Construction Unit Update – December 2024 top five

Head of Construction Law Jan Grimshaw
Jan Grimshaw

Here are our top five for this December:

1. Closing in on ‘free’ energy?

Hydrogen has long promised to be the answer to humanity’s demand for fuel. The burning of hydrogen (H) and oxygen (O) results in only two by-products: energy release in the form of heat, and water (H2O). Separating water into H and O, then re-combining it by burning produces water, making it a truly “green” energy source (if we ignore the burning).

But there have always been a couple of issues with hydrogen as a fuel source:

a) refining hydrogen gas (H2) often relies upon the burning of natural gas, a fossil fuel, to create a clean fuel; this is inefficient and unsatisfactory: and
b) the storage and delivery of the hydrogen after it has been produced.

To make H2 the answer to our carbon fuel problems a) manufacture, and b) storage issues need to be addressed.

Issue a) is closer to resolution. 

In a peer review paper Frontiers | Photocatalytic water splitting for large-scale solar-to-chemical energy conversion and storage, chemists from Japan, the UK and US have published their results in the development of ‘sunlight driven water splitting’ mechanisms for the production of renewable hydrogen. Proof of concept has been demonstrated in the use of a reactor that uses a photocatalytic sheet to split the O from the H atoms. Old tech focused on decomposing the water into H2 and O. What is new is the use of a two stage process with one step separating out the O and the next step removing the H. It is still very inefficient. But as a proof of concept, it works, meaning it can be advanced upon.

Crucially the chemists have found that natural sunlight increases the efficiency of the methodology from less than 1% to approaching 5%. Add scale to the reactor and this could be driven further. The more efficiently H2 can be produced, the less oxyhydrogen (HHO) byproduct is created. This is important because although HHO has some uses, it is explosive, which carries with it a whole other set of issues. 

Issue b) Storage of H2 is hard because H2 is a tiny molecule, able to escape through most materials at a molecular level. Further development is needed to resolve how to contain H2 in order to utilise it effectively as a power source.  We hope to see further developments soon.

2. Natural Restoration Fund

In what is turning out to be a very busy period for the Ministry of Housing, Communities and Local Government a statement issued on 15 December set out more of the government’s intentions to help turbocharge housebuilding as part of the Planning and Infrastructure Bill. A new Nature Restoration Fund will be established which developers would pay directly into to satisfy their environmental obligations. The current process involves each development securing environmental mitigation on an individual basis prior to planning permission being granted.

The new approach is for a delivery body, “such as Natural England”, to be responsible for securing positive outcomes by driving natural recovery on a strategic scale, rather than a site by site basis. Planning proposals get Britain building and turn the tide on nature’s decline – GOV.UK

In November, the government named seven councils that will benefit from £47m in funding to unblock around 28,000 homes stalled due to nutrient neutrality rules £47 million to unlock 28,000 nutrient neutrality stalled homes – GOV.UK

“For years, vital housing and infrastructure projects have been tied up in red tape leaving communities without the homes, infrastructure and jobs they need,” said Angela Rayner, Housing Secretary. The chair of Natural England, Tony Juniper said, “We should consider the huge opportunities which can be unlocked through better strategic planning which considers environmental improvements, economic development and green spaces for public enjoyment on a landscape scale.”

If this adds pace to the slow progress of development activity it can only be welcomed, although it is not to be confused with a panacea for all of that sector’s issues.

3. Supreme Court Portal

A new portal for parties engaged in Supreme Court business was launched in December 2024. Parties can use the portal to:

a) apply for permission to appeal;
b) make submissions and payments relating to a case;
c) correspond about their case; and
d) check case progress.

Prospective users have to be invited by the Court to register for the Case Management Portal. 
Very few construction cases get as far as the Supreme Court. One that has is covered in the next item.

4. Providence Building Services Ltd v Hexagon Housing Association Ltd [2024] EWCA Civ 962 (15 August 2024)

In August, we reported on the important Court of Appeal decision in the above case. https://daviesandpartners.com/news-events/construction-unit-update-september-2024-top-five/

The case addressed if it was necessary for a contractor to issue a fresh notice of default and give the time to address the default, for each and every default. The Court of Appeal found not.

That was round 3 of the dispute between the parties. We can now report that Round 4, the Supreme Court bout, will occur in 2025. Hexagon were granted permission to appeal in early December 2024. Solicitors for Hexagon said “We are grateful to the Supreme Court for granting permission to appeal on this important matter for the construction sector. We look forward to setting out our arguments in full in court.”

5. New Builds

Last point for 2024, as a bookend to the flurry of Ministry of Housing statements that we have reported on, see https://daviesandpartners.com/news-events/construction-unit-update-november-2024-top-five/ and above, the last couple of weeks have seen stalled planning developments benefiting from renewed enthusiasm. Norwich Council has sought to revive the Anglia Square scheme that will deliver 1,100 new homes and Cambridgeshire Council’s new town at Waterbeach which will produce 4,500 new homes, have both seen progress.

Anglia Square is employing new funding obtained from Homes England and Waterbeach is now clear of Environment Agency objections which have prevented progress for 3 years. Neither will see complete delivery within the term of this parliament, but will go towards the government target of 3.5 million new homes before 2029. Undoubtedly more news on previously stalled development sites will follow on the heels of these.

All the best for 2025 from the construction team at Davies and Partners Solicitors.

This edition was prepared by:
Iain Cole email: iain.cole@daviesandpartners.com and
Jan Grimshaw email: jan.grimshaw@daviesandpartners.com

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