A major offshore wind factory could be built in Scotland, creating 500 jobs, an energy giant has announced.
Danish company Vestas said it would make major components for wind farms in Scotland if it receives more orders through a government scheme.
A green energy auction, known as AR7, secured in January what the UK government said would be 8.4 gigawatts of offshore wind capacity.
Supported projects include Berwick Bank off the east coast of Scotland, whose developments receive £91 per megawatt hour they produce.
The plant would build nacelles (the protective casing used on the outside of turbines) and bushings, the central component that connects the blades and shaft.
According to the company, around €230 million (£198.9 million) will be invested in the factory, with the preferred location being the Leith area of Edinburgh, although a final decision has not yet been made.
Vestas chief executive Henrik Andersen said: “The UK government has made a big statement with AR7, showing how wind energy creates a positive impact on energy security, sustainability and affordability for end consumers.
“We welcome the dedication of the UK and Scottish governments to foster a competitive offshore wind market and look forward to working together to progress our co-investment plans.
“Establishing a nacelle and hub assembly factory in Scotland would create hundreds of local jobs and support more jobs across the supply chain, delivering lasting economic benefits for the region.”
UK Energy Secretary Ed Miliband said the Government's “clean energy mission” is to create jobs north of the border.
“This investment has come about thanks to the Government’s record offshore wind auction and the confidence our mission has given the industry to invest in Scotland,” he said.
“We will not stop working to create many more jobs like these for Scotland and the UK.”
Scottish Deputy First Minister Kate Forbes welcomed the news, saying the decision “speaks to the huge potential of the Scottish offshore wind sector”.
“Scottish Ministers have worked closely with Vestas since 2021 and we look forward to continuing to work with the company and supplier partners to develop our offshore wind supply chain and deliver long-term economic benefits for our communities,” he said.
STUC general secretary Roz Foyer added that the decision “should be welcomed”.
“As investment is subject to securing orders from developers, it is up to the Scottish and British governments to ultimately require these companies to increase Scottish manufacturing output if they are to have access to our wind energy,” he said.
And RenewableUK chief executive Tara Singh said the decision would also “make the UK more resilient to trade wars, tariffs and disruptions to global supply chains”.
“The UK has continued to increase its offshore wind ambitions in recent years, and we are now seeing that translate into real investment, with developers and supply chain companies responding to a more stable and secure market,” he said.
“This also reflects the shared industrial vision developed together through the offshore wind sector Industrial Growth Plan and the Government’s Industrial Strategy, supported by new public and private investment.”
Scottish Secretary Douglas Alexander added: “At a time when national energy security is at the forefront of everyone’s minds, I very much welcome this investment by Vestas in Scotland.
“As well as creating hundreds of skilled jobs, bringing manufacturing to Scotland will strengthen our national supply chain and contribute to our energy security.”
