Green energy innovation: how the UK is placed be a leader
The official theme for Earth Day 2023 is ‘Invest in our planet’. But how far is the UK currently facilitating the deployment of renewable energy and other sustainable technologies? And what role can IP play?
It seems clear that carbon capture, usage and storage (CCUS) may be a key way forward for countries exploring how to meet their net zero targets, including the UK's 2050 target.
As fossil fuels are a necessary part of the energy mix, at least until renewable sources can be ramped up, the carbon output of these conventional energy sources can be captured and stored to reduce (and potentially eliminate) environmental damage.
Adopting CCUS could assist in meeting the commitment to limit the global mean temperature increase to 1.5 degrees Celsius.
Budget boon
The good news is that in March, the UK government confirmed in its latest budget that up to £20 billion will be allocated to support the early development of CCUS technology. This, combined with the increased R&D expenditure credit, increased patent protection and potential government co-funding for small modular reactors (SMRs, a proposed class of nuclear reactors), could represent a game changer for the UK’s nuclear industry.
The global energy industry now awaits further details to understand how best to take advantage of this opportunity—including the 50,000 jobs the government hopes its investment will generate.
CCUS technology has a well-established history in the UK and beyond. The first carbon capture plant was proposed in 1938 and CCUS projects have been running since the 1970s around the world. However, significant scaling up is needed to offset current CO2 emission levels. The government's stated financial commitment could accelerate the growth of CCUS in the UK and allow it to become a world leader in a potentially huge international market.
Between those technologies that are directed to the supply of energy on the one hand, and those directed to the end use of energy on the other, CCUS is one of a number of key enabling technologies within the energy sector that aim to power the energy transition.
Patent trends
One metric for determining innovation within any given sector is to look at trends in the filing of intellectual property (IP) rights, more particularly patent filings.
According to the European Patent Office and International Energy Agency, patent filing activity for all enabling technologies grew in the 20 years from 2000.
Enabling technologies represented 34% of all low-carbon technology patent filings in 2019. The report also highlighted that the number of international patent filings in CCUS technology grew significantly during that time (almost trebled) but is still much smaller than other enabling technologies such as batteries, hydrogen and fuel cells, smart grids and storage.
The chancellor also announced plans for Great British Nuclear with the aim of using nuclear power to generate a quarter of UK electricity by 2050. With the ongoing electrification of the UK economy and a move towards electric vehicles, this is a very important step in securing the UK's energy supplies and providing highly paid, skilled jobs in the UK.
There are exciting opportunities for UK companies in the nuclear industry as a result of the government’s increased focus on this sector. Companies should take advantage of these changes by engaging with government and research bodies, protecting their IP, exploring licensing opportunities, and investing in complementary technologies such as hydrogen fuel cells.
Nuclear developments
The UK government will also run a competition for SMRs to be completed by the end of the year. If viable, the government will co-fund SMR technology. This is a huge opportunity for the UK as the technology developed has the potential to be exported around the world, reducing the amount of carbon dioxide entering the atmosphere while supporting the UK economy.
Globally, the number of nuclear power patent families grew linearly from 2001 to 2018, with a tenfold increase in filings over that period—up to around 1,500 new applications in 2018. In absolute numbers, the most applications were filed in China, Japan, the US and South Korea, with China leading the way. The UK, France, Germany, Russia, and Spain are also important territories for seeking patent protection for nuclear technologies.
With regards to the nationality of the inventors, this presents an unusual situation in the UK. With around 60,000 people employed in the nuclear industry and a positive Relative Specialisation Index (RSI, a country’s research profile measure) relating to nuclear technologies second only to France, it might be expected that there would be a high number of inventors located in the UK.
However, this is not what is seen, with only a small number of patent applications having a named UK inventor. As such, while the UK is an important market for companies to protect their nuclear technologies, it is not currently producing as many inventions relating to nuclear technology this status would suggest.
Capturing IP
The added focus on nuclear power in the UK announced by the chancellor may spur further innovation in the UK, perhaps enhanced by the increase in R&D expenditure credit from 13% to 20% and the increased rate of relief for loss-making SMEs, which will now receive £27 from HMRC for every £100 of R&D investment.
By supporting SMEs working in the nuclear industry, this has the potential to generate decent tax receipts for the government where extremely specialised and expensive technology and know-how can be exported around the world. Since the UK is currently importing a lot of such specialised and expensive technology, a move to home-grown technology would be welcome for the UK economy.
In conclusion, to have a sustainable industry which supports skilled jobs, it’s important to develop and capture IP developed by the industry in the UK. As the government’s aim is to encourage private sector investment, IP will form an important part of the value proposition to ensure a return.
Giles Pinnington and David Murray are partners at Marks & Clerk, and can be contacted at gpinnington@marks-clerk.com and dmurray@marks-clerk.com
Tomas Karger is principal at Marks & Clerk, and can be contacted at tkarger@marks-clerk.com
Today’s top stories
AI strikes back: the ongoing wrangle between developers and creators
