GFG to invest £60m in hydro power

GFG ALLIANCE has unveiled plans to make a further £60 million investment over the next two years to boost hydro-power capacity in Scotland after acquiring a Highland renewables firm, writes Neill Bo Finlayson.

The group, which owns the Lochaber smelter, announced its intentions on Tuesday April 3 after completing its acquisition of Green Highland Renewables, one of the UK’s leading hydro-power developers, which will now be known as SIMEC Green Highland Renewables (SIMEC GHR).

The acquisition will trigger a programme to build or upgrade 12 hydro schemes in the Highlands by 2021, some of which will be on GFG’s 114,000-acre estate, where it also plans to build a 400-worker alloy wheels factory in Fort William.

GFG is reviewing offering ownership opportunities to local communities as part of its broader community involvement.

Jay Hambro, GFG’s chief investment officer and chief executive of SIMEC Energy, said: ‘The SIMEC GHR team has an excellent reputation for planning, constructing and operating top-quality hydro schemes. They have delivered more than 45 schemes and continue to operate 38 of these today.

‘We are delighted the team is joining the SIMEC Energy family and it will be a valuable asset for the GFG Alliance and for our ambitions to become a major international producer of renewable energy for industry.’

Hydro is a core element in GFG’s strategy to expand its total UK green energy capacity for industry to one gigawatt over the next three years.

In addition to its hydro plans, SIMEC Energy is currently consulting with communities in the Highlands on its proposal for an investment of around £150 million in building a wind farm at Glenshero, designed to generate 164 MW of power. This project will be Britain’s first large-scale subsidy-free wind farm. A planning application for the development is due to be submitted this summer. Ian Cartwright, GHR operations director, said: ‘We’re very excited about becoming part of the GFG Alliance as it will not only enable us to accelerate our existing plans but will give us opportunities to create new projects in the UK and further afield. Our team has a great track record for developing hydro projects and we’re confident we can achieve even more by working within an ambitious organisation like GFG.’

SIMEC GHR’s team of designers, engineers and project managers – based at Perth and Dingwall – is also likely to work with GFG to develop hydro projects outside the UK.