Shropshire leads low carbon growth with new opportunities for manufacturing sector

The low carbon sector in Shropshire is thriving and set to expand significantly in the coming years, creating substantial opportunities for the region's manufacturing sector, according to a new report.

Commissioned by the Midlands Net Zero Hub and conducted by kMatrix, the 2024 Low Carbon Environmental Goods and Services (LCEGS) Sector Study reveals that Shropshire's low carbon economy was valued at £786 million in 2023/24 and is projected to grow to £1.3 billion over the next five years.

The sector currently accounts for 7.2% of Shropshire's gross value added (GVA) and 4.2% of employment, contributing 8.0% to the regional gross domestic product (GDP).

A key recommendation from the report encourages Shropshire Council to adopt learnings from the Creating Sustainable Manufacturing in Telford & Wrekin initiative to enhance resource efficiency within the local manufacturing sector.

Joe Collison of CES, a renewable energy specialist, said: "This report clearly demonstrates the significant potential for Shropshire's manufacturing and agricultural sectors to benefit from adopting low carbon solutions.

“We've seen firsthand how medium-scale solar projects around 500kWp, combined with battery storage technology, can help businesses overcome grid capacity challenges while significantly reducing their carbon footprint and energy costs.

"One of the headline recommendations around enhancing energy efficiency in the manufacturing sector – when businesses are facing increasing energy prices and increasing costs across the board – maximising the use of low carbon technologies will pay dividends.”

Shropshire is showing particularly strong performance in several sub-sectors that have outpaced UK average growth rates, including recovery and recycling, waste management, water supply and waste water treatment, alternative fuel vehicles, alternative fuels, building technologies, energy management, and geothermal energy.

The report also advises promoting sustainable practices in Shropshire's significant agricultural sector, focusing on evidence-based solutions like anaerobic digestion, BioChar and Agri-tech innovation, potentially in partnership with institutions such as Harper Adams University.

"The findings align with what we're seeing on the ground," added Collison.

"Manufacturers and agricultural businesses are increasingly recognising that renewable energy isn't just about environmental responsibility – it's a sound business decision that offers energy security and long-term cost benefits.”

Additional recommendations include reviewing procurement processes to prioritise local LCEGS businesses and shifting focus from solely cost-driven decisions to those considering long-term environmental and social benefits.

“This is a move which we’d clearly support and we’d also encourage ensuring the use of ethical equipment in installations. For example, CES will only work with suppliers providing ethical as well as durable and proven kit. This is non-negotiable for us and it should be a factor for any business wanting to trade responsibly.”

CES is committed to long-term sustainability and economic viability, offering solutions that are designed to secure business investments over extended periods. By choosing products with lengthier warranties, CES ensures that businesses not only meet their immediate operational needs but also safeguard their future.