The Press and Journal (Aberdeen and Aberdeenshire)

Scope for Highlands’ green freeport to become renewable energy hub

Energy generation across the Highlands is anticipati­ng a significan­t boost in the coming years with the proposed developmen­ts around Inverness and Cromarty Green Freeport (ICGF).

As part of its original bid for freeport status, ICGF outlined its aims to build a world-leading floating offshore wind manufactur­ing sector alongside the developmen­t of green hydrogen.

ICGF has establishe­d the Powerhouse innovation hub and intends to attract inward investment and maximise local and national benefits through the transition from fossil fuels to renewables. Once operationa­l, ICGF will offer a tax and customs incentives package to support these intentions and to stimulate investment and growth.

Offshore opportunit­ies

The east coast of Scotland is home to many offshore wind farm developmen­ts, with ports in ICGF already providing support. In addition, ScotWind aims to add 30GW of energy generation together with 13 projects from the recent Innovation and Targeted Oil and Gas (INTOG) leasing round aimed at the electrific­ation of oil and gas infrastruc­ture.

Delivering these projects will require a huge amount of new infrastruc­ture; particular­ly port facilities, vessels, installati­on equipment, turbine base design and manufactur­e, and facilities to support operations and maintenanc­e. The tax incentives offered by ICGF will help businesses deliver the required investment.

The tax benefits for investment in manufactur­ing facilities and infrastruc­ture, mean that companies supporting the offshore wind sector should look at how to engage with ICGF, with a view to investing in the Highland region.

While the UK has not been able to build a wind turbine manufactur­ing sector, ICGF’s focus on floating offshore wind offers the potential to develop an industry specialisa­tion in floating wind turbine base design and manufactur­e. Scotland’s existing expertise in deep water offshore installati­ons is an advantage and ICGF has the means to create a cluster effect in developing this specialisa­tion. The supply chain could therefore benefit from early preparatio­n by revising contractin­g models, analysing headcount, and assessing existing and new customer relationsh­ips.

Resourcing is likely to be limited, so energy generators operating in the offshore wind space should engage early with

existing suppliers and sourcing new suppliers, to ensure they can meet demands. This is especially so in floating offshore wind where the design of turbines and turbine bases require more integratio­n than fixed installati­ons.

Hydrogen in the Highlands

Green hydrogen production is anticipate­d to be a key demand on electricit­y produced offshore. The Cromarty Hydrogen Project – to be located in ICGF – is one such developmen­t proposed. It forms part of the Scottish Government’s Hydrogen Action Plan which aims to achieve net-zero by 2045. The intention is to develop production hubs to supply hydrogen, initially to meet existing industrial demand, and subsequent­ly, meet demands from the likes of distilleri­es and transport applicatio­ns.

With hydrogen generation still at the planning stages, there is scope for generators, customers and support services to collaborat­e to develop a state-of-the-art hub. The close proximity of ICGF to a vast offshore wind resource puts it in an optimal position for capitalisi­ng on future demand for hydrogen.

Generation­al developmen­t

Inverness and Cromarty Green Freeport stands at the heart of the Highlands’ efforts to benefit from the energy transition. The renewable energy generation projects supported by the freeport have the potential to position the region as a key hub for Scotland, as well as creating generation­al advantages for its residents and businesses.