ETZ, the not for profit private sector-led company spearheading northeast Scotland’s energy transition, has been handed £17.3 million from the UK Government that was promised by the Conservative government.

Scotland Secretary Douglas Alexander claimed the funding will “create jobs and bring down bills”, a statement likely to be challenged by those who accuse the Labour government of failing to deliver on other pledges about jobs and bills.

The ETZ operates from a base near Aberdeen South Harbour which has been redeveloped to provide the deepwater berths and other infrastructure needed for offshore wind manufacturing.

ETZ, chaired by the industrialist Sir Ian Wood, will also aim to leverage inward investment and support the renewables supply chain.

The latest funding, which is less than half the £40m recently donated by Sir Ian, was committed by the previous administration but was not delivered. 

Scottish Secretary Douglas Alexander said: “The UK Government’s £17.3m investment in Aberdeen’s Energy Transition Zone will create jobs and bring down bills. This investment will accelerate a renewables hub which will help to deliver a thriving renewables sector in and around Aberdeen.

Maggie McGinlay, chief executive at ETZ Ltd, said: “To ensure North East Scotland remains a thriving hub of energy excellence, we must have government and industry working in partnership to support our world-class supply chain who will lead the delivery of the vast pipeline of energy transition projects, particularly offshore wind, on our doorstep.” 

The UK Government has already invested £9.7m in the ETZ. That includes £5m for the Innovation Campus.

Mr Alexander was in Aberdeen to meet energy suppliers to discuss the UK Government’s clean energy ambitions. While in the city he attended an energy round table, met Great British Energy, was shown round the Floating Offshore Wind Innovation Centre in the Energy Transition Zone, and visited Aberdeen South Harbour.

On Friday (31st) Mr Alexander will meet US Ambassador Warren Stephens in Edinburgh to discuss trade affairs for key industries in Scotland, including the whisky, energy and defence sectors. 

In a dig at Scotland’s First Minister John Swinney, he said: “Scotland’s interests are best served when the UK speaks with one clear voice on the international stage. Division at home simply weakens us abroad.

“The UK Government is committed to using our experience, expertise and negotiating power to deliver for Scotland.”

Mr Swinney has been on a charm offensive in the US, courting President Donald Trump at home and during an unprecedented visit to the White House.

Another round of negotiations between the UK and the United States are expected in the weeks ahead.

Battery deal

Drax has signed an agreement with Apatura to acquire three battery energy storage system (BESS) projects in Scotland and the north of England, which when fully commissioned will provide 260 megawatts of capacity.

The company will pay £157.2 million in staged payments between this year and 2028, “reflecting construction milestones and including payments to Apatura linked to their delivery of the projects”.

The plants are in Neilston in East Renfrewshire, and East Kilbride in South Lanarkshire, and in Marfleet in Hull. Marfleet and Neilston have planning permission while East Kilbride has a planning application pending. 

Will Gardiner, Drax Group chief executive, said: “This acquisition is our first investment in short duration storage as part of our FlexGen portfolio, supporting UK energy security and a clean power system.

“As the UK’s network increases its reliance on intermittent renewables, more dispatchable and reliable generation will be required to help keep the lights on when the wind isn’t blowing or the sun isn’t shining.”