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Harland & Wolff to Transform Scottish Sites into Renewables Hubs with £270m Investment

17th April 2024
Renewables:  On a visit to Harland & Wolff’s Arnish yard, Humza Yousaf, First Minister of Scotland, who praised the ongoing work in Arnish, along with Methil, both H&W sites in Scotland are to be transformed into hubs for renewable infrastructure through a £270m investment.
Renewables: On a visit to Harland & Wolff’s Arnish yard, Humza Yousaf, First Minister of Scotland, who praised the ongoing work in Arnish, along with Methil, both H&W sites in Scotland are to be transformed into hubs for renewable infrastructure through a £270m investment. Credit: Harland & Wolff

Shipyard group Harland & Wolff has welcomed the announcement by the Scottish Offshore Wind Energy Council (SOWEC) regarding the company’s plans to transform its Arnish and Methil facilities into leading hubs for renewable infrastructure.

Proposals for Harland & Wolff’s Scottish sites have advanced to the second stage of SOWEC’s Strategic Investment Model (SIM). SOWEC, a partnership between the Scottish public sector and the offshore wind industry, aims through its SIM process to deliver the significant upgrades required for Scotland’s offshore wind developments.

Support through the SOWEC SIM would significantly enhance Harland’s & Wolff’s ability to service and maintain the burgeoning renewable energy sector through both its Scottish sites, with the investment transforming Arnish and Methil into state-of-the-art centres for the fabrication and assembly of turbines and other structures for the industry.

Investment allocated to Methil would greatly expand its capacity to build fixed and floating offshore foundations, capitalising on its status as one the most geographically advantageous areas to support Scotland’s offshore wind developments. Through investment of around £172 million and improvements such as a quay extension, the site would have the ability to construct approximately 750MW of installed capacity each installation season and enable Harland & Wolff to take on large-scale renewable projects.

Harland & Wolff submitted its application in partnership with Stornoway Port to enable the development of the Stornoway Offshore Wind Hub.

£99 million of investment would allow for the creation of a new quay and floating dry dock, increasing the site’s construction capacity to 255MW of installed capacity per installation season. The upgraded port at Stornoway would boast a laydown area of over 10 hectares, providing ample space for the assembly and storage of renewable energy components.

By increasing the capacity and capabilities of the Methil and Arnish sites, Harland & Wolff is positioning itself as a key player in the development of sustainable energy solutions for Scotland and beyond. At present more than 12 offshore wind developers have been engaged in discussions around the projects.

The proposed £270 million investment would have a profound impact on the local communities, creating numerous direct and indirect job opportunities. The project at Methil would result in an additional 400 jobs, with a minimum of 200 roles expected for the project at Arnish including an apprenticeship and graduate programme for around 30 people. Harland & Wolff will work closely with local suppliers and educational institutions to ensure that the benefits of any investment are felt throughout the Methil and Arnish communities.

Scotland has set ambitious renewable energy targets, and Harland & Wolff’s enhanced facilities would enable the construction and maintenance of cutting-edge renewable energy infrastructure, contributing to Scotland’s reputation as a global leader in green energy.

John Wood, CEO of Harland & Wolff, said: “The seas around Scotland are a rich resource for renewable energy and we feel the proposed investments into our sites would best maximise this opportunity and support growth in this increasingly vital sector. The plans we have submitted to SOWEC are indicative of our ambitious plans for Arnish and Methil and our desire to make Harland & Wolff a leading player in the renewables industry.

“With the investment outlined for Methil, we hope to build upon Energy Park Fife’s reputation as a offshore wind hub, whilst funding for Arnish is focused on providing critical capacity for projects on Scotland’s west coast. In each of their own way, proposals for both sites aim to greatly enhance Harland & Wolff’s manufacturing facilities to best ensure a quality service for our offshore wind clients.

“Our proposals would support the creation of hundreds of jobs and we are committed to nurturing a skilled workforce that will both contribute to local economies and reinforce Scotland’s reputation as a global leader in sustainable infrastructure.”

Humza Yousaf, First Minister of Scotland, who recently visited Harland & Wolff’s Arnish site said: “It was a pleasure to join Alasdair Allan MSP and Cllr Susan Thomson at Arnish and meet the brilliant team earlier this month. There is clearly a wealth of important work taking place and it was fantastic to see the opportunities that Arnish is offering to local people – including through its apprenticeship programme.

“Harland & Wolff’s ability to service and maintain the renewable energy sector through both of its Scottish sites was clear to see and I look forward to hearing more about the continued progress in Arnish and Methil throughout the ongoing SOWEC process.”

Published in Power From the Sea
Jehan Ashmore

About The Author

Jehan Ashmore

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Jehan Ashmore is a marine correspondent, researcher and photographer, specialising in Irish ports, shipping and the ferry sector serving the UK and directly to mainland Europe. Jehan also occasionally writes a column, 'Maritime' Dalkey for the (Dalkey Community Council Newsletter) in addition to contributing to UK marine periodicals. 

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Ireland's Offshore Renewable Energy

Because of Ireland's location at the Atlantic edge of the EU, it has more offshore energy potential than most other countries in Europe. The conditions are suitable for the development of the full range of current offshore renewable energy technologies.

Offshore Renewable Energy FAQs

Offshore renewable energy draws on the natural energy provided by wind, wave and tide to convert it into electricity for industry and domestic consumption.

Offshore wind is the most advanced technology, using fixed wind turbines in coastal areas, while floating wind is a developing technology more suited to deeper water. In 2018, offshore wind provided a tiny fraction of global electricity supply, but it is set to expand strongly in the coming decades into a USD 1 trillion business, according to the International Energy Agency (IEA). It says that turbines are growing in size and in power capacity, which in turn is "delivering major performance and cost improvements for offshore wind farms".

The global offshore wind market grew nearly 30% per year between 2010 and 2018, according to the IEA, due to rapid technology improvements, It calculated that about 150 new offshore wind projects are in active development around the world. Europe in particular has fostered the technology's development, led by Britain, Germany and Denmark, but China added more capacity than any other country in 2018.

A report for the Irish Wind Energy Assocation (IWEA) by the Carbon Trust – a British government-backed limited company established to accelerate Britain's move to a low carbon economy - says there are currently 14 fixed-bottom wind energy projects, four floating wind projects and one project that has yet to choose a technology at some stage of development in Irish waters. Some of these projects are aiming to build before 2030 to contribute to the 5GW target set by the Irish government, and others are expected to build after 2030. These projects have to secure planning permission, obtain a grid connection and also be successful in a competitive auction in the Renewable Electricity Support Scheme (RESS).

The electricity generated by each turbine is collected by an offshore electricity substation located within the wind farm. Seabed cables connect the offshore substation to an onshore substation on the coast. These cables transport the electricity to land from where it will be used to power homes, farms and businesses around Ireland. The offshore developer works with EirGrid, which operates the national grid, to identify how best to do this and where exactly on the grid the project should connect.

The new Marine Planning and Development Management Bill will create a new streamlined system for planning permission for activity or infrastructure in Irish waters or on the seabed, including offshore wind farms. It is due to be published before the end of 2020 and enacted in 2021.

There are a number of companies aiming to develop offshore wind energy off the Irish coast and some of the larger ones would be ESB, SSE Renewables, Energia, Statkraft and RWE.

There are a number of companies aiming to develop offshore wind energy off the Irish coast and some of the larger ones would be ESB, SSE Renewables, Energia, Statkraft and RWE. Is there scope for community involvement in offshore wind? The IWEA says that from the early stages of a project, the wind farm developer "should be engaging with the local community to inform them about the project, answer their questions and listen to their concerns". It says this provides the community with "the opportunity to work with the developer to help shape the final layout and design of the project". Listening to fishing industry concerns, and how fishermen may be affected by survey works, construction and eventual operation of a project is "of particular concern to developers", the IWEA says. It says there will also be a community benefit fund put in place for each project. It says the final details of this will be addressed in the design of the RESS (see below) for offshore wind but it has the potential to be "tens of millions of euro over the 15 years of the RESS contract". The Government is also considering the possibility that communities will be enabled to invest in offshore wind farms though there is "no clarity yet on how this would work", the IWEA says.

Based on current plans, it would amount to around 12 GW of offshore wind energy. However, the IWEA points out that is unlikely that all of the projects planned will be completed. The industry says there is even more significant potential for floating offshore wind off Ireland's west coast and the Programme for Government contains a commitment to develop a long-term plan for at least 30 GW of floating offshore wind in our deeper waters.

There are many different models of turbines. The larger a turbine, the more efficient it is in producing electricity at a good price. In choosing a turbine model the developer will be conscious of this ,but also has to be aware the impact of the turbine on the environment, marine life, biodiversity and visual impact. As a broad rule an offshore wind turbine will have a tip-height of between 165m and 215m tall. However, turbine technology is evolving at a rapid rate with larger more efficient turbines anticipated on the market in the coming years.

 

The Renewable Electricity Support Scheme is designed to support the development of renewable energy projects in Ireland. Under the scheme wind farms and solar farms compete against each other in an auction with the projects which offer power at the lowest price awarded contracts. These contracts provide them with a guaranteed price for their power for 15 years. If they obtain a better price for their electricity on the wholesale market they must return the difference to the consumer.

Yes. The first auction for offshore renewable energy projects is expected to take place in late 2021.

Cost is one difference, and technology is another. Floating wind farm technology is relatively new, but allows use of deeper water. Ireland's 50-metre contour line is the limit for traditional bottom-fixed wind farms, and it is also very close to population centres, which makes visibility of large turbines an issue - hence the attraction of floating structures Do offshore wind farms pose a navigational hazard to shipping? Inshore fishermen do have valid concerns. One of the first steps in identifying a site as a potential location for an offshore wind farm is to identify and assess the level of existing marine activity in the area and this particularly includes shipping. The National Marine Planning Framework aims to create, for the first time, a plan to balance the various kinds of offshore activity with the protection of the Irish marine environment. This is expected to be published before the end of 2020, and will set out clearly where is suitable for offshore renewable energy development and where it is not - due, for example, to shipping movements and safe navigation.

YEnvironmental organisations are concerned about the impact of turbines on bird populations, particularly migrating birds. A Danish scientific study published in 2019 found evidence that larger birds were tending to avoid turbine blades, but said it didn't have sufficient evidence for smaller birds – and cautioned that the cumulative effect of farms could still have an impact on bird movements. A full environmental impact assessment has to be carried out before a developer can apply for planning permission to develop an offshore wind farm. This would include desk-based studies as well as extensive surveys of the population and movements of birds and marine mammals, as well as fish and seabed habitats. If a potential environmental impact is identified the developer must, as part of the planning application, show how the project will be designed in such a way as to avoid the impact or to mitigate against it.

A typical 500 MW offshore wind farm would require an operations and maintenance base which would be on the nearby coast. Such a project would generally create between 80-100 fulltime jobs, according to the IWEA. There would also be a substantial increase to in-direct employment and associated socio-economic benefit to the surrounding area where the operation and maintenance hub is located.

The recent Carbon Trust report for the IWEA, entitled Harnessing our potential, identified significant skills shortages for offshore wind in Ireland across the areas of engineering financial services and logistics. The IWEA says that as Ireland is a relatively new entrant to the offshore wind market, there are "opportunities to develop and implement strategies to address the skills shortages for delivering offshore wind and for Ireland to be a net exporter of human capital and skills to the highly competitive global offshore wind supply chain". Offshore wind requires a diverse workforce with jobs in both transferable (for example from the oil and gas sector) and specialist disciplines across apprenticeships and higher education. IWEA have a training network called the Green Tech Skillnet that facilitates training and networking opportunities in the renewable energy sector.

It is expected that developing the 3.5 GW of offshore wind energy identified in the Government's Climate Action Plan would create around 2,500 jobs in construction and development and around 700 permanent operations and maintenance jobs. The Programme for Government published in 2020 has an enhanced target of 5 GW of offshore wind which would create even more employment. The industry says that in the initial stages, the development of offshore wind energy would create employment in conducting environmental surveys, community engagement and development applications for planning. As a site moves to construction, people with backgrounds in various types of engineering, marine construction and marine transport would be recruited. Once the site is up and running , a project requires a team of turbine technicians, engineers and administrators to ensure the wind farm is fully and properly maintained, as well as crew for the crew transfer vessels transporting workers from shore to the turbines.

The IEA says that today's offshore wind market "doesn't even come close to tapping the full potential – with high-quality resources available in most major markets". It estimates that offshore wind has the potential to generate more than 420 000 Terawatt hours per year (TWh/yr) worldwide – as in more than 18 times the current global electricity demand. One Terawatt is 114 megawatts, and to put it in context, Scotland it has a population a little over 5 million and requires 25 TWh/yr of electrical energy.

Not as advanced as wind, with anchoring a big challenge – given that the most effective wave energy has to be in the most energetic locations, such as the Irish west coast. Britain, Ireland and Portugal are regarded as most advanced in developing wave energy technology. The prize is significant, the industry says, as there are forecasts that varying between 4000TWh/yr to 29500TWh/yr. Europe consumes around 3000TWh/year.

The industry has two main umbrella organisations – the Irish Wind Energy Association, which represents both onshore and offshore wind, and the Marine Renewables Industry Association, which focuses on all types of renewable in the marine environment.

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