We Brits aren’t exactly known for our optimism, but today, I want to give us something to be hopeful about for once. The UK’s been a bit of a mixed bag for businesses over the past couple of decades. For every successful services-based business in London, there are five bakeries, garden centers, and green grocers up North that have gone bust.

But anyway, that’s not very positive. Let’s get back on track. One sector where UK businesses have consistently found success in recent years is in the energy sector – specifically in green energy. So much so that I think it’s worth shouting about in this article. 

This success can’t just be attributed to any one niche in particular, as so many companies across multiple industries are doing their part to innovate, scale up the country’s green infrastructure, and create plenty of jobs while they’re at it. 

UK Green Energy Niches

While typical energy is sourced from oil and gas, with a large market share attributed to solar and wind, green energy niches like those below offer a new route for investors that can help futureproof your portfolio.

Offshore Wind

The titan of the UK’s renewable energy landscape, offshore wind erupted onto the scene over the course of the past 10 - 20 years. Now, companies are taking full advantage of the UK’s long coastlines, high winds, and green-leaning political policies, and, as a result, the UK is now positioned to become a global leader in offshore wind. 

The North Sea is a big place, and we’ve done our best to fill it, but we still haven’t succeeded. That’s because we actually have the highest offshore wind capacity in the world, so it’s no wonder that it’s so hard to fill. What’s more, turbines are getting bigger. More powerful. Right now, offshore wind is generating enough energy to power over 15 million homes.

Meanwhile, ports up and down the country are being upgraded, so soon they’ll have the capacity to build more turbines right by the sea, saving big on transportation costs and shrinking the carbon footprint. 

Water Infrastructure

Energy – renewable or not – needs water most of the time. Whether it’s for cooling, generating electricity, or extracting traditional fuels. Hydroelectric facilities, hydrogen production plants, and water management tech all have a part to play in our new green status quo. Although it sits just outside traditional energy generation, it has a strong connection to sustainability and resource efficiency, which are just a couple of reasons why it’s attracting attention from investors. 

Some companies have contributed to this fast-flowing sub-sector by developing advanced technology that can support water treatment, monitor national systems more accurately, and filter to create ultrapure water that can be used across different industries for completely different purposes. 

The water infrastructure subsector has been able to reduce operating costs and environmental impact while attracting further investment and improving the sustainability of other clean energy projects. 

Battery Storage

Similar to water, battery storage has a symbiotic relationship with other clean energy subsectors. As renewable energy sources like wind and solar rise in prominence, the demand for energy storage is only going to go up. Batteries mean that any excess energy generated during peak times can still be used when needed. 

As you can probably guess, this sector has strong growth potential, as it is expected to expand alongside other energy sectors in the coming years. To help prepare for this, large scale battery installations are under construction across the country, many of which are co-located with other renewable projects, all in the name of being as efficient as possible.

The sector is still innovating as well. New advancements in lithium-ion tech, solid-state batteries and flow batteries continue to drive the sector forward. As the grid also becomes more dynamic, battery storage is quickly becoming both increasingly competitive and a cornerstone of modern energy infrastructure. 

Hydrogen Power

Easily one of the most highly discussed renewable energy sources in the world, hydrogen power can now be produced through electrolysis – the process of water being split into hydrogen and oxygen using renewable power sources, typically wind or solar. 

A large part of Hydrogen’s appeal is in its versatility. It can be used to power cars, support other renewable sources, and to power heavy machinery. It’s attracted a lot of investment in recent years because of a combination of ambitious government targets and a ‘snowball’ effect with more and more projects and pilot schemes cropping up, notably in Yorkshire and the North East, where companies are looking for ways to produce hydrogen on an enormous scale.

Closing Thoughts

It might not always be sunshine and rainbows out there, but we can’t just ignore the outstanding work that’s being done in the UK’s green energy sector. It isn’t just defined by any one industry in particular – so many subsectors across offshore wind, battery storage, and water infrastructure are doing their part to guide us away from harmful fossil fuels and usher in a new age of renewable energy. The foundations have been laid now by both public and private sector investment; now, companies can continue to innovate and grow. 

Article generously provided by Darcy Fowler