New offshore wind base in Scotland
22nd March 2011
First Minister Alex Salmond today announced plans by energy engineering giant Doosan Power Systems to locate its renewables research and development (R&D) base - and potentially offshore wind turbine manufacturing - in Scotland, creating hundreds of new jobs with investments worth up to £170 million over the next ten years.
Doosan and Scottish Enterprise have agreed to enter into a Memorandum of Understanding (MoU). Under this MoU, the company intends to locate its R&D Centre of Excellence for Renewables at its current site at Westway in Renfrew, near Glasgow, supported by Scottish Enterprise, creating up to 200 jobs. Subject to further discussions under the MoU a second phase would see the establishment of assembly and manufacturing facilities in Scotland - now the company's favoured location for wind turbine prototype-build and manufacturing.
Doosan expects its offshore wind plans in Scotland to create up to 1,700 new jobs - of which the company would directly recruit approximately 700, with a further 1,000 employed in the supply chain.
Separately the First Minister announced that Steel Engineering, also based at Westway, will create a least 120 new jobs, supported by £1.8 million Regional Selective Assistance through Scottish Enterprise - to double its full-time workforce and expand its business servicing a range of clean energy sectors, including offshore wind, wave and tidal power.
Mr Salmond also announced that Skills Development Scotland is in discussions with the Steel Engineering about a planned training school which will be named The Renewable Energy Steel Trades Academy. In partnership with Anniesland College, the company plans to provide intensive and exclusive training tailored to the latest fabrication techniques, and welding procedures required by the renewables industry.
Visiting the two facilities, today, the First Minister said: "Doosan Power Systems is one of the world's leading energy technology and engineering companies and I'm delighted they have decided to locate their R&D centre in Renfrew, Scotland, to develop the next generation of offshore wind turbines. I'm also excited by the prospect of Doosan establishing a manufacturing facility in Scotland - today's announcement by the company is an important step towards that and towards many hundreds more jobs that will be created beyond the 200 posts announced today.
"This latest multi-million pound offshore wind investment announcement underlines Scotland's growing reputation for excellence and innovation in clean energy design and engineering. It is another great stride forward for the renewables industry in Scotland - which is now the chosen destination for three energy engineering giants to design their next generation of turbines to service the global offshore wind industry.
"Scotland also plays a key role in the energy industry supply chain and Steel Engineering are an excellent example of how Scottish companies with great experience servicing the offshore oil and gas industry have been building the renewables side of their business. Due to the Company's continued success, including its commitment to supporting training and apprentices, they are now ready to increase their workforce by at least 120 and expand into new premises here at Westway. I'm very pleased that we have been able to support this new investment through Regional Selective Assistance.
"Taken together, today's announcements could see the creation of up to 1,800 more jobs in Scotland's renewable and low carbon energy industries - representing great news for Renfrew and for the wider Scottish economy. We have the resources and expertise to be the clean, green energy powerhouse of Europe and the Scottish Government, together with Scottish Enterprise and Scottish Development International, are determined to ensure that major investments such as this continue to be made, to ensure that we seize that prize."
Jean-Michel Aubertin, Chief Executive Officer, Doosan Power Systems said: "We are delighted to be strengthening our successful partnership with Scottish Enterprise. Together we hope to develop cutting-edge wind power technology that will enhance the role of renewables in the energy mix. This also is great news for Scotland's economy in terms of jobs and inward investment. Doosan's current wind power portfolio and position with the industry will continue to grow strongly over the coming years."
Steel Engineering Production Director Peter Breslin said: "Today is another significant day for Steel Engineering as we continue to build up our successful business. The award of Regional Selective Assistance through Scottish Enterprise will create sustainable, long term, well-paid jobs and help position the company as a major link in the supply chain that the renewable energy revolution will require."
Scottish Enterprise Chief Executive Lena Wilson said: "This is an exciting time for Scotland's renewables industry and today's announcements build on the significant offshore wind momentum we've seen in recent months with investment from international players such as Mitsubishi, Gamesa and Technip. Doosan's investment in a new R&D facility cements Scotland's reputation as the leading location for the development of offshore wind technologies while Steel Engineering's investment will build on our significant manufacturing capabilities.
"The projects also bring Scotland a major step closer in developing an offshore wind supply chain, and put us firmly on target to achieve the ambitious economic aims set out in Scotland's Offshore Industry Route Map. We look forward to continuing to work with both companies to deliver these ambitious projects, generating significant new jobs and investment for Scotland."
Increasingly its main activities are concentrated around manufacturing for the offshore renewable and clean energy sectors, including construction of Pelamis P2 wave energy devices and cable laying systems for offshore wind.
Doosan is the third major international turbine manufacturer to decide to develop its next generation devices, for offshore wind, in Scotland. In December Japan's Mitsubishi Power Systems Europe Ltd announced plans to invest up to £100 million in a new Centre for Advanced Technology in Edinburgh to carry our research and development into offshore wind turbine technology, while in January Spain's Gamesa announced its intention to establish an Offshore Wind Technology Centre in Glasgow.
By 2020, the Low Carbon Economic Strategy shows there could be 130,000 jobs in Scotland's low carbon economy - a doubling of current jobs. Of this, the offshore wind industry could support up to 28,000 directly related jobs as well as a further 20,000 indirect jobs, generating up to £7.1 billion for the Scottish economy by 2020.
Renewable energy generation in Scotland amounted to more than a quarter (27.4 per cent) of domestic electricity demand by 2009 and the country is on course to exceed its interim renewables target of 31 per cent by 2011. An 80 per cent target has been set for 2020. Scotland has around 206 GW of practical offshore wind, wave and tidal resources - almost 40 per cent of the total UK resource. Harnessing just a third of this resource by 2050 would deliver installed offshore capacity of up to 68 GW - enough to power the country seven times over.
