Vestas has announced plans to build a nacelle and hub factory in Scotland to support offshore wind demand in the UK and Europe.
The company said the investment of more than €250 million would produce nacelles and hubs for its V236-15.0MW turbine and create up to 500 direct jobs.
Vestas added the project would also support indirect jobs and strengthen a supply chain critical to UK clean power targets and energy security.
The final investment decision is conditional on securing sufficient UK-based orders in AR7 and AR8.
The company said its preferred location is at Leith and that discussions are underway with Forth Ports. However, selection has not been finalised.
Subject to planning and auction outcomes, the facility could begin production by 2029/2030.
“The UK government has made a big statement with AR7, showcasing how wind energy creates a positive impact on energy security, sustainability, and affordability for end consumers. We welcome the UK and Scottish governments’ dedication to fostering a competitive offshore wind market and look forward to working together to progress our co-investment plans.” said Henrik Andersen, chief executive of Vestas.
“Establishing a nacelle and hub assembly factory in Scotland would create hundreds of local jobs and support further jobs across the wider supply chain, delivering long-lasting economic benefits to the region.”
“The Government’s clean energy mission is delivering good industrial jobs for Scottish workers-boosting growth as part of our drive to give the UK energy security. This is happening because of the Government’s record-breaking offshore wind auction and the confidence our mission has given industry to invest in Scotland.” said Ed Miliband, energy secretary.
“Vestas’s proposal to develop a hub and nacelle factory in Scotland, with the potential to support hundreds of jobs, speaks to the huge potential of the Scottish offshore wind sector and our attractiveness as an investment destination. Scottish Ministers have engaged closely with Vestas since 2021, and we look forward to continuing to work with the company and delivery partners to develop our offshore wind supply chain and deliver long-term economic benefits for our communities.” said Kate Forbes, deputy first minister and economy secretary.
Claire Mack, Chief Executive of Scottish Renewables, said:
“Scottish Renewables welcomes the plans set out by Vestas for this landmark investment in Scotland.
“Scotland has a proud industrial heritage, and today’s announcement to build a nacelle and hub assembly factory here is a major step toward securing a new wave of manufacturing based on harnessing our unparalleled energy resources.
“A continual drumbeat of projects is essential to secure this investment and that needs to be our ongoing focus. The outcome of AR7, while a record-breaking result for the UK, highlighted critical issues with our transmission charging regime. These must be addressed urgently to ensure that Scottish projects can enter upcoming auctions competitively in order to deliver contracts throughout the supply chain.
“We hope this investment will act as a catalyst for further growth and investment across not just the offshore wind sector but the entire renewable energy supply chain and will play a key role in delivering the UK’s clean power targets and securing our homegrown energy supply.”
RenewableUK CEO Tara Singh said:
“This is a hugely welcome investment in Scotland’s offshore wind manufacturing base, creating hundreds of high-quality jobs. This won’t only strengthen the UK’s position as a global leader in offshore wind, but a greater domestic manufacturing base will make the UK more resilient to trade wars, tariffs and disruptions to global supply chains.
“The UK has continued to increase its offshore wind ambitions in recent years, and we’re now seeing that translate into real investment, with developers and supply chain companies responding to a more stable, confident market. This also reflects the shared industrial vision developed together through the offshore wind sector’s Industrial Growth Plan and the Government’s Industrial Strategy, backed by new public and private investment.
“The supportive financial environment now in place, notably from Great British Energy and the Offshore Wind Growth Partnership, is helping to unlock projects like this, giving manufacturers the confidence to invest at scale. This will also have a ripple effect across the wider supply chain, creating new opportunities for businesses at every level.
“With continued support, we could triple the UK’s offshore wind manufacturing base over the next decade, adding £25 billion to the economy and creating over 100,000 jobs in wind.”