Plea to wave power firms

www.johnogroat-journal.co.uk
12 June, 2009

FIRMS bidding to pioneer commercial marine power production in the Pentland Firth are being encouraged to maximise their use of the local supply chain. Development agencies in the Far North have already had talks with some of the 20 outfits which are in the running to secure leases of the seabed to base turbine ventures.

Several have already opened offices in the area while Dutch-based Tocardo – the first to show its hand – has confirmed plans to build the turbines for its 10-MW prototype at Wick harbour. Since then, a clutch of multi-national companies have outlined larger-scale ventures, including the creation of an onshore computer data processing centre.

Highlands and Islands Enterprise officials are working with Far North companies, Scrabster port operators and the would-be developers to optimise the jobs and economic spin-offs generated for the area. Roy Kirk, HIE's Thurso-based area manager, has revealed it is to hold a "summit meeting" once the Crown Estate announces which companies have been awarded leases.

Speaking to members of Thurso and Wick Trades Union Council on Monday evening, Mr Kirk said he was delighted to learn that 20 companies have made a total of 42 applications for leases. "The response has been fantastic," he said. "It might have been expected for some to say it was too difficult to go ahead in such a difficult economic climate. To have 20 come forward and put in tenders shows they are serious."

He added: "Many of these firms will have invested hundreds of thousands of pounds in plans they don't even know they will be permitted to go ahead with. "They are taking a risk and I'd like to say that we're matching their appetite in making an investment so that come 2011, things are ready to roll."

Mr Kirk said officials will do as much as they can to demonstrate the value to the developers of forming local bases and making use of locally-based suppliers. HIE views the new emerging industry as one of the main hopes to offset the jobs drain under way at Dounreay. "We have a dependent economy at present and we need to create a mixed economy," he said. "We see the developments in the Pentland Firth as an important part in making this change."

Mr Kirk said International Power is one of the companies which has already set up an office in the Far North. He expects others to follow suit before the end of the year as it emerges who has secured the seabed leases. The drive is on to encourage firms to manufacture, maintain and service their sub-sea devices in Caithness.

He said: "We have got the infrastructure and the high-quality skills and technical know-how to do the work and we'll be making sure the developers know this. "If we were to financially assist companies, we'll be looking for guarantees about employment." Mr Kirk said HIE has meanwhile commissioned a series of studies to help facilitate the proposed developments in the Firth, including the required major upgrade of the electricity transmission grid.

HIE is also set to carry out a skills audit to identify any potential gaps in the wide range of jobs which the new industry will require. In his update to the trades council, Mr Kirk said HIE is continuing its new strategy of targeting business support at high-growth companies. It is currently backing 10 firms which have expansion plans expected to inject an extra £11 million per year into the economy.

A further 15 firms are due to be added in the course of this financial year. HIE is also continuing its focus of "transformational" projects at Scrabster harbour, John O'Groats, Wick harbour and Wick Airport. Mr Kirk repeated assurances that the £12m extra funding pledged by HIE for the Far North in October 2006 will not be time-barred. The agency then announced the supplement would be spread over three years.

"There's no time limit on it," said Mr Kirk. "We'll continue to use the funding until it's used up." He is to give an update on the spending already committed from the £12m to members of the Caithness and North Sutherland Regeneration Partnership advisory group meeting today (Friday).