At Chamber’s Future Economy Seminar at the Mercure Darlington Kings Hotel, experts in the energy field gathered to discuss the UK’s decarbonation, and the ways in which plugging the skills gap can support the country’s journey towards becoming a low-carbon economy.
Held in November 2023, the panel featured:
- Corrine Barry – Chair – Director, Net Zero, East Coast UK, RWE
- Mark Wilkins – Technologies and Training Director, Vaillant Group
- Stuart Dawley – Professor of Economic Geography, Newcastle University
- Chris McDonald – Consultant, Materials Processing Institute, Labour Parliamentary Candidate for Stockton North
- Chris Cooke – Mayor of Middlesbrough
Plugging the Skills Gap
Kicking off today’s discussion, Chris McDonald spoke passionately about it being an exciting time in the steel industry. He said Teesside has the right conditions for current steel operations, and also has access to carbon capture storage and hydrogen grid digital technologies, which means it can meet the sector’s future needs. With these all being emerging sectors in Teesside, it is now time to focus on how to step up investment and development as the UK is lagging behind other countries.
Compared to Europe, the Far East and the Americas, the UK has uncompetitive energy prices, due to policy decisions, and does not co-invest with businesses.
Young People and Decarbonisation
In order to support the country’s journey towards low-carbon, Corrine Barry asked the panel what can be done to engage young people. Chris Cooke, Mayor of Midlesbourugh, said that educating youngsters about the opportunities within the steel industry is imperative. Due to the press around the UK steel industry’s decline, lots of young people believe there is nothing available, from a job perspective, to explore.
Having clear strategies within individual towns highlighting what each area does well, the skills they have, and how they can contribute to the industry’s growth, is crucial. Chris stressed that keeping young people at the centre of these strategies is key.
Mark Wilkins added that young people acquiring the relevant skills will play a crucial role in helping to decarbonise homes around the UK. Vaillant manufactures heat pumps and low carbon home heating solutions.
Vaillant works in partnership with colleges, universities and educational institutions to help them build the skills bases required. Mark said:
“We have to support those that are teaching the next generation. We cannot just put new technology onto the market – this is fundamental.”
The Process of Decarbonisation
Speaking about the realities of decarbonisation, Mark said that it all begins with the fabric within our buildings. By improving a home’s fabric, less energy will be used. Teesside has the oldest and leakiest buildings in the UK, and so it is necessary to look at the heating systems, hot water and energy they use, in order to begin utilising these systems more effectively.
People need to be educated on heating their home in a slow and steady manner, instead of cranking up the heat twice a day and then turning it off. Mark added that alongside addressing the education of consumers, and looking at the heat effectiveness of our homes, skills passports can play a key role in skills transferability across the workforce.
In terms of affordability for every household, Mark said there is more to be done.There are however funding mechanisms in place for those in social housing to implement these solutions.
A New Perspective on Job Transition to Low-Carbon
Corrine spoke of the recent news that there will be 2000 jobs lost in the steel industry. With a skills gap in the sector, she asked the panellists their views.
Chris Cooke said employers need to take care of their employees, and shift back towards a more considerate approach towards the workforce. When loyalty is high, so is retention and this is something that is now missing.
Chris McDonald added that a perspective shift is needed when it comes to job losses in the sector.
“As the steel industry decarbonises, jobs will be lost. This is because the industry is going green and smart.
“Unless we open up to the fact that this is the reality of the latest digital processing in heavy industry, then we will tie ourselves to plant and equipment that’ll be globally inefficient and those people will lose their jobs anyway.
“We need to invest, embrace new technology, and accept that it gives us an opportunity where highly skilled people from these industries can be freed up to go into growth industries of the future.”
An Example for the Country
Speaking about Teesside as an example for the rest of the UK, Stuart Dawley said that a “cluster approach” of working is required. By connecting different processing industries with downstream oil and gas, and hydrogen, before feeding stock into the industry, more can be achieved.
He praised the government’s cluster sequencing approach as being successful in mitigating risk in the sector. He said that Teesside’s success lies in its long history of thinking of challenges, its infrastructure, investment and politics.
Chris Cooke added that, in order to keep Darlington at the forefront of the government’s vision for decarbonisation, it is necessary to raise awareness about the highly skilled workforce in the area.
A Mixture of Solutions for Decarbonisation
Following an audience question about the installation of low carbon heat pumps in homes, Chris McDonald voiced concerns that heat pumps are not the majority solution to this issue. Agreeing with his point, Mark Wilkins added that a mix of technologies are required to achieve decarbonisation.
He said a delay on decisions around hydrogen-ready equipment is slowing down businesses ability to act on the implementation of other technological solutions. There are also challenges around the electrical infrastructure in the UK which will affect the journey towards low-carbon. Combining this with a skills shortage and labour shortage, Mark said, there is a long way to go.
As new technologies enter the market, consumers are bound to be unsure of them. As a result it is imperative, Chris Cooke stressed, that individuals are educated about how new heating solutions work, and the process if they break. Employing a multifaceted technician with a wider breadth of skills, Mark added, is one way to better educate consumers.
Reskilling Existing Workers
Although youngsters are vital for the UK in decarbonisation, Corrine added that the reskilling of older workers is also important. Chris McDonald agreed, adding that lifelong learning is incredibly important, especially as people can now expect to retrain two to three times within the new technological revolution we are within.
In terms of learning and education, the role of AI was raised and the importance of ensuring older workers aren’t left behind when it comes to reskilling.
It is Down to Industry
Bringing the discussion to a close, Corrine concluded:
“It is down to industry to engage with schools and to come together with one voice, at the same time, to the same people. This holds much more weight than if we all try to do it our own way.”
Working collaboratively to harness the skills of a diverse workforce, the panellists agreed, is crucial in the transition to a low-carbon economy.