What is a green freeport? Everything you need to know

Five areas in Scotland made bids to be created as green freeports.

But only two have been chosen, with sources having confirmed the Highlands and Edinburgh as the winners.

An official announcement is expected to be made Friday.

The five areas are: North East Scotland Green Freeport, Opportunity Cromarty Firth, Orkney Green Freeport, Forth Green Freeport and Clyde Green Freeport.

Each region has been in a fierce competition with each other to land a share of £52 million of government funding alongside a package of tax and customs allowances and investment incentives for areas around airports, seaports and rail terminals.

What are green freeports?

A “green freeport” is a large zoned area within a defined boundary extending around 28 miles (45km) which includes rail, sea or airport.

Operators and businesses in the zone can benefit from a package of tax and other incentives, with supporters saying they fuel economic growth.

The concept has attracted support from across the political spectrum, aside from Greens who do not back green freeports.

Who is leading green freeport bids?

Opportunity Cromarty Firth, which is being led by Port of Cromarty Firth and Global Energy Group alongside Port of Inverness and Inverness Airport, has estimated a successful bid will create 20,000 jobs across the Highlands.

Former SSE Renewables managing director Jim Smith who is now chairman of Opportunity Cromarty Firth (OCF).

It is backed by Inverness Chamber of Commerce and more than a dozen businesses, as well as public sector organisations, and academic bodies, including The Highland Council and the University of the Highlands and Islands (UHI).

Bidders from the north-east of Scotland fear the region will once again lose out when winners are confirmed by Prime Minister Rishi Sunak and First Minister Nichola Sturgeon.

The North East Scotland Green Freeport (NESGF) consortium is led by the Port of Aberdeen, Peterhead Port Authority, Aberdeen International Airport, the region’s two local authorities.

It is also being supported by the Energy Transition Zone (ETZ), Net Zero Technology Centre, Storegga, Opportunity North East (ONE), Aberdeen and Grampian Chamber of Commerce, Robert Gordon University and University of Aberdeen.

ETZ plans to develop areas across from the Port of Aberdeen’s new south harbour as well as swathes of industrial land in Altens.

Sir Ian Wood, chairman of ETZ and ONE and Bob Sanguinetti, Port of Aberdeen chief executive. Picture by Paul Glendell

It recently revealed it was in talks with SaxaVord Spaceport in Shetland to create a strategic partnership – should the bid be successful.

The group has estimated a successful bid would create 30,000 jobs in the north-east and provide an economic boost worth £8.5 billion over the next decade.

Orkney Council has also thrown its hat into the ring for an Orkney Green Freeport.

It said their freeport would focus on innovation and research and development opportunities.

Two bids in the Central Belt

The other favourite alongside the Cromarty is the Forth Green Freeport bid which takes in the ports of Grangemouth, Leith and Rosyth.

These partners, led by Forth Ports, have predicted their joint bid for a green freeport would create 50,000 jobs.

Clyde Green Freeport is a partnership between AGS Airports’ Glasgow Airport, Mossend International Railfreight Park, Peel Ports’ Clydeport and the Glasgow City Region councils.

It has been predicted it will create up to 30,000 new jobs (45,000 including construction jobs) and up to £18 billion in GVA to 2034 will be generated.

This article has been changed 6 September to remove reference to the “west coast” as the area of the Opportunity Cromarty Firth bid.