Romag becomes leading light in fight against global warming

Nov 20 2008 by Karen Dent, The Journal

EXTRA payment for people feeding renewable energy into the National Grid is now on the horizon. Karen Dent talks to a solar glass manufacturer that is poised to take advantage of the expected changes.

ORIGINALLY founded to provide bulletproof glass to protect Government, military and financial buildings from attack, a County Durham manufacturer is now a leading light in the battle against climate change.

Alternative Investment Market-listed Romag Holdings has provided the glass for major schemes including the Eden Project in Cornwall, London’s Science Museum, St James’s Park and Arsenal’s Emirates Stadium, to the capital’s Royal Opera House and the Scottish Parliament in Edinburgh.

The Consett business is the UK’s biggest manufacturer of solar glass. Its PowerGlaz turns light into electricity and is fuelling the growth of the company, which saw sales rise by 69% to £11.58m in the six months to the end of March. Romag this year doubled the number of lines producing the specialist glass to four and it has bought additional land surrounding the Leadgate Industrial Estate-based factory for future expansion.

“About 10 years ago, we developed the technology to incorporate photovoltaic (PV) cells into the laminate to generate electricity. We felt the market for solar PV was fairly young and the timing wasn’t quite right to commercialise that technology,” said chief executive Lyn Miles.

“In 2003, we felt the time was right so we floated the business on the stock market to raise capital to invest in plant and equipment; 2004 was our first production.

“Since then, it’s grown quite dramatically. We are now exporting products throughout mainland Europe, into China and we are focusing on the Middle East.”

Miles, who has been with Romag for 26 of its 27 years and took the top job in 2000, says the UK has been slow on the uptake of renewable energy because the Government has not yet introduced the ‘feed-in tariffs’ common across Europe. These act as an incentive to people considering investing in the equipment to generate renewable energy because the customer is paid a premium for their power when it is exported to the National Grid.

Miles is a passionate advocate of the system, which she says will kick-start the UK’s renewable energy industry.

“If you were to invest in renewable energy, you would sell to the grid and you would receive the premium. It makes sound economic sense. In return, the country develops a renewable energy culture,” she said.

“Hopefully the market in the UK will flourish if the feed-in tariff is introduced. It will really quite substantially stimulate the industry and the economic situation in the country, and it will create jobs. At the moment, the UK lags behind the rest of Europe in its use of renewable energy and unless that is changed, we will remain the Cinderella.”

Energy and Climate Minister Ed Miliband said last month that he would amend the energy legislation currently going through Parliament to introduce feed-in tariffs but a date for their implementation has not yet been announced.

“I don’t know why the Government has not introduced this previously. The model works very well in the rest of Europe,” said Miles.

“I have been advocating for this for a number of years now, there is light at the end of the tunnel now.”

Romag currently employs around 240 people and expects to create additional jobs to meet the demand for PowerGlaz if the predicted dash for renewable energy materialises once the feed-in tariff is introduced in the UK. Miles is unable to put a figure on how many posts would be created but is confident it would lead to expansion.

“Certainly, it would be the sort of expansion that would take place year on year as the country embraced solar PV. It really could stimulate the industry,” she said.

The tariff is expected to be paid to those generating renewable energy by a variety of methods in addition to solar power, such as wind and water.

“The message has to be, we have to use renewable energy in whatever form we can,” said Miles.

“There is a feeling in the UK that solar doesn’t work here as the weather is not so good, but we don’t need heat, we just need light. We have it on our offices, and many people are using it.

“The general public is quite sophisticated in their knowledge about renewable energy. The advantage solar has is that it is completely environmentally passive. Once they are installed, there are no mechanical parts.”

Romag’s biggest market is mainland Europe and the company has now set its sights on the Middle East as its next target. Despite the ready availability of oil, Miles says the region has been quick to embrace the possibilities of solar power. She was about to leave for Dubai to further show off the company’s wares on the back of a deal with Gulf International Trading Group for the promotion and sale of PowerGlaz branded products.

“We are just in the process of penetrating the Middle East,” she said. “It takes time but it’s getting there.”

I have been advocating for this for years now, there is light at the end of the tunnel now.