Exploring the implications of climate change provides a fertile area for new business opportunities. In the last three years, several companies within Oxfordshire, whose businesses were previously reported on by the Oxford Trust in 2005, have been developing to keep pace with the challenges of environmental and sustainable technology.

Oxford Catalysts, a leading catalyst innovator for clean fuels, based at Milton Park, has recently enjoyed significant growth. Building upon university research that led to the creation of a spin-off company in 2004, the company floated on the Alternative Investment Market (AIM) in 2006 and now employs 23 people.

It is now doubling its lab space in a bid to fast track the development of new and innovative catalysts as it looks to produce greener fuels.

The firm recently signed a strategic alliance agreement with Novus Energy and a Minneapolis-based renewable fuels company to develop technology for the production of second-generation fuel-grade alcohols. These are currently made from sugar cane and corn but consume significant amounts of water, land and energy in their production resulting in a limited reduction of carbon footprint.

They also compete with food production, leading to increased food prices worldwide.

But second-generation biofuel production can use edible and inedible organic crop material, as well as organic waste, converting all of this on-site into clean, renewable and sustainable fuel-grade alcohols with significant carbon dioxide savings.

With second-generation biofuels, Oxford Catalysts suggests there is a need for government to provide incentives that recognise sustainable' renewable fuels to assist large-scale production.

Some important factors influencing the growth of Oxford Catalysts have been raising the company profile by reaching the final of the 2004 Business Plan competition at science and technology fair Venturefest, and a research and development grant from the Carbon Trust.

Oxford Catalysts suggests that enhanced support for companies engaging in business across Europe, as well as better communication and marketing between local businesses would bring added benefits.

Ice Energy Heat Pumps based in Eynsham has also grown massively in the last three years. The company, which specialises in heating systems using natural sources of heat underground, took 17th place in the 2007 Sunday Times Fast Track 100, which ranks Britain's top 100 private companies with the fastest growing sales over a three-year period.

The rise in fossil fuel prices and increased awareness of environmental issues has contributed to this growth.

After talking with companies involved in the 2005 energy report, it was suggested that in the UK new technology is often met with scepticism and an initial apathy to embrace new methods.

A mature economy sees middle managers focusing on efficiency and stripping out costs with little time for innovation.

It was proposed that schemes be created to minimise the perceived risk of new technology. With correct branding, these projects could be used by companies as highly effective PR to show they are supporting innovation by becoming early adopters and evaluators.

Ian Curtis of the Environmental Change Institute (ECI) at Oxford University believes problems also lie with the delivery of environmental innovation into the marketplace.

A key example was the The Eco-Homes Open House weekend, led by the Climate Outreach and Information Network, which attracted 1,200 visitors to Oxford to view developments in green thinking.

The visitors saw the technology in action but its newness meant it was difficult for people to get hold of.

Now such organisations are seeking funds to help set up the social/business enterprise network that could actually deliver green services to Oxfordshire homeowners and business.

Mr Curtis said: "We are scratching the surface very successfully on clean energy, but with climate impacts, adaptation, and risk management, we have hardly started and there is an abundance of local expertise to make use of."

o This page is compiled by the Oxford Trust: www.oxtrust.org.uk