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Push to win over SNP government as north-east freeport bid enters final stage

Aberdeen and Peterhead ports have submitted a joint bid for a north-east green freeport. Pictured is Aberdeen Harbour.

The groups behind the north-east’s ambitious plan for a “green freeport” with special tax status are calling for a last-push meeting with SNP leaders.

Two bids will be selected this summer out of five across Scotland.

Aberdeen and Peterhead ports joined forces on a North-East Green Freeport bid which they say will deliver a jobs bonanza for the region.

SNP MSP Jackie Dunbar, who represents Aberdeen Donside, and north-east Tory MSP, Liam Kerr, made a cross-party appeal to government ministers John Swinney and Ivan McKee.

Their letter says the “ground-breaking plans” could generate 32,000 jobs and provide an economic boost worth £8.5 billion over the next decade.

What is a green freeport?

A “green freeport” is a large zoned area within a defined boundary 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.

However, critics include Green north-east MSP Maggie Chapman who branded it a “greenwashed Brexit project”.

A total of five bids have been received from across Scotland:

  • Aberdeen City and Peterhead Green Freeport
  • Opportunity Inverness and Cromarty Firth.
  • Orkney Green Freeport.
  • Firth of Forth Green Freeport.
  • Clyde Green Freeport.

Among the key proposals within the north-east bid is to establish a so-called sustainable aviation fuel (SAF) plant at St Fergus, Aberdeenshire.

Those behind the plans say it would play a “significant role in making air travel greener”.

Members of the North East Green Freeports Alliance in a meeting at the Port of Aberdeen in June 2022.

The joint letter states: “Made using household and post-recycling municipal waste, agricultural and forestry residues and waste fats, it has been estimated SAF can generate carbon savings of upwards of 70%  compared to fossil jet fuel.

“The airport would be directly involved in these plans which would create up to 920 jobs in Peterhead and be worth £133 million to the local economy.”

Decision expected ‘soon’

The launch of the bidding process earlier this year followed lengthy negotiations between Holyrood and Westminster administrations.

Talks collapsed over the best model to use for the ports, with the Scottish Government insisting on “red line requests”, including payment of the real living wage.

But both governments eventually agreed a joint prospectus for bidders.

A Scottish Government spokesman said: “A range of ambitious bids have come in from around the country to become a greenport.

“The Scottish Government expects greenports to promote regeneration in the areas selected, create high quality, well paid jobs, and make a significant contribution to achieving Scotland’s net zero ambitions.

“The Scottish and UK Governments are jointly assessing the bids and Scottish and UK ministers will jointly select the winners, following the rigorous process set out in the Bidding Prospectus.

“The Scottish Government hopes to be able to confirm the winning bids, jointly with the UK Government, soon.”