The largest natural harbour in the northern hemisphere has been awarded £5 million from the Scottish Government to help develop a “landmark” green energy project on Orkney.
The cash will be used to support the development of the Scapa Deep Water Quay, a new facility aimed at the expansion of wind power projects in the seas off both Scotland and Europe.
The grant comes from Highlands and Islands Enterprise (HIE) and is part of the Scottish Government’s wider plan to invest up to £500 million over five years to develop the offshore wind supply chain.
Local authority-owned Orkney Harbour missed out on being named a green freeport in a competition in 2022. The initiative unlocked up to £25m in UK and Scottish Government support and came with a raft of investment incentives for port operators in the Highlands and in the Firth of Forth aimed at growing renewable energy.
However, the council said the bid highlighted the “awareness of Orkney’s potential”. The new government funding will be used to pump prime further the development of a new harbour facility for the assembly of offshore wind turbines.
Scapa Flow is a famed war grave from World War I after Germany scuttled a fleet of 52 interned warships to avoid them falling into British hands.
It is also close to projects attracting hundreds of millions of pounds of industrial investments, such as nearby Ardersier and the Inverness and Cromarty Firth Green Freeport (ICFGF). These are aimed at delivering major offshore wind developments planned, including 25 GW of floating offshore wind capacity in Scottish waters.
The area is also home to the Flotta terminal, where Spanish owner Repsol (BMEX: REP) is considering plans for a green hydrogen facility alongside developers of the 2GW West of Orkney Windfarm, a project led by investors Corio, TotalEnergies (PAR: TTE) and RIDG.
© Supplied by Heather Woodbridge NLeader of Orkney Islands Council Heather Woodbridge said: “This funding award from HIE, demonstrates the Scottish Government’s understanding of the importance of the energy sector, not only here in Orkney but to Scotland as a whole.
“Securing the funding unlocks the potential for Orkney – alongside the wider industry – to further explore and develop a vision for our role in the continued growth of renewable energy, and is reflective of the good work, prominence, and reputation of our islands in this.
“Development of facilities in Scapa Flow could deliver considerable economic benefits to the area – especially as we look to counterbalance any potential downturn in the oil industry. Enhancing our marine capabilities and strengthening our capacity to support future industrial and commercial activities is key to this.”
Scotland’s First Minister John Swinney said: “This landmark project will help attract private investment in the area, creating new highly paid jobs and unlocking enormous economic opportunities for the Orkney Islands and Scotland as a whole.
“This is another example of how, together with local government and our partners, we are delivering on our collective priorities of growing the economy and protecting the planet.”
