Orkney Islands Council’s plans to construct a deep water facility in Scapa Flow to service the renewables industry took a stumble this week when it failed to secure funding from the UK Government’s FLOWMIS scheme. But it has been placed on the reserve list.
The FLOWMIS scheme supports the construction of port infrastructure for the floating wind sector. Projects require considerable funding investment from the private sector in order for projects to go ahead. The two projects which have been favoured, Port Talbot and the Port of Cromarty Firth, have plans well in advance of those under consideration in Orkney.
OIC Chief Executive, Oliver Reid, said that with councillors still insure about whether to give the scheme the go ahead that being placed on the reserve list “is the right place for us to be. This gives us space and time to work on those other aspects – and scope for further discussion with Government on our requirements.”
There are two possible schemes being put forward for Orkney: a deep water quay at Scapa and a logistics base at Hatston.
Leader of OIC Councillor Heather Woodbridge welcomed the FLOWMIS announcement. She said:
“I welcome the FLOWMIS announcement, and where Orkney has been placed within the funding arrangements. The fact that this project has been placed on the reserve list is encouraging and endorses the validity of the project in the wider context of offshore wind infrastructure in Scotland. We understand we are at an earlier stage compared to the successful FLOWMIS projects, and so this funding decision reflects where we are right now, as this project progresses towards a full business case.
“Our next steps will be to receive further feedback from the Government on our application, to continue to investigate with Government and industry the additional funding opportunities that exist. We will also continue to interrogate as a Council, alongside our community, the opportunities that exist for Orkney from offshore wind.”
Port Talbot, Wales, and the Port of Cromarty Firth, Scotland are the two preferred projects for sharing in the £160million funding.
Work would involve the possible dredging of the seabed to make it deeper, and port infrastructure that would be capable of taking the massive concrete and steel components, and mooring posts.
Reaction to Port Talbot
Port Talbot is part of The Celtic Freeport, alongside the Port of Milford Haven.
Henrik L. Pedersen, Chief Executive Officer of Associated British Ports, said:
“ABP is pleased that the UK Government is supporting the ambitious plan to transform the port of Port Talbot into a major hub for Floating Offshore Wind and green energy development. The FLOWMIS award, alongside significant ABP investment of more than £500 million, will begin to unlock a projected £1 billion of investment in Port Talbot and the surrounding area. This will develop a green economic hub supporting and creating nearly 10,000 jobs in South Wales and across the wider UK supply chain.”
“Today’s decision comes at a crucial time for Port Talbot and South Wales more broadly. The funding announced will help secure the region’s future as a hub of next-generation UK industry, providing thousands of jobs in the green economy right across the supply chain.”
“ABP is grateful that its bid was also supported by local members of both UK and Welsh Parliaments, Neath Port Talbot Council, the Welsh Government and by local, national and international businesses in the floating offshore wind supply chain. We look forwarding to working closely with all stakeholders as we progress into the due diligence phase of the FLOWMIS process and work to deliver our plans at pace.”
The Floating Offshore Wind Manufacturing Investment Scheme (FLOWMIS) was established in March 2023 by the UK Government to support critical port infrastructure that will enable the delivery of floating offshore wind. This is a grant scheme of up to £160 million.
Reaction to Port of Cromarty Firth
ABP also welcomed the decision to move forward the FLOWMIS bid of the Port of Cromarty Firth (PoCF) to Primary List phase. ABP has recently signed an agreement concerning parcels of land in the Cromarty Firth area and is investigating options for development to support FLOW and green energy development there.
Over £50 million has been earmarked for PoCF’s forthcoming Phase 5 expansion, which will see the port expand its facilities and infrastructure for the north of Scotland’s fast-growing renewables sector.
Welcoming the FLOWMIS announcement, Bob Buskie, chief executive of PoCF, said:
“We are absolutely delighted to be one of two ports chosen nationally to progress to the next stage of this funding scheme.
“The offshore wind industry has made it clear that Port of Cromarty Firth is critical to the forthcoming large-scale expansion of the offshore wind industry, which is needed to deliver national energy security and net-zero commitments.
“Developers supported the Port in the region’s bid to become one of Scotland’s two Green Freeports and, earlier this year, selected the Phase 5 expansion as one of three Scottish projects chosen to progress in the SOWEC Strategic Investment Model (SIM).
“The proposed expansion, along with the SIM and the Green Freeport, will catalyse economic growth and create year-round jobs in green energy for many decades.
“Today’s announcement will provide certainty for offshore wind developers that the infrastructure they need will be ready in time to deliver their projects and will hopefully now unlock the other elements of the financial plan necessary to meet the Government’s due diligence requirements so that construction can begin.”
The PoCF is part of the Inverness and Cromarty Firth Green Freeport.
Commenting on the Cromarty Firth scheme, Emma Harrick, Head of Energy Transition and the Supply Chain at Scottish Renewables, said:
“Strategic investment in Scotland’s ports has been a longstanding ask of the renewable energy industry so it is great to see this fresh investment into the Port of Cromarty Firth. This funding will help to support Scotland’s renewable energy future as the mainstay of clean energy generation in the UK.
“To make the most of FLOWMIS we are urging the UK Government to consider flexibility in the timescales for this scheme as spending deadlines are currently restrictive and do not reflect the investment barriers our ports face.
“A sea of opportunity is on the horizon for Scotland’s offshore wind supply chain and if we are to harness this economic potential it is vital that both the UK and Scottish Government support all strategic ports with a spirit of collaboration.
“Today’s announcement is welcome however this funding is only a drop in the ocean and supply chain support like this needs to be delivered at pace to establish a world-class renewable energy supply chain in Scotland.”
Fiona Grahame