The approval of the Green Volt floating offshore wind farm has raised concerns regarding the lack of a Scottish state energy company, with the Japanese and Italian governments set to benefit through stakes in its developer Flotation Energy.
Owned in a 50-50 joint venture between Aberdeen-based Flotation Energy and Norwegian firm Vargronn – the Green Volt is Europe’s first commercial-scale floating windfarm.
The approval is the first consent for Scotland’s Innovation and Targeted Oil and Gas (INTOG) leasing round, and will trigger up to £3 billion in investment, according to north-east energy tycoon Sir Ian Wood, who hailed the decision as a ‘massive boost’ for the region.
The windfarm located off of Aberdeenshire’s east coast near Peterhead will have up to 35 turbines at a power of 560 MW.
But the Herald reports Flotation Energy is controlled by Tokyo Electric Power Company Holdings, an energy company that is owned by the Government of Japan.
Meawhile, Norwegian firm Vårgrønn is a joint venture between Italian oil giant Eni’s renewables arm Plenitude and Norwegian investment firm HitecVision.
With the Italian government holding a 30.3% stake in Eni, observers have raised concerns that the Scottish government is failing to benefit from a project within its own waters.
Scotland being ‘massively exploited’
Amanda Burgauer, director of the think tank Common Weal, told the Herald: “The Scottish Government keeps boasting about the strength of our renewable sector, while they keep giving it away.
“When it is owned overseas Scotland’s wealth gets exported to the ultimate shareholders. If we give 30 year licenses, we give away 30 years of your wealth in one go.
“Unless we keep this wealth somewhere in the Scottish economy we just keep undermining ourselves.”
Concerns have also previously been raised about the involvement of firms from China and the Middle East in Scotland’s offshore wind sector.
Scottish government support for Chinese wind turbine manufacturer Mingyang recently drew criticism, with commentators warning it could risk undermining Scotland’s energy security.
© Supplied by MingyangMeanwhile, the involvement of UAE-based fabrication firm Lamprell in several floating wind projects in Scotland sparked outcry from union leaders in 2022.
Earlier this year, Labour’s shadow secretary for energy security and net zero promised Labour will deliver where the SNP has failed with its planned publicly-owned energy company.
Ed Miliband said basing the party’s proposed new GB Energy company in Scotland would help make the country the UK’s “clean energy capital”.
In March, Labour leader Sir Keir Starmer announced plans for GB Energy to invest an initial £8.3bn in floating offshore wind during a visit to Wales.
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