Written Evidence submitted by Vårgrønn – (NRG0027)

Consultation Response from Vårgrønn – Scottish Affairs Select Committee Inquiry into GB Energy (December 2024)

Introduction to Green Volt

Green Volt is the joint venture developing Europe’s first commercial scale floating offshore windfarm, with up to 35 turbines. The world’s largest floating wind farm currently in operation provides 88MW capacity, Green Volt is targeting six times this.

The joint venture project from developers Flotation Energy and Vårgrønn is a catalyst for the creation of a robust supply chain. Green Volt was recently awarded a Contract for Difference (CfD) in the most recent Allocation Round (AR6).

 

  1. What impact will the UK Government’s approach to net zero have on Scotland’s oil and gas industry?
    1.                 What state of readiness is the oil and gas sector in for the net zero transition?
    2.                Is the scaling up of the clean energy sector keeping pace with the decline of jobs and investment in the oil and gas sector, or does the UK Government need to do more to close this gap?
  1. What UK Government interventions will be necessary to maximise the ability of oil and gas workers to find jobs in clean energy?

Continued investment in emerging technologies like floating offshore wind will be essential to ensure there are job opportunities in clean energy. Green Volt will create 2,800+ direct jobs, many of which will be in energy heartlands like Aberdeen.

These ambitious green jobs developments are possible with continued adequate investment from the UK Government into mechanisms such as the Contracts for Difference (CfD). By funding CfD rounds sufficiently, critically the emerging technologies category which can often require more funding due to the innovative nature of the projects, the UK Government can reassure investors who are considering investing in clean energy infrastructure in the UK. This approach will ultimately bring the associated benefits from domestic clean energy production, including jobs.

In addition, tax relief on low carbon solutions like electrification of oil and gas platforms would also contribute to the ability of oil and gas workers to find jobs in clean energy.

The prioritisation of emerging technologies like floating offshore wind by GB Energy could also support jobs for oil and gas workers. Floating offshore wind projects can uniquely demonstrate Scotland’s energy transition in action. For example, as a Crown Estate Scotland Innovation and Targeted Oil & Gas (INTOG) project, Green Volt will enable the electrification of oil and gas platforms, cutting emissions from platforms by over 80%.

  1. Are Scotland’s energy industry and associated supply chains well-placed to transition to clean energy generation, or is more support needed?
    1.                 More support is needed for the development of ports and clean energy related infrastructure.
    2.                 There is a need for foreign direct investment in wind turbine supply chains in the UK.

 

  1. What actions should the UK and Scottish Governments take to ensure the necessary generation and transmission infrastructure to support the development of Scotland’s renewables sector?

The UK and Scottish Governments should invest more in the transmission supply chain (HVAC, HVDC).

 

  1. How can GB Energy, and other ways of backing industry (including funding), most effectively support employment, economic growth and the development of clean energy supply chains in Scotland?

GB Energy should support floating offshore wind projects by taking private equity, and through secondments into the industry, to ensure the UK is a step ahead in this area. This will enable the development of jobs, economic growth and a world-leading supply chain.

GB Energy should look to invest in floating offshore wind projects alongside private investors to increase the volume of activity in floating offshore wind, so that jobs can be sustained and supply chain development can flourish. It is also critical that GB Energy advocates on behalf of these emerging technologies when engaging with other parts of government, to ensure that where barriers to progression are outside of its remit, these are tackled swiftly.

  1. How should GB Energy work with the Scottish Government and other Scottish bodies to identify appropriate funding and other mechanisms?

We believe GB Energy should collaborate with stakeholders including the North Sea Transition Authority, Crown Estate and Crown Estate Scotland, to progress schemes which utilise innovative technologies. Crown Estate Scotland’s Innovation and Targeted Oil & Gas (INTOG) initiative, which is decarbonising the production of energy on oil and gas platforms and infrastructure in the North Sea, has enabled the progression of Green Volt which will lead the way in UK floating offshore wind development. By collaborating on these innovative schemes we can accelerate towards our shared vision.

  1. What does a just transition look like for workers and communities across Scotland’s highland and island communities, and what role might community energy and community benefits play in this?
  2. Can the UK learn lessons from international examples about how to effectively manage Scotland’s energy sector transition?

 

January 2025