UK cleantech entrepreneurs bullish on green growth

UK cleantech companies have become more confident about their prospects in the last year with 77 per cent saying they expect to recruit new staff in the next 12 months and over 37 per cent planning to expand into new export markets in the next two years, according to a survey by the government-backed Carbon Trust.

The 312 companies surveyed listed their own growth prospects, technical strengths, current sales pipeline and market position as the key factors driving this optimism. However, 29 per cent of the companies interviewed cited a lack of access to finance as an obstacle to expansion. This issue is even more acute for smaller companies with revenues of less than £2 million, where the number concerned about access to finance rose to 40 per cent.

Overall, about one in five companies said they would consider moving their headquarters from the UK to overcome the funding problem, which they believe would be less of an issue in other countries.

The research, commissioned by the Carbon Trust and conducted by the Cleantech Group, is the most comprehensive survey of UK cleantech companies this year. Benj Sykes, Director of Innovations at the Carbon Trust, said the research shows cleantech innovators are feeling optimistic about their prospects and have ambitious plans for the future.

“However, access to finance, along with a stable policy environment, will make or break these growth prospects.”

An example cited by the Carbon Trust is Econotherm which manufactures waste heat recuperators for recovering heat from industrial furnaces, boilers, ovens, thermal oxidizers and incinerators. The recovered heat is then used to warm air, water or thermal oil and for electricity generation. The company doubled staff and turnover in 2010 and predicts equivalent growth within the first half of 2011, with plans to expand its factory in Wales.

Mark Boocock, Managing Director, said Econotherm, is overwhelmed with demand for our products from countries including India, Italy, Chile, Middle East, Eastern Europe and Malaysia. “Whilst it is extremely satisfying that we are manufacturing and exporting this patented technology from our UK production facility, we remain surprised at the relatively low level of domestic industrial demand,” Boocock said.