Sustainability Report 2011 - Balfour Beatty Rail

Profitable markets
Growing our business
in the green economy
The green economy represents a multi-billion
pound growth opportunity over the coming
decades in areas such as renewable energy,
new waste infrastructure and the green
retrofit of buildings.
Why this matters to us
Energy use and carbon emissions are high on the agenda of
governments, regulators and a growing number of our customers,
as the world looks for ways to address climate change and
diminishing fossil fuel supplies. These are new markets for Balfour
Beatty, particularly in terms of renewable energy infrastructure,
valued at £150bn in the UK alone over the next decade.
With the built environment being responsible for upwards of half
of global emissions of greenhouse gases, the low energy retrofit
of existing buildings will also grow significantly. Estimates put the
size of this market at £10bn in the UK and higher in the USA with
federal buildings needing to reduce emissions by 30% by 2025.
Our approach
Balfour Beatty is well placed to respond to the growing
opportunities in the green economy through our capabilities across
the infrastructure lifecycle. We have been building our business to
capture these opportunities of the growing green economy.
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Energy from waste
Balfour Beatty is preferred bidder for the £500m energy from
waste scheme in Gloucester, which will save £150m a year
in landfill fees over 25 years and an £800m residual waste
treatment plant in Essex capable of treating up to 417,000
tonnes of municipal waste per year. Both schemes leverage
the investment expertise of Balfour Beatty Capital, bringing
in PPP funding and creating construction opportunities.
balfourbeatty.com/sustainability
Progress is being made in three areas in particular:
• Renewable energy infrastructure, especially offshore
wind and niche opportunities such as straw biomass
energy plants and carbon capture and storage consultancy
• Municipal waste management facilities; and
• The greening of existing buildings through retrofit of low
carbon technologies and energy consulting services.
Wind energy and carbon capture and storage
In addition to opportunities in offshore wind we continue to work
on the UK’s largest onshore wind farm at Whitelee and through
Parsons Brinckerhoff are working for EDF Energy Renewables
to identify and develop further sites.
For further details on the offshore wind market
go to P27 for more information
Parsons Brinckerhoff continues to support the UK Government’s
Carbon Capture and Storage (CCS) programme and is working
on the first phase of the EU CCS competition, positioning us at
the forefront of CCS consultancy.
“The recent Gloucester and Essex project
awards demonstrates the breadth of our
investment business model and further
strengthens our position in the growing
waste sector.”
Anthony Rabin, Deputy Chief Executive, Balfour Beatty
Developing
manufacturing
opportunities in the
biomass market
Romec, our joint venture facilities management business
with the Royal Mail in the UK, fabricates mail sorting
machines in Newcastle. A review of the Government’s
Renewable Heat Incentive (RHI) indicated significant
growth potential in biomass through guaranteed subsidies
over 20 years. Romec have responded to this opportunity
by producing one of the first UK manufactured automated
biomass pellet stores and creating a new outlet for its
manufacturing expertise.
balfourbeatty.com/sustainability
Balfour Beatty Sustainability Report 2011