Offshore Wind Industry

Portfolio Question Time – in the Scottish Parliament at 2:30 pm on 27 March 2025.

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Photo of Colin Beattie Colin Beattie Scottish National Party 2:30, 27 March 2025

To ask the Scottish Government whether it will provide an update on its work to grow the offshore wind industry. (S6O-04510)

Photo of Alasdair Allan Alasdair Allan Scottish National Party

The success of Scotland’s offshore wind industry is a priority for this Government. Our investment forum last week underlined our commitment to attracting investment and demonstrated the approach that we are taking across the public sector by addressing areas such as investment, consenting, skills and grid.

We are working closely with the sector to align our approach to the challenges that it faces. This year, we have tripled our capital investment in the sector to £150 million to support the ports, manufacturing and supply chain facilities required, which is helping to secure jobs and economic benefits at scale in Scotland.

Photo of Colin Beattie Colin Beattie Scottish National Party

We are all aware of the urgent need to tackle the climate emergency and to achieve net zero. However, it is also crucial to unlock the economic potential of the energy transition to create jobs and boost economic growth for our communities. Will the minister advise what steps the Scottish Government is taking to establish manufacturing capabilities in Scotland in order to keep skilled jobs in our communities?

Photo of Alasdair Allan Alasdair Allan Scottish National Party

The member is right to say that environmental and economic benefits go together. We will ensure co-ordinated action across the green industry strategic priority areas to maximise positive economic outcomes. We have invested significantly in Scotland’s manufacturing support infrastructure, including an investment of just under £75 million in the National Manufacturing Institute Scotland and the development of regional and sectoral facilities that are focused on improving the knowledge and skill sets that will be needed by the workforce.

Our “Offshore Wind Focus” paper identifies the priority areas for supply chain and infrastructure investment in Scotland’s offshore wind sector and underpins the Government’s approach to delivering a strategic investment of up to £500 million over five years.

Photo of Sarah Boyack Sarah Boyack Labour

The minister was at a very positive Scottish Offshore Wind Energy Council event in Parliament this week, where many people raised with me the issue of supply chains in manufacturing. My question follows on from the minister’s answer to the previous question. Will he focus on providing certainty by speeding up decisions? Supply chains are a major issue that Lothian region faces, and we need to be able to get the investment that we need.

Photo of Alasdair Allan Alasdair Allan Scottish National Party

I concur with what the member said and thank her for sponsoring that event. I also highlight the importance of the Scottish supply chain. As I said, we are investing up to £500 million over five years and we hope and expect that that will leverage in additional private investment of up to £1.5 billion in the infrastructure and manufacturing facilities that are critical to growing the sector. That work by the Scottish Government to engage and attract the interest of the private sector will ultimately lead to the development at scale that the member alludes to.

I can also point to specific things, including strategic projects such as Sumitomo’s new cable factory, which is under construction at Nigg, or the planned manufacturing facility at Hunterston, as well as projects at Ardersier, Scapa, Nigg and Montrose.

Photo of Craig Hoy Craig Hoy Conservative

The minister will be well aware that, in many instances, it is the profits from companies’ oil and gas interests that are funding investment in renewables. Does he therefore share my concern about the data that the Office for Budget Responsibility released yesterday that shows that tax receipts from North Sea oil and gas will slump from £5.4 billion to £2.3 billion by the end of the decade? Surely that will impact on profits and impede investment in renewables.

Photo of Alasdair Allan Alasdair Allan Scottish National Party

As was discussed earlier today, the long-term trajectory around the income that the UK Government derives from the North Sea is determined by the long-term trajectory of the maturing of the North Sea basin. That does not mean that the Scottish Government does not think that oil and gas are important—clearly, they are. However, the trends that the member refers to are outwith the control of any Government. We have to ensure that there is a genuinely just transition for the parts of the country that have invested so heavily and have so many skills in the oil and gas sector, and to ensure that the many people in those industries who are seeking new opportunities get the skills that they need to do that.

Photo of Liam McArthur Liam McArthur Liberal Democrat

Question 8 has been withdrawn. That concludes portfolio questions. Before we move to the next item of business, there will be a brief pause to allow the front-bench teams to change positions.