The Courier & Advertiser (Fife Edition)
BiFab hits out at loss of lifeline deal
‘NO PROSPECTS’: Fife firm slams Scottish Government
Fife company BiFab has hit out at the Scottish Government for pulling support as it looks certain to lose out on a lifeline wind farm deal.
A contract to provide eight turbine jackets for the Neart Na Gaoithe (NnG) project would have brought 200 workers back to its Fife yards.
BiFab owner DF Barnes said the Scottish Government, which has a minority stake in the company, had refused to provide assurances for the work.
The future of the company is now in doubt as it admitted the refusal now made the award of the contract “very challenging”.
Union bosses described the collapse in the NnG deal as “scandalous”.
“A decade which started with promises of a ‘Saudi Arabia of Renewables’ supporting 28,000 full-time jobs in offshore wind now finishes in mothballed fabrication yards and no prospect of any... jobs on the horizon,” GMB Scotland and Unite said.
The Scottish Government said it could only financially support BiFab as far as any other commercial investor and accused DF Barnes of a lack of investment in the yards.
Awind farm deal that would have seen 200 workers return to BiFab’s yards is on the verge of collapse, putting the future of the company in doubt.
BiFab had previously been selected by the developers of the Neart Na Gaoithe (NnG) offshore wind project to provide “at least” eight foundation jackets – used to anchor the turbines to the seabed.
However this deal is now in doubt after BiFab owner DF Barnes accused the Scottish Government of pulling its support.
It comes just weeks after BiFab also lost out in a bid to win work on the Seagreen offshore wind project off the coast of Angus – with the work instead going to China.
A company spokesperson said: “BiFab can confirm that following a decision by the Scottish Government that it can no longer provide assurances for the NnG jacket fabrication contract, the company has informed EDF & Saipem that it can’t provide the required assurances for the work.
“BiFab recognises that this makes an award of the contract very challenging.
“The company and its partners have worked extremely hard to secure this important contract.
“Unfortunately, the decision by SSE to award work to Asia over Scotland for their Seagreen project, combined with NnG project delays due to Covid-19, have contributed to this difficult decision.”
EDF Renewables, which is one of the NnG developers alongside Saipem, confirmed it had received the letter from BiFab yesterday but said no final decision had been made.
A spokesperson said: “If a supplier becomes unable to meet its obligations under an agreement, we have a duty to all parties involved in NnG to consider the most appropriate steps to ensure the successful delivery of the project.
“No decisions have been made.”
BiFab was rescued from the brink of administration by the Scottish Government in a £34 million agreement in 2017 before being purchased by Canadian firm DF Barnes in April 2018, although hundreds of jobs were shed. The Scottish Government also provided a loan facility of £15m to support working capital.
It said it had been working collaboratively alongside the BiFab Board, EDF and Saipem to try to find a solution which would allow for the delivery of the NnG contract in Scotland.
A spokesperson said: “The Scottish Government can only financially support Bi Fab, or any other commercial enterprise, in so far as a commercial investor would do the same.
“We will continue to do everything possible to support the business while recognising the need for us to remain in line with State Aid regulations and we will be engaging with trades union sand local representatives in the coming days.”