says executive director Ronan Furlong, the 10-acre site is being re-purposed to accommodate and foster the next generation of technologies. Some 30 companies have already established on site over the last year, employing around 300 staff, and working on projects as diverse as renewable energy, sensor technology and 3D printing.

Interestingly, this high-tech cluster is not your usual digital incubator environment. “As well as office space, we have industrial workshops and laboratory buildings. Big spaces where people can prototype new hardware alongside modern offices. Here’s where you’ll see people in t-shirts coding software for start-ups, researchers in white coats at work in bio labs and engineers in orange boiler suits assembling physical devices – all adjacent to each other.”

The campus includes some 200,000 sq feet of mixed office, industrial and research

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space in total. The tenant companies are a mix of indigenous SMEs and big multinationals like French company Veoila (which focuses on water, waste and energy services) and Siemens, who recently moved their Irish HQ operations to the site.

While the multinational companies of scale such as Veolia and Siemens are looking to innovate, there is a long list of innovative domestic companies looking to scale, and DCU is helping them in that process by giving them access to talent, assisting with research and hooking them into the cleantech market, through its own contact network.

Those innovative companies include Exergyn, which is developing a waste heat recovery engine, based on novel ‘shape memory alloy’ technology, which will help improve the energy efficiency of large electricity generating plants.

Other start-ups include Urban Volt, which offers LED ‘lighting as a service’ under a no-money-down ESCo model to large firms or local authorities, and Ambisense which produces an environmental sensing technology platform which can, among other things, monitor gas leakage from a landfill.

“Our initial tenant focus was on cleantech companies, but our definition was always quite broad in terms of data, sensors, wearable devices and other cross cutting technologies,” says Furlong. The health sector is therefore represented,

with Shimmer Sensing which has created a biometric wearable device which monitors the performance and vital signs of elite athletes. Anyone who has ever wondered about the small rectangular shape stitched into the back of Paul O’Connell’s shirt, can now rest easy.

3D printing is another area which the University is focusing on. The confluence of 3D printing, low cost sensors, crowdfunding and open source data is leading to an explosion of connected hardware innovation focused around the ‘Internet of Things’, which will have huge ramifications in the sustainability sector over the coming years. We are already starting to see this with connected devices such as Google’s ‘Nest’ and the energy control devices being developed by another Innovation Campus company ResourceKraft.

“Dublin is synonymous with being the internet capital of Europe, but if you think the internet revolution was big, you’ve got to remember that it was only a screen based revolution. Wait until you see the next phase, when we start connecting all the things. Big players like GE and Cisco are talking about 10-20 trillion connected devices by 2020,” Furlong says.

“That’s moving beyond laptop and smart phone screens, and into energy, water, transport and food. It’s about sensors and data and companies looking to bridge the physical and digital worlds. One such example of this was the recent ‘Beef Hacka-

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thon’ on the Innovation Campus with ABP Food Group and Intel, where we brought the connected hardware innovation community together over a weekend to look at how the beef sector would be impacted by this Internet of Things revolution. The three winning projects that emerged from that event are now being deployed on a trial basis by ABP – in areas of energy, transport and waste.

“The secret sauce of the innovation campus is that we look to add firms which bring value to the emerging cluster itself, and who are capable of, and interested in, leveraging off the research capabilities of DCU. We’re not solely about bricks and mortar space solutions for companies.”

THE SMART FUTURE

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