£6.5 million for new Nigg quay side – potential for up to 2400 Scottish jobs

MorFirst Minister Alex Salmond has today (Friday 2 May) announced £6.5 million for the development of the new quayside during a visit to Nigg Energy Park to witness the signing of a Memorandum of Understanding between Moray Offshore Renewables Ltd (MORL) and Global Energy Group.

The MoU will see the two companies enter discussions on a wide variety of subjects in relation to the suitability of Global Energy Group’s Nigg Energy Park to build the recently consented Moray Firth Offshore Wind Farm, bringing the potential to support up to 2,400 Scottish jobs during its construction and 330 through operations and maintenance

The agreement will explore the use of Nigg Energy Park for the development of MORL’s 1,116MW offshore wind generation project in the outer Moray Firth.

The new £40.5 million Nigg quayside development will offer over 1,100 metres of available quayside with deepwater access for customers in the offshore oil and gas sector. It will also support the demand for large laydown areas and fabrication facilities for the renewables industry. It is anticipated the new facilities will lead to the fabrication of marine devices and heighten interest from the renewables supply chain to use Nigg for a mix of load in/load out and fabrication of key components, such as steel jacket foundations, towers and nacelles.

The First Minister also welcomed the announcement of a contract between GEG and MORL, demonstrating progress in project delivery. GEG will construct the steel lattice section of the met mast which will be installed this year.

The First Minister said:

“Offshore renewables represent a huge opportunity for Scotland to reap both economic benefits and become a power house of green energy.

“That is why it is important to support the new Nigg quayside development – which in turn will see a £190 million additional turnover, and £462 million in aggregate over the first three years of operation.

“Today’s MoU will provide opportunities for dialogue between MORL and Global Energy Group, the supply chain and potential inward investors to discuss the skills requirements needed for this emerging project. It also has the potential for creating up to 2400 jobs in construction, and a further 330 through operations and maintenance which is fantastic news for the area and Scotland. The Nigg Skills Academy will also be well placed to assist in completing the necessary training, whether this be through Modern Apprenticeship schemes or other forms of training.”

“Following the successful re-development of Nigg Yard by Global Energy Nigg Ltd, the company has identified significant growth opportunities both from hosting foreign direct investment as a tenant, and from fabrication and other service opportunities.

“I believe Global Energy will become the first of many Scottish supply chain companies to benefit from the recently consent 1116MW Moray Offshore Wind Development.

Dan Finch, Project Director of MORL UK, said:

“This document marks an important step forward in MORL’s development of offshore wind in the Outer Moray Firth. It covers a wide range of issues including GLOBAL ENERGY GROUP’s facilities, their development plans for Nigg Energy Park, the potential involvement of Nigg Skills Academy and opportunities for local supply chain development.

“This is the start of a process which if appropriate, will allow MORL to include Nigg Energy Park and GLOBAL ENERGY GROUP’s services as a preferred facility/subcontractor in our procurement activities.

“The development of offshore wind in the Moray Firth has the potential to support up to 2,400 Scottish jobs during its construction and 330 through operations and maintenance, and I am delighted to be involved in sharing those potential opportunities with local enterprises.

“Demonstrating progress in the delivery of the project, I am pleased to announce today that a contract has been placed with Global Energy for the delivery of an early part of the project’s infrastructure. The contract is for the fabrication of the steel lattice section of the met mast which will be installed this year.”

Roy MacGregor, Chairman of GLOBAL ENERGY GROUP said:

“Recently, the Renewables industry and especially Offshore Wind, has been through a period of some uncertainty. However, there is light at the end of the tunnel and we are very encouraged by MORL’s plans. We are grateful for the opportunity to sit down with MORL and discuss a scope of work, which we expect will contribute significantly to additional local employment and opportunities for training people in new skills.

“This could be the beginning of another exciting period for Nigg Energy Park. Since Global Energy Group took over the site from KBR in October 2011, the site has been marketed as a multi-use facility targeted towards the energy industry. A strong pipeline of business with Oil & Gas clients has been built and this will not change. In the future, we see our business for Oil & Gas and Renewables continuing to grow side by side, in this world class port, yard and construction facility. However, we will need to continue to demonstrate that we are conscious of costs and provide products and services, on a competitive basis, to a high quality standard within a safe working environment”.

Calum Davidson, HIE’s Director for Energy and Low Carbon, said:

“The quayside development at Nigg Energy Park is another key step in creating a multi-purpose facility which is attracting developers in Renewable Energy and Oil & Gas from across the world to the Highlands and Islands. Today’s announcement of an MOU between Global Energy Group and EDPR, the developers of one of the world’s largest planned off-shore wind farms is testament to this. HIE’s investment has supported the company to create crucial deep water and lay down facilities at the Easter Ross yard, opening up massive growth opportunities, resulting in significant job creation and increased turnover.”

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