Circular Opportunities in Scotland’s Energy Sector

The energy transition requires careful management of materials embedded within the existing infrastructure, which can be considered as valuable assets for Scotland, this is where circular economy approaches come into play – where the value of existing products and materials is maximised at their highest possible level.  Scotland has a significant stock of critical raw materials within our existing infrastructures and, by prioritising circular approaches, we can unlock these assets to gain economic resilience.

Our vision is to drive down the environmental impact of Scotland’s energy transition through sector wide adoption of circular practice. Maximising the value of existing infrastructure, through capturing and reusing secondary products and materials, enabling full life-cycle thinking, and increasing Scotland’s long-term resilience.

Reducing demand for new materials and keeping them in circulation through reuse, remanufacturing and recycling does not only make economic sense, but it also improves energy security and reduces reliance on importing materials again, which in many cases have been originally exported as waste because there is a lack of material reprocessing happening within Scotland/UK. (Source: Green Alliance Report)

To meet increasing renewable energy demands in Scotland, up to 241Mt of total materials could be required in Scotland by 2050.  This is equivalent to at least 12% more materials each year by 2050 than were directly consumed in Scotland in 2018; and potentially 40% more per year up to 2030.

We cannot rely on meeting the vast increasing material demand for the energy transition on virgin resources, which are often imported. Over the years we have developed and collaborated on a number of reports to understand what possible opportunities are available to Scotland’s energy sector.

This report estimates the amount of material Scotland has locked up in existing energy assets and will need to build the energy infrastructure required to transition the country’s energy sector to meet its Net Zero ambitions by 2045. Concrete and steel account for more than 85% of this demand, as well as the need for scarce materials, such as lithium-cobalt oxide and copper.

The report considers the role Scottish ports can play in achieving a circular economy for Scotland. It highlights opportunities for ports to act as hubs providing space and logistics for offshore energy facilities and identifies ways Scottish ports can embed more circularity in their business practices.

The report underlines the key role that ports can play in facilitating decommissioning of oil and gas infrastructure, particularly in enabling more circular solutions, including remanufacturing.

In Europe and beyond, demand for green steel products is growing rapidly due to government businesses climate commitments. This report assesses the economic and market case for establishing Electric Arc Furnace (EAF) capacity in Scotland to reprocess scrap steel, all of which is currently exported.   

The report provides critical evidence to the on-going debate.

The Delivering a Circular Economy at Hagshaw Energy Cluster Annual Report focuses on the strategic importance of the Hagshaw Energy Cluster in advancing renewable energy and circular economy practices. Situated on the border of East Ayrshire and South Lanarkshire, the cluster is poised to drive economic growth through wind turbine reuse, refurbishment, and remanufacturing, potentially contributing £1.6 billion to the UK economy by 2035.

Meanwhile, the Hagshaw Cluster and the Circular Economy Research Report explores opportunities to enhance local communities by integrating circular economy principles into wind farm developments, ensuring long-term sustainability and community benefit.