Public Investment at Dounreay, Caithness - Why the Pentland Floating Wind Farm Matters

31st December 2025

Pentland Floating Offshore Wind Farm, a Scottish project developed by Copenhagen Infrastructure Partners (CIP), has secured investment from Great British Energy, National Wealth Fund and Scottish National Investment Bank, each with the option to invest up to GBP 50 million (approximately EUR 58 million).

Scotland's transition toward clean energy and long-term economic growth has taken an important step with the recent public investment in the Pentland Floating Offshore Wind Farm.

The project, located off the coast of Dounreay in Caithness, has secured up to £150 million in public funding, with three organisations — Great British Energy, the National Wealth Fund, and the Scottish National Investment Bank — each committing up to £50 million. This support represents a significant vote of confidence in floating offshore wind technology and Scotland's role in the future of renewable energy.

The Pentland Floating Offshore Wind Farm will feature six floating wind turbines, capable of generating around 100 MW of clean electricity. While this may appear modest in scale next to some larger fixed-bottom wind farms, the importance of this project lies in the technology it advances.

Floating turbines can operate in deeper waters with stronger and more consistent wind speeds, opening up new sea areas that conventional offshore wind farms cannot reach. This makes Pentland both a commercial energy asset and a developmental step toward a wider future industry.

The company behind the project, Highland Wind Limited, brings together private investors with experience in offshore infrastructure and renewable development. The ownership structure blends private capital with these new public stakes, creating a partnership model that shares both risk and future rewards. This kind of combined investment is becoming more common in early-stage clean energy technologies, where public backing helps prove viability and draw in larger private funding later.

Some may question whether £150 million of public investment is justified for six turbines. In traditional terms, if this were a fully commercial, fixed-bottom wind farm, the investment might seem high for the output.

However, the Pentland project is not intended to be a like-for-like comparison with mature offshore wind developments. Instead, it is a strategic investment in a technology that is still progressing toward scale. Floating wind remains more expensive due to engineering challenges, new supply chains, and the need for specialist infrastructure. Early projects like Pentland play a key role in reducing long-term costs, improving technical reliability, and proving the model for future developments.

The benefits extend beyond energy output. The project is expected to support more than a thousand jobs throughout planning, construction, and operation. These roles can help build the skills and supply chain that Scotland will need if it is to become a major player in floating wind — a global sector with enormous growth potential in the coming decades.

By being early to develop expertise, Scotland stands to gain industrial, export, and long-term economic advantages. This is where the value of the investment becomes clearer: the return is not just financial but strategic.

The public investors also have wider missions. Great British Energy is focused on strengthening the UK's energy security and increasing domestic renewable capacity. The National Wealth Fund prioritises projects that can unlock economic transformation and attract further private investment.

The Scottish National Investment Bank backs initiatives that support Scotland's climate goals and long-term industrial capability. Their involvement signals belief not only in the Pentland project itself, but in floating offshore wind as a sector that could become central to the UK's clean energy future.

This investment shows how the transition to renewable energy cannot rely solely on mature, commercial-scale projects. It requires risk-taking, early backing of new technology, and strategic decisions that may pay out over longer timeframes. Pentland is an example of the public sector stepping in where private capital alone might hesitate, in order to secure both climate progress and industrial opportunity.

The Pentland Floating Offshore Wind Farm is much more than a small cluster of turbines off Scotland’s northern coast. It represents a commitment to innovation, economic development, and long-term energy security.

While the initial investment may seem high in relation to the number of turbines and output, it is not just an investment in electricity production — it is an investment in Scotland’s future place in the global clean energy economy.

In time, projects like Pentland could help bring down costs, build industrial capacity, create skilled jobs, and unlock deeper-water wind resources that will be essential for meeting net-zero targets. For these reasons, the public sector’s decision to invest heavily at this early stage can be seen not simply as a cost, but as a strategic foundation for future benefit.

Who Owns and Invests in the Project

The ownership structure of the Pentland project now blends private and public capital in a meaningful partnership:

Copenhagen Infrastructure Partners (CIP): A Danish private investment fund manager and the original majority owner of the project. CIP manages billions of euros for institutional investors and has an extensive portfolio in renewable energy worldwide.

Hexicon AB: A Swedish floating wind technology company, holding an existing minority stake.

Eurus Energy UK Ltd: A subsidiary of Japan’s Eurus Energy Group, which acquired an undisclosed share in the project — marking its first investment in offshore wind.

Great British Energy (GBE): A UK government-owned energy developer, investing up to £50 million and taking an initial minority stake.

National Wealth Fund (NWF): The UK’s sovereign wealth fund, also investing up to £50 million.
Offshore Wind Scotland

Scottish National Investment Bank (SNIB): Scotland’s government-owned bank, contributing up to £50 million in backing.

This blend of ownership exemplifies how public and private capital can collaborate to support early-stage clean energy technologies — particularly ones like floating offshore wind that are still progressing toward commercial scale.