The Press and Journal (Inverness, Highlands, and Islands)
Decisions over green freeports could be just three months away
Tenders for Scotland’s two green freeports could be awarded as early as July. Inverness-based Global Energy Group (GEG) and Port of Cromarty Firth (PoCF), partners in bidding consortium Opportunity Cromarty Firth (OCF) are looking to secure £25 million of UK Government funding.
The OCF consortium was launched two years ago with the aim of creating a free trade zone – centred on the Cromarty Firth – to help secure energy projects, as well as support and create jobs in the Highlands benefiting from tax relief and other incentives.
The ambitious bid is backed by PoCF, Port of Nigg owner GEG and more than a dozen regional businesses, along with public sector organisations and academic bodies.
The question on everyone’s lips in the Highlands is how many jobs? With gigantic projects such as ScotWind not likely to materialise until the late 2020s, the thousands of new posts some have mentioned will probably not happen for a few years yet.
“Nigg and the wider Cromarty Firth in aggregate have already had £165m overall investment made in them,” GEG operations director Steve Chisholm said. He added: “We have delivered 2.8 gigawatts of wind, mostly offshore, but some onshore.
“We have also delivered six megawatts of tidal energy and numerous prototypes for wave energy, so it is oven ready. If it has already had that
money spent on it, why does it need more?
“The reality is the scale of developments governments are looking for in terms of renewable energy are such they require much larger facilities than we currently have, so considerably more investment is needed.”
Mr Chisholm continued: “We are not starting off from a walking pace, we are hitting the ground running. We have proved to developers, governments and industry bodies we can deliver.
“What we want to create are long-term sustainable, well-paid jobs. It is our families, our children, grandchildren we are looking to provide for.
“Freeports – because of legitimate tax advantage – allow for inward
investments to make a more compelling business case. There is almost £1 billion of spend per gigawatt. That is going to create more jobs.”
Mr Chisholm said there could be “multiple factories” attracted into the area, while hydrogen developments were also likely to bring “potentially thousands of new jobs” – as would clusters of small businesses such as hotels, restaurants and shops.
The Cromarty Firth, on the east coast of the Highlands, was last year identified as the “most suitable location for a Scottish floating wind cluster” in a strategic investment assessment published by the Scottish Offshore Wind Energy Council.
In addition to offshore energy production,
members of the OCF consortium, such as Port of Inverness, play roles in supporting development of other forms of renewables, including pumped storage hydro power and onshore wind.
Energy security has shot to the top of Westminster’s in-tray following Russia’s invasion of Ukraine and a subsequent spike in fuel prices.
PoCF strategic business development manager Joanne Allday said: “Everything in our bid is about clean energy and accelerating the change to renewable and security, which has become much more important in recent weeks.
“The supply chain locally has 40 years of experience in oil, gas and renewables. We are the leading location in
Europe for drilling rigs which come into the firth for inspection, repair and maintenance.”
Ms Allday added it was recently confirmed through the English freeport process, local regions would be able to retain business rates above a certain line agreed with the government and that non-domestic rates retention in Scotland would also be available.
“You can imagine for Highland Council how they could reinvest that money,” she said, adding it could be “vastly more” than the £25m seed funding.
“You have also got tens of billions of pounds about to be spent on the ScotWind projects and the majority of these are on our doorstep – it is perfect timing.”