Investment signals confidence in UK floating offshore wind sector and encourages pivot from oil and gas to renewables.
A major floating offshore wind project in Scotland has secured significant investment from the National Wealth Fund (NWF), Great British Energy (GBE) and the Scottish National Investment Bank (SNIB), supporting the UK’s clean energy ambitions, bolstering energy security and supporting jobs.
Investors have each acquired an initial shareholding to participate in the development of Pentland Floating Offshore Wind Farm, off the coast of Dounreay. Once operational, it will have capacity to generate enough green electricity to power up to 70,000 homes.
The project, being developed by Highland Wind and majority owned by Copenhagen Infrastructure Partners (CIP), 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.
GB Energy (GBE) says that the investment demonstrates how public finance institutions can work together to support early-stage technologies within the clean energy sector, aiming to crowd in private capital in support of the government’s growth and clean energy missions. GBE also says that this signals confidence in the UK’s floating offshore wind sector, encouraging engineering firms, especially in Scotland, to pivot from oil and gas and prepare to compete in a growing market.
FLOW projects hold huge potential for the UK’s energy market, which has been identified as the top market in terms of readiness for investment 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.
Dan McGrail, CEO of Great British Energy, said: “This is just the beginning of our investment strategy and will help bring good, skilled jobs to the Scottish Highlands. I am pleased to work with the National Wealth Fund, The Scottish National Investment Bank and the Copenhagen Infrastructure Partners on this project. This sets out our aspiration to become the UK government’s energy developer and also reflects GBE’s ambition, capability and commitment to making the UK a clean energy superpower.”
Deputy first minister for Scotland, Kate Forbes, said: “This investment means the Scottish National Investment Bank can work closely with the developer to support the Scottish supply chain, enhance innovation and boost job opportunities. 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 £500m 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 £1.5bn.”
