Trades unions, offshore wind developers and supply chain companies have agreed to take urgent action to ensure more Scottish companies benefit from the awarding of contracts for offshore wind projects.
At a summit held by Finance Secretary Derek Mackay and Energy Minister Paul Wheelhouse last week, the industry representatives agreed that collective action was needed to ensure supply chain companies are well positioned to benefit from upcoming offshore wind projects.
The industry has been asked to consider urgent action for achieving the ambitious local content targets agreed to as part of the UK Government’s Offshore Wind Sector Deal.
As a result of the summit, the Scottish Government has promised to explore:
- the options open for attaching supply chain conditions and incentives to Crown Estate Scotland leases
- ways in which the Scottish Parliament reviews and approves decommissioning plans
In addition, representatives from the offshore wind sector committed to undertaking a strategic capability assessment of fabrication in the UK and to identify the areas with the highest potential for growth.
Finance Secretary Derek Mackay set out work underway to improve the competitiveness of the Scottish supply chain and delegates will meet again later this year to review progress.
Speaking after the summit, Mr Mackay said: “Scotland has all the natural resources to make it an ideal location for offshore wind, but recent projects have failed to deliver significant economic opportunities for Scottish businesses.
“I will continue to champion the strengths, and potential, of our indigenous supply chain. But now it is time for the offshore sector to do more by awarding contracts to our supply chain.
“I acknowledge that the supply chain must work hard to seek opportunities – making strategic investments and considering appropriate collaborations when tendering for contracts.
“The environmental benefits of our renewable sector are clear, but we must also ensure that we maximise the economic benefits that this sector can deliver for communities across Scotland. I am determined that we will use every lever at our disposal to ensure that our renewables supply chain benefits from the expansion of offshore wind in Scottish waters.”
Responding after the meeting, GMB Scotland Secretary Gary Smith and Unite Scotland Secretary Pat Rafferty said: “Actions speak louder than words but we leave this summit confident that the Scottish Government shares our determination to make sure we get our share of the renewables manufacturing bonanza, and that they will take all necessary measures within their powers to do this.
“We told the UK Government that immediate and sustained investment from their offshore wind deal holds the key to infrastructure improvements that can help make the Scottish supply chain a global player – the ball is now very much in their court if they credibly want to realise their aims for this sector.
“For the industry majors that have carved up the jobs and value from our billion pound offshore wind market, there will be a realisation that the days of giving Scotland scraps from our own table are at an end because the status quo is not acceptable and our campaign for work and prosperity is not going away.”
Offfshore Wind Industry Council and Ørsted UK Country Manager for Offshore, Benj Sykes, said: “The offshore wind industry will continue to work closely with the Scottish Government, and indeed all governments, to ensure communities up and down the country reap the economic benefits offshore wind offers – creating thousands of highly-skilled, well-paid jobs and attracting billions of pounds in investment, especially in coastal areas.
“We have increased our ambitions for UK content and set a 2030 target of 60%. To support it, an independent supply chain review was undertaken earlier this year. The industry is working together to establish a new Offshore Wind Growth Partnership, of up to £100 million which will help UK supply chain companies to compete for multi-billion pound business opportunities in this thriving sector.”
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