Shropshire's 'green economy' set to grow to £1.3 billion over next five years - according to new figures

According to a study conducted by research firm kMatrix, Shropshire's low carbon economy was valued at £786 million in 2023/24, with that figure is expected to grow to £1.3 billion over the next five years.

The study, known as the  Low Carbon Environmental Goods and Services (LCEGS) Sector Study, was commissioned by the Midlands Energy Hub and its partners to provide an "evidence-based" study into the sector across a number of geographies.

The sector currently accounts for 7.2% of Shropshire's gross value added (GVA) and 4.2% of employment, contributing 8.0% to the regional gross domestic product (GDP).

Now, the report says low carbon sector in Shropshire is "thriving" - and set to expand significantly in the coming years, potentially creating opportunities for the region's manufacturing sector.

Joe Collison of Shropshire-based renewable energy specialist CES, said the report demonstrates the "significant potential" for Shropshire's manufacturing and agricultural sectors to benefit from adopting low carbon solutions.

“We've seen first-hand how medium-scale solar projects around 500kWp, combined with battery storage technology, can help businesses overcome grid capacity challenges while significantly reducing their carbon footprint and energy costs," he said.

"One of the headline recommendations around enhancing energy efficiency in the manufacturing sector – when businesses are facing increasing energy prices and increasing costs across the board – maximising the use of low carbon technologies will pay dividends.”

"Manufacturers and agricultural businesses are increasingly recognising that renewable energy isn't just about environmental responsibility – it's a sound business decision that offers energy security and long-term cost benefits.”

According to the research, Shropshire shows strong performance in several sectors that have outpaced UK average growth rates, including recovery and recycling, waste management, water supply and waste water treatment, alternative fuel vehicles, alternative fuels, building technologies, energy management, and geothermal energy.

The report also advises promoting sustainable practices in Shropshire's significant agricultural sector, focusing on evidence-based solutions like anaerobic digestion, BioChar and Agri-tech innovation, potentially in partnership with institutions such as Harper Adams University.

A study on sustainable manufacturing conducted by the Local Government Association in 2022 recommended efficiency improvements for businesses in Telford and Wrekin - with the report stressing that businesses within the Shropshire Council area should also follow the same process.

Further recommendations for Shropshire Council include working with nearby local authorities, such as Telford & Wrekin, to develop strategies for training and apprenticeships to address the specific skills gaps in the area.