Taxpayer-backed funds pump millions into Scottish ‘floating’ wind farm that will power 70,000 homes
“We are leading the way in the floating wind sector but are ambitious to go further” – Kate Forbes
A floating offshore wind farm that should power up to 70,000 homes and support 1,000 jobs has secured significant investment from Scottish and UK government-backed funders.
Pentland Floating Offshore Wind Farm, off the coast of Dounreay, near Thurso, has attracted the backing of Great British Energy, the National Wealth Fund and the Scottish National Investment Bank (SNIB). The investors have each acquired an initial shareholding to participate in the development of Pentland.
The ambitious project, being developed by Highland Wind, is majority owned by Copenhagen Infrastructure Partners. It will use a number of “innovative technologies” to help accelerate the industrialisation of floating offshore wind. More than 1,000 jobs are expected to be created and supported throughout the construction and operation phases.
Floating offshore wind projects are said to hold huge potential for the UK’s energy market.
Dan McGrail, chief executive of Great British Energy (GBE), said: “This is just the beginning of our investment strategy and will help bring good, skilled jobs to the Scottish Highlands.
“I am pleased to work with the National Wealth Fund, the Scottish National Investment Bank and Copenhagen Infrastructure Partners on this project - this sets out our aspiration to become the UK government’s energy developer. It also reflects GBE’s ambition, capability and commitment to making the UK a clean energy superpower.”
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Mark Munro, chief investment officer at SNIB, said: “The offshore wind potential in Scotland is considerable both as a source of energy and, particularly with floating, to export our supply chain. However, substantial investment is needed to capitalise on the opportunity and ensure it delivers a transformational impact for our economy and our communities.
“Our commitment of up to £50 million to support the Pentland project is an important step toward developing a thriving and sustainable economy.”
Chancellor Rachel Reeves said: “Bolstering our energy security to lower people’s bills is key for boosting living standards and growing an economy that works for, and rewards working people.
“This initial investment will help cement Scotland as a homegrown, clean energy powerhouse, powering tens of thousands of homes and supporting over 1,000 good jobs.”
Scotland’s deputy first minister, Kate Forbes, added: “This investment means the Scottish National Investment Bank can work closely with the developer to support the Scottish supply chain, enhance innovation and boost job opportunities.
“We are leading the way in the floating wind sector but are ambitious to go further and take full advantage of the economic opportunities Scotland’s natural resources and technical expertise provide.”
The investors have acquired minority stakes in the project each with the option to invest up to £50m as it progresses through development and construction milestones.
Earlier this week, North Sea developers warned the SNP’s flagship ScotWind risks falling flat unless a controversial Chinese manufacturer is allowed to open a factory in the Highlands.
The warning linked to Chinese firm MingYang comes amid fears it is “highly unlikely” projects can be built in time “by existing Western” companies.
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