The boss of Peterhead Port has called for the implementation of an investment zone as it develops a 10-year masterplan with infrastructure developments and enhancements at the heart of it.
Peterhead Port Authority (PPA) chief executive Graeme Reid said that he has “never been more excited” about prospects for the port as it sets out plans to serve industries including the offshore wind, carbon capture and storage (CCUS) as well as the traditional oil and gas sector.
© Supplied by Peterhead Port AuthoSpeaking at a reception hosting MPs and renewable company bosses yesterday, he added an additional warning to the UK Government not to “kill off” the oil and gas sector that will be needed to make the net zero transition a reality.
Reid said an investment zone for the area – including the port – would help attract significant private investment to the region, creating jobs, opportunities and support for the wider energy transition.
The previous UK government had proposed establishing at least two investment zones in Scotland in the wake the confirmation of two green freeports in the Highlands and in the Firth of Forth.
Michael Gove, then the UK’s levelling up secretary said zones established in Aberdeen and Glasgow could attract up to £80million of investment.
Reid said: “Despite our successful 400-year legacy, I believe the best is yet to come for Peterhead Port.
“From a personal perspective, I’ve never been more excited about the prospects that we have – fishing, wind, hydrogen, CCUS, decommissioning and ongoing oil and gas production logistics support.”
Reid warned on the prospect of further punitive taxes and reduced investment allowances for energy companies in the looming Budget.
“In order to be an enabler for all these sectors we need investment support such that we can transition without there being a gap in time which will result in a loss of assets, vessels and expertise that we require to develop new industries.”
Guests at the event at the House of Commons hosted by the port included MPs including energy minister Michael Shanks, as well as representatives from wind, hydrogen and CCUS.
Storegga co-founder and executive vice president, Steve Murphy, also spoke of the government’s recent £21.7bn to support two massive CCUS projects in England – a plan that did not include the Acorn CCS project in Peterhead.
Peterhead Port is a key partner of the Scottish CCUS cluster. Shipping carbon for sequestration to Peterhead from other locations has long been in the project pipeline for Acorn, and has been viewed as a key means of scaling up the project in the future
Murphy also warned the government about the risk from continued delay to decisions on other energy transition infrastructure.
He said: “Storegga is a British company, working with British partners to drive real change in Britain. But to do so we need policy clarity and consistency from Government – without which we’ll find ourselves at a disadvantage to other countries and regions where there is a clearer path for investors to delivery – and returns”.
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