Maximising money-spinning impact on Ross-shire of multi-billion offshore wind contracts hinges on winning construction work, Highland economist insists
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EFFORTS must now be stepped up to ensure Ross-shire maximises the local jobs and investment potential of a multi-billion pound offshore wind boom.
Crown Estate Scotland's go-ahead for 25GW of new offshore wind developments worth up to £26 billion prompted Highlands and Islands Enterprise to predict a potential economic impact comparable to the game-changing oil and gas boom.
The Invergordon-based Port of Cromarty Firth believes Scotland now has a golden opportunity to develop a world-leading supply chain with skills and expertise if the nation leads the way in the commercial deployment of floating wind and green hydrogen.
Global Energy meanwhile is investing millions in a wind tower factory at Nigg capable of producing up to 135 towers a year.
And Highland Council says it will create jobs for young talent and offer an alternative to a dependence on seasonal, tourist-related employment.
However Highland economist Tony Mackay yesterday said: "A lot of effort needs to go into persuading the ScotWind companies to place their construction contracts with Scottish/UK yards."
He draws a distinction between the development and production/operating phases, arguing the UK had a 70 per cent share of developing North Sea oil and gas because the Offshore Supplies Office helped bring fabrication work to yards like Nigg, Kishorn and Ardersier.
He said: "In contrast, the UK share of UK offshore wind farm contracts to date has only been 10-15 per cent, which is very disappointing. Global Energy at Nigg have been very successful but few other UK firms have been, as illustrated by the problems at Burntisland and Arnish. Most of the existing offshore wind farm contracts have gone overseas."
He said: "The timing of the fabrication contracts will be very important. The North Sea oil and gas industry has lasted for over 50 years. However, those for the ScotWind farms might only last about five years. I expect Nigg to be very busy for the next few years but the longer term future is very uncertain.
"The operating phase of the ScotWind farms will create very few jobs in comparison with the North Sea oil and gas fields. I expect Invergordon and Nigg to win some of those operating contracts, as well as other areas in the Highlands and Islands, but the numbers of jobs from those will be relatively small."
Port of Cromarty Firth chief executive Bob Buskie is however upbeat saying most of the developments are well located for the area and could create a 50 to 70 year pipeline of work.
He said construction, operation and maintenance and repowering or decommissioning "will bring billions of pounds of investment and new jobs to Scotland".
He added: “Commercial deployment of floating wind and green hydrogen is likely to happen first in Scotland.Because of that, our country could have a unique advantage if we build a supply chain with the skills and expertise that can then be exported around the world in the future.”
Opportunity Cromarty Firth is also backed by Port of Nigg owners Global Energy Group and more than a dozen regional businesses, public sector organisations and academic bodies.
Cromarty Firth ward councillor Maxine Smith welcomed the news: "In my 15 years as a councillor I’ve heard many promises about local jobs at the ports of Invergordon and Nigg but they often don’t come to much. However I believe the Port of Cromarty Firth, Global at Nigg and the supply chain consortium have really cracked it this time.
"It looks like this will definitely happen very soon bringing billions of welcome pounds to the local economy and work to the whole of Easter Ross. Absolutely first class job from the partners. I’m excited for everyone."
Cromarty Firth perfectly poised to reap windfall
