Generating heat and power from clean energy sources is a national priority and Myriad CEG, which hired Greenpoint at the start of the year, is in the enviable position of being at the forefront of this cleantech revolution.
And that’s not just good news for Myriad CEG, as it forecasts to more than double the business over the next 12 months and hire a raft of people in different roles, but it’s also good news for the green economy as The Carbon Trust reveals in its latest survey.
Defying the wider economic uncertainty, the survey shows that the UK’s cleantech companies have become more confident about their prospects in the last year with more than three quarters (77 per cent) looking to recruit in the next 12 months, and over a third (37 per cent) planning to expand into new export markets in the next two years. Specific skills in demand are engineering/technical (75 per cent) and sales/marketing (32 per cent).
The companies surveyed listed their own growth prospects, technical strength, current sales pipeline and market position as the key factors driving this optimism. Government legislation and policies, such as the Feed-in Tariff (FITS) scheme, carbon targets and sustainable building regulations, were also given as reasons for confidence.
However, the survey raises potential barriers to growth. First, fundraising is essential for growth – and 29 per cent of the companies interviewed cited a lack of access to finance as the main obstacle to expansion. And second, this issue is even more acute for smaller companies (those with revenues of less than £2 million) where the number of companies concerned about access to finance rose to 40 per cent. Overall, about one in five companies indicated they would consider moving their HQ from the UK mainly owing to funding problems they believed would be less of a problem in other countries.
The research, commissioned by the Carbon Trust and conducted by the Cleantech Group, is the most comprehensive survey of UK cleantech companies this year. It provides insights into the confidence of the British cleantech sector, looking at a range of issues including growth prospects, the place of the UK in the global cleantech market and technology leadership.
Benj Sykes, director of innovations at the Carbon Trust, said: “A thriving UK cleantech sector is essential for green growth in the UK. Our research shows that cleantech innovators are feeling optimistic about their prospects and have ambitious plans for the future. However, access to finance, along with a stable policy environment, will make or break these growth prospects. The sector offers significant expansion opportunity and investors should now seize this to be part of a burgeoning new industry.”
Like Myriad CEG, Econotherm is an example of a cleantech company that is going from strength to strength. The firm doubled staff and turnover in 2010 and predicts equivalent growth within the first half of 2011, with plans to expand its factory in Bridgend.
Based in Wales, it is at the cutting edge of energy efficient technology – the only company of its kind in Europe. Its waste heat recuperators recover heat from industrial furnaces, boilers, ovens, thermal oxidizers and incinerators. The recovered heat is then used to warm air, water or thermal oil, public and operational spaces or even for electricity generation.
Chris Smith, managing director, Econotherm, said: “We are overwhelmed with demand for our products from all corners of the globe including India, Italy, Chile, Middle East, Eastern Europe and Malaysia.
“Our technology can achieve a 15% – 25% reduction on a piece of industrial equipment such as a boiler or furnace. Large energy users in the UK can no longer afford to ignore this opportunity.”
With favourable policies and a framework that supports job creation, the fortunes of the wider economy may well be pinned on cleantech companies like these who owe their success to much more than just hot air.
A version of this article was first published in Human Resources magazine (June 2011).