In the wake of Spanish wind turbine manufacturer Gamesa’s decision to drop its 150 million interest in Dundee (link), The Courier’s business editor Graham Huband sat down with Dundee Renewables chairman Ken Guild to discuss the future for green energy investment on the banks of the Tay.
GH: What was your reaction to Gamesa walking away from its plans to site a renewables manufacturing hub at Dundee?
KG: This had been on the cards for some time. Whilst we are obviously disappointed they are not coming, it became increasingly apparent that they perhaps were not the best fit for Dundee.
GH: What is your understanding of why they chose to discount Dundee from their considerations for a new UK manufacturing base?
KG: Gamesa, on more than one occasion, changed their mind about what they wanted to do in Dundee and at the end of the day it appears that their plans did not fit into the available facilities at the port.
GH: Dock owner Forth Ports has offered Leith as an alternative location for Gamesa’s plans. Is the central belt being favoured over Dundee?
KG: Forth Ports are working very hard to get an appropriate user for Dundee. If Gamesa doesn’t fit into Dundee then I’ll be perfectly happy to see them go elsewhere in Scotland.
Gamesa perhaps made a few public statements that raised expectations. As far as I am aware, Forth Ports are working hard with other organisations and other companies to get the best possible fit for Dundee.
GH: Is Dundee actually prepared for significant renewables investment at this time?
KG: Dundee Port has the best deep water facility in the whole of the east coast of Scotland and it also has an available area (60 acres of development land) that is well within the scope of many of the companies looking to invest in renewables.
As far as I am concerned, it is not a question of whether a major player in the offshore wind sector will come to Dundee but rather a case of when and who.
GH: What incentives are available for renewables companies to locate in Dundee?
KG: It has been strongly hinted that Dundee would be eligible for NRIF (the £70m National Renewables Infrastructure Fund) funding. I also know that Forth Ports are keen to reconfigure the docks in order to fit in with the requirements of potential renewables companies.
One of the things we are already doing is at Stannergate where work is ongoing to strengthen the bridge and improve access to the docks.
GH: Dundee lost out to Aberdeen over oil and gas. Is this a case of history repeating itself?
KG: I am very well aware that Dundee lost out on oil and gas in the 1960s and I am absolutely determined it will not miss out on renewables. Dundee has traditionally been a low-income economy and renewables would offer quite highly-paid jobs.
If we can attract renewables here, I think it would have a profound effect on the economy of Dundee.
GH: What is being done to bring renewables companies to Dundee now?
KG: Multinational companies tend to go at their own pace and local authorities cannot dictate that pace. What we can do is do our utmost to encourage and facilitate with a view to attracting companies which are the best possible fit for Dundee as a renewables centre.
GH: What is your view of Perth-based energy giant SSE’s declaration of interest in Dundee as a possible supply site for its offshore renewables operations?
KG: I think it is very promising. What I would ask SSE to do is make much more information available as soon as possible so that the public in Dundee can have an idea of what can reasonably be expected.
GH: Manufacturing is seen as potentially the most lucrative activity in relation to renewables. How would you feel if Dundee could not secure a manufacturing base?
KG: Our aim in Dundee is to attract activities which will encourage high-paid employment. That is what we are looking for and that tends to be in manufacturing rather than supply. I would like to see as much emphasis on manufacturing as possible.
GH: Where do you envisage Dundee will be placed in terms of the renewables industry in five years’ time?
KG: AT Dundee docks I would hope we would be seeing a steady stream of vessels taking wind turbines out into the North Sea to help generate electricity. I would like to see manufacturing, fabrication and service facilities at the docks and elsewhere in Dundee and I would hope to see other companies forming part of the supply chain.
In terms of employment, I would expected several hundred jobs from the main contractors with several times that number in the supply chain companies. From my point of view, Dundee has a very good infrastructure and is very strongly placed to attract inward investment.