Development of opportunities for co-financed research with industry, and Knowledge Networks/Clubs within area of hazard and Risk, and Energy.

Lead Research Organisation: Durham University
Department Name: Earth Sciences

Abstract

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Planned Impact

The context to this proposal is that Durham already has strong examples of KE activities, and that this shows that we can deliver the kinds of economic impacts envisaged by the scheme. For example the Centre for Research into Earth Energy Systems (CeREES) which is an industry-facing research centre based in Earth Sciences led by Prof R. J. Davies and an exemplar of highly effective KE with the energy industry. The centre leads research activity across a range of geo-energy themes (fossil fuels; carbon capture and storage and geothermal energy). Within a 3 year period it has: (1) developed strong relationships with 15 energy companies; (2) set up a geo-energy Knowledge Transfer online database (www.dur.ac.uk/cerees/PGD); (3) won research funds of £1-1.3M per annum (80% from industry); (4) made a major contribution to the establishment of DEI (£5M research per annum). This provides us with the experience to go one step further, extending this work into other areas of NERC science and into the remit of IHRR in particular. IHRR is well-networked with industry, being a founding academic partner of the Willis Research Network, as well as routinely engaged with the Catastrophe Modelling industry, insurers and reinsurers. In the Objectives, and based upon our NERC-funded research, we have identified seven further broad opportunities for Knowledge Exchange:
(1) advanced prediction techniques, relevant in particular to the insurance industry and building on our mathematical expertise in statistics and complexity modelling, particularly in newly-emergent data-poor insurance markets where there is very little history of data collection;
(2) carbon sources, capture, storage, and geoenergy relevant in particular to the energy industries, and where we have extensive extant experience in KE;
(3) characterisation of fracture systems in rock reservoirs and their role in containing or transporting fluids (water, petroleum, waste) in the subsurface. This is relevant to security of supply in the UK as the research is focussed upon stranded hydrocarbons.
(4) climate change, the cryosphere and future sea level risks, which is of emerging concern to the insurance industry as we move into experiencing the sea level changes hitherto being envisaged as future scenarios;
(5) risks and Earth processes, which is also of concern to the insurance industry, and where we have notable strengths in seismic and landslide science;
(6) risks to human health, especially those associated with natural hazards and geochemistry (including water colour), particularly relevant to water industries; and
(7) societal aspects of energy use, in particular energy poverty and the use of renewable energy technology in society.
Taken together, the three relevant industrial sectors are: (a) the insurance sector; (b) energy industries; and (c) the water industry. We have extant links to all three, but the seven areas above are all ones that share three key characteristics: (i) they are of emerging importance to those sectors/industries; (ii) the linkages between those areas and those sectors are still under-developed; and (iii) Durham research in these areas lies at the leading edge.

Based upon recent experience with the region’s regional development agency of what tangible economic targets could be met over the next 3 years, and based on our measurable outcomes listed in Table 7.1, we expect:
1. Additional research income from the private sector of £1 M per annum across the university. Although this seems like an ambitious target, our work with CeREES and existing IHRR projects (e.g. Boulby Underground Geoscience, £1M), suggests that this is feasible.
2. ~6 jobs created
3. ~30 businesses supported through activities at a range of levels (from Knowledge Club membership through to active involvement in projects)
4. ~60 private sector individuals provided with additional skills within the seven areas outlined above
5. The development of a new spin-out company in Carbon Capture and Storage. This would include contributing to the development a state-of-the-art laboratory facility for assessing the capacity, risks and monitoring of geological sites for carbon dioxide around the UK. We will explore the development of a second company, providing specialist advice on sea level scenarios and coastal zone management in the context of future climate changes.
6. 10-30 new knowledge-based collaborations with the private sector, where companies are assisted.
7. We also recognize that there will be a significant number of jobs safeguarded through these activities, which we do not believe is quantifiable at this point, but relates to sustaining the cutting edge that we have as a region and as a nation in the seven areas listed above.
The timetable by which these impacts will be achieved maps onto that set out in Table 7.1. This shows that we expect tangible economic benefits will begin to kick-in from about 12 months, but we expect the full benefits to be realized well beyond those identified in Table 7.1 and to extend over the next decade. There are risks, most of them low to moderate, but some are clearly mitigated against (Table 8.1).

We also note that the economic impacts are likely to be clearly noted within one of the most economically-challenged regions of the UK. The location of Durham University in the former industrial heartlands of Northeast England provides significant advantages for KE activity. Both the DEI and IHRR have well-established links and funding programmes with other Universities in the region and the regional development agency, ONE. This has already created well-developed knowledge networks between academia and industry within Northeast England. The KE Fellow will expand these networks nationally and internationally to the benefit of all those involved in these partnerships. In some cases, this could lead to the establishment of internationally important research facilities. Indeed, we have precedent of being able to do this through industrial and RDA partnerships. We have recently secured £1M funding to develop Europe’s first deep sub-surface rock characterization facility in the deep evaporate mine at Boulby, in a new partnership between the University, ONE and CPL, the owners of Boulby deep mine.

Table 8.1. Risk Assessment
Risk Chance (Low/Medium/High) Impact Mitigation
Failure of one of the host institutes at Durham Low Focus for the KE activities lost Two institutes identified to reduce major impact
NERC core themes change Low Some of KE activities would not map onto NERC themes Shift KE focus
Continued economic downturn through duration of project Moderate Reduced deliverables Ensure diverse range of KE, with no overreliance on any one sector
Holdsworth moves from Durham Low Significant – Holdsworth has the critical experience Replacement would be found from within Durham staff.

Publications

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