National Renewable Infrastructure Plan Stage 2

National Renewables Infrastructure Plan Stage 2
Report from Scottish Enterprise and Highlands and Islands Enterprise

July 2010
National Renewables Infrastructure Plan
Contents
Stage 2 Report - Executive Summary .......................................................... 3 1. Introduction .............................................................................................. 5 2. N-RIP Industry Collaborative Approach ............................................. 6 3. Market Interest in Port Clusters/Groups .............................................. 7 4. First Phase Site Investment Cases ......................................................... 8 5. Planning Processes ............................................................................... 11 6. N-RIP Funding Approach ....................................................................... 13 7. N-RIP Total Site Capacity Potential Economic Impact .................... 17 8. Wave and Tidal - Port Infrastructure Needs ....................................... 19 9. Conclusions and Recommendations .................................................... 24 Appendices .................................................................................................... 26
National Renewables Infrastructure Plan Stage 2 Report | Contents
Executive Summary
The purpose of the National Renewables Infrastructure Plan (N-RIP) is to support the development of a globally competitive offshore renewables industry based in Scotland. Scotland has a unique opportunity to become the home to much of this industry, from design through manufacturing, to pioneering new approaches to installation and operations and maintenance. Scotlands key strengths are:
Scottish based companies with expertise and skills in subsea engineering and installation borne out of years of experience of working in the North sea and globally; A vibrant innovation support system that is driving industry research and component development and device testing; A skills development infrastructure that can quickly grow the skilled workforce needed to serve this industry as it develops; and Existing port and harbour infrastructure that could be used and a port industry keen to engage with the renewables sector. The Scottish Governments Renewables Action Plan, published in June 2009, instigated the development of an investment plan to support appropriate infrastructure for the emerging offshore wind, wave and tidal energy industries. The Energy Advisory Board, co-chaired by the First Minister, has also tasked the Scottish Government, through the N-RIP project, to take an active leadership role in building a coherent Scotland-wide proposal. The Scottish Government and its economic development agencies are resolute in their commitment to capitalising on these opportunities. Offshore renewables is a significant business opportunity for a range of organisations including project developers, utilities, supply chain firms and port and harbour asset owners. Private sector bodies will have a key role to play in developing detailed investment proposals for site developments. Scotlands public sector economic development bodies are already taking a pro-active approach to working with the private sector to make things happen and accelerate progress. The challenge goes beyond specific site development it is about creating clusters of economic activity throughout the supply chains around our key locations. This process will require significant public sector investment and in the current fiscal climate, it will be critical to ensure that existing funding mechanisms are well targeted and all efforts are made to utilise other funding sources including United Kingdom wide and European Union programmes. Public sector support has already enabled vital infrastructure development for offshore renewables as highlighted in the case studies outlined in the report consideration of future investment proposals will be treated as high priority activity. Offshore Wind - this report sets out the investment that port owners estimate they would need to make to fully develop the eleven first phase sites identified in the Stage 1 N-RIP Report for use for Offshore Wind manufacturing. This excludes the provision of buildings where these would be required. These total infrastructure costs can be approached in phases at each site. Total investment for all sites of 223m would create a set of clustered port sites which could support an offshore wind sector manufacturing 750 complete offshore wind units a year. For Scotlands economy the direct economic impact of this manufacturing site potential alone would support in the region of 5180 jobs and create an annual economic impact of 294.5m year on year. This N-RIP report forms a key element of the Route Map that the Offshore Wind Industry Group is developing, which identifies the broad range of key steps needed to support the growth of this industry in Scotland. It is based on joint analysis by industry and government bodies of the infrastructure required to make Scotland the home for offshore renewables.
National Renewables Infrastructure Plan Stage 2 Report | Executive Summary
The Report: Outlines the emerging market view of groupings of port locations acting as complementary clusters with an emphasis on early opportunities on the East Coast. Sets out the planning and consenting processes that will be progressed in tandem with an assessment of investment approaches. Indicates the next steps that will be taken in considering public funding support.
The strategic importance of the development of the sites for economic growth should be recognised in the next review of the National Planning Framework. Any support by the public sector will have to be prioritised and the assessment of priorities for support, if a case is shown, will be based on the impact any development would have on supporting the growth of the offshore wind industry in Scotland. Stage 3 of N-RIP will consist of these discussions with individual site owners. Key to Government decision making, on any support to
different stages in project developments, initially vessels undertaking environmental assessment work, and to support small scale demonstration deployments. The delivery of the Pentland Firth and Orkney Waters commercial scale leasing programme from 2016 will require development of port infrastructure proposals alongside development of the technology and deployment techniques. The Crown Estate will shortly commission work to detail the Build Out story of the Pentland Firth and Orkney Waters leasing programme by November 2010 in partnership with Scottish Government, HIE (Highlands and Islands Enterprise) and Local Authorities. This will be used to help further collective understanding of opportunities and to help construct business cases for investment.
Four key conclusions have been reached by the Delivery Group: As this industry develops there is a stock of sites in Scotland that could potentially meet industry needs for a broad range of uses. Decisions to invest will be led by the port owners. Based on market interest, catalytic public sector support through part funding initial investment with the private sector may be needed to make ready some sites in the right timescale for them to be used by the industry. That based on offshore project developer feedback and Scottish Development Internationals enquiry stream most interest is being shown in sites in the Forth/Tay cluster and Moray Firth cluster at present. The sites where the interest is strongest should be the focus for initial investment.
port owners, is recognition that to secure industry use sites will need to be ready by 2013/14 and earlier for some users. 2014/15 is currently seen to be the key year in which installation will begin for Round 3 and Scottish Territorial Waters (STW) sites. Funding decisions by Government triggered by site owners business cases will recognise the importance of ensuring investment is made early enough to secure users.
Wave and Tidal Infrastructure

The requirements of the wave and tidal industry for port infrastructure are still evolving, reflecting the stage of development the sector is at, with technology and resulting deployment practices yet to achieve standardisation. It is however clear from EMEC (European Marine Energy Centre) and developers that there will be a need for a range of ports to service
National Renewables Infrastructure Plan Stage 2 Report | Executive Summary
1. Introduction
The purpose of the National Renewables Infrastructure Plan (N-RIP) is to support the development of a globally competitive offshore renewables industry based in Scotland. Scotland has a unique opportunity to become the home to much of this industry, from design through manufacturing, to pioneering approaches to installation and operations and maintenance. Scotlands key strengths are:
Scottish based companies with expertise and skills in subsea engineering and installation borne out of years of experience of working in the North sea and globally; A vibrant innovation support system that is driving industry research and component development and device testing; A skills development infrastructure that can quickly grow the skilled workforce needed to serve this industry as it develops; and Existing port and harbour infrastructure that could be used and a port industry keen to engage with the renewables sector. This report details progress on the actions set out in the N-RIP Stage 1 report in relation to the provision of sites at port locations for offshore wind industry use and further analysis of the need for additional locations to be developed to support the wave and tidal sector, primarily the delivery of the Pentland Firth and Orkney Waters commercial scale leasing round. This report is the result of collaborative analysis by industry and government bodies of the infrastructure required to make Scotland the home for offshore renewables. As part of this analysis, there is recognition that the market views the sites identified in the Stage 1 report as potential regional groups or clusters. These can support complementary manufacturing and construction/installation uses, with potential operations and maintenance uses either at the same locations or other nearby locations. For Offshore Wind industry development this report sets out: An estimate of infrastructure investment required at each of the identified first phase sites to make them fit to support a range of assumed uses. Key planning and consenting processes that will need to be completed to enable sites to be developed in a manner consistent with sustainable development. The scale of offshore wind supply chain manufacturing that could be supported from the development of all the first phase sites and impact of that to Scotlands economy. A proposed approach for the public sector to adopt in assessing the need for public sector pump-priming investment alongside funding from the asset owner. Some triggered investment will stimulate activity, other investment will be driven by occupier location decisions. For Wave and Tidal industry development this report sets out: Early assessment of infrastructure needs to support wave and tidal energy projects, with a focus on the Pentland Firth and Orkney Waters commercial scale leasing round.
National Renewables Infrastructure Plan Stage 2 Report | Introduction
2. N-RIP Industry Collaborative Approach

The N-RIP process aims to establish how port owners can provide sites for offshore renewables use in the locations that the industry favours, and in a way that fits with the principles of sustainable development and the timescales for use that the industry requires.
There are two main elements to progressing the readiness of these locations for use: Suitability for use - ensuring that the potential use of the site for this industry is appropriate bearing in mind the need to ensure sustainable development and that the environmental impacts of the development are considered and taken on board in the planning and design phase of the development. This requires each site to progress through the range of appropriate consenting processes; and Asset owners making the investment required in site infrastructure to make them ready for use. A Strategic Environmental Assessment for the plan has been undertaken, which will assist in the further actions on planning and consenting. It is for site owners to decide when to take forward their consenting processes in accordance with their plans to move to industry readiness. Joint working with the site owners has enabled key investment needs for all the first phase sites to be identified and these are set out in Section 4. The development of N-RIP has followed a collaborative approach with a range of industry stakeholders and is an ongoing process. The ongoing role of Scottish Government and its Enterprise Agencies is to enable the supply chain, offshore renewables (wind, wave and tidal) developers and port asset owners to understand each others requirements as these evolve and change as the industry matures. Scottish Government and the wider public sector will have a key role to play as a strategic and local partner in relation to planning and consenting. In addition N-RIP recognises that in some cases there may be a role to be played from an economic growth perspective in supporting asset owner investment in infrastructure. This may be particularly necessary in the early years of industry development to ensure that the supply chain gains confidence to invest in Scotland. This report has been prepared with support from a Delivery Group made up of industry and other stakeholders (Membership listed at Appendix 1). Their input has ensured that the conclusions set out in Section 9 reflect the current state of industry thinking. As part of the process all the leaseholders in Scottish Waters (Round 3 and Scottish Territorial Waters) have had the opportunity to express views on the potential uses and development of the sites. The responses received have informed the analysis set out in this report. In addition, discussions with wave and tidal developers successful in the Pentland Firth and Orkney Waters leasing programme have informed the wave and tidal section of the report. An offshore wind installation workshop was held in June 2010 attended by key stakeholders including developers, port owners, installation and oil and gas contractors. From this there will be further discussions on evolving approaches to efficient installation. The N-RIP Stage 1 report indicated that operations and maintenance would require two different types of supporting port infrastructure local support bases for regular maintenance and hub locations for specialist services which would service a broader spread of offshore wind locations. To enable Scottish engagement between ports, developers and supply chain companies about both opportunities, an Operations and Maintenance Ports Stakeholder Session will be held in September.
National Renewables Infrastructure Plan Stage 2 Report | N-RIP Industry Collaborative Approach
3. Market Interest in Port Clusters/Groups

As the collaborative discussion between industry, ports and government has developed over the Stage 2 process, the value of viewing the sites as regional groups that can have complementary roles has become apparent. This approach is supported by emerging market interest and observations of industry practice in other locations.
Previous and current approaches to offshore wind manufacturing and installation have followed this cluster approach whereby one location acts as a staging/logistics port, manufacturing is sourced from other locations and storage can be located in a third location. In northern Germany the development of the Offshore Wind industry is also seeing this complementary use approach develop with Bremerhaven, Cuxhaven and Emden having different elements of the offshore wind supply chain located adjacent to their ports. Viewing the various locations as clusters could provide three benefits for supply chain companies: Forth/Tay The cluster approach can be a lower cost option than some of the single site options in other competing regions - the potential for clustered manufacturing uses to locate in a port grouping is seen as an attractive alternative to investing in one single site at significant cost. Although the supply chain is not Moray Firth West Coast In addition a fourth, existing, subsea cluster exists focussed on Aberdeen and Peterhead and these locations amongst others are used by companies which physically on one site, sea connections mean that moving elements between sites and assembly/ installation locations is practical. Each cluster will have access to a range of different local labour markets. Companies locating in the regional cluster, whilst collaborating on some projects for some developers, will have more access to load out quaysides so that they are able to serve a wider range of customers. To date these groupings and port uses have emerged around local offshore wind opportunities. The existence of, and progress on Scottish Water sites can make these groups of locations attractive to the supply chain. Whilst remote manufacturing is possible, companies in the supply chain do see the benefit of locating near to an active offshore wind market. In Scotland locations at ports for offshore wind manufacturing fall into three broad geographic clusters and within these there is also potential for installation uses and operations and maintenance: will bring expertise to offshore wind installation and operations and maintenance processes. Some offshore wind manufacturing is also thought possible in this area. A fifth cluster of sites exists which could service the marine sector supporting the Pentland Firth and Orkney Waters commercial scale leasing round. It is not envisaged that these will operate as closed groups rather that concentrations of uses may develop with components coming from locations outwith the group. What is clear however is that Scotland can offer sites in these five clusters with capacity to act as industry hot spots. The map at Appendix 2 shows the clusters for offshore wind and also indicates the marine area involved in the Pentland Firth and Orkney Waters commercial scale leasing round.
National Renewables Infrastructure Plan Stage 2 Report | Market Interest in Port Clusters/Groups
4. First Phase Site Investment Cases

The N-RIP Stage 1 report indicated that Scottish Enterprise (SE) and Highlands and Islands Enterprise (HIE) would work with the first phase sites to identify investment in site infrastructure required to make the sites ready for use by the offshore wind supply chain. The potential of each site is set out in Appendix 3. Investment required at each site represents the site owners perspective on what is needed based on current industry requirements and potential uses at their location. Some locations outwith the first phase site group have also engaged with SE and HIE and have also shared their view of total investment required at their sites.
For each of the sites there is the potential for a phased investment leading to the full development of the site and site owners are engaging with industry to understand the degree of market interest in their location. Confidence to Invest - For site owners generally, their confidence to invest grows with increasing levels of certainty that the offshore wind industry will move forward on the development of offshore wind farms under The Crown Estates Round 3 leases and Scottish Territorial Water leases. For each particular site the owners are engaging with companies in the supply chain and gauging the level of interest in using their port for this industry. Land Reclamation for some sites part of the phased infrastructure development may involve the reclamation of land to create larger areas for use. Although each site has different infrastructure investment needs, the investment relates to three generic types of expenditure that is required to make the locations fit for their potential industry use: Enabling Infrastructure Investment This is investment in a range of basic elements of the site to make them fit for use by the offshore wind industry. Quayside Infrastructure - This includes creation, renewal and strengthening of quaysides for load out of equipment. This will be required in sites to enable both a construction/installation use and to support load out from manufacturing locations which are not used for direct installation. The weight bearing requirements and quantum of quayside required will depend on the use and assumptions of potential uses have been made for each site. Improving Water Depth at Quayside depending on installation or delivery vessels that are utilised during the lifetime of the industry some of the first phase locations may require dredging to ensure that vessels are able to load up from the quayside. Land Remediation a range of the first phase sites require the available land to be made ready for fabrication buildings. Demolition/Site Clearance on some sites existing but redundant buildings will need to be cleared to enable development. Utilities Upgrade dependent on use there will be a need to upgrade basic utilities to some of the sites. Site Access some sites require internal access to be improved/created to enable movement within the site. In addition there is a need to ensure that those components which are not being moved by sea are able to access the site by land. Manufacturing Facilities some of the first phase sites have existing fabrication sheds which users may be able to occupy, however, in the main, it is assumed that new fabrication facilities will be required to meet these new specialist requirements. Different uses require different building sizes, layouts, weight bearing capacities and eaves height. Whilst there are elements of user requirements that will be bespoke to individual company processes four main facility types can be modelled: Jacket production facility Nacelle production facility Blade production facility Tower manufacture facility
National Renewables Infrastructure Plan Stage 2 Report | First Phase Site Investment Cases
For sites identified as having the scale required for integrated manufacturing in N-RIP Stage 1 a combination of these facilities could be accommodated. For those sites identified for distributed manufacturing at least one of these uses could be housed in the location. In addition cable manufacturing facilities will be required and will have a different layout to those listed above. There is also potential for Scotland to host substation platform fabrication and monopile production at these sites. Based on knowledge of existing buildings and costed designs of particular types of facility, a generic benchmark cost for these types of facilities is set out. This is indicative and a guide to the order of building costs envisaged. The costing relates to a shell building only. In addition, there will be a range of internal fit out costs and external site costs driven by the particular users needs. Table 1 below sets out these benchmark costs. Table 1 - Estimated building costs.
Manufacturing Building Type Jacket production facility Nacelle production facility Blade production facility Tower manufacture facility Indicative Cost (shell building) 10m 10m 25m 10m
A range of options are available for the procurement of these new facilities user procured, asset owner procured and third party developer procured. Each of these instances leads to different beneficiaries from the revenue streams arising from the manufacturing use. Bespoke Equipment/Facility Requirements - The third element of infrastructure investment is to support particular users requirements. This relates to craneage/ lifting equipment, load out quayside configuration and bespoke plant and equipment required by the particular manufacturing process for example steel casting, gear box testing plant. It is difficult to predict these elements at this stage as they are directly related to the user and their requirements. A range of approaches to financing these elements are available and these would be considered with any user by the asset provider.
[Source: SE Estimates of shell building costs based on indicative floor areas]
Table 2 shows the estimated infrastructure cost for each site excluding building costs. Depending on market interest, the investment in infrastructure at each site can progress on a phased basis. Sites are grouped by the clusters set out in Section 3 that relate to offshore wind.
Table 2 Estimated Site Investment Cost Excluding Buildings (Phasing Not Shown)
Port Cluster Forth/Tay Forth/Tay Forth/Tay Moray Firth Moray Firth Subsea Subsea West Coast West Coast West Coast West Coast Site Leith Dundee Fife Energy Park Nigg Ardersier Aberdeen Peterhead Hunterston Arnish Machrihanish / Campbeltown Kishorn Owner Forth Ports plc Forth Ports plc SE own site/JV agreement with Fife Council KBR Ltd/ Wakelyn Trust Whiteness Property Company Ltd (WPC) Aberdeen Harbour Board Peterhead Port Authority / ASCO Clydeport Ltd Stronoway Trust own land/ HIE lease Argyll & Bute Council/ HIE lease The Crown Estate / Applecross Estate Trust / Kishorn Port Ltd Estimated Investment Costs (excl. Building) m 35 5 8 22 15 24 27.3 65 13 5.5 2.75 222.55 Scale of potential Manufacturing Use Integrated Distributed Distributed Integrated Integrated Distributed Distributed Integrated Distributed Distributed Distributed
Total Estimated Infrastructure Cost

[Source: Site-owner supplied investment plans]
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5. Planning Processes
A key element of making sites ready for industry use is securing planning consents so that sites can be developed for occupiers to meet the timescales for supplying the industry. During Stage 2 of N-RIP development there has been ongoing engagement with planning authorities about the potential uses on the 11 sites. Asset owners have also considered the other consents that would be required and the extent to which their existing consents and permitted development rights will support the potential uses.
Planning approvals will be key milestones that will further build confidence amongst potential users. Scotlands planning system was recently modernised to make it best able to support the sustainable development of Scotlands economy in a manner that respects responsibility to the environment. A key element, prior to approval that gives potential occupiers confidence is an agreed timetable of milestones leading to a planning consent decision. The N-RIP supports an ongoing strategic dialogue between the site owners and the public sector at national and local level to progress planning and consenting processes for sites. This will ensure that decisions about the suitability of development of the sites for offshore manufacturing and associated uses can be made in a timescale that meets industry needs. For each site this timeline of planning/consenting milestones is being developed and site owners are taking forward their discussions with planning and consenting bodies to progress the necessary steps. The Delivery Group view the sites identified as being of strategic importance to the development of Scotlands economy and conclude that this should be recognised in the next review of the National Planning Framework. The SEA has assumed that quays will require strengthening, which will entail piling. This can affect biodiversity interests, for example, noise disturbance to birds; noise and vibration disturbance to cetaceans (whales, dolphins, porpoises) and migratory fish. Effects on the latter can include acoustic barriers to movement and displacement from habitat. Piling is also likely to disturb residential neighbours, where present. The SEA has identified key issues relating to port improvement, renewable manufacture/assembly, and operations and maintenance activities. A number of the sites at ports and harbours, particularly on the east coast, are adjacent to or in the environs of sites designated for their nature conservation value. These include European sites (Special Protection Area and/or Special Area of Conservation) and nationally important sites (Sites of Special Scientific Interest). In areas where these sites are present, port improvements have the potential to affect their interests. Examples include; land reclamation and/or land clearance resulting in habitat loss as a result of land take; and construction activity and noise which could result in disturbance of species. A strategic environmental assessment (SEA) has been undertaken of the N-RIP, in accordance with the Environmental Assessment (Scotland) Act 2005. The purpose of the SEA is to identify significant environmental effects arising from the N-RIP and to consider means of mitigating such effects. An integral part of the SEA has been consultation with SNH, SEPA and Historic Scotland. The SEA has focused on the immediate and medium-term sites identified in the N-RIP Stage 1 report. The results, set out in the Environmental Report for this Stage 2 report, identify key issues which can be addressed by the N-RIP as well as providing early identification of environmental issues (and solutions) which could arise during project planning and consenting processes.
National Renewables Infrastructure Plan Stage 2 Report | Planning Issues
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Dredging will need to be considered at those ports and harbours which cannot currently accommodate vessels of the required draft. Dredging is likely to result in increased turbidity, with consequent effects on fish, light penetration and smothering of sediments. Sedimentation patterns along the coast could be affected which could affect bird feeding areas. Increased vessel movements could also affect sedimentation patterns. Mitigation has been considered using the mitigation hierarchy of avoid, reduce, remedy and/or offset. Measures include: avoid land reclamation that would encroach on biodiversity interests; use alternative extant land where habitat losses may result from reclamation and/ or land clearance; undertake construction work (particularly piling) at times of the year appropriate for the species in question. Measures for the mitigation of these adverse effects will need to be integrated into port and harbour planning and design. Consultation with organisations with responsibility for the environment at an early stage of project development is key to successful mitigation of adverse effects. These issues will be addressed through the N-RIP, as required or by the site owner as they progress their approach.
National Renewables Infrastructure Plan Stage 2 Report | Planning Issues
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6. N-RIP Funding Approach

The investment decision for a site owner is based on their assessment of future revenues arising from the use of their site by this industry. There are a range of beneficiaries from this investment who are seen to be potential partners in the process.
For developers who hold The Crown Estate leases, investment that creates efficient installation bases can reduce installation costs and risks. Investment that attracts manufacturers will help to create a strong and innovative Scottish based supply chain which will drive down costs through design innovation and increased competition. For manufacturing supply chain companies (turbines, towers, jackets, blades, cables), practical locations that have modern fit for purpose quayside and load out capacity are at a premium in the UK and a finite resource around the North Sea. Investment by Scottish port owners, with support from the public sector where appropriate will expand the range of potential locations. For port and fabrication location asset owners, investment in infrastructure will facilitate the use of their facilities by the industry and thereby drive lease payments and port income. Port income will relate to installation processes where items will be brought into the quayside and then loaded out (requiring in and out handling) and manufacturing uses where there will be a load out port charge. Where ports are used for operation and maintenance there is the potential for long term port fees for regular small vessel uses and planned maintenance uses. Asset owners and any public sector pump-priming decisions on investment will need to weigh this range of potential beneficiaries and consider how each may contribute to the investment needed and the revenue streams arising from investment. Funding support by the public sector will be focused on securing a sustainable economic impact.
National Renewables Infrastructure Plan Stage 2 Report | N-RIP Funding Approach
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Table 3 - Approach to Funding Route Map Development Feasibility

A route map has been developed to provide clarity to all beneficiaries port or asset owners, manufacturers, developers or operators on the approach N-RIP is suggesting for accessing public sector support for projects. This is shown as table 3 opposite. A critical first step for site owners is to decide that the potential use of their site for this industry is a key part of their business plan. The route map provides a step by step process for any individual infrastructure proposal. N-RIP sites are at varying stages of this process. It gives an indication of the activities anticipated and the role that public sector key players will play be they HIE, SE, Local Authorities or other Government bodies as well as port and asset owners and the wider renewables investment market.
Port owners to explore potential short, medium and long term site uses and identify the scope and indicative costs of any associated works required to enable development
t SE/HIE/SDI engagement t Market engagement t Feasibility update t Market interest t Detailed Business Plan t Business Plan Review t Establish support need
Yes No
Establish and agree with port/asset owner the structure, level, timing and source of public sector support (if any) Public Sector review of the Business Plan to assess robustness of the proposed commercial structure and financial arrangements Based on this interest/proposition, port/asset owner to develop a detailed Business Plan that clearly articulates the business proposition and investment requirements Establish clear and specific market interest (be it manufacturing, installation or O&M) and an understanding of the scale, nature and timing of the proposed infrastructure development Update feasibility assessment to reflect market discussions and establish indicative investment requirements Initial exploratory discussions with potential port users (including manufacturers and developers) to better understand the commercial options/opportunities, potentially facilitated by SE/HIE/SDI Initial engagement between port owner and SE/HIE to establish potential development, and identify any support that may be required from SE/HIE/SDI for engagement with the market
Private investment
Finance raised by private company on corporate or project basis
Formal submission t Support agreed
Port/Asset owner to submit formal business plan/application for support to the appropriate public sector approver/provider
Financial support arrangement agreed
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Investment Options - It is expected that finance for port infrastructure development would be raised principally by private companies either on a corporate or project basis. However as identified in the Approach to Funding route map outlined above, it is also anticipated that there may in some instances be a case for financial support from the public sector. Some of the financial delivery structures that could be envisaged for support of this kind are outlined below. Appendix 4 identifies some of the potential sources of funding and financing that could be called upon to support the projects. Potential delivery structures - Support from the public sector can be channelled in a number of ways. Depending on the nature of the investment required, any funding gap identified and there being sufficient market interest, SE and HIE would consider a range of approaches to supporting investment. In addition partnership with Local Authorities could bring other potential approaches forward.
In general terms the approaches would include: Joint Venture this could either be for a specific site or building, or a more broadly structured joint approach where there is a sharing of risk and return agreed. Public Financed Loan provision of finance as a repayable loan on agreed commercial terms. Equity Investment the public sector may become an equity investor on a commercial basis in an asset owner enabling investment to take place. Direct Investment in some instances there might be value in a direct public sector investment that would require ownership of the asset in question. The public sector would then manage the asset in a manner that complies with state aid requirements. Regional Selective Assistance this is available in certain locations and may support the investment required.
The appropriate approach will vary for different types of asset investment and will need to be suitable for the existing asset ownership structure. Risk and uncertainty in relation to revenues ensuing from the investment will also be a key factor in determining the best approach. Where any public sector support is considered it will need to comply with state aid regulations and support sustainable economic growth objectives. Two case studies showing how Scottish Government, its economic development agencies and the wider public sector have supported the development of infrastructure and facilities that assist the development of the offshore renewables industry are set out on the following page:
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Case Studies
Support to Jacket Manufacturer BiFab
In spring 2010 BiFab was offered 2m of Regional Selective Assistance by Scottish Government and a 4m commercial loan from Scottish Enterprise to help finance a new Jacket production facility at Energy Park Fife, Methil. At the same time Scottish and Southern Energy Plc (SSE) purchased a 15% stake in BiFab for a total consideration of 11m to further enhance the companys competitiveness. In addition, SSE secured an agreement with BiFab for the supply of a minimum of 50 jacket substructures per annum commencing around 2014 for a period of 10 to 12 years. BiFab currently has around 350 employees at their Methil facilities producing 40 structures per year. It is anticipated that the company will more than treble its annual production to 130 structures a year helped by the Scottish Enterprise and SSE investment. BiFabs jacket production facility is located at Energy Park Fife. This location has already attracted 23m of public sector investment from Scottish Enterprise, Fife Council and the European Union to develop infrastructure on the site and support company growth. BiFab also operates a facility at Arnish, currently employing 70 people and fabricating components and sub assemblies for the renewables sector. HIE has invested 15million in the Arnish facility over the last 10 years creating a multi-user site with a strong renewables focus.
Support to Tower Manufacturer - Campbeltown/Machrihanish

In early 2010 Welcon Towers, a subsidiary of Skykon began a 25m investment at Machrihanish backed by 9.2m of Regional Selective Assistance and 5.6m from Highlands and Islands Enterprise. The new buildings will modernise production at the plant and enable the manufacture of larger turbine tower sections for both the onshore and offshore renewables market. The investment safeguards 100 existing jobs and Skykon aims to increase the workforce to 300 over the next two years. The Local Authority, Argyll & Bute Council with assistance from the European Regional Development Fund are making an investment of 12million in Campbeltown harbour which will facilitate the export of larger tower sections and improve the capability of Campbeltown to respond to future Operations & Maintenance opportunities.
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7. N-RIP Offshore Wind Potential Direct Manufacturing Economic Impact

N-RIP aims to ensure that Scotland can offer a range of locations that can be developed in a sustainable fashion. To understand the scale of potential economic impact that would arise if sites are developed for manufacturing use, a high level economic impact model has been developed. This model sets out gross indicative direct manufacturing jobs only.
Alongside this, Scotland can expect to see significant additional economic impact arising from the design and development processes for offshore wind, construction/ installation phases and from the associated ongoing operation and maintenance of the installed offshore wind arrays. In addition to these direct benefits and the benefits from other core aspects of the industry there will be potential significant indirect and induced benefits to other sectors such as transportation, material suppliers, service suppliers such as Health and Safety support and vessel suppliers. As this industry is still evolving exact direct employment in each type of facility is difficult to predict. However, based on estimates derived from discussions with supply chain companies and relating this to employment densities for other similar industries it is possible to broadly estimate potential direct employment for different kinds of manufacturing use. As the industry develops, it will be possible to predict the potential impact with greater certainty. For example, some manufacturers have indicated an intention to potentially scale up production to a three shift working pattern which would lead to greater direct employment and increased annual output. This, displacement and local parameters have not been factored into the current model. Based on the capacity of the sites it is estimated that Scotland could accommodate at least five plants for each of the following manufacturing uses nacelle, tower, blade, jacket. Many of the sites have the potential to serve a range of uses depending on the environmental impact of these different processes. Table 4 (page 18) gives a broad estimate of the potential gross direct employment from that scale of use in Scotland.
National Renewables Infrastructure Plan Stage 2 Report | N-RIP Total Site Capacity Potential Economic Impact
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Table 4 Annual Gross Direct Jobs and Gross Value Added (GVA) associated with indicative facilities
Gross Direct Employment (Single Facility) Estimated Capacity of First Phase (N-RIP Sites) Potential Total Gross Direct Employment
Annual GVA (Single Facility)
Potential Total Annual GVA
Nacelle Tower Blade Jacket Total
120 327 327 262
6.8m 18.6m 18.6m 14.9m
5 5 5 5
600 1635 1635 1310 5180
34m 93m 93m 74.5m 294.5m
Notes - Gross Direct employment estimated from market information/employment density for industrial/manufacturing plant use. GVA based on 1 year only presented in 2010 prices. Annual estimates based on the first full year of full operation. 30% optimism bias factor included in line with the principles of best practice Green Book guidance for risk and uncertainty.
N-RIP shows that, if the market were to grow to this extent, Scotland could be able to provide facilities that would support a large proportion of the offshore wind supply chain. If the output of a typical facility is 150 units a year, this suggests that if these uses were based in Scotland then output would be in the order of 750 units a year. UK Round 3 and STW leases would require c 7000 wind turbines over the next decade. In addition construction continues on Round 2 and newly leased Round 2 Extensions. Outwith UK waters, there are growing demand pipelines through seabed leasing off France, Netherlands, Belgium, Germany, Denmark, collectively offering a potential European market in excess of 80GW. There is therefore a significant economic opportunity for Scotland to become the home of the offshore wind industry both in terms of providing the critical infrastructure to ensure timely, economic delivery of offshore projects, and a commitment by industry and public sector partners to support the development of this new industry for the economic benefit of Scotland.
National Renewables Infrastructure Plan Stage 2 Report | N-RIP Total Site Capacity Potential Economic Impact
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8. Wave and Tidal - Port Infrastructure Needs

Scotlands lead in the development of the wave and tidal energy sector is demonstrated by the establishment of the European Marine Energy Centre in Orkney, the only grid connected, UKAS accredited, wave and tidal test facility in the world for fullscale testing, combined with arguably the best financial support in the world with enhanced Renewables Obligations Certificates (ROCs) (5 ROCs for Wave and 3 ROCs for Tidal), capital investment in R&D demonstrated by the recent WATERS 13million awards and the 10million Saltire Prize. This activity and encouraging environment has lead to the worlds first commercial scale leasing round and the development of a new consenting regime, with Marine Scotland to enable it.
In comparison with the offshore wind sector, the wave and tidal energy sector is, however, in the early stages of development. At present, there are a number of prototype devices being tested to move towards proving that marine energy converters can produce electricity at a competitive rate. As part of N-RIP Stage 2, further consultations were undertaken, following Round 1 lease option awards in the Pentland Firth and Orkney waters and building on those undertaken by HIE in November and December 2009. A list of those consulted is attached as Appendix 5. Any assumptions made at this point in time are likely to be subject to considerable change as the technology and sector develops over the next five years. As indicated in the N-RIP Stage 1 Report any infrastructure to support the Pentland Firth and Orkney Waters leasing area is the most immediate need. Other lease option awards for the Saltire Prize and any other future leasing rounds would need analysis when locations for these become clear. Currently there is a leasing process underway for a site in the Inner Sound in the Pentland Firth. Award of this site is expected later in 2010. The areas currently with options for lease for development are highlighted in Figure 1 on the next page.
National Renewables Infrastructure Plan Stage 2 Report | Wave and Tidal - Port Infrastructure Needs
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Figure 1: Map of development sites under the Pentland Firth and Orkney Waters Leasing Round
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For the purposes of this report the time periods have been divided into three periods: 2010-2015 immediate needs being for deployment of devices at EMEC and other testing facilities, before moving on to the deployment of small scale arrays, both at sites identified under the Pentland Firth and Orkney Waters leasing round, as well as any other future leasing rounds, and at other locations identified by developers themselves. Up to 50MW is planned for deployment on known sites, including those in the Pentland Firth and Orkney Waters leasing area in this initial five years period, the bulk of this likely in 2015. 2016-2020 assuming the continuing progression of technology development and subject to the necessary grid infrastructure being in place, the industry should be moving towards deployment of arrays of over ten devices using established installation techniques. 1,150MW (plus the Inner Sound, anticipated to be 200MW to 500MW) is planned on known sites during this period, primarily in the Pentland Firth and Orkney Waters leasing area. Further the Saltire Prize is aimed to incentivise at least two years commercial production of electricity from wave and tidal technologies by June 2017. 2020 onwards operations and maintenance of installed devices.
Figure 2 below illustrates the aggregate installation proposed under lease agreements for the Pentland Firth and Orkney Waters leasing round. These dates for capacity installation are the deadlines under lease agreements and so deployment will potentially anticipate this schedule. Figure 2 Wave and Tidal Build Out Timescales
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From developer discussions consideration has been given to the infrastructure needs at these stages:
Installation of small arrays Cable laying activities will continue to be serviced out of existing facilities at this small volume. Devices: there are three methods of installation used, influenced to some extent by the port facilities available as well as by the type of device. The Pontoon and small quay model - where the device is towed from the fabrication site to a deployment site with wet storage and then using pontoons for final adjustments. Quayside and cranes model - devices are delivered on a vessel to a quayside for assembly and adjustments, and deployed from the quay. Deployment direct from the fabrication site onto a vessel. To ensure that port infrastructure is not a constraint on the development of this industry during its test and demonstration phase dialogue will continue with lease holders as they develop their technology and deployment methods.
2010 2015: Short-term activity

EMEC sites Deployment at EMEC will accelerate over the next two years with ten devices due to be installed. Existing sites are being expanded and two nursery sites being developed. Demand from developers for increased shoreside facilities and light industrial capabilities in support of R&D activity is currently being addressed with the development at Hatston, and proposals for development on land at Lyness. The Pentland Firth and Orkney Waters Leasing Round sites Developer discussions have focused on specific requirements for survey work and installation of small arrays, and have highlighted following observations: Survey work Type of vessels that may be used for this work are multi-cats (20metres in length) and small workboats (10metres in length) Volume of Activity: developers timelines show survey activity for at least two seasons per site. Location: Stromness is likely to be used for the largest number of sites given sailing times and specialist workforce location. Hatston and Kirkwall Harbours could also be used for northerly sites, and Scrabster Harbour and Gills Bay providing mainland facilities for the Pentland Firth. Wick is already hosting survey work boats for offshore wind, and depending on which companies win the Environmental Impact Assessment contracts, White Head (Loch Eriboll) may be used.
2016-2020 Medium term activity

Beyond five years the volume proposed to be deployed rises sharply with considerable associated port infrastructure required. The exact specifications for that infrastructure are not yet established but will be clarified as the technology progresses and financial commitments to grid infrastructure, device manufacture and support vessels are made.
2020 onwards Long term activity

Operation and maintenance facilities will, for economic and operation reasons, need to be provided near the deployment sites with four hours sailing being given as the ideal maximum by some developers. A three to five year maintenance cycle is envisaged by most of the developers consulted which will create requirements over decades for the port facilities to service this. Further it is expected that additional leasing rounds will be in construction phase.
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Planned port developments to support Medium and Longer Term Activity

All ports in both Caithness and Orkney that could host or are already hosting deployment activity have development plans with at least guideline costs for expansion of existing facilities. Lead times vary, but three years to delivery, including obtaining planning permissions and financing should be allowed for, and hence developer input on requirements for larger scale deployments scheduled from 2017 onwards will need to be determined by 2012-2013 at the latest and work needs to begin by 2014 at the latest. Therefore, some decisions on port development and use may have to be made before there is any specific certainty in the market in order to meet the deployment timetables as they are currently planned. Providing deepwater quay space and cranes at deployment sites will increase the number of technologies that will be successfully able to deploy, to include those that have not designed around minimal infrastructure. Quay space and cranes at deployment sites could enable manufacture and fabrication to happen further afield from the lease sites as devices can be transported over a greater distance by barge than wet towing. Moving on from this, delivery to deployment sites in batches will create a greater need for laydown areas at both fabrication and deployment sites. The N-RIP Stage 2 analysis indicates that a range of locations could support wave and tidal installation, fabrication and ongoing operations and maintenance. There will in time be a need for locations to support these uses, both in the initial Pentland Firth and Orkney Waters leasing area, and other areas that may be leased in future around the Scottish coast. These potential locations are shown in Appendix 6. Under the auspices of the Pentland Firth and Orkney Waters Delivery Group, comprising The Crown Estate, the Scottish Government, HIE, Local Authorities and the developers, work to refine these locations and investment opportunities will be undertaken as developer requirements become clear in the next phase of work.
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9. Conclusions and Recommendations

Scotland has a unique opportunity to become the home to much of the offshore renewables industry, from design through manufacturing, to pioneering new approaches to installation and operations and maintenance.
Scotlands key strengths are; Scottish based companies with expertise and skills in subsea engineering and installation borne out of years of experience of working in the North sea and globally; A vibrant innovation support system that is driving industry research and component development and device testing; A skills development infrastructure that can quickly grow the skilled workforce needed to serve this industry as it develops; and Existing port and harbour infrastructure that could be used and a port industry keen to engage with the renewables sector. The Scottish Government and its economic development agencies are resolute in their commitment to capitalising on these opportunities. Public sector support has already enabled vital infrastructure development for offshore renewables as highlighted in the case studies outlined in the report consideration of future investment proposals will be treated as high priority activity. This N-RIP report forms a key element of the Route Map that the Offshore Wind Industry Group is developing which identifies the broad range of key steps that are needed to ensure the growth of this industry in Scotland. It is based on joint analysis by industry and government bodies of the infrastructure required to make Scotland the home for offshore renewables. Four key conclusions have been reached by the Delivery Group on offshore wind; As this industry develops there is a stock of sites in Scotland that could potentially meet industry needs for a broad range of uses. Decisions to invest will be led by the port owners. Based on market interest, catalytic public sector support through part funding initial investment with the private sector may be needed to make ready some sites in the right timescale for them to be used by the industry. That based on offshore project developer feedback and Scottish Development Internationals enquiry stream most interest is being shown in sites in the Forth/Tay cluster and Moray Firth cluster at present. The sites where the interest is strongest should be the focus for initial investment. The strategic importance of the development of the sites for economic growth should be recognised in the next review of the National Planning Framework. Total investment for all sites of 223m would create a set of clustered port sites which could support an offshore wind sector manufacturing 750 complete offshore wind units a year. For Scotlands economy the gross direct economic impact of this manufacturing site potential alone would support in the region of 5180 jobs and create an annual economic impact of 294.5m year on year. Any support by the public sector will have to be prioritised and the assessment of priorities for support if a case is shown will be based on the impact any development would have on supporting the growth of the Offshore Wind industry in Scotland. Key to government decision making, on any support to port owners, is recognition that to secure industry use sites will need to be ready by 2013/14 and earlier for some users. 2014/15 is currently seen to be the key year in which installation will begin for Round 3 and STW sites. Funding decisions by Government triggered by site owners business cases will recognise the importance of ensuring investment is made early enough to secure users.
National Renewables Infrastructure Plan Stage 2 Report | Conclusions and Recommendations
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Wave and Tidal Infrastructure

The report concludes that there will be a need for investment by port owners in various locations to make sites ready for this industry in the future. The specifics of the port infrastructure required in the medium term for large scale deployment will be developed by the Pentland Firth and Orkney Waters Delivery Group with knowledge from the port sector and proposals for potential port development informing the development of deployment and operations and maintenance plans. SDI will continue to market the investment potential of port facilities servicing this sector. The Crown Estate will shortly commission work to detail the Build Out story of the Pentland Firth and Orkney Waters leasing programme by November 2010 in partnership with Scottish Government, HIE and Local Authorities. This will be used to help further collective understanding of opportunities and to help construct business cases for investment.
National Renewables Infrastructure Plan Stage 2 Report | Conclusions and Recommendations
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Appendices
Appendix 1............................................N-RIP Delivery Group Membership Appendix 2 .................................................................Port Cluster Mapping Appendix 3..........................................N-RIP First Phase Sites Information Appendix 4..................................................................... Sources of Finance Appendix 5.................................. Wave and Tidal Stage 2 Consultation List Appendix 6 ............................................Wave and Tidal potential locations
National Renewables Infrastructure Plan Stage 2 Report | Appendices
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Appendix 1 - N-RIP Delivery Group Membership

Paul Lewis (co-chair) ..........................................................................................Scottish Enterprise Andrew Jamieson (co-chair) .....................................Scottish Renewables Forum/Scottish Power Allan MacAskill...............................................................................................SeaEnergy Renewables Colin Hood (Andrew Donaldson) ...................................................... Scottish and Southern Energy Keith Anderson (Jason Martin) ............................................................ Scottish Power Renewables Colin Parker.................................................................................................Aberdeen Harbour Board Euan Jamieson ...................................................................................................................... Clydeport Alan Burns .........................................................................................................................Forth Ports Alasdair Rankin ....................................................................................................... The Crown Estate Mike Kydd .......................................................................... (chair) North Scotland Industries Group Robin Presswood ........(chair) Scottish Local Authorities Economic Development Group/(SLAED) Rod Johnstone .............................................................................................Scrabster Harbour Trust Calum Davidson............................................................................. Highlands and Islands Enterprise Audrey MacIver.............................................................................. Highlands and Islands Enterprise Tom Lamb ...................................................................................Scottish Development International Colin Grant .................................................................................... Highlands and Islands Enterprise Tony Rose..........................................................................................................Scottish Futures Trust Jamie Hume.................................................................................................The Scottish Government Alex Reid ......................................................................................................The Scottish Government Adrian Gillespie ....................................................................................................Scottish Enterprise Euan Dobson .........................................................................................................Scottish Enterprise
National Renewables Infrastructure Plan Stage 2 Report | Appendix 1
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Appendix 2 - Port Cluster Mapping
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Appendix 3 - N-RIP First Phase Sites Information

FORTH/ TAY CLUSTER Leith
Site Characteristics: Leith is a strong location for large scale manufacturing, installation activities and operations and maintenance for the renewables industry. The port is owned and operated by Forth Ports PLC. In total Leith Docks comprises a total water area of 100 hectares and a total land area of 158 hectares. The current masterplan designates 150 acres for renewable activities. Additional land may be available within the docks and offsite at adjoining industrial areas. Waterside Access - There is an impounded dock with water depths of 9.75m 7.20m depending on berths. Entrance to port is via a lock which is 259m long and 31.6m wide between floating fenders and depth over outer sill at MHWS 12.293m. Forth Ports are assessing requirements going forward to construct an outer tidal berth with heavy lift capacity. Landside Access - Leith Docks is on the southern shore of the Forth Estuary downstream of the Forth Bridges on the northern boundary of Edinburgh. Transport connections are good with road access to A1, M8 and M9, rail connected to main East Coast line via sidings and Edinburgh Airport is 12km from port. Existing Buildings - A range of existing industrial buildings may be available. Quayside Length/Weight Bearing - Minimum of 1800m of quaysides available all with heavy lift capability Planning - Port facility carries permitted development powers for certain port related uses. Potential Offshore Renewables Infrastructure Role: Leith can support large scale manufacturing, installation activities and operations and maintenance Market Use and Interest: The port currently supports a wide range of shipping activities including offshore oil and gas support. Leith is also home for research, development and manufacture of the Pelamis wave to energy marine device. A biomass powered electrical and thermal generating plant is proposed and is progressing through a consent process. Infrastructure Development Requirement: Facilities to clients specification can be put in place. Base industrial and marine assets with exception of proposed outer berth already exist. Delivery Approach: Making the site ready, depending on client requirements and scale and complexity of facility would take between12-36 months. Outer berth development has a 36-month lead-time. Feasibility studies are ongoing.
Dundee
Site Characteristics: The Port of Dundee currently offers 60 acres of development land for the renewables sector, all in the ownership of Forth Ports. If there was a need there may be potential to extend this through the reclamation of additional land at the east end of the existing Port boundary (c 20 acres). Outwith the port estate, two principal sites have been identified to support Renewables development in the city Claverhouse and Linlathen, both owned by Dundee City Council and within 3 miles of the port, offer 140 and 240 acres available for immediate development. There is also a number of private sector owned sites within the area. Waterside Access - The port offers around 1800m of quayside in a sheltered riverside location with access to the North Sea unrestricted by either air draft or vessel width. The water depth along the quay is up to 9.5m, with a range of quayside load capacities up to 7 Te/m. The port also offers a full range of commercial port services including cargo handling and quayside craneage. Landside Access - Improvements are underway with the construction of a road bridge and reconfigured road layout at Stannergate providing direct abnormal load access to Scotlands trunk road network in 2011. There is also the potential for a rail freight terminal within the port estate.
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Existing Buildings - There are a number of existing industrial buildings within the port available for use, along with a range of warehouse, office and open storage areas. Planning - Port facility carries permitted development powers for certain port related uses. A supportive approach from local planners exists. The feasibility of the future potential land reclamation extension of the port is under consideration. Potential Offshore Renewables Infrastructure Role: There is potential for a major turbine manufacturing facility and a tower manufacturing facility to co-locate on the site, with capacity for a number of supply chain operations within the existing site. A detailed developer requirement for an Operation and Maintenance facility has been incorporated into the planning of the site. Market Use and Interest: The Port of Dundee is a strong regional port handling a wide range of bulk agricultural and forest products and providing servicing and supply to the oil and gas industry. The port currently hosts a refinery and various fabrication and engineering uses, with a proposed Biomass generation facility currently progressing consent with a potential operational date of 2014. An extensive range of interests from the renewables sector have been received for the port including turbine manufacture, tower manufacture and operations and maintenance.
Infrastructure Development Requirement: As the port enjoys the benefits of being a fully commercially operating facility, the principal infrastructure requirements are specific to the particular requirements of occupiers. While the detail varies to a degree, the requirements principally relates to large scale bespoke industrial buildings with associated load out areas and appropriate land storage. The potential expansion of the port estate through land reclamation is a further potential future phase dependent on demand. Delivery Approach: Indicative costings for large end user buildings and load out areas have been formulated and can be adapted depending on the specifics of the operation. The co-location of two such facilities on the port has been identified as technically and commercially feasible. Supply chain opportunities could potentially utilise existing buildings on the port. Costs for the land reclamation have not yet been finalised, and will be dependent on opportunity cost of available, suitable fill material and consenting processes. Development on the existing port estate is not likely to be subject to any abnormal milestones. The specific requirement for planning consent or utilisation of permitted development powers will be determined based on the specifics of proposed development. The
design and construction of any facility is not considered overly complex, and the implementation is deliverable within twelve months of a decision, subject to lead times remaining broadly as current.
Energy Park, Fife/Methil

Site Characteristics: Energy Park, Fife at Methil can accommodate a range of offshore renewables supply chain companies. BiFab is already located in Energy Park Fife and is a major player in the manufacturing of jackets for offshore wind turbines. Located on the former Kvaerner oil fabrication yard at Methil, the 54 hectare Energy Park is a joint venture between Scottish Enterprise and Fife Council. The site has two quaysides extending to a total of 340m and is adjacent to Methil Harbour owned and operated by Forth Ports as well as the Methil Docks Business Park, together creating the larger Fife Energy Zone. There is also the opportunity for additional off-site land, in close proximity to the quayside. SE owns the site but there is a joint venture agreement with Fife Council. Currently c 14 hectares of land is available on site. Land reclamation is a possibility but this has still to be investigated in detail. Further land exists at Methil Docks Business Park, Forth Ports land at Methil and in other nearby Strategic Land Allocations.
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Waterside Access - Energy Park - Quayside 1: -9.0m OD (planned), Quayside 2: -9.0m OD (planned). Some weather/tidal restrictions on quayside use during winter. Landside Access - common user access to quayside. Existing Buildings - On site there is existing 32,000 sqft building (owned by DSNL) of which c9,000 sqft is let. BiFab currently occupies 290,000 sqft of accommodation on site made up of three fabrication buildings, a paint/blast shed and storage buildings. Quayside Length/Weight Bearing - Quay 1 length 180 m, Quay 2 length 160 m. 200kN/sqm or patch loads of up to 600 kN/sqm can be accommodated. Planning - Currently classed under MET 16 of the Draft Mid-Fife Local Plan which states that it is to be used for renewable energy assembly, fabrication and research & development. Potential Offshore Renewables Infrastructure Role: BiFab are a major player in the manufacturing of jackets for offshore wind turbines. It is anticipated that the remaining site(s) will go to companies in the supply chain. Market Use and Interest: Interest to date from the remaining site(s) has come predominantly for supply chain companies that would have a complementary use to existing BiFab use. For some interests looking for manufacturing sites the remaining space has to date been deemed too small.
Infrastructure Development Requirement: Scottish Enterprise with Fife Council support is currently progressing quayside repairs/upgrades, new mooring facilities to accommodate multiple users and development of the site to support BiFab expansion. Delivery Approach: Scottish Enterprise is progressing investment in the site at present and dependent on market interest there is the potential to extend the developable site area through creating a new level area by removal of the bing at the west side of the site. Within the wider Methil area there is the potential to develop other sites and Scottish Enterprise with Fife Council and Forth Ports are developing a strategic approach to the growth of a Fife Energy Zone focussed at Methil.
The majority of the site is owned by KBR Ltd, with the dock and load-out area leased to KBR until 2031 by the Wakelyn Trust. Adjacent is the undeveloped Cromarty Petroleum site, some 240 Ha. DSM has recently purchased this land from Dow Chemicals. Quayside totals 725 m, water depths from 4.5 to 9.5 metres LAT, up to 13.7 metres MHWS. Load out pad can take up to 1,000 tonnes. Waterside Access - Access to dry dock via slipway Existing Buildings - Buildings currently on site comprise:- Fabrication - 17,000 m; Assembly 17,000 m; Warehousing 22,000 m. Planning Status - current planning status allows use as a fabrication yard. The Development Masterplan adopted by The Highland Council in November 2009 as supplementary planning guidance envisages use as a multi-user site for fabrication, renewable energy device manufacture and petrochemical structure decommissioning. Included in the Development Masterplan is the adjacent Cromarty Petroleum site. Potential Renewables Infrastructure Role: The Nigg site is suitable for integrated manufacturing on a large scale, particularly if the proximal site is brought into use. Invergordon, approximately 10 miles away by road, 5 miles by sea, has a comprehensive and wellestablished engineering supply chain, developed to service the offshore petrochemicals industry.
MORAY FIRTH CLUSTER Nigg

Site Characteristics: Nigg is a 96.14 Hectare (238 acre) facility, formerly a fabrication yard, with 4.35 Ha. dry dock, large fabrication/warehouse buildings, 725 m of quayside with load-out areas up to 1000 tonnes and draught up to 9.5m. Strategically placed on the Moray Firth and accessible 24/7 at all states of wind and tide. Extensive deep water, sheltered anchorage and diverse local support facilities. Further adjacent development land of 240 Ha exists. 26.99 Ha. of the site is an oil terminal facility currently leased to Ithaca Ltd. Tankers of up to 160,000 tonnes dwt. can be handled at the jetty.
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This includes fabrication facilities, towage, stevedoring, craneage, haulage, etc, centred around excellent port facilities supporting a substantial oil rig IRM business. Market Use & Interest: The Nigg Yard is mainly on a care and maintenance basis at present. A limited amount of fabrication work, mostly subsea structures, is being undertaken. The turbines for the Beatrice offshore wind project were assembled and loaded out from Nigg. Extensive interest has been expressed in using the Nigg Yard for renewables manufacture, and a proposal by the yards current owners KBR to use it for monopile and jacket manufacture was being developed for evaluation by the parent company, but they have now decided not to go ahead with this. The Development Masterplan envisages the yard being developed as a multi-user site, with a variety of engineering activities to support a spread of industries, including renewables. Infrastructure Development Requirement: Servicing requirements will be dictated by the industry or industries to be accommodated. If the multi-user option is pursued, roads and services would need to be installed to facilitate this. The existing buildings are largely in good structural condition, but some recladding may be required. The largest fabrication sheds are in excellent repair, indeed the current owner has recently undertaken substantial repair work on them. The quay and dry dock are kept in operable
condition and no substantial work has been identified as immediately necessary. Delivery Approach: The facilities at Nigg are currently well developed and the next stage of the investment plan will be for the owner to identify those requirements specific to any proposed use and user.
site area of some 270 acres has now been remediated leaving a hard core level yard ready for immediate development. The sheet piled harbour wall is some 1000 metres long and the harbour/marina area is protected by a natural sand spit. Recent surveys show that the inner channel depths have not changed since the last of the jackets were loaded out onto ocean going barges. Waterside Access - The quayside has various strong points along the length capable of supporting thousands of tonnes next to the wall (structures of up to 25,000 tonnes have been loaded for oil and gas purposes). Dredging of sand would be required for the outer channel and WPC are currently seeking an updated Dredging Licence. WPC have obtained a Harbour Order. Landside Access - The Whiteness site is strategically placed between Inverness and Aberdeen on the A96 trunk road. The site is 4 miles from Inverness Airport. Existing Buildings - The site has three remaining sheds. The established strategic industrial site at Whiteness amounting to some 270 acres is supplemented by an additional 70 acres or thereby which are capable of additional use.
Ardersier
Site Characteristics: The Whiteness site is owned by Whiteness Property Company Limited (WPC) a private Company represented by a Board which is principally local. Two of the Board Members have had an involvement with Whiteness since original land reclamation works were undertaken in 1973. The area owned by WPC extends in all to c.714 acres which includes the approximate following areas: 270 acres plus of prepared site 70 acres of additional developable area Harbour area Sand Dunes Coastal area The site was originally reclaimed for oil and gas fabrication and construction purposes in the early 1970s. Oil and gas platforms and jackets were constructed and floated off by barge. The principal
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Planning Status - The existing Planning Consent for Whiteness is for oil and gas fabrication purposes. However WPC have applied for and obtained in 2007 Outline Planning Consent for an initial 1950 houses and are currently in negotiation with Highland Council for up to 4,000 houses. WPC have been in positive dialogue with Highland Council over maintaining a dual planning registration status whereby the land could be used for immediate renewables purposes, and assuming that any such use would be conducted under sustainable and environmentally friendly bases then the Outline Planning Consent for 1950 houses (which WPC hope will be augmented to up to 4,000 houses, a hotel and general resort purposes) will be maintained with a view to being implemented for residential purposes after marine renewables activities have lessened. Potential Offshore Renewables Infrastructure Role: The Whiteness site with direct access to the Moray Firth and North Sea lends itself to large scale integrated manufacturing, fabrication and construction. Market Use and Interest: Acquired by WPC in late 2004, the Company has spent 5 years not only remediating the ground to a standard which is now classified by Highland Council as fit for human habitation, but has also installed major utility connections, so that the site has mains electricity (existing sub station capable of 12mw), water and sewage connected, and mains gas
connection due for completion imminently. Mains water and sewage have been supplied via Scottish Water and mains gas and electricity. Infrastructure Development Requirement: Now that remediation has been completed and infrastructure installed, Whiteness is looking at the dual possibilities of developing: For renewables purposes with ultimate residual residential use; or For immediate residential use The facility would therefore be available for large scale integrated renewables manufacturing, fabrication and construction, with assembly lay down and floatation facilities for ocean going facilities. Delivery Approach: The preferred option of WPC is to sell the site in its entirety but the WPC Board would be prepared to consider Lease arrangements, either on an agreed bespoke investment basis by the Owners and/or development by the Lessees, but with ultimate housing development in mind.
areas that could be used for manufacturing. Annually it currently it handles around 5 million tonnes of cargo, valued at approximately 1.5 billion, for a wide range of industries. It is also the centre of activity for the offshore oil and gas industrys marine support operations in North West Europe. Aberdeen Harbour Board has awarded a 14 million contract for the first phase of the Torry Quay redevelopment. The initial stage, of a three-phase project worth 30 million which will take 18 months to complete, will include the demolition of the existing wharves at Torry Quay and replacing them with 300 metres of realigned, deep drafted quays constructed from steel piles and reinforced concrete. These new quays are designed to be more suitable for modern, deep drafted ships and heavy cargoes. Completion the project, which is part of Aberdeen Harbour Boards 65 million development strategy, will result in over 500 meters of new deep water berths and more than seven hectares of back up land on the south side of the River Dee. The port is owned by Aberdeen Harbour Board. The
SUBSEA CLUSTER Aberdeen

Site Characteristics: Aberdeen Port offers a base for operation and maintenance companies interested in servicing the offshore renewables market and has
Telford Dock area is 18,580 square metres (plus buildings). The redeveloped Torry Quays will have an area of 74,000 square metres. The Telford Dock has 520m of berthing with 9.6m of water at MLWS and 13.3m at MHWS.
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Waterside Access - For some wide beam vessels the width of the entrance channel may be a restriction. Landside Access - City centre location. Existing Buildings - Telford Dock has two approx 2,600 sqm modern Transit Sheds/Workshops. Quayside Length/ Weight Bearing - 520m with 1000 tonne heavy lift area. Planning Status - Port facility carries permitted development powers for certain port related uses. Potential Offshore Renewables Infrastructure Role: Potential for distributed manufacturing and service and maintenance. Expertise in offshore industries which could be diversified. Market Use and Interest: A range of approaches to date from companies looking at potential sites. Strong existing use in offshore and subsea sectors. Infrastructure Development Requirement: Potential to widen entrance channel to accommodate large vessels required for offshore wind projects. Redevelopment and engineering work required to ensure the delivery of appropriate sites. For the Torry Quays project the first phase, 14m, is already approved by the Harbour Board. Delivery Approach: Telford Dock available for use immediately. Entrance Channel could be completed by end of 2012 subject to consents and decision on investment and Torry Quay redevelopment to be completed by end of 2014.
Peterhead
Site Characteristics: Peterhead is an existing service and maintenance supply port for the oil and gas industry in the North Sea. Peterhead Port Authority is currently building a new deepwater quayside linked to a 19.5 acre development site aimed at the renewables industry. The ASCO facility at South Base offers a ready-made home for operation and maintenance activities for the offshore renewables industry. A 55 acre off-port development site at Upperton offers the potential for a satellite manufacturing operation - 1.5km from the new deepwater quayside at Smith Embankment. The potential areas are owned by Peterhead Port Authority and ASCO (South Base). There are 5 acres adjacent to quayside at ASCO South Base (with other users) 3.5 acres soon to be ready at Smith Embankment. Water depth at quayside is 7-14 metres. Feasibility of a further 16 acres at Smith Embankment is being assessed. Waterside Access - Accessible. Landside Access - Road links to North Harbour. Requirement for improved access to Smith Embankment. Quayside Length/ Weight Bearing - 2100m with 1320m deepwater. 500T load bearing with 2500T at Smith Embankment.
Planning Status Port facility carries permitted development powers for certain port related uses. Potential Offshore Renewables Infrastructure Role: Existing service and maintenance supply chain for oil and gas industry. Potential for distributed manufacturing utilising Upperton, South Base and / or future development sites within port. Market Use and Interest: Currently the port is a mix of fishing, oil and gas service & maintenance, diving support and cargo. Interest has been expressed by ASCO to diversify their business to support the offshore renewables industry. Interest also indicated by others in relation to distributed manufacturing utilising Upperton and sites within the port. Infrastructure Development Requirement: Port sites study identifying development options has been completed and options are being considered. Site servicing and planning permission for Upperton required. Initial most likely options include further extension to Smith Embankment creating significant additional space and upgrading of areas of ASCO South Base to make fit for offshore uses. Delivery Approach: Consideration of development options based on the recent feasibility study is underway.
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WEST COAST CLUSTER Hunterston

Site Characteristics: Hunterston is well located for the offshore renewable market in the West of Scotland and Irish Sea: it lies 125km (by sea) from the Kintyre release, 280km from the Argyll Array, and 230km from the Irish Sea round 3 release. The site currently has a deep water jetty for handling bulk cargo, coal storage area with rail sidings, and a 91 acre marine construction yard including a large dry dock. The formation of the marine/ renewables site will involve construction of a new deep water quay with backfill to create a building platform, capable of supporting large scale industrial structures developed on a bespoke basis. The site is owned by Clydeport Ltd, part of Peel Holdings. The majority of the 1,015 acre site is owned outright by Clydeport with a small area held under a long ground lease from the Crown Estate. The current masterplan identifies 132 acres for renewables activity adjacent to the existing 91 acre marine construction yard. Given the scale of the Clydeport ownership at the site there is ample scope to increase the land available for renewables activity should there be demand. Off-port support land also exists. The site lies approximately 11 miles North of Irvine/Kilwinning which is part of the Irvine Bay URC area. Irvine/Kilwinning offers an excellent supply of industrial land and buildings. The largest site is Riverside Business Park
which is owned by Scottish Enterprise and includes a 200 acre (gross) Single User site which is fully development ready. The water depth at the existing quay is 4.2m MLWS. The proposed quay will offer 9m MLWS. Greater depth of water can be provided if required. Waterside Access - No access issues given coastal location, 40m depth in main channel. Landside Access - Site located 1.75km off via A78 trunk road. The renewables site is served by a 7.5m wide industrial access road. The site has full main line rail access available via existing sidings. Existing Buildings - There are no buildings on the site. Quayside Length/ Weight Bearing - Existing quay wall: 67m, proposed quay wall: 300m, loading to be specified to meet user requirements with current design based on up to 200kN/m2. Planning Status - Hunterston is designated as a National Development within the National Planning Framework for Scotland for (amongst other uses) maritime construction and downstream industrial processes. The site is designated in the North Ayrshire Local Plan for industrial use. There is an existing detailed consent for construction of marine related structures.
Potential Offshore Renewables Infrastructure Role: Hunterston lends itself to large scale manufacturing, assembly and fabrication operations. The site lies 125km (by sea) from the Kintyre release and 280km from the Argyll Array. The Irish Sea Round 3 release is approximately 230km from Hunterston. Infrastructure Development Requirement: The site currently comprises: A deep water jetty for handing bulk cargo (predominately coal); coal storage area (93 acres), rail sidings and a convey-belt loading facility; and 91 acre marine construction yard including a large dry dock (230mx150m) Clydeport has developed a masterplan for the port which includes: Marine/renewables manufacturing site of 132 acres served by a new 300m long quayside; Container Transhipment Hub (85 acres); retention of the existing coal operation; retention of the Marine Construction Yard with potential to upgrade the dry dock; coal fired power station incorporating clean coal/ carbon capture technology. The formation of the marine/renewables site will involve construction of a new deep water quay with backfill to create a building platform. The building platform will be capable of supporting large scale industrial structures developed on a bespoke basis. The potential delivery programme is to work to secure detailed planning 18 months followed by infrastructure construction 18-24 months.
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Delivery Approach: Clydeport will progress their thinking on the approach to developing the site based on market interest. Clydeport also own a riverside site at Inchgreen at Inverclyde and are developing proposals on the potential use of this site alongside Riverside Inverclyde URC and other industry partners.
brownfield of approximately 11 hectares of platformed and serviced land, which forms part of the Development Plan for the site. The balance of the subjects (approximately 27 hectares) is more challenging to develop. Stornoway Trust has indicated a willingness to provide further areas of land if required. Creed Enterprise Park lies approximately 4km to the south east of the site and currently provides approximately 3 hectares of additional platformed and serviced land suited to smaller scale, supply chain activities. The existing quay provides 6.5m of depth across all tidal states. HIE are currently assessing requirements going forward, with the intention of constructing a quay to accommodate larger cargo. The depth would be in the order of 8.5 9.0m. Waterside Access - The quay enjoys a sheltered location within Stornoway Harbour and access to the Minch is approximately 1km. There are no navigation or other issues which would preclude access for normal loads. Landside Access - Extensive topographical survey work has been undertaken on the existing single track access road from the A859 and has determined that some horizontal and vertical re-alignment is required in order to accommodate the larger loads anticipated. In addition, the road should ideally be upgraded to double track and to adoptable standards.
Quayside Length/ Weight Bearing - The existing quay is 100m in length and can accommodate loadings of 80 tonnes / m2 in the heavy lift area with reduced capacity in general areas. Planning Status - Arnish is identified within the existing Local Plan as a location for Strategic industrial and business developments. Potential Offshore Renewables Infrastructure Role: The site can be used for installation and further supply chain manufacturing uses. It is expected that the site will host further renewables related activities as well as offering potential for laydown, assembly and O&M in this sector as well as Onshore, Wave and Tidal sectors. Market Use and Interest: Arnish is currently involved in the supply chain for offshore wind manufacturing through BiFab and this role is expected to be grown over the next few years. Infrastructure Development Requirement: In order to accommodate expanded activity, Arnish needs to be improved in terms of quay access and service provision and the available land noted platformed and serviced. In addition, the roads infrastructure has been identified as being in need of improvement. Delivery Approach: There is an existing costed development plan. Within this elements are capable of being accelerated dependent on market interest.
Arnish
Site Characteristics: Arnish Point is based on the East Coast of the Isle of Lewis and part of the Outer Hebrides, off the North West Coast of Scotland. Arnish Point is located next to the main town of Stornoway. The Arnish facility developed by HIE as a multi-user site is currently utilised by BiFab for the fabrication of subcomponents for jacket substructures for offshore wind. Due to its location and extensive wind, wave and tidal resources, the site can host further renewables related activities as well as offering potential for laydown, assembly and O&M for both the onshore and offshore renewables sector. The land is under the ownership of the Stornoway Trust from whom HIE lease the subjects. The lease is currently due to expire at end December 2034 but HIE is currently in positive discussion with the Landowner on the matter of extending the lease period by around thirty years. The lease subjects extend to 48 hectares of which phase 1 works returned approximately 10 hectares from in use but contaminated, to developed status. Phases 2 and 3 are intended to develop a further area from
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Campbeltown / Machrihanish
Site Characteristics: The Machrihanish site, in conjunction with the nearby Campbeltown Harbour, is suitable for large scale manufacturing, fabrication and construction in the renewable energy sector. Machrihanish is a former MOD airbase, and part of the site is currently occupied by Skykon Towers which produces towers for both on and off shore wind turbines. Machrihanish is only 6km from Campbeltown Harbour, where offshore devices can be transported to West Coast of Scotland, the Irish Sea and beyond. The Campbeltown Harbour site is undergoing improvements, including the construction of a new deep water quay/new open piled pier, and increasing the dredge level from 5m to 9m with committed completion by December 2011. Campbeltown Harbour could also be used for both assembly and operations and maintenance. Campbeltown Harbour is owned by the local authority, the Argyll & Bute Council. The Machrihanish Site is owned by the Defence Estates (MOD), who is currently in the process of disposing of it. HIE agreed a 50 year ground lease from the MOD from 2001. Skykon are in the process of extending the wind tower manufacturing base at Machrihanish and lease a 25.6 hectare site from HIE. Part of the Machrihanish site was previously occupied by Vestas who manufactured wind towers and nacelles. Vestas announced the closure of the plant in
August 2008 and the plant was taken over by Skykon in March 2009. The Machrihanish site area is 1,025 acres (409 hectares) site and is recognised in the Argyll & Bute Council Plan as having the potential for mixed use redevelopment including renewables. Given the scale of the MOD site there is ample scope to increase the land available for renewables activity. There is potential for a 5 acre site near Campbeltown Harbour as a laydown area in connection with possible future O & M activities. Water Depth At Quayside - Existing quay side at Campbeltown provides 5m, which is about to be dredged to 9m. Waterside Access - No access issues on completion of works at Campbeltown Harbour. Landside Access - Both Campbeltown Harbour and Machrihanish Site are located off the A83 trunk road. Existing Buildings - The Machrihanish site previously used by Vestas has an administration building and 3 manufacturing workshops. The new Skykon development, which is presently being built, will provide an additional 14,000m2 of large fabrication and finishing buildings. Planning Status - There are no planning issues involved in either the current Campbeltown Harbour works or Skykon developments.
Potential Offshore Renewables Infrastructure Role: Machrihanish potentially lends itself to large scale manufacturing, fabrication and construction. Campbeltown Harbour could be used for both assembly and operations and maintenance. Campbeltown needs to be considered in association with the nearby airbase at Machrihanish which has the facilities to be a base for future helicopter operations, the Skykon factory with potential for related supply chain activities and plenty of cheap land for secure storage. Market Use and Interest: In the last 8 months the facility at Campbeltown has had enquiries from a number of developers and utility companies. Skykon will use the Machrihanish site to produce both on and offshore wind towers for up to 10MW machines with an increase in annual capacity from 16000 tonnes to 55000 tonnes. Infrastructure Development Requirement: The Machrihanish site currently comprises: 1,025 acre site, 3rd longest runway in Europe and aircraft related facilities, range of buildings including hangars, accommodation and sport facilities.
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Skykons plans for the Machrihanish site include: Increase the production capacity and the manufacturing capability of the plant from 16,000 tonnes to 55,000 tonnes. The development will comprise approx of 14,000m of large fabrication and finishing buildings, 4.5 hectares of granular laydown areas. Skykon will use the Machrihanish site to produce both on and offshore wind towers for up to 10MW machines. Longer term plans include establishing an R&D centre at the site. The Campbeltown Harbour site involves construction of a new deep water quay/ new open piled pier, and to increase the dredge level from 5m to 9m. A need for suitable craneage at Campbeltown Harbour has also been identified. Because of the weight of the larger tower sections to be manufactured at the Skykon plant, 2 Liebherr 400 crawler cranes are required to work in tandem at the Harbour. Delivery Approach: Further funding may be required at Campbeltown Harbour and or Machrihanish should further infrastructure be required/ identified as needed to support the development of renewables. The Campbeltown harbour work is expected to take around a year and is committed for completion by December 2011. It is anticipated that the Skykon project will be completed in year 2010/ 11.
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Kishorn
Site Characteristics: Kishorn Port could be used for offshore wind manufacturing, assembly and fabrication, operations and maintenance and decommissioning. The site would also lend itself for the emerging tidal and wave industries. Kishorn has the advantage of very deep water with a depth of 80m in the main channel, making it capable of handling extremely large structures. The site also has the added feature of a concrete casting facility on site. The site was previously used as a fabrication yard for oil and gas platforms in the 1970s-80s. At its height in the late 1970s the yard produced the largest movable man-made structure in the world - the 600,000 tonne Ninian Oil Platform. It is located on a sea loch on the northern West Coast of Scotland. Kishorn Port lies 67 miles by road from Inverness. The site is owned by The Crown Estate, Applecross Estate Trust and Kishorn Port Ltd. Part of the Kishorn site is leased to Ferguson Transport (Spean Bridge) Ltd and Leiths who operate the site under KPL (Kishorn Port Ltd). The current site area is 45 hectares and is currently recognised in the Highland Structure Plan as having potential for oil and gas related development for the Atlantic Frontier. Quay 1 is 120m long. Quay top is 10m above the seabed and can be occupied by vessels up to 100m long. Present mooring bollard arrangement allows for a vessel of up to 100m in length and
approximately 3,500 DWT. Dry Dock is approximately 150 m in diameter with the gates 150m wide and 12m of water at high tide and quarrying and concrete casting facility on site. Quays 2 and 3 are 80 metres long and have 10 metres water at high tide. Existing quay 1 provides minimum water at 3.5 metres at low tide plus an additional 4 metres approx at high tide. Existing quays 2 and 3 provides minimum water up to 6 metres at low tide and 10 metres approx at high tide. Existing dry-dock provides minimum 8 metres at low tide and 12 metres approx at high tide.
Existing quay 1 provides minimum water at 3.5 metres at low tide plus an additional 4 metres approx at high tide. Existing quays 2 and 3 provides minimum water up to 6 metres at low tide and 10 metres approx at high tide. Existing dry-dock provides minimum 8 metres at low tide and 12 metres approx at high tide. Waterside Access - No access issues, 80m depth in main channel. Landside Access - Site located off the A896 road. Existing Buildings - 2 warehouses that can accommodate 4000 pallets and mechanical engineering shed. Also adjacent to site is a fabrication and welding company with workshop facilities.
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Quayside Length/ Weight Bearing - Cargo handling capability over 130m single straight edge quay that can accommodate up to 3500 DWT vessels and 1 x 150 metres straight edge and 2 x 80 metres straight edge. Planning Status - This site is currently recognised in the Highland Structure Plan as having potential for oil and gas related development for the Atlantic Frontier and appears on the Wester Ross Local Plan, which was adopted 2006. Potential Offshore Renewables Infrastructure Role: Kishorn lends itself to offshore wind manufacturing, assembly and fabrication, operations and maintenance and decommissioning. It also has the added feature of concrete casting facility on site, if concrete gravity base structures or concrete casings are required. Market Use and Interest: In the last 8 months the facility at Kishorn has had interest from 4 developers. It has also been put forward for consideration for Offshore Wind, Wave and Tidal Energy uses. Infrastructure Development Requirement: The site currently comprises: A slipway and dry dock deep approximately 150m in diameter. Large pre-casting yard and 26 hectares of hard standing and lay down areas.
Four deepwater quays. On site concrete batching facility with 1.5million tonnes of concrete. Craneage and dock handling facilities. Warehousing 4000 pallet dockside warehouses. Sea freight services to the fish feed, forestry and oil related industries. On site quarry for supply of concrete aggregates. Welding & fabrication workshops adjacent to site. Kishorn Port Limited is in the process of developing a masterplan for the port which includes costings for: Strengthening the existing quays and lay down areas. Opening up the dry dock and slipway. Erecting of sheds for manufacture, and operations and maintenance. Deepening of the water channel and improving the on-site support services. Further quay facilities achieving deeper water i.e. possibly up to 20 metres. Delivery Approach: The anticipated delivery programme is being considered by the owners with key next steps being progressing detailed planning processes and site development investment phasing.
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Appendix 4 - Sources of Finance

Project Finance
Projects will likely incur costs in advance of income being received, and any potential public funding such as capital grants may not be matched with the timing of expenditure. Private finance in the form of debt and equity may be a means to bridge this gap. The decision to use private finance is a complex one. It needs policy setters to establish whether the premium paid for private finance over the cash cost of Government debt is less than the benefits achieved from transferring risk to the private sector. Long term private finance is consistent with the concept of payment for services as they are received. In defining a level of service required, and paying for it when it is delivered, the public sector is able to transfer risk of delivery to the private sector. This entails private financing of the construction of the asset over a number of years. Non-performance of the asset leaves financiers at risk of not being repaid. Where risk is being transferred to the private sector in this way, the involvement of private finance plays a key role as the investment at risk gives the private sector partner an incentive to ensure the project is properly specified and planned from the beginning, and has the financial capacity to absorb downsides. Efficient allocation of risk to the party best able to manage or bear it is an important component in ensuring that projects are completed on time, take into account whole life costs and perform at the level required over the long term. The benefit of this risk transfer can make the overall risk adjusted cost of a project cheaper, and therefore potentially better value for money than a project financed purely by Government. The EIB has two main financing facilities: Individual loans: provided to viable and sound projects and programmes costing more than EUR 25 million which are in line with EIB lending objectives. Intermediated loans: credit lines to banks and financial institutions to help them to provide finance to small and medium-sized enterprises with eligible investment programmes or projects costing less than EUR 25 million. Guarantees - Within the EU the Bank may provide guarantees for senior and subordinated debt. The guarantee is either a standard guarantee or debt service guarantee. Depending on the underlying funding structure of the operation, an EIB guarantee may be more attractive than an EIB loan. Investment - EIB (through the European Investment Fund) has a venture capital facility designed to strengthen the equity base of high-technology SMEs and those with strong growth potential, including: venture capital funds, security packages for such funds, conditional and subordinated loans.
EIB (European Investment Bank)

The EIB operates like a commercial development bank, raising its resources on the financial and capital markets, mainly through bond issues or other specialised capital market operations. It makes longterm loans for capital investment projects (mainly fixed assets) but does not provide grants. The shareholders in the EIB are government agencies and the governments themselves. The EIB never finances more than 50% of the total project cost, but the involvement of the EIB can act as a catalyst, encouraging other banks, financial institutions and the private sector to participate in an investment. It offers a number of sources of finance to projects including: Finance Loans EIB provides finance to public and private sector bodies and enterprises. The project being promoted by the public or private client must be in line with the lending objectives of the EIB and be economically, financially, technically and environmentally sound. As a rule, the Bank lends up to 50% of the investment costs of a project.
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Infrastructure Funds
There are many types of infrastructure fund ranging from the relatively small, c100million of invested capital, to the very large, with 1billion or more invested. Generally they tend to hold diverse portfolios (diversity in both asset type and asset location). Some funds also have diversification across the active/passive investor spectrum, while others will specialise as initiators or as pure investors. The more active the fund the greater risk and the greater the potential return. The more passive the fund the returns, while more predictable, will tend to be lower. Most infrastructure investment funds have a fairly standard structure consisting of two parts: the fund itself which attracts institutional, private and sovereign wealth investors, and the fund manager which charges a fee, normally with incentives for managing the fund.
development framework and thereby enabling all parts of the region to contribute to achieving the Lisbon Agenda goals.
the project must meet the specific criteria listed under LUPS ERDF Priority 3 relating to urban regeneration. the use of JESSICA funding as an investment must
JESSICA
JESSICA is a financial engineering initiative developed by the European Commission and the European Investment Bank, in collaboration with the Council of Europe Development Bank. JESSICA provides Member States with the opportunity to use ERDF as an investment to support projects for sustainable urban development. The return on investment may then be used for other regeneration and development projects, providing a revolving fund. The investment may be provided by way of loans, equity or guarantees. JESSICA requires the same national match funding levels as the existing ERDF Structural Fund in Scotland this is 60%. It may be used as a repayable investment into eligible projects where they are part of an integrated urban development plan through Urban Development Funds. To be eligible, projects must meet certain criteria which include: the date by which eligible expenditure must be incurred is the end of 2015. the project into which the investment is made must be part of an integrated plan for sustainable urban development.
be eligible and the project capable of providing a return. the necessary documentation must be in place between the parties. Match funding must be provided. The current priority axis national contribution rate is 60%. A JESSICA fund covering the LUPS area of Scotland was announced in early July 2010. Projects in some of the first phase locations may be able to receive investment from this fund.
Scottish Property Support Scheme

The purpose of the Scottish Property Support Scheme is to support the development of premises and buildings for commercial purposes by the private sector. Such development can involve the construction of new buildings and / or the renovation and conversion of existing ones. This support will be provided in situations where there is, in the view of the implementing bodies, a market failure. Examples of such market failures are situations where the estimated development costs of the property exceed its estimated end market value or where risk
European Regional Development Fund (ERDF)

ERDF is a vehicle for promoting the economic development and regeneration of defined areas within the Member States of the European Union. ERDF aims to achieve the goal of becoming the most dynamic and competitive knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion, and respect for the environment through the vision of encouraging the growth of the regions economy within a sustainable
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aversion and uncertainty in forecasting project outcomes prevents property development. Using various instruments, the implementing bodies will at their discretion provide an amount of aid that is the minimum necessary for selected property development projects to go ahead, with the maximum aid intensities as determined by the relevant State Aid regulations. Maximum aid intensities and the general conditions which must be met before any project is undertaken or receives assistance under the scheme can be found under the following link: http://www.scottish-enterprise.com/sedotcom_home/ about-us/how-we-operate/project-approvals/stateaid-notification.htm
The scheme provides for two types of aid instruments: Dereliction Aid Grants and Relocation Aid Grants. Dereliction Aid Grants will be available for the remediation of contaminated land, brownfield land and derelict land. This grant will be directed towards an identified and approved remediation programme in order to make the land suitable for new use. Relocation Aid Grants are complementary to the Dereliction Aid Grants. They will support the relocation of businesses established in an urban area or in a Natura 2000 designated area which lawfully carry out an activity that creates major pollution and must move from their actual place of establishment to a more suitable area. The Relocation Aid Grant will free up the vacated land for new uses better suited to environmental, economic and social regeneration aims. Neither the Property Support Scheme nor the Land Remediation Scheme have allocated funding. They are state aid compliant ways that support can be given.
would raise finance for such enabling projects by pledging to meet debt repayments from such future incremental revenues and other income created by resultant development by the public and private sectors. TIF has been widely used in the US to enable and deliver regeneration and economic growth over the last 30 years, with nearly every state enacting TIF legislation. Whilst there are clear differences between the public sector in the US and Scotland, TIF in the US has provided a means to deliver infrastructure and economic growth by paying for growth, with growth. The US model resides primarily in the private sector, with it financing, delivering, managing risk, and ultimately capturing the benefits of growth associated with the TIF, through increased public sector revenues such as property taxes, to repay the upfront enabling finance and provide returns. The use of TIF is predicated on a but-for test, meaning that the identified enabling infrastructure can only be delivered through the creation of the TIF mechanism, and cannot be wholly funded by finance from the private sector and / or alternative sources of public sector funding. Another key tenet of TIF is that it must demonstrate that the enabling infrastructure will unlock regeneration and sustainable economic growth that in turn will generate the required incremental public sector revenues that are capable of repaying, over an agreed timescale, the financing requirements of the
Support for Land Remediation Scheme

The objective of the Support for Land Remediation Scheme is to bring contaminated land, brownfield land and derelict land back into productive use by addressing the detrimental effects of previous usage. The remediation of such land would enable the UK authorities to increase the supply of land suitable for subsequent development while simultaneously reducing the pressure for development on greenfield land. By protecting scarce natural resources and by removing contamination, pollution and dereliction, the scheme promotes important community objectives such as environmental protection and sustainable economic development.
Tax Incremental Financing (TIF)

TIF works by repaying investment from locally generated incremental public sector revenues, such as non-domestic rates, that would not have arisen were it not for the delivery of enabling infrastructure investment that unlocks planned regeneration development. The key principle is that the public sector
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TIF scheme. The incremental point is an important one any TIF scheme will only capture the incremental revenues associated with any new development (i.e. new revenues over above what is happening at present), so that the model does not result in the displacement of economic activity from within Scotland, but rather that it delivers net additional growth for the nation.
with its forfaiting model, and France with its cession de crances approach, the public sector (Government) effectively guarantees a proportion of the senior debt following successful completion of construction of a project.
Green Investment Bank

The concept of a Green Investment Bank was introduced by the previous UK Government administration to address what it considered to be a significant risk of a gap emerging in the provision of equity capital to large, complex low-carbon infrastructure projects in the next few years. It is intended to operate on a commercial basis and involving both public capital (from the sale of mature government-owned infrastructure-related assets) and matched private sector capital, with a mandate to invest in the low-carbon sector. The Report by the Green Investment Bank Commission Unlocking Investment to deliver Britains low carbon future was published in June 2010.
Prudential Borrowing
Prudential Borrowing is the administrative framework applying to Local Authorities that allows them to borrow in accordance with the Code. The objective of the Code is to help ensure for individual Authorities that: Capital expenditure plans are affordable; All external borrowing and other long term liabilities are within prudent and sustainable levels; and Treasury management decisions are taken in accordance with professional good practice. Such borrowings are usually in the form of a loan from the Public Works Loan Board (PWLB), at rates of interest marginally above those at which the Government itself can borrow from the gilts market; although other forms of borrowing, including commercial bank loans and bond issues, are permitted.
Debt Guarantees
This would require Government to provide financial guarantees to a private sector entity to enable it to raise finance, with lenders able to rely on the sovereign credit rating of the Government (rather than that of the private sector borrower). This would be likely to enable a greater amount of finance to be raised at lower nominal cost than if left to the private sector. Government would be required to recognise such guarantees as a contingent liability in its accounts, rather than on the balance sheet (unless there is a likelihood of the guarantee being called) and if structured appropriately the commitment could be off-balance sheet. The government would need to manage its exposure under these guarantees, which could be done, for example, by ranking ahead of private sector finance such as equity, and by putting appropriate governance in place. In a number of European jurisdictions, notably Germany
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Appendix 5 - Wave and Tidal Stage 2 Consultation List

The following were consulted:
Aquamarine EON Climate and Renewables Pelamis Marine Current Turbines Scottish Power Renewables SSE Renewables Developments Open Hydro Site Development Powerbuoy (OPT) Tidal Generation Ltd EMEC
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Appendix 6 - Wave and Tidal potential locations
Front cover image courtesy of Calum Davidson
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National Renewables Infrastructure Plan Stage 2

Report from Scottish Enterprise and Highlands and Islands Enterprise

National Renewables Infrastructure Plan

National Renewables Infrastructure Plan Stage 2 Report | Contents

National Renewables Infrastructure Plan Stage 2 Report | Executive Summary

Wave and Tidal Infrastructure

National Renewables Infrastructure Plan Stage 2 Report | Executive Summary

National Renewables Infrastructure Plan Stage 2 Report | Introduction

2. N-RIP Industry Collaborative Approach

3. Market Interest in Port Clusters/Groups

4. First Phase Site Investment Cases

[Source: SE Estimates of shell building costs based on indicative floor areas]

Total Estimated Infrastructure Cost

National Renewables Infrastructure Plan Stage 2 Report | Planning Issues

National Renewables Infrastructure Plan Stage 2 Report | Planning Issues

6. N-RIP Funding Approach

National Renewables Infrastructure Plan Stage 2 Report | N-RIP Funding Approach

Table 3 - Approach to Funding Route Map Development Feasibility

Finance raised by private company on corporate or project basis

Formal submission t Support agreed

Financial support arrangement agreed

National Renewables Infrastructure Plan Stage 2 Report | N-RIP Funding Approach

National Renewables Infrastructure Plan Stage 2 Report | N-RIP Funding Approach

Support to Tower Manufacturer - Campbeltown/Machrihanish

National Renewables Infrastructure Plan Stage 2 Report | N-RIP Funding Approach

7. N-RIP Offshore Wind Potential Direct Manufacturing Economic Impact

Annual GVA (Single Facility)

Potential Total Annual GVA

Nacelle Tower Blade Jacket Total

120 327 327 262

6.8m 18.6m 18.6m 14.9m

600 1635 1635 1310 5180

34m 93m 93m 74.5m 294.5m

8. Wave and Tidal - Port Infrastructure Needs

2010 2015: Short-term activity

2016-2020 Medium term activity

2020 onwards Long term activity

Planned port developments to support Medium and Longer Term Activity

9. Conclusions and Recommendations

National Renewables Infrastructure Plan Stage 2 Report | Conclusions and Recommendations

Wave and Tidal Infrastructure

National Renewables Infrastructure Plan Stage 2 Report | Conclusions and Recommendations

National Renewables Infrastructure Plan Stage 2 Report | Appendices

Appendix 1 - N-RIP Delivery Group Membership

National Renewables Infrastructure Plan Stage 2 Report | Appendix 1

Appendix 2 - Port Cluster Mapping

National Renewables Infrastructure Plan Stage 2 Report | Appendix 2

Appendix 3 - N-RIP First Phase Sites Information

National Renewables Infrastructure Plan Stage 2 Report | Appendix 3

Energy Park, Fife/Methil

National Renewables Infrastructure Plan Stage 2 Report | Appendix 3

MORAY FIRTH CLUSTER Nigg

National Renewables Infrastructure Plan Stage 2 Report | Appendix 3

National Renewables Infrastructure Plan Stage 2 Report | Appendix 3

SUBSEA CLUSTER Aberdeen

National Renewables Infrastructure Plan Stage 2 Report | Appendix 3

National Renewables Infrastructure Plan Stage 2 Report | Appendix 3

WEST COAST CLUSTER Hunterston

National Renewables Infrastructure Plan Stage 2 Report | Appendix 3

National Renewables Infrastructure Plan Stage 2 Report | Appendix 3

National Renewables Infrastructure Plan Stage 2 Report | Appendix 3

National Renewables Infrastructure Plan Stage 2 Report | Appendix 3

National Renewables Infrastructure Plan Stage 2 Report | Appendix 3