A joint venture of Global Energy Group (GEG) and Spanish company Haizea Wind Group are to receive grant funding through the UK government’s £160m Offshore Wind Manufacturing Investment Support programme, subject to completion of due diligence, for a new turbine tower factory in Scotland.
GEG and HWG will use the investment to develop the £110m manufacturing facility at Nigg Energy Park on the banks of Cromarty Firth in Ross-Shire.
Nigg Offshore Wind (NOW) will be a 450-metre-long, 38,000-metre square factory, capable of rolling steel plate to supply towers which will weigh in excess of 1000 tonnes each and other products, to the UK offshore fixed and floating wind industry and abroad.
It is due to enter construction in January, subject to reaching financial close by year-end, and take 18-months to build.
The NOW factory will receive financial backing totalling £15m in debt from SSE Renewables.
Senior debt will also be provided, subject to due diligence and approvals, by Sequoia Economic Infrastructure Income Fund.
Mainstream Renewable Power is a lender in the funding syndicate, providng £5m in debt, as well as a strategic partner in the long-term development of the facility.
The factory is expected to receive funding support from the Scottish Government via Highlands and Islands Enterprise.
The Port of Nigg rolling facility will be capable of producing up to 135 towers a year, as well as other important structures for the offshore wind industry such as transition pieces, suction buckets and bespoke tubular structures for the floating offshore wind market in the UK and abroad.
The cost of the new facility, inclusive of rolling machinery robotics and a new blast and paint shop is £110 to £120m.
UK Business and Energy Secretary Kwasi Kwarteng said: “The UK is already a global leader in offshore wind with the largest installed capacity in the world, and by ensuring we have the manufacturing base to match, local workers and the supply chain can share in the sector’s success.
“This joint investment shows the strength of our Union as we tackle climate change together.
“We will see highly-skilled workers in Scotland produce key parts for a wind farm situated off the English coastline – delivering a greener future for Scotland and the UK.”
UK Government Minister for Scotland Malcolm Offord said: “This is a tremendous jobs boost for Easter Ross and the surrounding area. We have long been recognised for our expertise in the energy industry and now our skilled workforce is leading the way in our transition to a greener future.
“It’s especially fitting that this area, synonymous with the oil boom in the 1970s, is leading the way as we embrace new cleaner sources of power.
“This joint investment will not only safeguard existing jobs, it will create new ones as we journey towards Net Zero by 2050 and continue to build back better and greener from the pandemic.
GEG chief executive Tim Cornelius said: “The announcement today of a state-of-the-art tower rolling factory at the Port of Nigg can and will be a leading example of the ‘green recovery’ in action.
“It will create more than 400 direct long term, high-value jobs, and will offer our existing clients and new customers from around the world with the opportunity to buy ‘Scottish’ – meaning offshore wind developers can achieve their local content targets whilst helping the UK economy recover in a green and sustainable way.
“We are delighted to be partnering with Haizea who will bring their tower manufacturing expertise and knowledge to the Highlands of Scotland.”
Haizea chief executive Borja Zarraga said: “Haizea is delighted to be partnering with GEG to develop a state-of-the-art tower rolling facility at the Port of Nigg in Scotland.
“We are recognised as world leaders in tower rolling technology and the UK is an important market for us to operate in.
“We know how important local content is for our clients and customers, and I am very confident that when the GEG reputation for manufacturing excellence and the physical location of the Port of Nigg is combined with our experience, client base, track record and know-how, we will together deliver best-in-class, cost competitive towers to the fixed and floating offshore wind market for many years to come.”
SSE chief executive Alistair Phillips-Davies said: “Today’s announcement shows that SSE is willing to put its money where its mouth is to support development of the Scottish manufacturing capability for the offshore wind sector.
“We have worked with Global Energy Group and stakeholders for over two years to get to this point.
“Global Energy Group has exciting plans for a world-class tower factory at Port of Nigg and our investment in the planned manufacturing facility demonstrates our continuing commitment to do what we can to support the development of a competitive Scottish supply chain and create local jobs.
“In addition to the debt funding, SSE also looks forward to fulfilling its role as a strategic backer and placing orders with the factory to meet our growing offshore wind pipeline in the near future.
“SSE is in a unique position with projects of scale, such as Dogger Bank and Berwick Bank, to create sustainable, long-term supply chain opportunities such as at Nigg and the new GE blade factory in Teesside.”
Mainstream Renewable Power CEO Mary Quaney said: “Mainstream has consistently viewed the development of local supply chains as a vital part of the growth of Scotland’s emerging offshore wind sector.
“Today’s announcement demonstrates Mainstream’s commitment to investing ahead of the market to deliver practical, enduring and value-creating assets for the benefit of all in Scotland’s Just Transition to a netzero economy.
“We are delighted to be able to work with Global Energy Group and all our partners, and to leverage our experience over the last fifteen years in offshore wind to create a sustainable supply chain for Scotland.”