With port infrastructure being key to Scotland's offshore wind potential, it is vital that it sees strong forward progression. There has been a lot of positive change for the sector over the last year – but is it happening quickly enough?
This article was first published in The Business.
It's hard to believe how quickly time has passed since the first ScotWind leasing awards were granted in Spring 2022. Since then, there's been a lot of positive coverage around Scottish offshore wind potential, accompanied with increasing anxiety around the need for significant investment in port infrastructure to make that happen. Throughout 2024 we've seen a number of developments, suggesting the port challenge is well-recognised and progress is being made. But is it happening quickly enough?
From a government perspective, levers are starting to move. Within days of entering number 10 in July, the new UK government announced some major commitments, including a pledge to turn the UK into a "clean energy superpower" and with that a quadrupling (55GW) of offshore wind power production in the UK by 2030. Since then, various things have happened:
- in September, the UK government announced its decision to headquarter GB Energy in Aberdeen (we await further details);
- in October, it announced the creation of the National Wealth Fund (NWF), a new impact investor set to mobilise billions in investment into key industries, with ports named as one of five key sectors and a "pot" of £1.8 billion allocated to accelerate activity; and
- in late October, in the new government budget, £134 million was announced to support the delivery of port infrastructure to facilitate floating offshore wind.
These announcements, taken together with existing measures such as the Strategic Investment Model and Floating Offshore Wind Manufacturing Investment Scheme (FLOWMIS) funding, suggest there is tangible government commitment to build the port infrastructure sector.
Many ports are ramping up activity, too. May saw the launch of the Scottish Offshore Wind Ports Alliance (SOWPA). Described as a "progressive and collaborative forum of Scotland's leading port locations and enabling infrastructure facilities", SOWPA is a welcome addition to the sector, helping to harness the collective knowledge and expertise of many leading ports, as well as driving and unlocking opportunities around our coastline.
Progress also continues apace at various ports, including at Ardersier with the transformation of the McDermott oil rig yard into an offshore wind port (funded by significant international investment and debt from UKIB (now NWF) and SNIB). At Hunterston, plans are underway to invest up to £150 million in the development of a new quay at the former marine yard and in September, UKIB (now NWF) invested in XLCC, a subsea cable manufacturer, to develop a new factory on-site. These ports, alongside others (such as Nigg, Leith, and Aberdeen) are exemplars of progress, recognising the opportunity for economic growth and acceleration of an industry in which they will play a vital part.
So far, so positive. However, a word of caution. These examples are impressive, but let's not forget that billions in funding still require swift mobilisation, construction timelines for major infrastructure are years, not months, and offshore wind projects are having to navigate the challenges of delays in planning and grid connection dates, among others (all of which will inevitably impact timelines and confidence).
While celebrating the progress made in 2024, don't forget what will be required to deliver the UK government target for gigawatts of offshore capacity. A herculean effort is needed to coalesce key players to agree terms, draw down funding, and start building our port infrastructure, meaning that government, ports, developers, investors, funders, and contractors all need to be aligned – now.
One thing remains clear: ports are critical infrastructure gateways to our offshore wind ambitions and need to be a national priority. Let's hope 2025 heralds the arrival of a thriving industrial port infrastructure market, reinforcing the UK's position as global leader in offshore wind.
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