< Previous10 Business Link www.blmforum.net SEVERN TRENT ST CONNECT Q&A Q&A Neutralising Nutrient Neutrality ST Connect are helping developers to meet Natural England’s Nutrient Neutrality requirements using onsite community-scale water recycling centres (WRC). We spoke with William Mackveley, General Manager of ST Connect to understand more about Nutrient Neutrality and what ST Connect are doing to help developers. Visit us at the Lincoln Property & Business Show 26th April www.businessshowsgroup.co.uk 10-11.qxp_Layout 1 07/03/2023 12:23 Page 1www.blmforum.net Business Link 11 SEVERN TRENT ST CONNECT Q&A What is Nutrient Neutrality and why is it causing a problem for developers? Nutrient Neutrality is the precautionary approach that Natural England are taking to help protect internationally important water-dependent habitats sites already in an “unfavourable condition” from further damage due to nutrient (Phosphorous and/or Nitrogen) pollution. Extra wastewater from new housing developments may cause further damage and/or hamper recovery efforts. To prevent this, developers must identify and implement long-term mitigation measures acceptable to Natural England which prevent contributing additional nutrients into the water catchments. How do onsite community-scale WRCs help? Onsite community-scale WRCs can be an effective means for removing much of the nutrients generated in the development’s wastewaters. Depending on the site-specific circumstances, an onsite WRC may be able to provide all the mitigation needed to meet Nutrient Neutrality. Publicly operated WRCs complying with an environmental permit are considered one of the forms of mitigation acceptable to Natural England. How long does it take you to deliver your WRCs? You should allow for at least 30 months for the delivery of the WRC. This duration provides time needed for the water studies, environmental permit applications, planning applications, design, construction, and commissioning. For large developments, it may be possible to adopt a modular approach to adding treatment capacity, rather than delivering it all at the start – allowing developers to spread their costs over a longer period. What’s it like living nearby a WRC? Do they smell? We want to be “good neighbours” and provide WRCs barely noticeable to the nearby residents. Odour is kept to a minimum through a combination of aerated treatment processes and sealing or covering the assets with the greatest risk of smells. Blowers and compressors are housed in acoustically shielded cabinets to keep noise emissions as low as practicable. We encourage developers to implement landscaping strategies that screen as much of the facilities as possible. Who will operate these systems, and will they be there in the long-term? What standards are the sites operated to? We operate and maintain our own assets with our inhouse Operations Department. 24/7 remote sensors and telemetry will alert our operators to any issues, should they arise. In addition, routine maintenance and sampling helps us to remain compliant with permit requirements stipulated by the environmental regulators. Our Ofwat licence means we’ll be around in the long-term to keep operating and maintaining these facilities. Are residents going to be worse- off? Our licence from Ofwat means we can’t charge our customers more than had the local incumbent provided these services. In addition, the regulators regularly check that our levels of service are at least equal to those offered by the incumbent sewerage companies. For All Business Development Enquiries Please Contact Business Development Manager Lara Day Email: lara.day@st-connect.co.uk Mobile: 07384 450 701 www.st-connect.co.uk 67&RQQHFW William Mackveley, General Manager of ST Connect 10-11.qxp_Layout 1 07/03/2023 12:23 Page 212 Business Link www.blmforum.net COMMERCIAL PROPERTY Wilton Developments’ Leeds 500 scheme demand Yorkshire’s industrial and logistics property market looks set for an exciting 2023 as demand remains high. In high 12-15.qxp_Layout 1 07/03/2023 12:24 Page 1www.blmforum.net Business Link 13 COMMERCIAL PROPERTY saw UK industrial and logistics take-up reach 48 million sq ft, and though not exceeding 50 million sq ft for the first time since 2020, it still represented the third best year for occupier demand ever recorded, according to Savills. The entry into a period of significantly higher inflation and the consequences of the war in Ukraine have seen the ripple effect impact both logistics occupier and capital markets, yet Yorkshire continues to attract activity due to lower land values and rents. Chronic shortages of good quality, built-ready-to-go stock have caused some requirements to be satisfied in neighbouring regions, however, or via the built-to-suit route, and while developers have responded to the increased occupier demand some speculative schemes have been paused because of funding and construction issues. Moving into a new year, 2023 has seen new deals made, new developments spring up, and plans submitted for a plethora of industrial and logistics schemes. In Doncaster, for example, Tritax Symmetry has commenced work on a 132,750 sq ft logistics facility at Symmetry Park Doncaster. GMI Construction Group PLC (GMI) has been appointed to deliver the unit, which will be built on a speculative basis to net zero carbon in construction. It is the third building to be constructed on the site, with the first unit (151,000 sq ft) occupied by Dogmates Ltd, trading as Butternut Box on a 15-year lease, whilst the second unit (430,000 sq ft) is being built by GMI and has been pre-let to B&Q. An additional 1.26-acre plot is available for development. Rob Whatmuff, head of Colliers Leeds, said: “Tritax Symmetry’s decision to speculatively build out the net zero carbon in construction 132,750 sq ft unit comes at a time when Grade A standing stock in the region is at record low levels and we are already fielding strong enquiries regarding the unit which will PC in Q3 2023.” Moreover, in Barnsley, Firethorn Trust has broken ground at Barnsley340 – a 24-acre logistics development. The 340,300 sq ft logistics unit, sitting within the established Gateway 36 development, is being delivered by Glencar and will be ready for occupation in Q3 2023 with a net-zero carbon construction. Paul Martin, development director at Firethorn Trust, said: “Barnsley has become a highly sought after area for growing logistics businesses, and we are proud to be delivering another modern, market-leading scheme that will support economic growth, whilst improving connectivity across the region. Having formally marked the beginning of works on site with Glencar, we are now looking forward to unlocking the site’s full potential and swiftly bringing the project to completion.” Firethorn Trust has also broken ground at its Sherburn42 development, which will see the creation of 660,000 sq ft of logistics warehousing space in North Yorkshire. Sitting adjacent to the Sherburn Enterprise Park in Leeds, the 37-acre scheme is being delivered by McLaren Construction Group and will be ready for occupation from Q3 2023. Comprising four highly specified Grade-A industrial units, ranging from 57,750 to 280,000 sq ft, Sherburn42 will be accredited by the UK Green Building Council for its net-zero carbon construction, with a design that looks to help occupiers reach their own operational sustainability targets. Earlier in the process for delivering new industrial and logistics space, Wilton Developments just secured a detailed full 15 Á 12-15.qxp_Layout 1 07/03/2023 12:24 Page 2Armstrong house Armstrong House, Armstrong Street, Grimsby, North East Lincolnshire DN31 2QE Tel: (01472) 310301 Email: s.fisher@blmgroup.co.uk Superb Location - - Close to the ports of Grimsby & Immingham - Great motorway links - Close to the town centre Secure off street parking High speed internet availability A range of affordable office sizes 3 3 3 3 Last remaining office suites Prime location in Grimsby Offering a prime position in Grimsby, Armstrong House on Armstrong Street is ideally located. Close to the ports of Grimsby and Immingham, motorway links and the town centre, off-street parking is also available for all staff and visitors, meaning it’s convenient too. Our spacious, welcoming offices are located on the ground floor and are both secure and CCTV-monitored, giving you the ultimate peace of mind. At Armstrong House, when it comes to affordability and with a range of office sizes there are opportunities for all types of business. If you require virtual office services, prices start from just £15 per month. For more information, or to discuss your office requirements call 01472 310301. 12-15.qxp_Layout 1 07/03/2023 12:24 Page 3www.blmforum.net Business Link 15 COMMERCIAL PROPERTY planning consent for the largest single unit logistics and industrial building in the Leeds area on its LEEDS 500 scheme on the M1 north of Garforth. The first phase of the scheme will comprise a 465,000 sq ft warehouse with 23,000 sq ft of office accommodation over two floors and a 5,000 sq ft warehouse hub office, and could provide around 600 jobs. Jason Stowe, Managing Director, Wilton Developments, said: “This is an important permission for Leeds ensuring that the city offers the option for larger occupiers who would normally have to locate to other parts of Yorkshire and the region to occupy a building of this size in Leeds. This class leading building has detailed planning consent and is available for an immediate start subject to occupiers’ requirements.” Providing another major facility, planning consent has been given for a 417,570 sq ft logistics project at Doncaster. Panattoni will shortly commence speculative development of Panattoni Doncaster 420, which is close to junction 3 of the M18, with completion expected in January 2024. Dan Burn, development director at Panattoni, said: “Having recently pre-let 630,000 sq ft at Panattoni Park Rotherham, we are delighted to be bringing forward a further large speculative development in South Yorkshire. Panattoni Doncaster 420 offers great access to the regional motorway network and provides a large, skilled labour force. Despite the economic headwinds, occupier demand remains high across the region and supply constrained, particularly of ‘Big Box’ warehouses over 400,000 sq ft. We have been encouraged by early interest and look forward to commencing construction.” A number of developers have also recently lodged plans to bolster Yorkshire’s industrial and logistics property offerings. Scarborough Group International, for instance, is planning an industrial and logistics park on the 60- acre site Brown Moor, next to Thorpe Park at Leeds. The company has put in an outline planning application to develop up to 60,000 sq m of industrial and logistics space with ancillary office space, with the buildings capable of being brought forward in multiple phases to respond to market interest and occupier demand. Adam Varley, development director at SGI, said: “The industrial and logistics sector is undergoing significant change. Supply chain resilience, rising energy costs, smart infrastructure and the continued growth of e-commerce are forcing businesses to rethink their real estate requirements. Decision making factors such as accessibility, cost and labour pool, while still relevant, are now being overtaken by the need to attract and retain the very best talent. The design of Integral scheme at Thorpe Park Leeds responds to the shifts in the market by providing industrial spaces that are integrated into a dynamic and established mixed-use community.” Meanwhile Mountpark Logistics has submitted a detailed planning application to Wakefield Council for a 1.64 million sq ft industrial and logistics campus, which would regenerate the former Coal Yard site at Ferrybridge Power Station, bringing up to 2,000 new jobs to the area. The proposed scheme, known as Mountpark Ferrybridge, will comprise six buildings ranging from 100,000 sq ft to 620,000 sq ft. With the first quarter of the year not even coming to a close yet, there is much to be excited about in the industrial and logistics property market in 2023. Firethorn Trust breaking ground at Barnsley340 12-15.qxp_Layout 1 07/03/2023 12:24 Page 416 Business Link www.blmforum.net PETROCHEMICAL SPOTLIGHT Despite initiatives to both invest in renewable energy and become more independent from petrochemical giants such as Russia, the industry continues to be a powerful one. E arly 2023 indicators suggest that ethylene is likely to account for a substantial market share in the petrochemicals industry from now until 2028. The success of ethylene is linked to the continued growth of the construction, packaging and transportation industries – which heavily utilise ethylene as antifreeze, external cladding, and a cheaper glass alternative. The global population is anticipated to increase to 9.7 billion by 2050 and as such, governments are making significant investment in public infrastructure to meet the anticipated housing, commercial and industrial construction requirements of this increasing population. This has similarly had an impact on the polypropylene segment of the petrochemicals industry. Polypropylene is widely used in the automotive and electronic industries. The demand for everyday objects such as tvs, computers, and mobile phones likewise increases with the population. Furthermore, the Continuing apace 16-19.qxp_Layout 1 07/03/2023 12:26 Page 1www.blmforum.net Business Link 17 PETROCHEMICAL SPOTLIGHT continued Western trend for working from home since the Covid-19 pandemic means that the number of devices per person has increased. Ironically, the increased investment in electric vehicles over traditional cars also increases the demand for hard plastics. Additional thermal insulation is needed in electric cars, both to prevent cooling of the cars’ interior and to protect the substantially larger batteries from temperature changes. It seems that in the case of certain petrochemicals, the market is not just stable, but thriving, due to continued insatiable demand for the latest technology. Yet, this success is not necessarily reflective of the industry as a whole, or of its long term future. In 2022, oil and gas made up more than 50% of the global energy supply – more than the finite resources can accommodate. In fact, the imbalance between supply and demand grew by 2% during last year. This imbalance will only grow as resources deplete. This has caused an apparent dichotomy between the ever growing profits of petrochemical companies despite diminishing reserves. The primary reason for a lack of immediate practical solution to this is the historic investment in petrochemicals, with core infrastructure being based around them. Not only would switching require significant investment in research and development, as well as potential down time, there is no easy replacement 18 Á © stock.adobe.com/Photocreo Bednarek 16-19.qxp_Layout 1 07/03/2023 12:26 Page 218 Business Link www.blmforum.net PETROCHEMICAL SPOTLIGHT for the diversity and practicality of petrochemical applications. Further research is still required both into scaling up renewable energy sources (such as wind and solar) and complex, durable and affordable solutions to petrochemically-derived plastics. This is perfectly exemplified in the transportation industry, which is particularly dependent on liquid fossil fuels, making up approximately 94% of the sector’s energy demand. Petrochemicals are incredibly energy- dense and contain high amounts of energy per unit of volume. There is currently no widespread clean solution that can facilitate the distance and speed required by long haul vehicles. Furthermore, petrochemicals are easy to transport and store, disincentivising companies from investing in other, renewable sources. Given the extraordinary growth of the sector due to (amongst others) the popularity of home delivery services, it is imperative that a solution is found. This is especially important in UK regions such as the Midlands, where transportation and warehousing comprise a large portion of regional revenue due to the centralised location. This paints a seemingly bleak vision of the future for petrochemicals. In the face of depleting resources, one fast and easy way to boost supplies involves increasing production from existing brownfield sites rather than legacy wells. Existing wells contain plenty of oil, whereas legacy wells containing tight formations decline much more quickly, leading to the constant chasing of new wells. It is estimated that reservoirs hold two thirds of original crude oil after primary and secondary recovery efforts are made. Ultimately, the short-term future seems secure for the petrochemicals industry. A current lack of other viable options leaves industry and governments alike reliant on fossil fuels. Energy suppliers are likely to see continued demand from inland European countries, who’s infrastructure heavily relies on piped or shipped petrochemicals from resource rich countries. However, the Russian invasion of Ukraine is likely to alter this. As of February 2023, the UK and EU countries have banned imports of crude and refined oil from Russia. As a key energy distributor across the EU, this has hit countries like France and Germany hard, as their modern infrastructure is largely built around Russian © stock.adobe.com/onlooka 16-19.qxp_Layout 1 07/03/2023 12:26 Page 3Units 4b & 4c, Harpings Road, National Avenue, Kingston-upon-Hull, East Riding of Yorkshire HU5 4JF Tel: +44 (0)1482 440222 Email: esales@eyh.co.uk Web: www.eyh.co.uk eyh .co.uk EAST YORKSHIRE HYDRAULICS Hydraulic engineering - design, build, installation and service. • Complete hydraulic systems • Installation and commissioning • Hydro-pneumatic accumulators • Hydraulic equipment • Cylinders Single Source Hydraulic Solutions Design, build, installation and service of hydraulic systems, cylinders, accumulators and equipment. www.blmforum.net Business Link 19 PETROCHEMICAL SPOTLIGHT petrochemicals. Several European countries continue to rely on Russian gas, although this is also likely to change. This means that alternative solutions are being sought fast. This spells danger for the wider petrochemicals industry, as there are now multiple political motives for governments to move closer to banning these substances outright. A closer threat is that the Russian sanctions could cause petrochemical prices to plummet. Russian oil is currently trading at $40 USD a barrel, which is a comparatively low price. This means that other oil companies could be forced to lower their prices in order to compete. Whilst this will still result in a profit, it is unlikely to reach the heady heights that oil companies have experienced over the past year. Now is the time to make long term investments in brownfield sites rather than chasing new leads, and establishing relationships with technology companies who continue to rely on petrochemicals to make devices. This will create long term sustainability for the industry, rather than chasing ever greater profits, then heading for a fall. © stock.adobe.com/MaxSafaniuk 16-19.qxp_Layout 1 07/03/2023 12:26 Page 4Next >