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Construction has begun on the redevelopment of Ardersier port near Inverness as a distribution hub for North Sea wind power after a £100mn credit injection from the development banks of Scotland and the UK.
The deal, which marks the first joint funding arrangement between the Scottish National Investment Bank and the UK Infrastructure Bank, follows last year’s investment of £300mn from US private equity firm Quantum Capital Group.
The project, managed by port owner Haventus, aims to transform the brownfield site on the Moray Firth, which until 2001 served the North Sea oil industry, into a location for transporting and maintaining turbines and other equipment to offshore wind farms.
It comes as the UK targets 50 gigawatts of offshore wind power by 2030. At present, offshore wind power stands at about 14GW.
About 300 construction workers are now on site to build a 650-metre quay wall and associated quayside for a facility envisioned as the largest dedicated offshore wind deployment port in Scotland. Construction is scheduled for completion at the end of next year.
Lewis Gillies, Haventus chief executive, is in talks with foreign and domestic companies, such as renewable energy developers, manufacturers and service providers.
“Foreign investors see the opportunity we see,” said Gillies, formerly of BP. “Electrifying our lives is the policy and offshore wind is a significant part of that — Scotland and the UK have sent a huge message to the world that they are serious about deploying this technology.”
As an energy transition facility, the port plans to host offshore wind developers that need to gather and assemble vast physical structures before installation in Scottish waters. Offshore wind developer BW Ideol plans to set up a manufacturing facility for the concrete bases needed for floating wind platforms. A light industrial district within the port will be used by firms servicing the industry.
With the world transitioning away from oil and gas, offshore wind presents a big opportunity for the UK economy. The project at Ardersier is one of several aiming to build enough port capacity to service the growing project pipeline.
But the developing sector also faces logistical, financial and bureaucratic problems, from supply chain inflation and a lack of vessels capable of servicing and installing turbines, to limited electricity grid connections and delays in securing regulatory consent.
“This is a nascent industry, in which the UK is going first and fastest, so I would call this now a phase of forming,” said Gillies. “Confidence will grow as each project progresses — there isn’t a challenge that can’t be overcome.”
A chronic shortage of housing in the rural north of Scotland posed another problem for developments such as Ardesier, he said.
Mark Munro, SNIB’s chief investment officer, said that in addition to helping fund the expansion of the Port of Aberdeen, the investment bank was focusing on housing as regeneration around renewable energy prompts a surge in demand for new accommodation.
The financing marks the first joint transaction between the two state-owned development banks, which can take on more risk than their commercial counterparts to deliver nationally significant infrastructure, such as the port.
SNIB, formed in 2020, has a mandate to fund net zero carbon emission projects, innovation and areas suffering depopulation, such as the Highlands.
Ian Brown, UKIB’s head of banking and investments, said the lender also had a mandate to support initiatives related to net zero and “levelling up”, the government’s plan to bring economic prosperity to left-behind towns and cities.
“This does both with a vengeance, and given offshore wind won’t happen without such ports, we have leaned into this one,” he said.
John Swinney, Scotland’s first minister, said the country’s growing offshore wind capabilities presented an “era-defining opportunity”.
“This show of support from both banks demonstrates the huge confidence in this new facility and its role in helping deliver a fairer, greener future for everyone,” he added.
