Future of Manufacturing & Transport - Q4 2023 by Mediaplanet UK&IE

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“We should be doubling down on our commitment to net zero.”

“Automation is a powerful tool that can transform the sector.”

Verity Davidge, Director of Policy, Make UK

Ashley Feldman, Programme Manager for Transport and Smart Cities, techUK

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Net zero: if we aren’t looking forward, we are simply going backwards The UK needs a long-term industrial strategy, which encourages innovation in advanced, high-value technologies such as net zero and AI to stimulate growth and skilled employment.

he Prime Minister’s net zero announcement in September made a big splash in an already agitated green policy pond. While it might have been more nuanced than some of the initial media speculation, it was deeply concerning that in a mere matter of minutes, the direction of travel on net zero could be quite fundamentally changed.

Verity Davidge Director of Policy, Make UK

Implications for the manufacturing sector What industry needs right now is certainty, stability and the confidence to invest. They received the opposite. Manufacturing businesses, particularly the automotive and domestic and commercial heating subsectors, will be acutely aware of how the sands have shifted under their feet once again.

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Why we need to optimise business efforts Manufacturers have sought to decarbonise their processes and production lines, reducing their carbon emissions and increasing their energy efficiency. We have seen some piecemeal incentives. The business rates relief for building improvements and relief for green technologies for onsite generation are welcomed. However, these incentives (or removal of disincentives) often lack one thing in common: certainty. This means short time frames that don’t relate to the average business investment cycle. We only have to look overseas to see the big, bold and ambitious plans other nations have put in place. We run the risk of falling behind our international counterparts as a home for green technologies if we persist in frequently altering policies that impact businesses directly. Instead, we should be doubling down on our commitment to net zero.

These incentives (or removal of disincentives) often lack one thing in common: certainty.

Sectors committed to tech transition In recent years, manufacturers in the automotive sector have ramped up investments in the future of electronic and alternatively powered vehicle technology to take advantage of the anticipated seismic shift in the vehicle market come 2030. Instead, they will feel like they’ve been left holding the baby and that their accelerated commitment to investing in the next generation of vehicle technology is wasted. It’s not just the automotive sector that has taken great strides to transition to net zero. Manufacturers

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of all shapes and sizes have put net zero at the top of their agendas and business priorities. The vast majority either already have a net zero strategy in place or are in the process of implementing one.

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Why digitally driven product manufacturing is better for sustainability

Image provided by AMRC

locations have had to indicate changes to a product over email or during meetings. If everyone can access the same digital model at the same time, each team can see those changes being made in real time — from anywhere. Secondly, while it’s relatively easy for manufacturers to understand the scope 1 and 2 emissions they create within their factories, it’s harder to get a handle on the scope 3 emissions in their upstream and downstream supply chains. “Model-based systems engineering provides a platform to enable carbon accounting,” says Professor Morgan. “It allows manufacturers to track the carbon of the parts they are using through the supply chain in an interoperable and standardised way.”

Model-based systems engineering creates a digital thread between the concept design stage of a product and the end of its life, and it’s a more sustainable manufacturing approach.

Professor Ben Morgan Research Director, the University of Sheffield Advanced Manufacturing Research Centre (AMRC) WRITTEN BY Tony Greenway

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manufacturing engineers, supply chain stakeholders and the end customer use a common complex digital model as the primary means of information exchange and feedback. This helps to create a digital thread between the concept design stage of a product and the end of its life.”

Model-based systems engineering in products It’s also exciting because it can lead to the adoption of cutting-edge innovations such as model-based systems engineering (MBSE). This theme — a key focus of the centre’s research and development strategy — is generally used in the design of complex, high-value manufacturing products in highly regulated sectors such as aerospace, maritime and nuclear energy. “Model-based systems engineering is set to replace the current archaic document-centric approach, where 2D design drawings are printed out and sent to the shop floor,” says Professor Morgan. “With MBSE, design engineers,

Advantages of model-based systems engineering Computer-aided design (CAD) has enabled better data sharing between different stakeholders for some time. However, CAD is just one part of the bigger digital MBSE picture. “The simulation and modelling capabilities we have now are more advanced than ever,” explains Professor Morgan. “Plus, the advent of Industry 4.0 has increased machine-to-machine connectivity, which means huge amounts of data can be captured on the shop floor and fed back into the model.” There are two major reasons why model-based systems engineering offers a more sustainable approach. First, it compresses the lifecycle of the concept design stage. Traditionally, competing interdisciplinary manufacturing teams working in different

f the UK is to meet its 2050 net zero commitments, manufacturers will need to think differently about their products and processes. In one way, this is incredibly daunting, admits Professor Ben Morgan, Research Director at the University of Sheffield Advanced Manufacturing Research Centre (AMRC), part of the High Value Manufacturing (HVM) Catapult, which develops innovative solutions to industry’s biggest challenges.

Centralised data offers ‘a single source of truth’ The centrality of data also plays a key part in AMRC’s sustainability strategy. It has developed an open-access digital architecture for manufacturing shop floors called Factory+. This can capture data — on everything from smart plug sockets to furnaces — and bring it all together in a centralised system. By offering a ‘single source of truth’, manufacturers can make more informed decisions about efficiency and sustainability. The centre is keenly focused on the sustainability of its own day-to-day processes, running in-house energy-saving initiatives and working with industrial partners to share best practices. It will also continue to innovate for its customers in the net zero technology space. For instance, it is opening an £50 million open-access research facility, which will be home to Composites at Speed and Scale (COMPASS) to solve composites manufacturing challenges for the aviation industry. The first research programme to take place in the facility will be the Isothermic HighRate Sustainable Structures (IHSS) project, led by aerospace giant Boeing, in partnership with the AMRC, Loop Technology and Spirit AeroSystems. “Net zero is a weighty target that, for some sectors, is a mountain to climb,” says Professor Morgan. “We want to help them by bringing new emission-reducing technology and net zero products to market as quickly as possible.”

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Sustainable solutions set to revive sovereign manufacturing The UK must re-establish itself as a sovereign manufacturer or face oblivion as it slips further behind global competitors in terms of the adoption of new technology.

he UK’s economic growth is currently one of the slowest of the G7; characterised by low productivity, low wages and poor investment. Reversing the decline is imperative, and the Manufacturing Technologies Association (MTA) will use its flagship event, MACH 2024, to launch an initiative designed to help UK manufacturers become more competitive while improving their efficiency and sustainability.

James Selka CEO, The Manufacturing Technologies Association

United front on UK technology uptake The MTA is part of a united front by UK manufacturing organisations, along with the Manufacturing Technology Centre (MTC) and MACH 2024 headline sponsor Lloyds Bank — intent on increasing the uptake of technologies such as automation and robotics. The Hubs will focus on educating users on when and how to adopt new technologies such as automation and robotics, data and artificial intelligence (AI) for manufacturing, sustainable manufacturing towards net zero and the use of additive manufacturing techniques. To help make the UK more automation and roboticsfocused, the Hub aim to educate companies on how technology can be used to automate many processes to improve productivity. Also focused on the adoption of data and AI in manufacturing, it explores the latest technology

designed to help manufacturing achieve agility through improved production processes while reducing costs and streamlining the supply chain. Optimising AI benefits for industry The need for this approach was brought into sharp focus following the release of new figures highlighting the UK’s lack of investment in technology and its poor adoption of robotics in the industry. The figures1 show the UK currently languishing outside the top 20 economic powers for the utilisation of industrial robots in manufacturing – lagging behind not just the economic superpowers but also the likes of Spain and Finland. James Selka DL, CEO of the MTA, says: “Our Knowledge Hubs at MACH 2024 aim to reverse the decline and enable the UK to re-establish itself as a sovereign manufacturer. To do that, we have to recognise the importance of investing in the latest technologies for improving manufacturing efficiency and optimising productivity. Our role is to help UK manufacturers focus on the new technology and provide impartial advice and wayfinding on when and how to adopt.”

The MACH 2024 initiative is taking place at the NEC, Birmingham from 15–19 April 2024. Scan the QR code to learn more

Reference 1. International Federation of Robotics: World Robotics 2023 Report: Asia ahead of Europe and the Americas.

Parliamentarians must work together to deliver skills reform needed for UK manufacturing Productivity across all parts of the economy is being held back by labour shortages. In the manufacturing sector, this ‘skills gap’ is estimated to cost between £7.7 billion and £8.3 billion annually in lost output.

he UK’s departure from the EU and the Covid-19 pandemic have both exacerbated the skills challenge, further reducing the pool of labour from which the manufacturing sector can draw.

Rob Allen Senior Policy and Research Manager, Policy Connect

Legislative reform to address local skills needs However, the skills gap cannot be blamed entirely on these events. The post-16 education system in England is a complex mix of market-based and governmentsupported provision, which has been subject to frequent policy change in recent decades. This has resulted in a healthy scepticism from businesses looking to upskill their workforces. Recent reform to post-16 technical education through the Skills for Jobs White Paper and subsequent Skills and Post-16 Education Act is therefore welcome. In particular, the Act sets out the requirement for education providers to work with employers on local skills improvement plans (LSIPs), which will allow decisions to be devolved to local areas and better address local skills needs. Cross-party support for upskilling Possibly more important than the contents of the Act is the fact that it received cross-party support. This makes us hopeful that these reforms to the further education

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system will be taken up and built on by the next government and beyond — whichever party wins the forthcoming general election. Indeed, the Labour Party has already committed to retaining several key policies, including LSIPs, should it come to power. Delivering a skills system fit for the future During our recent inquiry by the Manufacturing Commission, businesses specified that consistency in government decision-making was of vital importance to them — allowing them to invest for the long term, knowing that rules will not be changed and ensuring a level playing field for all. It’s therefore incumbent upon policymakers — of whichever political affiliation — to deliver this consistency on the skills agenda. Providing this cross-party approach can be achieved by legislators; we see no reason why England’s future skills system cannot match that of any country in the world. After all, a similar turnaround has been achieved in primary school level literacy, where England now ranks fourth (for 9 and 10-year-olds), after decades of stagnation. It’s therefore vital that the Government continues to prioritise further education and works with both businesses and education providers to deliver the skills that the manufacturing sector needs.

Lord Bilimoria of Chelsea CBE, DL Cross Bench Peer, Chair of the Manufacturing Commission, Founder and Chair of Cobra Beer, Chancellor of the University of Birmingham

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A 5-point plan to make apprenticeships fit for the future Apprenticeships offer an important route into engineering and manufacturing careers, but action is needed to ensure the system works for businesses and young people alike.

he workforce shortages engineering and manufacturing continue to face are extremely serious given the responsibilities the sector has in delivering critical infrastructure and responding to the climate crisis. We need greater diversity and hundreds of thousands more people to enter the workforce. We must enable more young people — from all backgrounds — to be inspired, informed and progress into engineering-related careers.

Dr Hilary Leevers Chief Executive, EngineeringUK

Investigating the decline in uptake Apprenticeships offer an excellent technical route for young people into manufacturing jobs. However, there has been a worrying decline in engineering apprenticeship starts since 2016/2017, particularly for younger people. To understand the reasons behind this decline and make recommendations on how to reverse it, we launched an inquiry earlier this year, chaired by former Labour and Conservative ministers, Lord Knight and Lord Willetts. The inquiry found that while businesses value employees who have come via apprenticeships, many, particularly smaller firms, struggle to find the capacity and resources to take on young apprentices. Companies are also concerned about the quality of training provision and barriers in relation to apprenticeship standards and bureaucracy. On the other hand, young people lack awareness, do not appreciate the value of apprenticeships or struggle to find them. Financial barriers are also a challenge; apprentices have neither the advantages of student status (such as benefits, reduced travel, discounts) nor the salary levels of those in full employment. Practical plan of action Based on insights gathered from businesses, education providers, young people and organisations, the inquiry report offers a new 5-point plan to help grow and sustain engineering, manufacturing and technology apprenticeships — making them more accessible, especially for young people. Launched in October, the cross-party plan calls on government, employers and training providers to work together, with recommendations across five areas to (1) rebalance education; (2) support young people; (3) refocus funding; (4) enable businesses; (5) encourage employers to take action. Unlocking the potential of apprenticeships Those involved in training the next generation and delivering apprenticeships must take responsibility. EngineeringUK will continue to raise awareness of apprenticeships among young people and their teachers and influencers, and advocate for action against the report’s recommendations. If we are to achieve the diverse future workforce needed for engineering and manufacturing to thrive, we must drive change to encourage more young people into the sector.

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The inquiry report offers a new 5-point plan to help grow and sustain engineering, manufacturing and technology apprenticeships — making them more accessible, especially for young people.

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The MaaS effect: pioneering data-driven dynamics in public transport Mobility as a Service (MaaS) is driving the push towards a greener public transport system, presenting an opportunity to significantly reduce the use of private cars in our cities.

ocal authorities, such as Solent and the West of England Combined Authority, are actively working on MaaS solutions to help make public transport a more streamlined end-to-end experience. Yet, there is still more that we could be doing – such as harnessing data more effectively.

Ensuring automation of transport takes everyone on the ride

MaaS to tackle public transport challenges A significant challenge is integrating complex transport modes, which have historically operated in isolation. However, for public transport to become the preferred mobility option, it first needs a connected ecosystem supported by smart, live data analysis. An open data approach can empower analysts, operators and authorities to transform raw data into actionable intelligence about how passengers behave and how services could be performing. London has set the standard for what integrated transport should look like. What’s stopping us from replicating the ‘London experience’ in other UK cities and regions? A nationwide transport network akin to London’s could significantly reduce poverty by improving access to jobs and stimulating economic growth through better connectivity. Regional control and funding could elevate 1.5 million people out of poverty by making employment more accessible and fostering regional economic development. Growth through inclusive mobility For sustainable investment in datadriven public transport, a commitment to cultivating lifelong public transport users is essential. Offering free travel to under-18s would be a good place to start — it would facilitate access to education and jobs while fostering environmental stewardship. It would ensure inclusivity, ingraining public transport as a natural part of life for future generations. This vision for an inclusive, data-led public transport system demands a paradigm shift, with regional authorities taking the lead over central government. Despite the challenges, the long-term benefits promise a transformative impact, creating a system that works for everyone in the country. Scan the QR code to find out more

Martin Howell Director, Transport Markets, Worldline UK & Ireland

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As the industry responsible for the movement of people and goods, the transport sector affects everyone in society. It connects communities and is a foundation of our economy.

D Ashley Feldman Programme Manager for Transport and Smart Cities, techUK

espite its critical role, the transport sector has been one of the slowest to embrace innovation. The sector is also faced with significant challenges to overcome — from improving safety to reaching net zero by 2050. Automation benefits in transport The automation of transport presents us with a unique opportunity. It can make the network safer, cleaner, cheaper and more efficient. Airports, for example, have been making use of automated mobility within operations for years. Distribution centres have been using it to move goods around sites with streamlined efficiency. Groceries can now be delivered to your door by autonomous delivery robots across the country. Ethical considerations in advanced automation However, what happens when automated systems don’t just deliver our shopping but deliver our children to school or parents to hospital appointments? Putting this level of trust in machines warrants a national conversation around how much risk we are prepared to accept and how safe is ‘safe enough.’ These are not easy questions to answer and are often tied into wider ethical debates.

Building trust in automated transport A positive first step is building trust and confidence in the technology and an understanding of how automated transport will improve people’s lives at the individual level. The industry must take steps to ensure it knows its end-user when designing solutions if we are to build systems that are inclusive and have a social licence to operate. Experience is also key. When people take their first ride in a self-driving car, the initial feeling tends to be intrigue, perhaps a little anxiety, but within a few minutes: boredom. That’s a good thing because it means the driving experience is something uneventful and already familiar to us. Reasonable regulations and inclusion The other critical element is regulation. We need legal systems that set the expectations and assurance frameworks for the sector. Regulations are critical for driving standards, fostering innovation and building trust with the public. This should be based on transparency, reciprocity and a culture of iterating and innovating. It’s time to embrace the future of transport. Automation is a powerful tool that can transform the sector. However, we must ensure everyone is on board for the ride.

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Clive Gilbert Head of Accessible Transport, Policy Connect

Marion Fellows Member of Parliament for Motherwell and Wishaw, Commissioner on the Accessible Transport Policy Commission

Accessible transport: shaping mobility solutions and inclusive policies Disabled people make 38% fewer journeys than non-disabled people — a phenomenon the accessible transport charity Motability Foundation has called the accessible transport gap.

ne in five disabled people are unable to travel due to a lack of suitable transport options. When they do, journeys tend to take longer and be strewn with obstacles. This has led to the accessible transport gap. Eliminating barriers to accessible transport The Accessible Transport Policy Commission heard that one key to making it easier for disabled people to travel is to ensure their voices are at the heart of decisionmaking in transport organisations and policymaking. The Commission is a new crossparty initiative chaired by former Paralympian Baroness Tanni GreyThompson and vice chairs from across both Houses of Parliament (including Marion Fellows MP, one of the co-authors of this article). It is part of the National Centre for Accessible Transport, which was set up earlier this year to eliminate barriers to travel — with a £20 million grant from the Motability Foundation. Initiatives and addressing the accessible transport gap Chaired by Marion Fellows MP, our meeting in November brought together disabled transport professionals and users to discuss the importance of lived experiences to making journeys more inclusive. This has been codified in the UK at the highest levels of decisionmaking for decades. In 1985, an act of Parliament created the Disabled Persons Transport Advisory

Committee to advise the Secretary of State for Transport. Brighton and Hove Buses and Metrobus are also pioneering work to set up the first dedicated accessibility support role to be established at a UK bus operator. However, strained public finances, the emergence of new technologies such as artificial intelligence and events such as the pandemic are leading to upheavals across the transport sector that are threatening to drown out the voices of disabled people. Help shape accessible transport policies The National Centre for Accessible Transport is working to put disabled people at the heart of transport decision-making. By combining expertise in inclusive product design, engineering, industry innovation and engagement as well as public policy, the Centre aims to amplify disabled people’s experiences and insights. We are inviting disabled people across the UK to join our new Community of Accessible Transport. Members of the Community will be offered opportunities to shape the Centre’s research and take part in other projects with industry and policymakers to create solutions to the problems they face.

Read more about the Community, which is also open to all transport professionals who share our passion for accessible transport, on ncat.uk

Why future mobility starts with making roads safer today As we adopt cleaner and greener transport alternatives, the importance of road safety is being overlooked — and at great cost.

n terms of mobility, there is a huge divide between the Global North and Global South. Every year, there are 1.3 million preventable deaths on the roads, with over 90% of them occurring in low and middle-income countries. As our travel horizons continue to expand, more of us find ourselves facing this hazard. Nowhere is this hazard more the case than in global cities, such as Bangkok and Delhi, which are among the most visited by international travellers and also have some of the world’s highest road fatality rates. Ensuring road safety on urban streets Cities also have more road users who walk and cycle. Road users make up 85% of road deaths in urban spaces. Following the Covid-19 pandemic, more people are increasingly inclined to walk and cycle. Future-proofing mobility means we need to design road infrastructure policies to ensure people can safely use greener transportation — from cycling and walking to ride-sharing in buses or cars. Today, in six countries — from Kenya to Ethiopia — more governments are going greener and embedding better street designs into urban masterplans, supported by local partners and the UN Road Safety Fund.

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Nneka Henry Head, UN Road Safety Fund

Safety returns on investment Rethinking mobility for the future must include investment in pedestrian and cyclist-friendly pathways, enhancing signage and lighting and putting in place intelligent traffic management systems. Safer roads are good for local business, benefit tourism and save on health, productivity and physical damage costs that result from road crashes. Our research in Zambia, for example, shows that introducing speed bumps can have the biggest impact on averting costly road traffic crashes. Designing safer systems today Realising any vision of future mobility needs a progressive mindset among those who design it. Road administrators, urban planners, vehicle manufacturers, public transport professionals and others must recognise that a focus on cutting-edge technology and reducing carbon footprints — divorced from road safety — won’t work. In charting the course for future mobility, prioritising safer cities, sustainable infrastructure and a robust safety culture is an indispensable roadmap for a more resilient global transportation landscape.

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Sustainable aviation fuels and tech investments help aerospace take off for net zero The global aviation industry has committed to the ambitious goal of net zero carbon emissions by 2050 and has a clear plan to achieve it, including sustainable aviation fuel (SAF), new technologies such as hydrogen and incremental efficiency improvements.

ver the course of the last century, aviation has been a consistent driver of global connectivity.

Andy Phillips Aerospace Policy Advisor, ADS

Sustainable aviation fuel production The most immediate lever to reduce net carbon emissions is the mass rollout of sustainable aviation fuels derived from sustainable feedstocks such as used cooking oil. They have several, significant advantages, including the ability to act as a ‘drop-in’ fuel in current engine technology. Indeed, this November saw the first-ever 100% SAF flight across the Atlantic. The real challenge for SAF will be scaling production to meet the industry’s ever-increasing demand for sustainable fuels. To provide a clear demand signal for SAF, the UK has implemented a 10% SAF mandate by 2030. Supported by schemes such as

Green Fuels, Green Skies (GFGS) — which provides funding for early-stage SAF producers — these policies will encourage investment into a domestic UK SAF production industry, producing home-grown SAF and generating jobs across the country – more than 10,000 by 2030. Investing in efficient aerospace tech While SAF represents a mediumterm way to reduce carbon emissions, aerospace technology continues to evolve at a rapid pace. Through the Aerospace Technology Institute (ATI), a jointly industry-government funded innovation body recently supported by £975 million of new funding through to 2030, the aerospace industry in the UK is carrying out world-leading research and development into the new and novel technologies of the future.

New propulsion methods including hydrogen — or revolutionary new wing designs such as the Wing of Tomorrow programme — will contribute to the continued improvement of the efficiency of aircraft in the skies. Net zero is an exciting moment for aerospace. Significant reductions in net carbon emissions by 2050 will be difficult to achieve, but this industry has a long track record of overcoming generation-defining challenges. In doing so, the UK stands to solidify its place as an aviation and aerospace powerhouse for decades to come.

ADS is the UK trade association for aerospace, defence, security and space organisations with 1,300 members.

How an engineer found herself at the cutting edge of aviation Engineer Beth Moreton is part of the team involved in developing the world’s first hydrogen-powered commercial aircraft. She explains why it’s such an exciting place to be.

hen she was studying for her mechanical engineering degree, Beth Moreton never dreamed that she would end up working on cutting-edge aviation technology for aerospace company Airbus. As Head of Engineering for Hydrogen Systems, she is involved in developing the world’s first hydrogen-powered commercial aircraft.

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Sustainable aviation with hydrogenpowered aircraft “We plan to have a hydrogenpowered commercial aircraft with entry in service by 2035,” explains Beth. “That’s an ambitious target. Yet, the amount of investment Airbus has made, the technical knowledge we’ve developed and the number of talented people working on this project underlines

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just how serious we are about making decarbonised aviation a reality.” This is not to say every day is straightforward because breaking new ground never is. “It can be frustrating sometimes; the level of challenge we’re dealing with is so high,” admits Beth. “But everyone on the team is enthusiastic and committed because we all know we’re involved in something significant and positive.” Best ways to start exploring an engineering career Beth started working for Airbus during her degree. “I completed a one-year industry placement with the company,” she explains. “After I finished university, a contact of mine at Airbus saw a role they thought I would be right for and encouraged me to apply for it.” She

joined full-time as a Fuel Systems Engineer in 2008 and worked on the A320 and A380 before moving into the world of hydrogen power. “It makes me proud to see more women entering as graduates and apprentices. The message that we belong in engineering is obviously filtering through,” she says. Anyone interested in a highflying engineering career should investigate the range of training schemes, mentorships, apprenticeships and graduate programmes offered across the sector, insists Beth. “I’d encourage anyone to go for it. I’ve always found engineering to be an interesting and fulfilling career option. The people I work with are so inspiring, with a real ‘can do’ attitude.”

Beth Moreton Head of Engineering for Hydrogen Systems, Airbus

Find out more at airbus.com

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Decarbonising heavy transportation with low-carbon fuels

Aviation and maritime must align investments across value chains for low-carbon fuels to help both sectors decarbonise.

viation and maritime account for about 2% and 3% of global CO2 emissions, respectively. Despite being distinct forms of transport, similar regulatory pressures are compelling both industries to accelerate decarbonisation — and they face common challenges on this journey.

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Parallel financial pressures towards decarbonisation Both industries face evolving regulatory measures to reduce carbon. In aviation, the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) will be fully implemented by 2027 while, in maritime, the EU Emission Trading System (ETS) will put a new price on emissions from 2024. Alwyn Hopkins, Advanced Manufacturing and Mobility Sustainability Leader at Ernst & Young LLP (EY UK LLP), explains: “Fiscal policy, plus disclosure and ‘command and control’ regulations are increasingly applying pressure to decarbonise the two industries.” A necessary shift to lower-carbon fuels For many aviation and maritime applications, electrification and hydrogen power remain difficult to implement. “Although

electrification is a viable option for smaller planes and vessels, long-haul transatlantic flights and international cargo ships require liquid biofuels or e-fuels,” insists Alex Helpenstell, Director of Energy Transition Strategy at EY-Parthenon, which focuses on biofuels and energy transition strategies. Moreover, investment in advanced fuels offers clear benefits. “Lowcarbon fuels and more efficient fuel use will both play a role to enable a lower carbon footprint for both industries. The knock-on effect is then scaling new technologies, facilities and entire supply chains across the low-carbon fuel industry to support the transition.” However, challenges include the current high costs of low-carbon fuels and the technical challenges in building novel, commercialscale facilities. “Government and industry will need to work together to support First of a Kind (FOAK) projects as they prove technical and commercial viability,” says Kiran Savjani, Director of Energy Transition Strategy at EY-Parthenon. “Regulatory, strategic and financial support now are key to unlocking capital flows and driving costs down over the long term.”

Waste streams and novel feedstocks “There is also the challenge of getting access to feedstocks,” says Helpenstell. Feedstock, which is typically dispersed, then requires aggregation for biofuel conversion. “The goal is moving to biofuels in the near term while e-fuels scale in the longer term,” he adds. “Biofuels have historically been produced from vegetable oils and food products; we’re moving away from that into waste streams, like agricultural and forestry wastes or food and plastic wastes, otherwise destined for landfills. So, building supply chains to aggregate these waste streams in the right locations for the feedstock to be accessible is a clear challenge.” Coordinated investment is required to clean up these waste streams and make them homogenous and suitable for use in biofuel refineries. Savjani also notes the potential of novel feedstocks like carinata, specially cultivated for their oils without competing with agriculture. However, developing these markets requires significant effort. “We’re looking at a 10-year horizon before the market can really drive increased volumes of feedstocks,” he says. Quick, coordinated response for decarbonisation To boost feedstock production and convert it into liquid fuels for aviation and maritime transport at scale, government incentives and financial support systems are essential. A cross-cutting view on investment could benefit both industries. “Currently, a lot of development isn’t necessarily maximising value for both industries,” says Hopkins. For example, the UK’s Advanced Fuels Fund has predominantly allocated projects narrowly focused on Sustainable Aviation Fuel development. “A lot of coordination is needed, from feedstock production to the supply chain and getting the fuel into engines,” explains Anu Bhambi, Partner, UK Energy Transition Strategy Lead, EY-Parthenon. In the case of aviation, for example it may require evolution of storage and fuelling systems, as well as potential additives. “That’s why maritime and aviation operators, policymakers and fuel providers need to work closely together if we’re going to deliver infrastructure and production of the fuel volumes we need, whilst avoiding cannibalisation,” urges Bhambi. The views reflected in this article are the views of the author and do not necessarily reflect the views of the global EY organisation or its member firms.

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Alex Helpenstell Director, Energy Transition Strategy, EY-Parthenon

Alwyn Hopkins Advanced Manufacturing and Mobility Sustainability Leader, EY-UK LLP

Kiran Savjani Director, Energy Transition Strategy, EY-Parthenon

Anu Bhambi Partner, UK Energy Transition Strategy Lead, EY-Parthenon WRITTEN BY Angelica Hackett O’Toole

EY teams advise on decarbonisation pathways for companies in manufacturing and transport. To learn more, visit ey.com/en_uk

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Ways to ensure the UK has the right EV charging infrastructure in the right place The global shift toward electric vehicles (EVs) is accelerating, driven by a growing awareness of the environmental impact of traditional petrol and diesel cars.

he UK will have 1 million EVs on its roads in 2024. There are already upwards of 50,000 public charge points in use and many more when you factor in those installed at home. The UK is seeing one new public charge point switched on every 20 minutes.

Ian Johnston Chair, ChargeUK

Access to electric vehicle charging ChargeUK members will invest over £6 billion in growing the network over the next six years, and our work will continue as the majority of drivers join the transition. However, numbers are only a small part of the story. Key to the success of switching to electric is ensuring drivers can access the right charging solution in the right place. This infrastructure is the backbone of the electric vehicle revolution; it plays a pivotal role in ensuring a smooth transition from internal combustion engines to electric power. EV drivers need to know that they can easily charge their vehicles — whether at home, work or on the go.

drive. Many people will charge at home or work and rarely visit a public charging station. Others, particularly those without off-street parking, will be far more reliant on the public charging network. Each driver will have bespoke charging behaviour. The network is already accommodating that. However, as more people drive EVs, we need to keep ramping up the pace. This means slower chargers on streets and at workplaces where cars are parked for longer — and faster chargers in places like cinemas and gyms. We need more rapid and ultrarapid chargers along motorways and roads serving lots of traffic. The average stop at a motorway service station is 20 minutes; enough time to put up to 200 miles of charge in your EV.

EV drivers need to know that they can easily charge their vehicles — whether at home, work or on the go.

Ideal future of EV charging There is going to be a fundamental shift in how we

Benefits of convenient EV charging The deployment of charging infrastructure also presents economic opportunities; stimulating job creation and attracting investments to the UK. Investing in and expanding the charging network supports a future where electric vehicles are the norm, thus accelerating the shift towards a more sustainable transportation system.

Why new initiatives are needed to help fleet operators transition to electric

It’s not easy for fleet operators to swap petrol and diesel vehicles for electric. To help them transition, they need a strong business case coupled with facilitative government policy. Paid for by EY

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witching from gas-guzzling vans and lorries to electric vehicles (EVs) is vital for the UK’s net-zero goals. However, commercial fleet operators encounter major challenges in this transition. Infrastructure for efficient EV transition “First, there’s the question of how fleet vehicles can gain efficient access to public charging infrastructure exactly when they need it,” says Maria Bengtsson, UK&I Electric Vehicle Lead, Ernst & Young LLP (EY UK LLP). “The other issue is that many charging point bays in the UK are designed for cars. That’s a problem for bigger vans and lorries.”

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Unfortunately, installing new charging points — fleet-friendly or otherwise — is complicated. “It’s a complex operation,” explains Alwyn Hopkins, Advanced Manufacturing and Mobility Sustainability Leader at Ernst & Young LLP (EY UK LLP). “It can require technical infrastructure work like upgrading grid connections or installation of substations for sufficient power capacity, and calls for navigation of a complex, multi-stakeholder ecosystem.” Businesses want policy certainty before investing The rollout of charging infrastructure has slowed for another reason, notes Ian Smith,

Partner, Ernst & Young LLP (EY UK LLP). “We might like to think that every stakeholder views this issue through a sustainability lens,” he says. “Charge point operators are a commercial enterprise. Raw economics is part of the equation.” It’s the same for fleet operators, with big questions about the Total Cost of Ownership (TCO). Considering the purchase price and all other associated costs of EVs, is a transition from diesel to electric financially viable? “The answer might be ‘yes’ for smaller fleet vehicles,” says Smith. “But, depending on the duty cycle, maybe not quite yet for larger lorries — arguably, alternative fuels may still have a transitionary role in that bracket.” Facilitative government policy is therefore needed to create a) the financial and regulatory environment to encourage EV rollout; and b) the market conditions to allow faster rollout of essential infrastructure. “That’s challenging for charging point operators and fleet operators, who — like companies in the maritime and aviation industry (see article on page 11) — need a solid business case for infrastructure investment and fleet transformation.” The views reflected in this article are the views of the author and do not necessarily reflect the views of the global EY organisation or its member firms.

Maria Bengtsson UK&I Electric Vehicle Lead, EY UK LLP

Alwyn Hopkins Advanced Manufacturing and Mobility Sustainability Leader, EY UK LLP

Ian Smith Partner, EMEIA Sustainable Mobility, EY UK LLP

WRITTEN BY Tony Greenway

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