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A Danish manufacturer wants to build Scotland’s first factory to make wind turbine blades, in a breakthrough for the renewable energy sector.
Vestas, a leading knife maker in the world, has started the process of obtaining planning permission for its site at Leith Docks in Edinburgh, one of Scotland’s green free ports.
The company warns that no final investment decision has yet been made and that more certainty will be needed about orders from offshore wind developers.
Freeports are given tax breaks to encourage investment and companies can apply for them now. Managers at the Leith site said it was “open for business”.
Vestas’ plan is expected to bring hundreds of highly skilled jobs to the Port of Edinburgh.
It falls within one of several locations around the Firth of Forth that have been designated as a “green free port”, which also include Grangemouth, Rosyth and Burntisland.
The Rosyth site has been expanded to include parts of the Royal Navy base since the proposal was first submitted.
Scotland’s other green freeport is around the Moray and Cromarty Firths, at locations such as the ports of Invergordon, Nigg, Ardersier and Inverness.
In addition to providing quay space for the installation and installation of offshore wind installations, these locations are being developed for production.
So far, much of the equipment has been imported. The next phase of Scottish offshore wind development is conditional on more of the supply chain being located in Scotland.
There are only two factories in Britain making wind turbine blades: one on the Isle of Wight, run by Vestas, and the other in Hull, run by the German-Spanish joint venture Siemens Gamesa.
The plan for Leith would see Vestas produce its new offshore blade design, known as B236, which will be 115 meters long.
A turbine with three such blades has a capacity of 15 megawatts, the average capacity of which would power approximately 13,000 households.
The knife manufacturing process is mainly constructed from composite fiberglass and resin and is highly skilled. It takes hundreds of workers to produce them on a viable scale.
Blades are an especially valuable part of the wind turbine supply chain, including the steel towers, jacket or base, and nacelle or gearbox.
At least one other company, Mingyang Smart Energy, is in the planning and development process to build turbines in Scotland.
Being based in China has raised concerns about its vulnerability to trade and security tensions between Beijing and Britain.
Vestas and its planning agent submitted a proposed application on Friday, which was published yesterday, starting the planning process with Edinburgh City Council. The company plans to consult with the Leith community this summer.
A spokesperson said: “The UK offshore wind sector has great potential, and Vestas has identified the Port of Leith as a potential location for the production of wind turbine blades.”
“No final investment decision has yet been made and will be based on several factors including the viability of the business case and market prospects.”
Vestas, which is active in more than 80 countries around the world, is looking for clarity about order flow. These in turn depend on British auctions that offer a guaranteed floor price for the power produced, as well as permissions to connect wind farms to the electricity grid.
The potential supply boom for the offshore renewable energy industry also depends on capital costs, which have risen sharply, on resolving bottlenecks in the planning process, and on other facilities, including submarine cables.
Forth Green Freeport says that from today, applications for investment tax breaks must meet employment and environmental standards.
Dame Susan Rice, chair of the consortium of landowners, said: “This is it. Forth Green Freeport has officially opened. It is an important time for the Green Free Port as we move through the business case development phase to delivery for Scotland.
“Innovations in offshore wind production, assembly and commissioning, alongside innovative shipbuilding, modular assembly and hydrogen production, can further the country’s net zero targets through Forth Green Freeport.
“This is a long-term project that we know will deliver real benefits to local communities through economic growth, reskilling and skills training and access to quality, green jobs.”