A major floating offshore wind project in Scotland has secured significant investment from the National Wealth Fund (NWF), Great British Energy (GBE), and the Scottish National Investment Bank (‘the Bank’), supporting the UK’s clean energy ambitions as well as bolstering energy security and supporting jobs.
Investors have each acquired an initial shareholding to participate in the development of Pentland floating offshore wind farm, off the coast of Dounreay. Once operational, it will have capacity to generate enough green electricity to power up to 70 000 homes.
The project, being developed by Highland Wind Ltd, is majority owned by Copenhagen Infrastructure Partners P/S (CIP). It will use a number of innovative technologies to help accelerate the industrialisation of floating offshore wind while delivering significant benefits to the local economy. More than 1000 jobs are expected to be created and supported throughout construction and operation.
This investment demonstrates how public finance institutions can work together to support early-stage technologies within the clean energy sector, aiming to crowd in private capital in support of the government’s growth and clean energy missions.
This also signals confidence in the UK’s floating offshore wind sector, encouraging engineering firms, especially in Scotland, to pivot from oil and gas and prepare to compete in a growing market.
Floating offshore wind projects hold huge potential for the UK’s energy market, which has been identified as the top market in terms of readiness for investment and as an area of strategic importance for UK supply chain development.
Scotland has the offshore wind capacity to deliver 40 GW of electricity, which is enough to power millions of homes while creating jobs and boosting the economy. Floating offshore wind farms are critical to realising this opportunity. They can be developed in locations where fixed turbines are not viable, and they represent 60% of the potential energy pipeline.
Nischal Agarwal, Partner in CIP, commented: “CIP is committed to playing a full role in helping to deliver the UK Government’s Clean Power 2030 vision, and we are delighted to welcome NWF, GBE, and the Bank as new partners to our Pentland floating offshore wind project. Floating offshore wind holds significant potential to innovate, reduce its technology costs, and establish a world leading UK supply chain capable of enabling scalable, low carbon power generation to meet future growth in electricity demand.”
Dan McGrail, CEO of GBE, added: “This is just the beginning of our investment strategy and will help bring good, skilled jobs to the Scottish Highlands. I am pleased to work with the NWF, the Scottish National Investment Bank, and CIP on this project – this sets out our aspiration to become the UK government’s energy developer. It also reflects GBE’s ambition, capability, and commitment to making the UK a clean energy superpower.”
Ian Brown, NWF Head of Banking, noted: “Increased and sustained investment in offshore wind is crucial to the clean energy transition and key to bolstering the UK’s energy security. It is essential for the public and private sector to work together to achieve this. Our investment in the Pentland wind farm is a perfect example of that collaborative approach. Working with GBE and the Bank, we are building on the more than £240 million we have so far invested in offshore wind port and supply chain infrastructure to support CIP in the development of a key project which will help to deliver clean energy, high quality jobs and economic growth to the UK.”
Mark Munro, Chief Investment Officer at the Bank, responded: “The offshore wind potential in Scotland is considerable both as a source of energy and, particularly with floating, to export our supply chain. However, substantial investment is needed to capitalise on the opportunity and ensure it delivers transformational impact for our economy and our communities. The Bank has developed significant expertise in Scotland’s burgeoning offshore wind sector and has invested in all areas of the supply chain. Our commitment of up to £50 million to the Pentland project is an important step towards developing a thriving and sustainable economy.”
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