Good things are happening at Port of Blyth

Following a multimillion-pound investment in low-carbon technology, Port of Blyth in Northumberland has been transformed. The former coal-mining hub is now a leading offshore energy support base.

There was a time when Port of Blyth in Northumberland was the largest coal exporting terminal in Europe. How things have changed. More than six decades on, the port, an SME itself, is well on its way to achieving net zero by 2040.

Its Bates Clean Energy Terminal has one of the UK’s largest electric cranes, which is capable of lifting 125 tonnes, and plans are under way to further invest in electric plant and solar panels across the port, as well as to use mine water as a low-carbon source of energy to heat buildings on the site.

The port has also built up a reputation in the offshore wind sector. Last year, the German energy company RWE chose Blyth as the offshore construction base for one of the world’s largest single offshore wind projects.

“We have 40-plus companies around the estuary, all focused on the clean energy space,” says Martin Lawlor, chief executive at Port of Blyth. “And while we still handle other cargoes, around 75 per cent of what we do is linked to renewables.”

With the UK aiming to reach net zero by 2050, businesses of all sizes are having to consider their environmental impact.

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A recent YouGov survey* commissioned by Lloyds Bank found 79 per cent of SMEs think it is important to look at ways to improve their sustainability and 54 per cent say they’re interested in renewable energy. But almost one in five think they’re unlikely to improve their sustainability over the next five years, more than a third claim to have insufficient financial support to improve it and one in ten say they don’t know where to start.

Blyth has more than 21 years of experience in the offshore wind sector. But its low-carbon strategy began in earnest in 2019 after it received ￡7.5 million in funding from Lloyds Bank. That was followed by a credit facility that enabled the port to purchase the new crane.

“Ports are weird animals; they need financial partners who understand them and their needs,” Lawlor says. “When an opportunity comes up to spend a couple of million pounds, you can’t start the process to look for additional funding. We have a revolving credit facility with Lloyds Bank that is very flexible.”

Focusing on the renewables sector has had significant financial benefits for the company. Blyth’s revenue rose by 19.2 per cent in 2022, compared with the year before, with a 72 per cent increase in operating profit. It’s helped the company secure commercial tenders and has created hundreds of jobs for the local economy. The port is also investing in new training facilities to create a pool of skilled talent for the future.

“By 2030, the country is targeting generating 50GW of offshore wind power – the equivalent of installing one or two turbines the size of Big Ben every single day for a decade,” Lawlor says. “If we can’t produce the workforce as a country, then the benefits of that will go abroad.”

And to SME owners unsure where to start improving sustainability, he has this advice:

“Nail down your carbon footprint first. There’s no point saying you’re going to be net zero in 2025 if there’s a three-year lead time. Be realistic. And take the workforce with you.”

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?BANKING ON PUTTING SUSTAINABILITY FIRST

According to Lloyds Bank’s Net Zero Monitor, 95 per cent of SMEs are aware of the UK’s 2050 target for net zero and more than eight out of ten see sustainability as being more important than previously.

But almost half said that meeting the cost of transition is the biggest challenge they face, with rising energy costs and inflation impeding the progress SME leaders would like to be making.

“Those competing demands, plus supply chain issues, labour shortages and recovery from the pandemic can be overwhelming,” says Gary Lapthorn, head of sustainability and responsible business for commercial at Lloyds Bank. “For many, the most pressing question is: where do I start?”

Lloyds Bank’s Clean Growth Financing Initiative provides businesses with discounted lending and asset finance for a range of investments in sustainability – from improving energy efficiency to investing in large-scale renewable energy infrastructure. For businesses with turnovers of ￡100 million-plus, there are interest rate reductions available in cases where certain environmental key performance indicators are achieved. Lloyds Bank’s Green Buildings Tool helps customers to identify energy-efficient investments in their properties and calculate their savings over time; and a free sustainability production-line walk from the Manufacturing Technology Centre, the bank’s partner, explores how manufacturers can run their businesses more sustainably.

“They’re practical tools to help leaders improve the carbon footprint of their businesses,” Lapthorn says. “Sustainability is becoming a source of competitive advantage for SMEs as larger businesses put pressure on their wider supply chains. SMEs make up 99 per cent of businesses in the UK and about a third of the country’s emissions. The journey to net zero can’t happen without them.”

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Find out more at?lloydsbank.com/goodthings

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*Research source: YouGov; sample size, 1,058 SME senior decision makers; survey dates, May 2-9, 2023.

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