Tayside and Fife’s position as potential leaders in manufacturing products for the renewable energy sector is not under threat, the Scottish Government has insisted.
A co-operation deal was signed this week between SeaEnergy Renewables, of Aberdeen, and Nantong COSCO Ship Steel Structure Company (NCSC), of China, to develop and market steel structures for the offshore wind industry.
The agreement, the first of its kind between a Scottish firm and a major state-owned Chinese offshore wind energy company, was announced after a formal signing in Shanghai. The two firms will develop a detailed business plan and commercial framework to develop and market turbine jacket substructures, towers and access systems.
Concerns have emerged that the agreement will lead to many manufacturing jobs that could have been Scottish-based going to China, where the cost of labour is considerably cheaper.
Dundee and Methil’s Energy Park Fife were both part of 11 sites selected to develop major offshore wind energy systems.
With as many as 20,000 jobs expected in Scotland from the project, the possibility had been raised that more than 3500 of those could be shared between the two sites. But Dundee played second fiddle to Aberdeen when it came to the oil industry and city politicians have spoken of the need to ensure there is no similar outcome with the renewable energy sector.
A Scottish Government spokesman said the partnership did not mean a shift towards favouring Aberdeen as a manufacturing centre in the renewable energy market.
“There is huge experience and expertise across Scotland and this is a wider signal of the opportunities that are available in the market that is Scotland,” he said.
“SeaEnergy has strong areas of expertise. Scotland has a lot to offer and we are hopeful that companies in Scotland, including Dundee, will benefit from that.”
First Minister Alex Salmond has welcomed the agreement and claimed it will strengthen the renewable energy sector, which could support around 60,000 jobs nationwide.
He said, “Scotland has unrivalled natural resources and established expertise in energy engineering, particularly offshore, providing a considerable market opportunity for wind energy technology and equipment providers, and for potential investors across the world.”
He added, “By harnessing just a third of the potential wind, wave and tidal resource off Scotland’s coast, by 2050 we could power Scotland seven times over — enabling us to become a massive exporter of clean, green energy, generating an estimated £14 billion in value and supporting around 60,000 jobs.”
SeaEnergy Renewables CEO Joel Staadecker said, “We are delighted to be working with one of China’s premier state-owned enterprises and directing our efforts at the critical supply chain need for offshore structures.
“The combination of our proven skills in delivering offshore infrastructure and turbines in deeper water and NCSC’s expertise in design and manufacture of steel structures for marine applications provides the ideal platform to serve the growing global offshore wind industry as it moves into deeper waters.”
Wang Zhihua, NCSC general manager, said, “Partnership with SeaEnergy will combine NCSC’s fabrication infrastructure with SeaEnergy’s expertise in the offshore environment.
“Together both companies will be excellently positioned to move forward in this industry.”
Scottish Enterprise chief executive Lena Wilson said, “Some of Scotland’s biggest economic opportunities lie in the growth of a globally competitive industry based on our renewable and low-carbon energy resources.”