The Scottish Government should use the £700m income from leasing sections of Scotland’s seabed to improve supply chains and support the move to net zero, a Holyrood committee has said.
In a report on recent supply chain issues, the Economy and Fair Work Committee found both Brexit and Covid-19 had put “significant strains” on the movement of goods.
The committee said the proceeds of a project allowing companies to build wind farms off the coast of Scotland should be used to bolster supply chains against future shocks, which could also include impacts of the Russian invasion of Ukraine.
The Scottish Government has already received just under £700m as part of ScotWind, with plans for 17 developments in the coming years.
On Wednesday, documents were released showing that more than £25bn could be paid into the Scottish supply chain to build, erect and maintain the wind farms.
Ports should be upgraded, the report said, to allow Scotland to take advantage.
In its report, the committee said: “The committee recommends that the Scottish Government works with the owners and operators of Scotland’s ports to explore the viability of upgrading them to ensure that they are ready to take advantage of the significant opportunities that the transition to a net-zero economy will offer.
“The committee recommends that the Scottish Government should focus the £700m income from the ScotWind auction to support the development of supply chains in the renewable energy sector and the new technologies necessary to deliver a just transition.”
Other recommendations included calling on the Scottish Government to make HGV driving jobs more attractive to applicants, amending building regulations to allow more sustainable materials to be used, and including carbon miles in criteria for future procurement to encourage the use of locally sourced materials.
Committee convener Claire Baker said: “Disruption to supply chains, unforeseen or otherwise, can have a major impact and we need to ensure action is taken to create resilience and protect our economy.
“Many businesses, public bodies and consumers rely on strong supply chains, so we are making recommendations to plan for a skilled workforce to meet Scotland’s needs, a robust transport network which keeps goods moving and a focus on developing and implementing local supply chains.
“The Scottish Government must show leadership in supporting the development of innovative products, including changes to building regulations if required to incentivise sustainable alternatives.
“Procurement contracts must be used to support local production and provide more opportunities to strengthen the supply chain.
“The committee also calls on the Scottish Government to focus the proceeds from the ScotWind auction to support the development of supply chains in the renewable energy sector and the new technologies necessary to deliver a just transition.”
Crown Estate Scotland, which ran the leasing project, mandated that developers lay out their projected financial commitments to Scotland.
New documents show that almost £25.5bn in commitments have been outlined – an average of just under £1.5bn per development.
Energy Secretary Michael Matheson said: “As the world’s largest offshore wind leasing round, ScotWind puts us at the forefront of the global development of offshore wind and represents a massive step forward in our net zero transformation.
“The publication of these supply chain outlooks demonstrates the truly unprecedented scale of the opportunities that this leasing round will present, not just for our regional and national economies, but to deliver a true just transition for our energy sector, harnessing existing talent and expertise and creating and delivering good, green jobs across Scotland’s supply chain.
“There will be some challenges to overcome as we embark on this exciting expansion in renewable energy – such as grid capacity and unfair transmission charging.
“The Scottish Government does not have the powers to resolve all these challenges, but we will continue to work with and, where appropriate, challenge the UK Government to address these barriers and ensure a just transition to net zero.”
Developers were also asked to outline their supply chain “ambitions” for Scotland – meaning the amount of money they hoped to spend in the country to build, erect and maintain the wind farms.
In total, the documents outlined up to £36.5bn in ambitions from developers – some £2.1bn on average.
Colin Palmer, the director of marine at Crown Estate Scotland, added: “The breadth and scale of these initial commitments from ScotWind developers is encouraging, as is their ambition to help Scotland reach net zero.
“However, the challenges in delivering on these ambitions, which will evolve as project details become clearer, should not be underestimated.
“It will require a truly collaborative approach from all involved to ensure the huge potential for transformative economic development, job creation, and a just transition is realised.”
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