Renewables plan could create 5,000 manufacturing jobs

Investment in sites could generate around £300 million annually for Scottish economy

More than 5,000 green jobs could be created through the development of three regional offshore energy manufacturing sites built around key port locations, First Minister Alex Salmond said today.

Speaking at a Scottish Government public discussion event in Dornoch, the First Minister welcomed Stage 2 of the National Renewables Infrastructure Plan (N-RIP), which was published today by Scottish Enterprise and Highlands & Islands Enterprise.

The plan outlines the investment required to deliver Scotland’s ambition to become a premier location for the manufacturing and deployment of wind turbine and marine energy devices.

The report states that a total private and public investment of £223 million would assist the creation of 11 offshore wind manufacturing sites in three regional clusters. Taken together these sites could support the creation of up to 5,180 jobs and an annual economic impact of up to £294.5 million each year. It also underlines the case for the £185 million Fossil Fuel Levy to be released by the Treasury to accelerate the promotion and development of renewable energy in Scotland.

The sites identified in Stage 1 of the N-RIP, published in February, are: Leith, Dundee, Nigg, Energy Park at Methil, Hunterston, Aberdeen, Arnish, Campbeltown/Machrihanish, Ardersier, Kishorn and Peterhead. This latest report recommends that the sites are developed into three regional manufacturing clusters that would support the fabrication of offshore wind components and tap into the wealth of subsea expertise that already exists in Scotland..

First Minister Alex Salmond said:

“Scotland has the natural resources, expertise and ambition to become a global powerhouse for clean, green energy. The National Renewables Infrastructure Plan outlines the steps required to realise our ambition and to establish Scotland as a premier destination for the manufacture and installation of offshore renewable energy devices.

“This plan focuses on the sites that could provide investors with the high-quality infrastructure required for success in the rapidly growing green energy industry.

“The report states that a total investment of up to £223 million is required to realise the potential of these sites, which could create more than 5,000 manufacturing jobs and generate around £300 million each year for Scotland’s economy.

"Scotland has established itself as a leader in green energy. Our seas have unrivalled potential to generate clean energy and bring jobs and investment to our communities. Scotland’s waters are estimated to have as much as a quarter of Europe's potential offshore wind and tidal energy resource and a tenth of the wave power capacity, and in the current economic climate it is important that we capitalise on these natural assets to secure new  opportunities that support economic recovery and growth.

“Unlocking the potential of these sites requires initial investment from both the private and public sector. This report underlines the case for early investment and therefore it’s now urgent for the Treasury to release Scotland’s £185 million Fossil Fuel Levy to further develop the renewables industry. 

“This infrastructure plan demonstrates the huge economic rewards of strengthening our offshore and marine energy industries and marks another positive step towards creating a low carbon, sustainable Scotland.”

Lena Wilson, Chief Executive of Scottish Enterprise said:

“Scotland can be home to offshore renewable manufacturing in the same way as we are becoming home to the engineering design of offshore wind and wave tidal facilities.  Taken together, these opportunities will help to secure Scotland’s place as Europe’s powerhouse of renewable energy production.

“This latest phase of the National Renewables Infrastructure Plan has been developed collaboratively with industry and will help inform investment priorities for the future.   Our priority now is to work with individual site owners and our public sector partners to identify how we collectively attract the investment that will help them develop the infrastructure and meet future market demands.”

Sandy Brady, Acting Chief Executive of Highlands & Islands Enterprise (HIE) said:

“This report comes at a very exciting time for the offshore renewables sector in Scotland.  At HIE we see the huge long term economic benefits for the coastal communities across our region, from Shetland to Kintyre and the Outer Hebrides to Moray. Port infrastructure, which includes deep water, suitable quayside, craneage, and sizeable laydown areas is seen as key to unlocking the potential to the offshore renewables sector, and acting as the catalyst for developing Scotland’s renewable energy supply chain."

"In partnership with the other public sector organisations, HIE is looking forward to working with industry and port owners to ensure we are ready to support the offshore renewables sector as it develops.”

Andrew Jamieson of Director of Scottish Renewables said:

"As co-chair of the National Renewables Infrastructure Plan's delivery group I know Scotland is very close to making a breakthrough in becoming a major force in the manufacturing of offshore renewables equipment, not just for Scotland’s needs but also the export market.  This plan sets a platform for quick action.  Investment will be led by the private sector but with early public sector commitment to co-invest Scotland can make these highly prized jobs real, building on what has already been done at Machrihanish with Skykon and Energy Park Fife with BiFAB."

Notes to editors

Stage 2 of the National Renewables Infrastructure Plan is available online at: www.scottish-enterprise.com/energy

A Strategic Environmental Assessment (SEA) of the N-RIP has been undertaken in accordance with the Environmental Assessment (Scotland) Act 2005. The purpose of the SEA is to integrate environmental factors into the N-RIP, by identifying potential environmental effects and measures for their mitigation, and ensuring that this information is made available as the plan is progressed. In the case of the SEA of the N-RIP, the SEA will also assist in providing site developers and investors with information regarding the potential environmental issues pertaining to the development of the sites, and how they can best be overcome.

The Environmental Report and the appendices document the assessment undertaken to date. The N-RIP Stage 2 Report, the Environmental Report and the appendices are available to download from the right of this page.

Views on the N-RIP Stage 2 report and the findings of the SEA are now being sought.  Consultees are invited to review the documents.

Comments can be submitted by email to nrip@scotland.gsi.gov.uk or sent to The Scottish Government, EA Team, 2H South, Victoria Quay, Edinburgh, EH6 6QQ by 10 November 2010.

Documents are available for viewing at the same address; at Scottish Enterprise, 99 Haymarket Terrace, Edinburgh EH12 5HD; or Highlands and Islands Enterprise, Cowan House, Inverness Business and Retail Park, Inverness IV2 7GF.

If you require further information or a copy of the documents please contact the above email address or telephone 0131 244 7650.

The National Renewables Infrastructure Plan, Stage 1, was published in February 2010 by Scottish Enterprise and Highlands and Islands Enterprise. The full report is available via: http://www.scottish-enterprise.com/nationalrenewablesinfrastructureplan.pdf

The creation of 5,180 jobs has been calculated on the potential, within the identified clusters, to manufacture and deployment of the 750 offshore units per annum. Renewables account for at least 3,000 jobs in Scotland, with the potential to support at least 16,000 new jobs over the next decade.

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