Hinckley & Bosworth (going by boundaries at the next general election) comes fourth out of all constituencies in England and Wales for the productivity of its Net Zero economy, a new report has found.
Businesses in sectors such as renewables, energy storage and sustainable construction make up 12% of the Hinckley economy by the Gross Value Added (GVA) measure of productivity, account for almost 2,000 Full Time Equivalent (FTE) jobs, and represent a value of £258 million.
Analysis by CBI Economics and Data City, commissioned by the Energy & Climate Intelligence Unit (ECIU), locates more than 40% of England and Wales’ Top 25 Net Zero economy constituencies in the East Midlands region. Mid Leicestershire, South Leicestershire and North West Leicestershire feature in the Top 15 along with Hinckley & Bosworth.
Researchers found Net Zero businesses in the East Midlands produce £5.1 billion (4.6%) of regional GVA, and that they account for 58,500 FTE jobs or 3% of employment in the region – the highest proportion in England.
Nationally, the study shows that Net Zero industry grew by 9% in 2023 and contributes £74 billion to the UK economy (3.8% of the total) – larger than the economy of Wales. It calculates that the 765,700 Full Time Equivalent roles in the green sector are better paid by almost £10,000: the average salary for a Net Zero job being £44,600 compared to the £35,400 UK average.
Midlands green businesses welcomed evidence of the sector’s significant contribution, but called on Government and partners to support the scaling up of their operations and an expansion of training.
“Since becoming an Enterprise Zone in 2012, our tenants have raised $22 billion (£17.38 billion) in VC investment to fund Net Zero transport technology R&D, with our infrastructure playing a key part,” says Tim Nathan of Horiba MIRA about the company’s 850-acre Technology Park off the A5, where he is the MD.
“The challenge for Government is turning that innovation into commercialisation opportunities for the UK. For example, [fuel cell developer and green hydrogen innovator] Ceres have announced their fuel cells will be manufactured with licensing agreements in Europe and Asia. The global marketplace is a competitive one and we have many strengths to shout about; but a lack of coherent industrial policy and investment does hinder UK growth.
“We are about to break ground on a 72,000 square foot building with a confirmed occupier for 50%, taking R&D into product manufacture. This new development has only been possible with investment from our Enterprise Zone retained business rates through Leicester and Leicestershire Enterprise Partnership and Hinckley & Bosworth Borough Council, and funding from our parent company HORIBA and our joint venture property partner Evans Randall.
“We need continued support to realise our masterplan for a combined 4 million square foot campus from incubation to production, where the employment potential alone could bring over £2 billion into the local economy.“We have an on-site training centre of excellence in the MIRA Technology Institute, alongside our own Skills Academy through which we play a leading role with our Further and Higher Education partners in electrification skills and increasingly in hydrogen fuel cells. Our STEM Ambassadors visit and host local schools to showcase opportunities for purposeful and well-paid employment.
“We are doing all the right things, but we need longer-term Government support and backing to really put Nuneaton on the map as the cleantech capital it has the potential to be.”
Dr Michaela Kendall of Birmingham-based Adelan, developers of microtubular solid oxide fuel cell (mSOFC) technology, warns the Midlands’ success in attracting Foreign Direct Investment in Net Zero industries masks tepid investment by the Government, leading to value being offshored.
Adelan has formed a partnership with Midlands neighbours the Manufacturing Technology Centre (MTC), Johnson Matthey and ANT Industries to explore scaling up fuel cell production for battery range extension. Last year, it showcased the capabilities of mSOFC technology to power a train in Rugby.
“The commercialisation of UK innovation in green technology is vital for cultivating a high-growth economy, supporting the creation and preservation of UK supply chain jobs, and advancing high-skilled manufacturing,” Dr Kendall said.
“When we put a hydrogen fuel cell project out, we were inundated by young engineers. No young engineer sees their future in combustion.“We have the two longest-running fuel cell companies in the UK in the Midlands and the national Hydrogen Champion in the Midlands [Jane Toogood at Johnson Matthey]. Why can we not make more jobs for young people in the Midlands, and retain more people coming out of our universities?”
