Scotland a world-class location for global low-carbon investment

Scotland required a collective pause for breath this week after a whirlwind COP26 came to an end on Saturday.   

The summit was one of the biggest global events ever held in Scotland, with more than 40,000 registered visitors in attendance.  Global leaders from almost 200 countries arrived on our shores, ensuring the eyes of the world were very much on Scotland. 

Now the delegates have gone, the world’s media have departed and Glasgow has been able to return to some form of normality, we have an opportunity to reflect on what was achieved over the past couple of weeks. 

Ahead of COP26, all of us at Scottish Enterprise spoke about “grasping the climate opportunity” and showcasing the very best Scotland has to offer on the world’s biggest stage.  And we certainly did that in terms of global companies choosing our country to develop their innovative, low-carbon activities. 

Working alongside our partners across the public and private sectors, Scottish Enterprise has been thrilled to announce many inward investment projects and global partnerships throughout COP26.  These initiatives will both boost Scotland’s economy and help tackle some of the most pressing issues of our time. 

A perfect example of this is an incredibly exciting project unveiled by Dutch-headquartered global health & nutrition company, DSM.   

In a joint announcement with Scotland’s First Minister Nicola Sturgeon, DSM revealed that its ground-breaking feed additive, Bovaer®, which results in a 30 per cent or more reduction in methane produced by cattle, will be globally manufactured in Scotland at the firm’s site in Dalry, North Ayrshire.   

This £100m plus project has been a long-term strategic investment of DSM into improving sustainability.  The engineering and construction of a large-scale production facility is the next step, supported by a £10m funding package from Scottish Enterprise that will create and safeguard hundreds of high-quality jobs. 

DSM’s announcement was timely, following the statement from US President Joe Biden at COP26 that more than 80 countries have signed up to cut methane emissions by 30% by 2030.  President Biden described methane as "one of the most potent greenhouse gases there is", so DSM’s decision to undertake this project in Scotland provides recognition of the stance we’ve taken around climate change and the capabilities we have to make a difference. 

Another priority area in achieving net zero targets worldwide is decarbonising heat, with heating accounting for more than 40 per cent of global CO2 emissions.  A significant inward investment project announced during COP26 showed Scotland was leading the way in this sphere as well. 

Mitsubishi Electric Air Conditioning Systems Europe Ltd revealed that it would invest £15m in its manufacturing facility in Livingston to develop the next generation of heat pumps. 

Scottish Enterprise is contributing to the company’s investment project with a wide package of support, including £1.8m of grant funding, creating and protecting almost 400 jobs.  We also signed an MoU with the company, enabling exploration of a low carbon heat pump centre of excellence in Scotland. 

The technology developed by Mitsubishi Electric Air Conditioning Systems Europe Ltd in Scotland and exported across Europe demonstrates the pioneering low carbon manufacturing innovation taking place in our country. 

Scotland’s low-carbon strengths were also underlined during COP26 when Scottish Enterprise signed an MoU with the Japanese company, Marubeni Corporation.  The agreement will see both parties work in partnership to explore opportunities in floating offshore wind and green hydrogen. 

Several areas of collaboration were identified, including the creation of decarbonising projects, the establishment of an offshore wind supply chain and hosting joint educational programs between Japanese and Scottish university students. 

This MoU with Marubeni will strengthen our valued relationship with the company and support Scotland’s net zero ambitions.   

And finally, global wellbeing organisation Therme Group named Glasgow as the location for its second UK resort.  Therme agreed heads of terms with property company Peel L&C on a waterfront site next to the Riverside Museum. 

Known as Therme Scotland, the facility is expected to be 320,000 sq. ft in size and cost approximately £100 million to build.  It will include an indoor water park, extensive thermal pools and spa, and a health and wellbeing centre.  A planning application is expected to be submitted by Therme in 2022. 

As part of this exciting development, Edinburgh-based vertical farming company, Intelligent Growth Solutions (IGS) announced a partnership with Therme that will see large-scale urban farms developed at the company’s wellbeing destinations worldwide.  The concept will enable sustainable and locally grown, nutrient-rich fresh produce to be available at Therme’s locations. 

Alongside the First Minister, IGS also announced during COP26 the conclusion of its Series B funding round with a total raise of £42m, which will enable its next stage of global growth.  Scottish Enterprise has been pleased to support this innovative agri-tech firm.

All these announcements show that companies across the world want to undertake low-carbon projects in Scotland due to the supportive policy environment, strong science and technology base and world class talent.  It also validates the new strategic approach set out by the Scottish Government for attracting investment that aligns with our national values, and positions inward investment to play an important role in achieving Scotland’s net zero targets. 

So, we are confident all those who attended COP26 will have left with a positive impression of Scotland’s low-carbon capabilities.  But more can, and must, be done. 

Our inward investment specialists based around the world will continue to highlight just why Scotland is the perfect location for companies to achieve their net zero ambitions, delivering economic opportunities for our communities in the process. 

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Mark's editorial was published by Scottish Business Insider on 19 November, 2021.  You can view this article here: https://www.insider.co.uk/news/scotland-world-class-location-global-25491631 

The headline photo shows (from left to right): Geraldine Matchett, co-CEO, Royal DSM, Nicola Sturgeon MSP, First Minister of Scotland and Linda Hanna, Managing Director, Scottish Enterprise