Siemens, GE and Gamesa have outlined proposals to open manufacturing plants at coastal locations in the UK, with Gamesa also announcing that they will be opening an R&D facility and their global HQ in London. Together, the investments by these companies could be worth over £300 million, and potentially create thousands of jobs both at the companies and through their supply chains. The investments will also help deliver the offshore wind capacity the UK will need to meet its renewable energy targets.
"It is very positive news that three major players in the offshore wind industry… have plans to come to the UK and invest in manufacturing. The government’s approach to growth and investment is the right one. Renewable technology is a priority for this government, and I am delighted that foreign investors also recognise our commitment to environmentally sustainable growth,” said Business Secretary, Vince Cable.
Vestas: R&D but no manufacturing in UK
“There is more to do if we want to stay leaders in offshore wind. We want the jobs, manufacturing and skills base for this exciting new industry to be here in the UK, and we are taking decisions that attract investment,” declared Chris Huhne, Secretary of State for Energy & Climate Change last week.
Danish wind turbine giant, Vestas, is one of the companies Huhne’s government is trying to attract. The company is making rapid progress with construction of its new Global R&D facility for blade development on the Isle of Wight off the south coast of England, but the island is still recovering from the loss of Vesta’s blade manufacturing facility which was wound up last summer with the loss of over 400 jobs. At the time, the company blamed the slow take-up of onshore wind in the UK for the closure, moving production to the US.
During a press tour of the new R&D facility last week, the company’s Vice President of Blades R&D and Managing Director of Vestas Technology UK Ltd. Rob Sauven, told Renewable Energy Magazine that the R&D operation would help recover some of the lost jobs, employing around 220 people on completion, but revealed that Vesta’s had no plans to follow its competitors and establish a UK-based manufacturing facility, at least until the UK offshore wind market matured.
Vestas has announced today that it plans to axe around 3,000 jobs and shut certain plants to adjust to weaker demand, after it posted a drop in third-quarter profit following the loss in the first half of 2010. “To ensure the most efficient production, Vestas has decided to initiate negotiations with the relevant parties in relation to closing down of a number of factories, primarily in Denmark, where costs are highest. In addition to this, a number of administrative functions will be adjusted at several locations in and outside Denmark,” said the company in its Third Quarter Interim Financial Report published today.
70,000 jobs through port development
At the same time as last week’s press tour of Vestas’ future blade R&D facility, the Department of Energy and Climate Change and The Crown Estate signed a Letter of Intent to support development of ports infrastructure for offshore wind, which the Prime Minister said could lead to the creation of 70,000 jobs.
Announcing the agreement in a speech to the Confederation of British Industry on publication of the National Infrastructure Plan, the Prime Minister said: “We need thousands of offshore turbines in the next decade and beyond, yet neither the factories nor these large port sites currently exist. And that, understandably, is putting off private investors. So we’re stepping in.
“To help secure private sector investment in this technology, we’re providing up to £60 million to meet the needs of offshore wind infrastructure at our ports. And to help move things forward, the Crown Estate will also work with interested ports and manufacturers to realise the potential of their sites.
During the same press tour organised by UKTI last week, journalists had the opportunity to visit Falmouth Docks in Cornwall, one such port that is hoping to attract business from the growing offshore wind and wave energy industry in the South West. “The recognition of the need for support from the Government to enhance port infrastructure is very welcome news. Falmouth is looking to support the growth of the marine renewable industry in the South West approaches and particularly the development of the Wave Hub site, no doubt we will need some assistance to invest to meet the industries long term requirements,” Mike Reynolds, Port Operations Director of A&P Falmouth Ltd, told Renewable Energy Magazine.
The £60m will support offshore wind manufacturing infrastructure at port sites, to meet the needs of offshore wind manufacturers looking to locate new facilities in assisted areas in England. Through devolved settlements separate funding has been made available to Scotland, Wales and Northern Ireland which could support potential projects in the devolved administrations. Applications will be welcome from manufacturers, or joint applications from manufacturers and ports.
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