On 28th November 2023, a Virgin Atlantic plane successfully completed the first transatlantic flight – from London to New York – using 100% Sustainable Aviation Fuel (SAF), showcasing and testing the feasibility of its use in long-haul operations. SAF is a cleaner alternative to fossil-based jet fuel. With the potential to reduce lifecycle carbon emissions by more than 70%, Sustainable Aviation Fuel could make a key contribution to the aviation sector’s net zero goals.

Recycling and the circular economy are in Wilton International’s DNA. This could explain why it is the location of choice for many leading energy-intensive businesses and selected by companies using recycled feedstocks to produce goods ranging from chemicals and plastics to fertilisers and sustainable fuels. Perhaps it’s not surprising, therefore, that as Sembcorp Energy UK (the company that owns much of the land at Wilton International and supplies energy and utilities to on-site customers) clears land to create new development plots and opportunities for business, the company incorporates circular economy and sustainability principles into its activities.

Wilton International and Teesside provide a perfect example of industrial clustering - businesses profiting through co-location and working together to rise to a challenge. The value-adding benefits of business clustering are well-documented and apply across a broad range of sectors. Locating within hotbeds of excellence can enable companies to innovate, boost productivity and grow. In well-known examples of clusters such as the City of London, or the high-tech Cambridge Cluster, the emphasis is on a geographical concentration of sector knowledge and expertise (primarily intellectual capital), as well as supply chains and business networks. Knowhow is at the heart of industrial clusters too, and in the case of process industry – chemical manufacturing, for example – shared access to physical infrastructure is also a key driver of co-location, delivering significant value for businesses.

In the UK, Sembcorp is likely to be known as the company behind Wilton International in Teesside, supplying energy and utilities to industrial clients on the site and owning a substantial portfolio of development land available for industrial investments. Others will know Sembcorp as a leading operator of flexible power stations and Battery Energy Storage Systems - helping to dynamically manage the UK’s energy system and supporting the country’s transition to Net Zero.

In Teesside, Sembcorp Energy UK is primarily known for managing Wilton International and supplying energy and utilities to their customers on the site. But this is just one part of Sembcorp’s UK activities. In fact, the company is a leading UK-wide provider of sustainable energy solutions, supporting the country's transition to Net Zero. Battery storage is one of Sembcorp’s core services - the company has a current operational portfolio of 120MWh across five sites in England. Batteries represent a critical technology in the UK’s energy transition. While renewable energy sources such as wind or solar are sustainable, they are also intermittent - the wind doesn’t blow all the time, the sun doesn’t always shine, or at least not necessarily at times of peak electricity demand.

Alkemy Capital Investments plc has announced that its wholly owned subsidiary, Tees Valley Lithium Ltd (TVL), has agreed the terms of a 30-year lease with Sembcorp Energy UK for its lithium hydroxide processing facility at Wilton International in Teesside. Agreeing terms for a long-term lease follows the granting of full planning permission in November and represents another significant milestone for TVL. Under the terms of an Agreement for Lease, which was signed today, TVL has an option for up to a year to enter into the agreed long-term lease, during which time it will conclude formalities with respect to financing and utilities and services. However, it is anticipated that these should be completed well in advance of the expiry of the option period.

North East England's low carbon transport manufacturing sector is growing rapidly, from electric vehicle production in Sunderland to chemicals manufacturing for batteries at sites including Wilton International, in Teesside. We talked to Paul Butler, CEO at the North East Automotive Alliance (NEAA), to find out how the sector is changing, and how the North East cluster is leading the way. How is the automotive sector changing as it transitions to low carbon technologies? ‘The biggest change for the automotive sector is obviously the move away from internal combustion engines (ICEs) to electric vehicles. This has been driven by legislation, meaning that by 2030 no new diesel or petrol cars can be sold in the UK. Then, by 2035, there’ll be an end to hybrid cars, which have been a useful bridging technology, whilst all new heavy goods vehicles in the UK will be zero-emission by 2040.

Dr David Hughes is an Associate Professor at Teesside University's Centre for Sustainable Engineering. As the Teesside cluster, including Wilton International, pursues its goal of becoming the UK’s first decarbonised industrial cluster, we asked David about key Net Zero technologies, Teesside's sustainable future, and Teesside University's role in supporting industry's Net Zero transition. On Delivering Net Zero The UK has committed to decarbonising its electricity system by 2035 and delivering Net Zero emissions by 2050. To achieve these goals, what are the main challenges facing UK industry, including the Teesside cluster? ‘The main challenge is around the systems that enable businesses to work together. Decarbonisation is a complex project and needs to be considered at scale – at the level of cities or industrial clusters.