Green energy companies have called for more support from Holyrood and Westminster following the decision of Technip, the French energy giant, to close its Scottish offshore wind operations.
It plans to cut 190 jobs at Technip Offshore Wind, at Westhill in Aberdeenshire. The company, headquartered in Paris, blamed what it called a “highly capital-intensive” market and “disparities” in the renewable energy industry across Europe.
Lindsay Leask, policy manager at Scottish Renewables, the trade body for Scotland’s renewable energy companies, said: “While this individual business decision is disappointing, there are still many companies across Scotland working in offshore wind. However, strong support from both the Scottish and UK governments is absolutely critical to the future of the industry.”
Earlier this year Scottish Renewables warned “short-term political considerations” were damaging the renewable sector.
Speaking last night, Fergus Ewing, the energy minister, said: “Developing a new industry is challenging under any circumstances, but the UK government is increasing those challenges through its electricity market reform proposals.”
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He added the Scottish government would do all it could to support Technip employees affected by the closure.
Technip’s decision to abandon its Scottish offshore operations raises further questions over the future of the controversial £230 million European Offshore Wind Deployment Centre (EOWDC) in Aberdeen Bay.
EOWDC is struggling to find investors, and was at the centre of a bitter legal battle with Donald Trump, the American tycoon who had opposed the development because of its potential visual impact on his luxury golf club in nearby Balmedie.
Technip has confirmed it is no longer involved in the 11-turbine project, which received its marine licence last week. Vattenfall, the Swedish energy firm, intends to sell its 75 per cent interest in the scheme, which has been delayed by two years.
The other shareholder, Aberdeen Renewable Energy Group, recently handed over the running of the project to Aberdeen city council.
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Green energy developers in the UK have struggled to get financial backing for many offshore wind projects because of the high cost involved in both developing new technology and maintaining plants.
Many schemes involve companies forming joint ventures in a bid to reduce the financial risks.
However schemes also fail to get political backing if they run into planning problems amid protest from conservationists about their environmental impact and from people living in areas where schemes are to be built.
Technip said it would now focus its investment on the oil and gas sector.
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