SCOTTISHPOWER and Shell have said they will make £75 million funding available to support the development of the windfarm supply chain in Scotland as they prepare to complete big developments off the country.
The energy giants are creating supply chain stimulus funds worth £25m each in respect of three windfarms.
The companies said the funds are designed to help create new offshore wind capability in Scotland that would not otherwise be possible.
Melissa Read, UK Offshore Wind Business Manager, Shell said: “These funds are in addition to direct project investment in supply chain facilities and will directly support the Scottish supply chain.
“This includes businesses keen to make the transition to the renewables sector through investment in infrastructure, facilities that will manufacture and service offshore wind projects and support for companies to innovate and upskill.”
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The funds have been launched amid concern that the hefty investment made in windfarms in and off Scotland to date has not provided the kind of boost to the supply chain expected.
In February figures from the Office for National Statistics showed the number of estimated full-time equivalent jobs in Scotland’s “low carbon and renewable energy economy” fell from 21,700 in 2019 to 20,500 in 2020.
The Scottish Government had predicted that employment in the low carbon sector could increase to 130,000 by 2020.
Valuable contracts to manufacture components such as turbine blades have been awarded to firms based outside Scotland.
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ScottishPower and Shell will establish supply chain stimulus funds in respect of two windfarms they plan to develop jointly after making successful bids in the recent ScotWind leasing round. This attracted strong interest from investors around the world.
The firms will provide £50m in total in respect of the Marram and Campion floating windfarms off Aberdeenshire.
ScottishPower will provide a further £25m in respect of the Machair windfarm off Islay, which will be fixed to the seabed.
Asked how the funding it will provide in respect of the three windfarms would be used, a ScottishPower spokesperson said the purpose of the scheme was to support the Scottish supply chain.
The spokesperson added: “It’s still very early days and we’re going to work with members of the supply chain, industry, partners and government to shape the fund so we maximise its benefits for the supply chain and the economy.”
The spokesperson said the three windfarms are expected to involve total investment of more than £20 billion. Investment in Scotland is expected to total around £10 billion.
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Sector champions have said ScotWind projects could provide a huge boost to the supply chain. However, Crown Estate Scotland has noted it may take some time for projects to secure the planning consents and funding required.
In January Energy Secretary Michael Matheson told MSPs: “I accept that we have not achieved the level and scale of inward investment and supply chain development in the renewable sector that we would have wanted to.”
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