WHILE investors appear keen to build huge windfarms off Scotland, hopes that such projects will generate lots of jobs in the country dimmed last week as the value of North Sea gas was underlined.
The results of last year’s ScotWind licensing round provided clear evidence that energy and investment giants see lots to go for off Scotland.
With the round attracting keen interest from around the world, successful bidders held out the prospect they would invest billions in projects that would provide a huge boost to the supply chain in Scotland.
READ MORE: Port Glasgow and Fife yards vie for 500-job windfarm support vessel work
The response was welcomed by champions of renewables who have faced awkward questions on the jobs front for years. Of the 130,000 jobs the Scottish Government said would be created in the country in the low carbon economy by 2020 only around 20,500 had been at the last official count.
One of the reasons that job creation has been so limited is that firms that have developed big windfarms off Scotland have used yards outside the country to complete labour-intensive work such as turbine blade manufacturing.
Last week Crown Estate Scotland said an important milestone had been passed in the ScotWind process after option agreements were put in place with all 17 successful applicants.
This means the projects concerned can move into the development stage.
Sounding a self-congratulatory note, the organisation said: “ In a world first, Crown Estate Scotland mandated that applicants must outline supply chain commitments as part of their application for an option agreement, with commitments then updated throughout development as project specifics such as timing and technology become clearer.
“Summaries of all initial commitments – which indicate an average of £1bn investment in Scotland per gigawatt of capacity built – will be published by Crown Estate Scotland in the coming weeks.”
READ MORE: European Union takes green subsidy dispute with UK to World Trade Organisation
Crown Estate Scotland made no mention of the major complications that could be looming on the supply chain development front following moves by the European Union to stop the UK using the subsidy regime to favour domestic suppliers.
The EU has initiated an action at the World Trade Organisation regarding what it regards as “discriminatory practices” related to the linking of supply chain development efforts and subsidies for windfarms off the UK.
At least some ScotWind bidders have been working on the assumption that such subsidy support will be available. If it is ruled out the projects concerned may need to be reconsidered. Supply chain commitments may have to be watered down.
Crown Estate Scotland did note, however, that there are many more hurdles for ScotWind applicants to clear before work starts offshore on any projects , citing planning, consenting, and financing.
The update came a day after the GMB trade union sounded the alarm about indications that valuable ScotWind work could go overseas.
The GMB highlighted the fact that one of the partners in a plan to develop three big floating windfarms, NOV, has reached an agreement with a Middle East -based manufacturer.
The union said : “Dubai-based Lamprell has entered into a Memorandum of Understanding (MoU) with developer NOV to provide fabrication, assembly and outfitting for Cerulean Winds’ three 1GW floating wind farms off the West of Shetland and in the Central North Sea.”
READ MORE: Energy giant defends treatment of Scottish supply chain amid windfarm row
Claiming the deal could lead to “yet more offshoring of UK renewables jobs” GMB noted that Lamprell had previously secured hundreds of millions of dollars’ worth of contracts for renewables projects in Scotland, including the Moray East, Seagreen 1 and Moray West projects.
It said the contracts have been and are being manufactured at Lamprell’s Hamriyah and Sharjah yards in the UAE, before being shipped to their final destinations in British waters on diesel burning barges.
GMB organiser Gary Cook said the MOU raised fresh questions about the promised green jobs revolution.
He asked: “These so-called ‘just transition’ jobs – where are they?"
Mr Cook laid the blame on politicians on both sides of the border., declaring: “Offshore wind has a huge role to play in meeting our energy needs, but instead of securing the vital skills and tens of thousands of jobs that come with it for UK workers, Ministers at Westminster and Holyrood have been asleep at the wheel.”
In the announcement of the agreement, Lamprell said it will work closely with NOV to support and develop UK local content goals. It noted that the partners will “engage together in discussions with UK supply chain and UK yard(s) interested in participating in the projects, and able to offer suitable solutions”.
Asked if Lamprell had identified any potentially suitable yards in Scotland, a spokesperson for the company declined to elaborate on the announcement.
Cerulean Winds has been approached for comment.
GE is building a turbine blade manufacturing plant in the Teesside free port area, which would be well-placed to compete for work on developments off Scotland.
READ MORE: ScottishPower hit by gas price surge as windfarm output drops
On the subject of jobs and the Just Transition, Scottish energy giant SSE last week highlighted the potential for gas to play an important role in the energy system and jobs market, even as it works on ScotWind projects.
The Perth-based company hosted a visit by Scotland’s Just Transition Commission to the Peterhead site where it plans to develop a new gas-fired power station. The emissions from this are expected to be handled by the Scottish carbon capture and storage (CCS) cluster that is planned for the area.
Friends of the Earth Scotland has said CCS is a false solution to the climate emergency that will keep us locked into fossil fuels.
However, Scotland will need gas for years while the required low-carbon alternatives are developed and issues related to the dependence of windfarm and solar output on weather conditions addressed.
The fallout from the Ukraine War has made it imperative for the country to reduce its reliance on imports of gas. There are finds waiting to be developed in the area.
Against that backdrop SSE noted: “The new Peterhead plant would not only allow the site to continue providing flexible power to keep the lights on while backing up renewable generation, it would also secure low-carbon jobs for workers in the region and create significant socio-economic opportunities.
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