First Minister John Swinney and the UK Energy minister Michael Shanks came together today to deliver a shared ambition to put Scotland’s offshore wind sector at the forefront of the European clean energy industry.

They told a gathering of senior business, energy and infrastructure leaders in Edinburgh that Scotland is in a “unique position” to build on the expertise developed in the North Sea oil and gas sector.

As reported by Daily Business yesterday he said the potential capital value of the Scottish offshore wind market could be around £100 billion.

Significantly, he spoke of developing close links with markets in Europe which are seeking cleaner fuels and the need for the continent to seek sources of energy that do not rely on Russia and other volatile states,.

“Our geographic location not only provides us with naturally occurring strong winds, it places us on the doorstep of large European markets with existing deep sea ports infrastructure,” he told the Global Offshore Wind Investment Forum, held at the Caledonian Hotel.

“The European Union urgently seeks to ensure its energy independence and the proportion of its energy that comes from renewables. We are in an ideal position to meet those needs here in Scotland,” he said.

“To go along with our location, is our history. We have long decades of offshore experience thanks to our proud heritage in the North Sea oil and gas industries. 

“That heritage and the skills that come from it – combined with our world leading subsea engineering capabilities – give our workforces the experience and expertise needed to capitalise on the opportunities provided by offshore wind. “

He said Scotland has already gained a significant first-mover advantage in the development of floating offshore wind. In 2017, Scotland became home to the world’s first commercial floating wind farm, and n 2022 held the world’s largest leasing round for floating offshore wind, resulting in 20 projects with seabed option agreements.  Fourteen of these are floating wind projects.

In fixed bottom offshore wind, Seagreen, the world’s deepest fixed bottom offshore wind farm, has been fully operational in Scottish waters since 2023. And the Moray West wind farm uses the world’s largest wind turbines in production.

“While these are terrific successes, the best undoubtedly lies ahead of us.  To put it in perspective, we currently have 3GW of offshore wind capacity operational in Scottish waters. We have over 40GW in potential projects in the pipeline.”

Mr Swinney stressed the importance of stability as key to making progress, stating that there is a “policy consensus in the Scottish Parliament on the importance of offshore wind to Scotland. 

“And there is commitment across the United Kingdom, with our work with the United Kingdom Government as well. I’m delighted that Michael Shanks, the Minister for Energy from the United Kingdom Government, is here with us today and will speak and participate in the event. Because what that says is that the Scottish and United Kingdom Governments are closely aligned in all of our aspirations here.”

Mr Swinney said both governments were “committed to growing our economies through clean, secure energy and infrastructure. We understand the importance of a good investment environment to this industry. And we understand that a good investment environment needs stability, consistency and predictability.”

He added: “We are working together, at pace, in areas such as grid access and energy market reforms. And my Government is taking the necessary action in the areas of devolved responsibility under our control on questions such as consenting, marine licensing, and strategic investment.

“Our shared aim between the Scottish and United Kingdom Governments is to create a policy environment that gives you the certainty and the clarity you need to make sound investment decisions. And the investment-friendly ecosystem that you need to make those decisions successful.

“But our approach is not only one of policies. It is one of direct, concrete action. And one of direct, public investment.”

This is backed by £500m of government support over five years to spur private investment in ports, manufacturing and fabrication facilities, helping to anchor the offshore wind supply chain in Scotland.

Comment: Swinney upstaged by ferries contract announcement

GB Energy board holds first meeting

Mr Shanks also attended the first board meeting of the Labour government’s GB Energy company which will invest in offshore projects.

He joined chairman Juergen Maier and newly appointed interim CEO Dan McGrail in Aberdeen where the company will be based.

In an article today, Mr Maier responded to reports and speculation that there would be 1000 jobs at its HQ.

“The debate about how long it will take to create 1,000 jobs in our HQ has been puzzling,” he said. “You actually want your HQ organisation to be as lean and innovative and smart as possible, and you want to create as many jobs as possible in the Port of Nigg, or in Fraserburgh, or in the Port of Aberdeen, or in the various projects and supply chains.

“I’m uber optimistic that as a company, we will be creating literally tens of thousands of jobs in those areas.”

“The opportunity for significantly more clean power and reindustrialisation of these key industrial heartlands is what excites me, and I am delighted to have such an amazing Board driving this forward.”

GBE will release more details on its investment strategy over the coming months.

He said: “Number one is investing in developments and projects that ultimately pave the way to us becoming that clean power company.

“Number two, is creating as many local jobs as possible. The projects we invest in must have a strategy to both create jobs in the projects themselves, and also in the supply chain.

“Another key criteria is clearly the pace at which it helps accelerate getting more clean power generated for the British people.”

Mr Shanks confirmed that GBE will be backed by £8.3 billion over the term of this parliament.

He said: “We now have a fantastic team in place to lead Great British Energy and establish the company in Aberdeen.

“By unlocking homegrown clean power projects, Great British Energy will support thousands of well-paid jobs in Scotland and across the country, and deliver energy security for the British people.

“Today’s meeting of the new board members marks another step forward for the company as it gears up to make its first investments.”