The North East Scotland Green Freeport (NESGF) consortium has said it is “bitterly disappointed” that it failed in its bid to win special tax and regulation status in Aberdeen and Peterhead.
The NESGF consortium was led by Port of Aberdeen, Peterhead Port Authority, Aberdeen International Airport, and the region’s two local authorities.
It was also 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.
Government must support the north-east
Reacting to the news, Sir Ian Wood chairman of ETZ, said among the first to register his disappointment.
He said: “We congratulate both Cromarty and Forth Ports on their successful bids and wish them well in delivering their respective ambitions.
“We are, of course, hugely disappointed that the North East Green Freeport has not been approved.
“The UK Government has emphasised the importance of meeting its net zero targets and protecting the country’s energy security, while the Scottish Government has expressed its commitment to repositioning the north-east of Scotland as the ‘net zero capital of the world.’
“We have a world-class energy sector and the north-east is uniquely positioned to meet both of these ambitions.
“So, despite this set-back, we will continue to strive to bring large-scale, advanced manufacturing and technology to Aberdeen to maximise economic benefit from Scotland’s rapidly growing offshore wind and hydrogen sectors and accelerate pioneering carbon capture projects on the Buchan coast.
“However, the UK Government’s overly severe application of the Energy Profits Levy and the Scottish Government’s new position supporting a presumption against oil and gas exploration, are economically damaging and seriously risk creating an adverse environment for investment in the industry at a time we need to be doing all we can to maximise our energy security and sustain jobs to support energy transition and meet net zero targets.
“Awarding North East Scotland Green Freeport status would have significantly helped in ameliorating these policies.
“It is therefore now incumbent upon both governments to act swiftly and demonstrate their long term-support for the region through meaningful interventions that ensure we continue to play a leading role in securing both Scotland and the UK’s energy and economic security for generations to come.”
North-east ‘uniquely positioned’
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.
In a statement, the consortium said it was “bitterly disappointed in this missed opportunity for Scotland and the UK and will continue to seek alternative approaches to deliver the region’s net zero targets”.
It continued: “The decision not to give north-east Scotland a green freeport
undermines the north-east’s contribution to the ambitions of both governments, and its world class credentials as a location for investment in Scotland’s energy sector.
“The NESGF bid has secured the support of over 300 companies and organisations across the north-east of Scotland, as well as vocal cross-party support from regional MPs, MSPs and councillors.
“The north-east is uniquely positioned to deliver the UK’s energy ambitions, and the focus must now be on looking at alternative ways to deliver them, but this is a lost opportunity to turbo charge the economic and environmental benefits the area can deliver.
“The consortium and supporting partners will continue to work with both governments on these mechanisms to deliver additional investment and employment impacts – such as another green freeport, or new incentives and levers to attract inward investment.”
Missed opportunity
This view was backed by Aberdeen and Grampian Chamber of Commerce policy director Ryan Crighton who told The Press and Journal failure to select the joint Aberdeen and Peterhead bid is a missed opportunity for our energy transition.
Port of Aberdeen chief executive Bob Sanguinetti said: “This region is fundamental to achieving energy security and delivering a just transition to a net zero economy.
“Awarding green freeport status to the north-east of Scotland would have transformed the nation’s capabilities and accelerated delivery on both these fronts.
“Our vision is to be Scotland’s premier net zero port at the heart of the nation’s energy transition.
“The Port’s £400 million investment in our South Harbour expansion project is crucial to making this a reality.
“However, without green freeport status, we call on the Scottish Government and UK Government to engage and explore opportunities that help realise the full potential of this strategic infrastructure.”
‘Depriving’ net zero goals
Peterhead Port Authority chief executive Simon Brebner said: “We are hugely disappointed that our bid has been unsuccessful, thus depriving not only the north-east of Scotland but the entire country of the opportunity to reach its net zero goals while supercharging the local economy through innovation and job creation as we transition away from oil and gas.
“The bid received unwavering support from key sectors across the region, notably the seafood industry in Peterhead, and we remain committed to delivering our ambitions to these organisations through alternative means.”
Aberdeen International Airport operations director Mark Beveridge said: “We call on both governments to engage with us to help decarbonise the aviation industry through
carbon capture and sustainable aviation fuel.”
Opportunity North East chief executive Jennifer Craw said: “As a region we must look ahead and continue to work with both governments to maximise the region’s full economic potential, making the case for investment in transformational projects that deliver impact, value and jobs in the region and contribute to national goals.”
West Aberdeenshire and Kincardine MP Andrew Bowie said: “This was a competitive, non-political bidding process but my sympathies go to those who were unsuccessful, including of course Aberdeen and Peterhead’s joint bid.
“But freeports are just one example of what can be achieved when the UK and Scottish governments work together, and I’m confident there will be good news for the north-east to come.”
