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Nigg offshore wind factory could give Highland economy boost akin to oil and gas boom says economist

Inverness-based economist Tony Mackay.
Inverness-based economist Tony Mackay.

The new Nigg Offshore Wind (Now) facility could have a similar impact on the Highland economy as the North Sea oil and gas boom.

That is the opinion of North economist Tony Mackay, who welcomed the jobs boost and urged developers to take advantage of Nigg.

The factory will be the UK’s largest manufacturing facility for steel towers and other components for the offshore wind industry.

Hopes project will succeed

Mr Mackay said: “This is excellent news.

“The Highlands economy did very well from the development of the North Sea oil and gas fields.

“At peak we had about 10,000 jobs at the fabrication yards at Nigg, Ardersier, Kishorn and elsewhere in the region.

“Scotland did about 60% of the fabrication work for the North Sea oil and gas fields.

“However, the share of the work for the offshore wind farms in Scottish waters has been very disappointing. Only 10%-15% to date, with most of the contracts going overseas.

“If this project succeeds, it will increase that share substantially.”

An artists impression of how the Nigg Offshore Wind (NOW) facility will look once fully operational.

Plea for more support

Mr Mackay has called on developers to take advantage of the home-based facility in order to maximise its potential.

He has also called for land management corporations to support the yard’s ambition.

Mr Mackay added: “Global Energy at Nigg have successfully diversified into renewables away from oil and gas work.

“That is in marked contrast to most of the other fabrication yards in Scotland, notably at Burntisland, Arnish and Ardersier.

“I believe that bodies like Crown Estate Scotland should put much more pressure on the companies developing offshore windfarms to use Scottish fabrication yards instead of placing their orders overseas.

“If so, Nigg and even Ardersier will have a good long-term future.”

First Minister Nicola Sturgeon visited the Nigg facility on Friday.

Transition from oil and gas to renewables ‘inescapable’

First Minister Nicola Sturgeon visited Nigg on Friday to see where the facility will be created.

She said the transition is under way but accepts support must be offered to those in the oil and gas sector.

She said: “The Scottish Government has been financially supporting this development and we have in the same vein recently announced a just transition fund for the north east to help support more developments like this.

“As we make that transition from oil and gas to renewables and low carbon alternatives, we are doing that in a way that fully captures the economic benefits so the jobs are there for people to move into.

“The good thing here is that the skills and expertise in the North Sea around oil and gas, developed over decades now, are eminently transferable.

“This transition is under way and the question is how quick can we make it?

“We need to do it as quickly as possible for the future of the planet.

“It is also the case that we must do it fairly.

“We must do it in a way that transitions those currently working in oil and gas into green jobs for the future.

“These transitions are not easy, but they are inescapable.”

Nigg is a ‘great example’

Applicants to the upcoming ScotWind leasing will be required to outline where their components will be manufactured.

Colin Maciver, head of offshore wind development for Crown Estate Scotland, said: “The recent news around the Nigg Offshore Wind facility is a great example of the type of development needed to make sure that Scotland’s ports and harbours are able to support the expansion of offshore wind in Scottish waters that we hope and expect to see through ScotWind Leasing.

“Also, all applicants to ScotWind Leasing were required to submit a Supply Chain Development Statement outlining the anticipated level and location of supply chain impact from their proposed project, and we expect this process to drive increased engagement between developers and supply chain providers.

“This engagement, combined with developments that are able to adequately support future demand, can help unlock the huge potential that Scotland has to host major offshore wind farms and tap in to both the environmental and economic benefits that can bring.”

Read more on the Nigg Offshore Wind (NOW) facility: