Scottish Construction Now’s Post

There was a sense of guarded optimism in Aberdeen last week about the prospects for floating offshore wind in Scotland, which is set to account for 75% of the UK's floating capacity up to 2030. Guarded, because the industry faces a gigantic "chicken and egg" problem. ScotWind wind farm developers can't make contractual commitments to wind turbine manufacturers or ports (for assembly and supply chain) because they don't know if the supply chain and port infrastructure will be in place in time for "final investment decision" (FID) on their projects. The financial risk of doing so is too high. Yet without knowing with reasonable certainty that all the moving parts will be in place in time, they can't be certain that FID is a reasonable certainty by the time it's envisaged in their plans. For the ports and supply chain manufacturers keen to win developers' business, booking business now is urgent because of project timeline and cashflow cyclicality (which is why wind turbine companies like Vestas and Siemens Gamesa have experienced such financial turbulence of late). As an executive at a Chinese floating substructure company told me at the Floating Offshore Wind 2024 conference in Aberdeen last week: "Everyone is waiting for the apple to fall from the tree." In Saturday's The Scotsman I wrote a short piece explaining how the industry sees things: Scottish Renewables RenewableUK P&J Live Oil States Industries Energy Transition Zone Ltd Mooreast

𝐏𝐥𝐚𝐧𝐬 𝐥𝐨𝐝𝐠𝐞𝐝 𝐭𝐨 𝐛𝐮𝐢𝐥𝐝 𝐨𝐟𝐟𝐬𝐡𝐨𝐫𝐞 𝐰𝐢𝐧𝐝𝐟𝐚𝐫𝐦 '𝐟𝐨𝐮𝐫 𝐭𝐢𝐦𝐞𝐬 𝐭𝐡𝐞 𝐬𝐢𝐳𝐞 𝐨𝐟 𝐀𝐛𝐞𝐫𝐝𝐞𝐞𝐧' Plans to build one the largest floating offshore windfarms in the world have been lodged with the Scottish Government. The site of the proposed Ossian project is a whopping 331sq miles, more than four times the size of Aberdeen, and would be capable of powering up to six million homes annually. The project would have a capacity of 3.6gigawatts (GW) and is a joint-venture between SSE Renewables, Marubeni Corporation and Copenhagen Infrastructure Partners (CIP). This project highlights the ambition as we aim to turn the North-east into the net zero capital of Europe. 📰 Read more: https://lnkd.in/eC4uyDRk #Aberdeen #Aberdeenshire #offshorewindfarm

One of the world's biggest floating offshore wind projects, located off the Aberdeenshire coast, gets the green light ✅ Green Volt, Europe's first commercial-scale floating windfarm and a 50-50 joint venture between Aberdeen-based Flotation Energy and Norwegian firm Vårgrønn, is expected to create up to £3 billion of investment opportunities and hundreds of new jobs 🤩 Sir Ian Wood, Chair of the Energy Transition Zone (ETZ) said: “The awarding of consent for the Green Volt INTOG project is a massive boost for Scotland’s ambition to be a global leader in floating offshore wind. Crucially, it also sends a huge signal to domestic and international investors that Scotland is indeed a pioneer in this technology and the ideal location to manufacture and deliver floating wind developments.” #ScotlandIsNow #EnergyTransition https://ow.ly/JZ9b50RlfQO

Long term offshorewind development in UK : UK has a plan ! RenewableUK, the Offshore Wind Industry Council, The Crown Estate and Crown Estate Scotland have published an Industrial Growth Plan, setting out how to triple offshore wind manufacturing capacity over the next ten years in the UK. The UK offshore wind industry already employs 32,000 people and each new large offshore wind farm adds GBP 2-3 billion to the economy. Employment is set to rise to over 100,000 by 2030 and investment in new offshore wind projects is expected to create an economic opportunity worth up to GBP 92 billion for the UK by 2040. The measures set out in the Industrial Growth Plan (IGP) would create an additional 10,000 jobs a year and boost the UK’s economy by a further GBP 25 billion between now and 2035, if the offshore wind deployment is accelerated in line with the country’s net zero targets to 5-6 gigawatts a year, the report states. The UK has the second-largest global pipeline of offshore wind projects at all stages of development at nearly 100 GW – more than six times our current capacity. The IGP also identifies five key technology areas in which the UK should prioritise investment to secure value for UK industry. These include the design and manufacture of offshore wind blades and turbine towers, foundations, cables and other key components and services for projects here and abroad. The Growth Plan also highlights the industry’s potential to drive technology innovation, accelerate deployment and cut environmental impacts even further by incorporating automation and AI technologies in new projects. It sets out plans to expand testing facilities for cutting-edge technology, such as new materials for blades and designs for floating offshore wind platforms, as part of a focus on Research and Development at a potential new Advanced Technology Institute and a new National Innovation Hub, working in harmony with UK’s Catapult network. The plan aims to provide a shared vision which enables industry, governments across the UK and other funders to better align their investments to boost green jobs and manufacturing in the UK. The plan envisages mobilising nearly GBP 3 billion of funding nationwide, with private finance doing the heavy lifting. This is expected to bring a return to our economy of just under GBP 9 for every GBP 1 invested. ”Establishing this supply chain will take co-ordination and collaboration across UK governments and industry, and the IGP provides the detail needed to target those areas where we can have the biggest impact,” Gus Jaspert, Managing Director, Marine at The Crown Estate, said...: https://lnkd.in/eBK_XSJd

🌊💨 Aberdeen: The New Frontier for Floating Offshore Wind This article was published by Jeremy Grant in The Scotsman last week about the floating offshore wind conference in Aberdeen: https://lnkd.in/g246iXJs Here's why CLS Wind needs to be part of this crucial conversation about Scotland reaching it's floating offshore wind potential: Key Takeaways: 📊 Scotland accounts for 75% of UK's 2030 floating wind target 🏗️ GB Energy HQ creating hundreds of jobs in Aberdeen 🚀 UK is 3rd largest floating wind market globally Challenges & Opportunities: 1️⃣ Commercial viability at scale 2️⃣ Rising costs affecting project viability 3️⃣ Grid upgrades and supply chain gaps 4️⃣ Port infrastructure adaptation How CLS Wind Can Address These: ✅ Cost Reduction: Our system cuts installation costs by up to 50% ✅ Scalability: Works with various foundation types, including innovative designs like OSI Renewables' crossover platform ✅ Port Adaptation: Reduces port infrastructure requirements by 70% ✅ Supply Chain: Enables use of smaller, more available local vessels Projects to Watch: • ScotWind • INTOG • Green Volt (Europe's largest floating windfarm) The government-industry floating offshore wind taskforce envisions 100,000 jobs by 2050. CLS Wind could be the "big bang needed to de-risk offshore wind and unlock financing and insurance." Cllr Gillian Owen, Aberdeenshire Council Scottish Renewables RenewableUK Energy Transition Zone Ltd GB Energy #FloatingOffshoreWind #Aberdeen #Innovation #CLSWind #EnergyTransition #ScotWind #INTOG #GreenVolt #cSolutions

This is a classic case of failing to provide the information needed for the public, councils, civil servants and others to fully understand who is behind big investments in renewables like this one. Saying that Green Volt is a joint venture between Flotation Energy and Vårgrønn presents only part of the picture, and not one that will mean much to most readers since almost no-one has heard of either one, likely set up quite recently as special purpose entities. In fact, Green Volt is effectively a venture between a large Japanese power utility called Tokyo Electric Power Company (Tepco) - the Flotation Energy bit - and Eni, Italy's largest oil, gas and renewables group, with investment from some Norway-based private equity investors - the Vargronn bit. This means that one of the largest offshore wind projects in Scotland is owned and being developed by companies from Japan and Italy, with additional investment from elsewhere (and, by the way, foreign investment is a good thing). It is not owned and being developed (at least, not exclusively) by a company in Aberdeen, Scotland. Aberdeen is merely the location of the wind farm's operational headquarters. Specifying the companies and investors that are ultimately putting money into a project, and who therefore are the ultimate decision-makers, is essential in order for transparency and accountability, especially in an area as important as the build-out of renewable power and infrastructure in Scotland. We need more of this, as offshore wind is built out. #Scotland #Japan #Italy #renewables #offshorewind Scottish Enterprise

It is great to see progress in renewable energy! The approval of the world’s largest floating offshore wind farm makes a significant step towards harnessing clean power and building a sustainable future. To read the full article: #RenewableEnergy #WindPower #Sustainability

Billions of pounds of investment opportunities and new jobs are expected to be created following the approval of one of the world's biggest floating offshore wind projects, Green Volt ✅ Europe's first commercial-scale floating windfarm, located off the Aberdeenshire coast, is a 50-50 joint venture between Aberdeen-based Flotation Energy and Norwegian firm Vårgrønn. Sir Ian Wood, Chair of the Energy Transition Zone (ETZ) said: “The awarding of consent for the Green Volt INTOG project is a massive boost for Scotland’s ambition to be a global leader in floating offshore wind. “This decision will unlock around £3 billion of investment, generate hundreds of jobs and will effectively result in Europe’s first commercial scale floating wind development. #ScotlandIsNow #EnergyTransition https://ow.ly/JZ9b50RlfQO

Good news for the UK offshore wind economy. RenewableUK, the @Offshore Wind Industry Council, The Crown Estate and Crown Estate Scotland have published a detailed Industrial Growth Plan, setting out how to triple offshore wind manufacturing capacity over the next ten years, firmly establishing the UK as a leader in a surging global market.

🌟 Breaking News in the Power Systems Sector! 🌟 🟢California's Hydrogen Hub Launch: California has unveiled the nation’s first hydrogen hub, marking a significant milestone in clean energy. This pioneering initiative aims to advance hydrogen as a key component in the transition to a sustainable energy future. 🔋 Read more: https://lnkd.in/dxcJarCB 🟢Australia's Solar Manufacturing Boost: Australia is investing $550 million to enhance its solar manufacturing capabilities. This move is set to strengthen the local industry and support the country's renewable energy goals. ☀️ Read more : https://lnkd.in/d63J3ZS9 🟢UK Windfall Tax Impact: Recent changes to the UK windfall tax could potentially reduce North Sea revenue by £12 billion, according to industry experts. This adjustment is likely to have significant implications for the energy sector. 💼 Read more: https://lnkd.in/dVWy7feV 🟢Ørsted's Expansion in the US: Ørsted is expanding its U.S. headquarters with a new $1.5 billion EPC hub in Providence. This strategic expansion underscores Ørsted’s commitment to scaling up its operations and advancing renewable energy projects in the U.S. 🌎 Read more: https://lnkd.in/diKtQ4W6 #PowerSystemsTechnology #Hydrogen #SolarEnergy #Renewables #EnergySector #Innovation