< Previous30 Business Link www.blmforum.net SUPPLY CHAIN MANAGEMENT of data in real time so that companies can identify process and equipment inefficiencies and incidents. Meanwhile, with supply chain visibility a priority for many, buzzword technologies like blockchain look set to be integrated into supply chains. A permanent decentralised ledger of transactions, blockchain can record transactions in a verifiable and permanent way with a database stored in numerous locations maintaining timestamped records linked to previous “blocks” in a manner that can’t be undone or changed once recorded. Blockchain is ready to create a more secure supply chain as products can be traced through a clear audit trail, providing the ability to, for instance, track materials, where they arrive, who handled them, and when and how they were moved to whatever the next stage may be. In combination with IoT devices, true visibility could be achieved through the supply chain, with IoT devices tracking goods and sharing this with a blockchain framework which is accessible by all participants. With digitalisation, the expansion of the IoT, and the subsequent heightened availability of data, firms are harnessing intelligence in a variety of areas, from gaining understanding of past performance to predict future trends, to uncovering customer preferences. AI and the AI technique machine learning are key in this being wielded in transport management, warehouse management, and forecasting amongst other areas. For example machine learning and predictive analytics are being utilised to bolster planning and decision making, highlighting patterns in purchasing, and automating warehouse processes and determining optimal transport routes for prompt order fulfilment, while learning from live weather and traffic data to produce accurate and dynamic routes. In the case of supply chain planning, AI can be used to analyse large datasets and offer an analysis of supply and demand trends. Additionally machine learning is creating forecasts from historical data, to calculate seasonal demand fluctuations, but also real time market trends. In conjunction with sensors, boosting their capabilities, machine learning can be used in maintenance and aftercare to monitor equipment and machinery, to indicate when it may break down. Signals can also be sent prior to a machine breaking down, so that spare parts are acquired ahead of time to reduce shutdown or interruption, production losses and shipment delays. Other applications of AI can be seen powering robots and AGVs. Autonomous technology, from warehouse management systems to robots, within factories and warehouses continues to build its presence in conversation as firms look to become more agile and deal with labour shortages. Repetitive and labour- intensive tasks have been prime for 29-31.qxp_Layout 1 04/08/2020 17:27 Page 2www.blmforum.net Business Link 31 SUPPLY CHAIN MANAGEMENT Tel: 01482 506560 • Email: sales@datamarkuk.com • Website: www.datamarkuk.com • Plain / Printed Labels • Thermal Transfer Ribbons • Lasersheets • Fanfolded Labels • Barcode Labels autonomous robots, which are sorting, retrieving, and transporting products in warehouses, particularly as manual picking reduces. With machine learning technologies and sensors, to act with precise accuracy and traceability, more autonomous robots are expected in 2020 and beyond. From multifunctional robots to driverless vehicles, robotization can improve the efficiency and speed of warehouse processes. Moreover, collaborative robots are presenting flexibility and scalability, increasing picking efficiency and accuracy, by working with and guiding staff, and as robotics companies begin to offer robotics as a service (RaaS) solutions, their expanded use is more achievable. A further, continually growing, trend in supply chain management is sustainability, as customers clamour for eco-friendly processes, practices, and products. Green practices are vital and can be implemented throughout the supply chain whether that be in material sourcing, product design, manufacturing, delivery, or product disposal. These practices include minimising plastic packaging, making moves to be carbon neutral, employing alternative fuels and electric vehicles such as forklifts, utilising energy efficient lighting and energy management systems with timers and gauges to monitor electricity, water and heat in warehouses, and planning delivery routes that reduce fuel consumption. Embracing a circular supply chain has also been pinpointed, with steps being taken away from linear supply chains to those where manufacturers reuse and rework products, perhaps via recycling components into materials, for a product to eventually be reused again in manufacturing. This also reacts to government regulation and legislation, can lead to savings for companies themselves and generate a positive brand image. © Shutterstock /T ravel mania 29-31.qxp_Layout 1 04/08/2020 17:27 Page 332 Business Link www.blmforum.net The benefits of © Shutterstock /loraks BIOGAS 32-35.qxp_Layout 1 04/08/2020 17:30 Page 1AD & BIOGAS www.blmforum.net Business Link 33 A naerobic digestion describes a process where biomethane is produced and captured when organic matter – such as food and agricultural waste – is broken down in sealed tanks. Once these tanks are entirely void of oxygen, the biomass is heated to blood temperature where it will react with the naturally occurring microorganisms and bacteria. Finally, the biomass is emitted, and a material called digestate is left behind – both of which can be utilised. For food and agri- businesses, this process is a viable and sustainable means of getting rid of organic waste whilst producing renewable energy for either themselves or for the grid. It might sound modern, but anaerobic digestion (AD) technology has been around in one for or another since the 1800s. Yet it’s only in the last decade or so that the technology has really entered the mainstream thanks to the growing demand for renewable solutions and the worsening climate crisis. Though still largely in its infancy on a commercial scale, the AD industry is rapidly expanding, with businesses keen to invest. At present, there’s around one hundred anaerobic digestors in the UK currently producing bioenergy. According to the Anaerobic Digestion and Biogas Association (ADBA), the industry has the potential to be worth between £2 billion and £3 billion in the UK alone and employ some 35,000 people. This upsurge should be obvious for the reasons we’ve already touched upon, but the attraction extends beyond that. Indeed, the association said that AD is the only renewable that can be scaled up fast enough to enable the UK to reach its 2020 target. With the climate crisis now at fever pitch and parts of the world at breaking point, the time has never been more pressing for the widespread adoption and deployment of renewable energy solutions. Nuclear has been pointed to as a viable option to bridge the nation’s transition from fossil fuels to a greener, more sustainable energy grid, but, frankly, new nuclear plants simply can’t be built and scaled quick enough. The answer, therefore, may well lie in anaerobic digestion. Despite these many benefits, the industry hasn’t been without its hurdles, having struggled for several years now. ADBA head Charlotte Morton says the industry has been “operating in an environment of declining government support for renewable energy, with tariffs for renewable electricity and, until very recently, 34 Á Our region is one of the epicentres of the nation’s burgeoning anaerobic digestion industry, one which more businesses are seeing the benefit of. 32-35.qxp_Layout 1 04/08/2020 17:30 Page 234 Business Link www.blmforum.net AD & BIOGAS renewable heat steadily falling.” But the tide is turning on AD with changes to the Renewable Heat Incentive coming into effect a few years ago and bringing fresh investment to build more biomethane plants across the UK. With its concentration of food and agri-business, AD is an ideal option for our region. In Yorkshire and the Humber, for example, forty-four per cent of renewable electricity generation comes from biomass – that’s more than solar, offshore wind and onshore wind put together. Furthermore, nine per cent of renewable-powered heat production comes from biomass, with one per cent generated by organic waste via AD. This may come as a surprise to readers, especially given the concentration of wind turbines across the county and the major offshore developments on the East Coast (more on that in our Humber Bank feature on page 36). It’s less surprising when one bears in mind that the biggest decarbonisation project in Europe is taking place in the county, a project that’s powered by biomass. Two years ago, Drax – the third largest power generator in Britain – switched on the fourth biomass generating unit at its Selby-based power plant ahead of the government’s planed 2025 coal-power phase out. This transformation from a traditional coal-fired power plant promises to protect jobs and deliver cleaner, reliable power for homes and businesses. It’s also proving profitable too, with Drax reporting a nine per cent rise in full-year earnings last year driven by higher renewable power generation from these biomass units. AD is well positioned to help achieve the government’s phasing out of coal plants as the nation moves away from fossil fuels. This summer, the UK went a record-breaking sixty-seven days without burning coal for power – the longest period since the Industrial Revolution. But perhaps the most widespread usage of AD is within the water industry, where the process has been used for years. In fact, the water industry currently treats sixty-six per cent of the UK’s sewage sludge in AD plants. Our region is leading the charge again in this regard with Yorkshire Water last year opening a £72 million AD plant at its Knostrop 32-35.qxp_Layout 1 04/08/2020 17:30 Page 3www.blmforum.net Business Link 35 AD & BIOGAS © Shutterstock /nostal6ie Energy and Recycling Facility in what is the company’s biggest investment for five years. The new facility will process sludge imported from across the Yorkshire Water region where it will be treated in digestor, which have a capacity to treat 131 tonnes a day. Over a two-week period, the digestors convert sludge into fertiliser which can be used to create a biogas that is turned into green electricity. The company claims that it will create enough electricity to run fifty-five of the site’s electricity needs, which is equivalent to powering 7,600 homes. It isn’t just major energy and utility companies turning their attention to AD, but businesses right across the industrial spectrum seeing the benefit. By using AD, businesses can slash the amount of waste they send to landfill. This is particularly prudent when it comes to the amount of food that’s currently wasted in the UK. Food that is still edible should be sent to food redistribution charities and schemes where possible, while by- product and foods no longer fit for human consumption should be sent to AD plants where they can be turned into biomethane. The UK currently produces over one-hundred million tonnes of organic material that is suitable for treatment by AD. This includes agricultural by-products including manure and slurry, domestic and commercial food waste, and dry sewage sludge. Most of this material is wasted, but it could be used to power the nation and help achieve its climate goals. As with any potential investment, there are drawbacks businesses should consider. As AD plants are twenty-four- hour operations, they must be fed regularly. Moreover, pumps and other machinery must also be maintained to ensure production is not interrupted. There can also be noise, dust and, if there are leaks, smells and environmental contamination can occur. It’s worth noting, however, that smells associated with AD are far less common and offensive than protestors seem to think. Waste is delivered in closed vessels and vehicles, received in a closed reception area, and the digestion process itself takes place in a sealed tank meaning smells are usually kept to a minimum. 32-35.qxp_Layout 1 04/08/2020 17:30 Page 436 Business Link www.blmforum.net THE HUMBER BANK © Shutterstock /T eun van den Dries Hailed as the ‘Energy Estuary’, the Humber has a brand recognition that’s appealing to investors and industry bigwigs and forms the keystone of the Northern Powerhouse agenda. Businesses, organisations and enterprising individuals across the region are keen to capitalise on this success and drive the next era of growth forward. Last year, a campaign launched with the aim of developing new economic models that deliver environmental sustainability and economic growth through decarbonisation. Spearheaded by Marketing Humber in partnership with the University of Hull, the initiative has attracted major partners from across the Hail to Having cemented itself as a leader in the field of renewable energy, the Humber region is now capitalising on that success and taking advantage of increasingly ambitious opportunities from clean power right through to logistics. 36-39.qxp_Layout 1 04/08/2020 17:34 Page 1www.blmforum.net Business Link 37 THE HUMBER BANK industrial spectrum, including solicitors, accountants, business advisors, manufacturers and site operators. This complements the Principal Partners which includes Drax Power and Yorkshire Water, both of whom are playing critical roles in driving environmental change across the region. More recently, the national Operations & Maintenance (O&M) Centre of Excellence – a £2 million collaboration between the University and ORE Catapult – has partnered with Danish power company Ørsted to develop an innovative new approach to sea state forecasting. Led by academics from the University of Hull, the project team is working closely with Ørsted to help improve wave forecast modelling. It is hoped better monitoring of sea conditions will help drive efficiency in the sector and deliver a significant reduction in missed working days. The new model will contribute to improving the accuracy of sea state forecasting at an individual offshore wind turbine level, with the potential to drive efficiency gains in operations and maintenance, increasing safety, as well as contribute to further reductions in the Levelized Cost of Energy for offshore wind. Turbine accessibility is a key determinant of a wind farm’s profitability. Technicians attempting to undertake maintenance can face several barriers to safe access, which in turn can be a factor in limiting turbine performance and ultimately overall energy output of a wind farm. This new project will result in a wave forecasting model that will give greater accuracy and offer a more granular insight into the sea state within an offshore wind farm than current state-of-the-art methods can. Its not only solar and wind power that are scaling up in the Humber region, but other forms of clean energy. Most recently, that has included hydrogen. In early July, plans were unveiled for one of the world’s first at-scale facilities to produce hydrogen from natural gas in the Humber 38 Á 36-39.qxp_Layout 1 04/08/2020 17:34 Page 238 Business Link www.blmforum.net THE HUMBER BANK combination with carbon capture storage (CCS) in the Humber. Led by Norwegian energy company, Equinor, the project – called Hydrogen to Humber Saltend (H2H Saltend) – provides the beginnings of a decarbonised industrial cluster in the Humber region, the UK’s largest by emissions. Crucially, it supports the government’s aim to establish at least one low carbon industrial cluster by 2030 and the world’s first net zero cluster by 2040. It also paves the way for the vision set out by the Zero Carbon Humber alliance, which Equinor and its partners launched in 2019. The project will be located at Saltend Chemicals Park near Hull and its initial phase comprises a 600 megawatt auto thermal reformer with carbon capture, the largest plant of its kind in the world, to convert natural gas to hydrogen. It will enable industrial customers in the Park to fully switch over to hydrogen, and the power plant in the Park to move to a thirty per cent hydrogen to natural gas blend. As a result, emissions from Saltend Chemicals Park will reduce by nearly 900,000 tonnes of CO2 per year. In its later phases, H2H Saltend can expand to serve other industrial users in the Park and across the Humber, which employs 55,000 people in the manufacturing sector alone, contributing to the cluster reaching net zero by 2040. This will enable a large-scale hydrogen network, open to both blue hydrogen (produced from natural gas with CCS) and green hydrogen (produced from electrolysis of water using renewable power), as well as a network for transporting and storing captured CO2 emissions. Subject to supportive UK policy, Equinor and its partners will mature the project towards a final investment decision during 2023 with potential first production by 2026. Renewables is the new beating heart of the Humber, but that shouldn’t eclipse its existing and long-time industrial specialities – namely logistics. Over the last few years, the two often-adjacent industries have developed greater synergies such as Associated British Ports (ABP) investing £1 million in a rooftop solar initiative comprising 4,340 panels at its Goole port. There’s also an environmental imperative for choosing ports along the Humber Estuary, a move that will also create more certainty in post-Brexit Britain. The major benefits of choosing Hull © Shutterstock /246 Photography © Shutterstock /Arild Lilleboe 36-39.qxp_Layout 1 04/08/2020 17:34 Page 3www.blmforum.net Business Link 39 THE HUMBER BANK and Immingham for moving cargo between key logistics hubs in the UK and European Union have been identified in research commissioned by ABP. The findings demonstrate why Humber ports offer a better deal for shippers, drivers and for the environment in what sounds like a win-win situation for the region. One of the most immediate concerns after the result of the EU referendum was released was how trading with the bloc would function in the future. It’s a concern that’s only intensified as we hurtle closer towards the end of the transition period on January 1 2021. Brexit has heightened the focus on using Humber ports as a means of minimising the risk of disruption to supply chains in the event of delays at the port of Dover. Since 2017, the number of new shipping services connecting Hull and Immingham to ports on the continent has risen by thirty per cent. Comparative analysis of short sea import and export routes to and from the UK undertaken by the University of Hull Logistics Institute found that significant time, distance and environmental benefits could be achieved by choosing the ports of Hull and Immingham over Dover. By making this switch, there’s an average reduction in distance travelled to the selected locations of 178 miles; an average cut in journey time of over five hours, and an average saving of 458 kilograms of CO2e per load. The same study found that moving just ten per cent of cargo from the port of Dover to the Humber could save around 100,000 tonnes of CO2e every year when travelling to locations within the central east-west corridor. The findings have also been backed up by a report from consultancy MDS Transmodal. It compared distances and time between the UK’s five principal warehouse clusters – located in the Midlands and northern England – and other ports on the east coast, including Dover and the south east. The report found that Hull and Immingham are the only ports within four hours of each cluster, making it ideally situated. The research should therefore help to encourage cargo owners and those involved within the logistics sector to consider a greater use of the Humber. Whether it’s the renewables industry or the perfect positioning of its ports, the Humber region is coming out of its long transformation as one of the most important economies in our region and the nation at large. 36-39.qxp_Layout 1 04/08/2020 17:34 Page 4Next >