A floating offshore wind project, located off Scotland’s north coast and majority-owned by a Danish company, has secured significant investment from Scottish and UK institutions.
The Scottish National Investment Bank (SNIB), the National Wealth Fund (NWF) and Great British Energy (GBE) are each providing up to £50 million for the Pentland Floating Offshore Wind Farm north of Dounreay. It is the first investment in the technology by GBE.
The announcement comes on the day Dan McGrail, chief executive of GBE, appears before the Scottish Affairs Committee in London where he is expected to face questions from MPs on the pace of investment in the energy transition.
Commenting on today’s announcement ahead of his Commons appearance, he said: “This is just the beginning of our investment strategy and will help bring good, skilled jobs to the Scottish Highlands.”
“This sets out our aspiration to become the UK government’s energy developer. It also reflects GBE’s ambition, capability, and commitment to making the UK a clean energy superpower.”
UK Energy Minister, Michael Shanks, said: “Floating offshore wind is a huge opportunity for the UK, and this first stake in a project by Great British Energy helps put us at the forefront of this cutting-edge technology.
“We said GBE would build up supply chains, create jobs and drive investment to all parts of the UK – especially in Scotland and this investment shows our publicly owned energy champion is getting on with the job”.
Each investor has acquired an initial shareholding in the project, being developed by Highland Wind, which is majority owned by Copenhagen Infrastructure Partners.
Once operational, it will have capacity to generate enough green electricity to power up to 70,000 homes.?
It will use a number of innovative technologies to help accelerate the industrialisation of floating offshore wind (FLOW), while delivering significant benefits to the local economy. More than 1,000 jobs are expected to be created and supported throughout construction and operation.?
FLOW projects are seen to hold huge potential for the UK’s energy market, which has been identified in terms of investor readiness and as an area of strategic importance for UK supply chain development.
Scotland has the offshore wind capacity to deliver 40GW of electricity, which is enough to power millions of homes while creating jobs and boosting the economy. Floating offshore wind farms are critical to realising this opportunity. They can be developed in locations where fixed turbines aren’t viable, and they represent 60% of the potential energy pipeline.
Nischal Agarwal, partner in CIP, said: “Copenhagen Infrastructure Partners (CIP) is committed to playing a full role in helping to deliver the UK Government’s Clean Power 2030 vision.”
Ian Brown, NWF head of banking and investments, said: “Working with Great British Energy and the Bank, we are building on the more than £240m we have so far invested in offshore wind port and supply chain infrastructure to support CIP in the development of a key project.”
Mark Munro, chief investment officer at SNIB, said offshore wind had huge potential in Scotland.
“However, substantial investment is needed to capitalise on the opportunity and ensure it delivers transformational impact for our economy and our communities.
“The bank has developed significant expertise in Scotland’s burgeoning offshore wind sector and has invested in all areas of the supply chain. Our commitment of up to £50m to support the Pentland Project is an important step toward developing a thriving and sustainable economy.”
Deputy First Minister, Kate Forbes, said: “We are leading the way in the floating wind sector but are ambitious to go further and take full advantage of the economic opportunities Scotland’s natural resources and technical expertise provide.
“That is why we are investing up to £500 million over five years in the infrastructure and manufacturing facilities critical to growing the offshore wind sector, which is expected to leverage additional private investment of £1.5 billion.”
#Energy #joins #SNIB #NWF #wind #farm #deal #Daily #Business