MoU signed

Hyundai backs offshore wind projects in Scotland

Hannae Choi, centre, with Adrian Gillespie (SE), Shona Robison and Stuart Black (HIE)

South Korean company Hyundai Heavy Industries is investing in the design and manufacture of floating offshore wind structures in Scotland.

Scottish Enterprise (SE) and Highlands & Islands Enterprise (HIE) signed a Memorandum of Understanding (MoU) with the company in Edinburgh, its first agreement in Europe to back the industry.

HD Hyundai Heavy Industries is the world’s largest shipbuilding company and a major manufacturer of equipment such as the floating substructures that form a critical part of the multi-billion offshore wind supply chain.

A Hyundai executive confirmed the prospect of investment in manufacturing offshore structures in Scotland.

The latest in a series of key developments in the sector, the MoU follows the First Minister’s announcement of strategic investment of up to £500 million over the next five years to unlock private investment in ports, manufacturing and assembly work to anchor the offshore wind supply chain in Scotland.

DeepWind offshore
Offshore wind structures are in demand

It also builds on recent announcements of international investment into the renewable energy supply chain, including the planned £350m Sumitomo cable factory in the Port of Nigg, based in the Inverness and Cromarty Firth Green Freeport area. Up to £24.5m of funding has been committed to this project by the Scottish Government, SE and HIE.

Deputy First Minister Shona Robison, who witnessed the MoU signing, said: “This partnership agreement is a vote of confidence in Scotland and our offshore wind industry – demonstrating our ability to develop the international relationships upon which investment that will help us reach our climate targets is founded.

“Scotland’s offshore wind sector is key to our transition to net zero and this partnership is the next step forward in realising the economic opportunities from our floating offshore wind potential.”

Hannae Choi, a senior vice president at HD Hyundai Heavy Industries, said: “We are currently exploring ways to collaborate with various partners to develop the offshore wind market, including establishing a manufacturing supply infrastructure.

“We plan to expand the market by leveraging our world-class know-how in designing and manufacturing floating structures.”

Emma Harrick, head of energy transition and supply chain at Scottish Renewables, said: “Scotland has a proud reputation as a global leader in the renewable energy industry and this agreement is yet another example of the intense global interest in Scotland as a renewable energy powerhouse.

“With the world’s largest floating offshore wind pipeline it is no surprise that a globally renowned business, like HD Hyundai Heavy Industries, wants to invest in our industry and establish a manufacturing base to supply foundations for wind turbines that will be deployed not just in Scotland but across the world.

“However, while we welcome potential inward investment there are a number of key issues that must be addressed, not least those of timely consenting, grid connections and growing a local supply chain, if Scotland is to make the most of its offshore wind potential.”

Innovative wingsail helps cut shipping emissions

An innovative retractable wingsail that developer Smart Green Shipping estimates can save commercial shipping companies up to 30% fuel per year will be launched by First Minister Humza Yousaf today.

Its development has been supported by £1.8 million Scottish Enterprise grant funding and £1.35m equity investment from Japanese shipping company MOL Drybulk and Scottish Enterprise, with South of Scotland Enterprise helping the company establish a base in Dumfries.

The UN has said that shipping emits nearly 3% of global greenhouse gas emissions, therefore worldwide efforts to decarbonise the sector are crucial to meeting climate targets.

The rigid wingsail is entirely manufactured in Scotland from 100% recycled materials, and Smart Green Shipping has progressed the project with input from other Scottish engineering companies including Caley Ocean Systems and Malin.

The First Minister will raise the 20-metre FastRig wingsail for the first time at Smart Green Shipping’s test site at Hunterston Parc alongside Founder and Chief Executive Diane Gilpin.

Ahead of the event, he said: “Smart Green Shipping’s work on their impressive FastRig technology is typical of the type of economic opportunity the just transition to net-zero affords Scotland – as the ideal test bed for new, green technology.”

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