TotalEnergies has opened a UK offshore wind hub in Aberdeen and unveiled £140m investment in local supply chain infrastructure in partnership with ScotWind partners Green Investment Group and Renewable Infrastructure Development Group (RIDG).
The offshore wind hub will help enable the transition of TotalEnergies’ staff from oil and gas to the renewables sector as that part of the company’s business grows in the country.
TotalEnergies chief executive and chairman Patrick Pouyanne said: “Investing in energy projects in Scotland and the North Sea has been at the heart of TotalEnergies’ history.
“I am proud of the success of our partnership with Scotland and of our joint achievements, in particular the development of the offshore industry.
“With the energy transition gathering speed, we see Scotland as a great place to broaden our relationship by investing in offshore wind.
“As a global multi energy company long engaged in UK energy supply, our decision to base our UK Offshore Wind Hub here in Aberdeen is a mark of our confidence in the future of renewables in the UK and our continued commitment to Scotland and the North Sea.”
The £140m investment would be allocated across a range of initiatives, if the trio are successful with their 2GW bid for the West of Orkney wind farm.
Money would be spent on direct support for supplier development and the enhancement of ports and harbour infrastructure in Orkney, Caithness, and more generally in Scotland.
A Supply Chain and Infrastructure Investment Fund would be established to enhance the capabilities and competitiveness of key suppliers and a targeted local skills development programme would be set up.
The investment will be made during the initial phase of development, before the final investment decision is taken.
It will be funded by £105m of direct commitments from the partners supplemented up to £140m by a matched funding from third parties raised by the partners.
The initiatives would help the consortium reach its ambitions to deliver up to half of the project’s content in Scotland over its lifetime through collaboration across industry, with a commitment to 60% overall in the UK.
Pouyanne said: “The decision to commit £140m in early investment to support the local supply chain demonstrates our commitment to the region, its industry and its people.
“This investment will ensure that Orkney, Caithness and the Scottish supply chain benefit from our West of Orkney wind farm project from the start.
“It will support essential infrastructure to help attract more green energy projects and jobs.”
Green Investment Group global head Mark Dooley said: “Our business has a proud Scottish heritage, and we are focused on delivering a wind project that maximises the economic opportunity for Scotland.
“This unique early-stage investment will play a significant role in growing the local supply chain – and should help ensure a more inclusive energy transition around Orkney and Caithness.”
RIDG director Mike Hay said: “We have been working together with our supply chain alignment partners, and wider interested parties, for some time, to build a mutual understanding between their growth plans and the needs of our project.
“This has allowed us to develop targeted investment plans that can be triggered on site award and further reinforced through our supply chain investment fund as time goes on.
“This is not a ‘business as usual’ approach, it is instead a commitment from day one to ensuring that the West of Orkney wind farm delivers for the Scottish economy.”