Nearly 200 jobs are facing the axe under plans by French energy service giant Technip to shut down its Aberdeenshire-based offshore wind division.
The move comes amid growing concern in Scotland’s renewable-energy industry about difficulties getting access to finance.
It also raises further questions about the European Offshore Wind Deployment Centre project (EOWDC), in which Technip has been a key player.
A spokeswoman for Paris-based Technip told the Press and Journal all 190 people in its offshore wind unit, including 75 in its Westhill headquarters, were being consulted via their staff representatives.
The firm blamed a “highly capital-intensive” market and also “disparities” for the renewable-energy industry across Europe, but gave no more details.
Green energy developers in the UK have often struggled to get political and financial backing for projects.
In March, industry body Scottish Renewables warned of uncertainty in the offshore wind sector, adding: “Continued strong support from both the Scottish and UK governments is absolutely critical.”
Technip was – until recently – one of the partners behind the EOWDC scheme to build 11 turbines in the sea near Aberdeen.
The company said yesterday it was no longer involved.
EOWDC’s final piece of planning approval came just last month but the project is stuck in court battles with US billionaire Donald Trump, who does not want turbines within sight of his golf resort near Balmedie.
Swedish firm Vattenfall wants to sell its 75% interest in the scheme, which has already been delayed two years, and 25% stakeholder Aberdeen Renewable Energy Group has handed over the running of it to Aberdeen City Council.
Technip said yesterday its proposal to wind up its offshore wind subsidiary “following the completion of all projects” was the result of a business review.
The company stressed that its closure plan was subject to the staff consultation already under way.
It also said its review of “this highly specialised activity” stemmed from a combination of factors.
These included Technip’s priority to deliver long-term growth, which from now focus on oil and gas.
The firm added: “The offshore wind market is highly capital-intensive and has disparities in adoption across Europe.”
Technip employs nearly 1,400 people at Westhill, with most of them working in subsea operations.
The spokeswoman said the plans for its offshore wind unit would have no impact on other business.
Energy Minister Fergus Ewing said: “This will be a particularly anxious time for employees and their families.
“We will provide support through our initiative for responding to redundancy situations.”
He added: “Developing a new industry is challenging under any circumstances.
“Successive Scottish governments and parliaments have used devolved powers under the Renewables Obligation to advance renewable generation.
“Some of those powers were removed several months ago in a House of Lords amendment to the new Energy Act.
“Through our enterprise agencies we are providing support to the sector, such as the recent £3.5million of investment through the Scottish Enterprise Renewable Energy Investment Fund.”
Technip Offshore Wind was created in June 2011 and within months it was employing more than 110 people, many of them former staff of failed green-energy company Subocean.
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