Peel Ports Clydeport has signalled its intention to invest up to £150 million in the redevelopment of the Hunterston marine yard in Ayrshire, as it prepares the site to support the UK’s offshore wind sector.
Hunterston PARC is being prepared for occupancy as it seeks to attract major offshore wind projects, amid growing demand for the offshore wind supply chain on the UK’s west coast. A formal planning application for the redevelopment of the site has already been submitted, with a competitive tender process for developers launching in the coming days. The works will include substantial upgrades to the marine yard and utility services, including infilling the current dry-dock basin and construction of a new quay wall.
Lewis McIntyre, Managing Director – Port Services at Peel Ports Group said: “Scotland already has the reputation, infrastructure and talent needed to support offshore renewable energy projects and meet our national aspirations for the environment and green jobs – we can make that vision a reality if businesses like ours are willing to invest and work together to make it happen.
“Our plans for Hunterston reflect our ambitions for a net-zero future, supporting offshore wind developments along the west coast of the UK and the east coast of Ireland, as well as supporting our local construction partners.”
In the lead up to this ground-breaking announcement, a series of public consultations on the redevelopment were held and initial expressions of interest from developers were obtained earlier this year. The project will require planning permission, marine licenses and other consents, and will include an Environmental Impact Assessment (EIA), before any works can begin.
The consenting process is estimated to be complete by the end of the year, followed by two years of construction.
Peel Ports has begun talks with several potential tenants for the offshore wind site, which will take up around 90 acres of the 320 being redeveloped at Hunterston for the Blue and Green economies, with the remaining 700 acres safeguarded for natural capital and biodiversity.
The redevelopment will continue the transformation of the former Hunterston coal terminal into a leading renewables hub. Much of the site is already under option, most notably for an undersea energy cable factory and an onshore aquaculture facility, with further developments in the pipeline.
Like many other Western countries, the UK shipbuilding industry has long been in decline. As the global newbuilding market enters a new development cycle, the UK is now committed to supporting its shipbuilding industry, and for the first time, is setting up a credit guarantee system for shipyards. In 2023, the U.K. government announced a loan guarantee scheme called the Shipbuilding Credit Guarantee Scheme (SCGS), which is the latest part of the U.K.’s National Shipbuilding Strategy, which was revamped in 2022.
Under the program, the UK government would spend about $645 million to help shipowners finance the purchase of ships built by UK shipyards or choose UK shipyards for the conversion and maintenance of existing ships.
It is understood that the UK Government presented its National Shipbuilding Strategy in 2017, initially focusing on transforming the naval procurement model while securing contracts for the export and design of UK naval vessels.
In 2022, former UK Prime Minister Boris Johnson initiated the process of revising the National Shipbuilding Strategy, outlining the government’s further objectives to revitalize the entire UK shipbuilding industry.
The UK government has committed more than $5 billion to revitalizing the UK shipbuilding industry.
