Committee
Economy, Energy and Fair Work Committee 24 November 2020
24 Nov 2020 · S5 · Economy, Energy and Fair Work Committee
Item of business
Scottish Offshore Wind Sector Inquiry
Welcome back. Agenda item 3 is our inquiry on BiFab, the offshore wind sector and the Scottish supply chain. Our witnesses join us remotely. I welcome Jim Smith, managing director of SSE Renewables; Nick Sharpe, director of communications and strategy at Scottish Renewables; Matthieu Hue, chief executive officer at EDF Renewables UK; and Allan MacAskill, a director of Kincardine Offshore Windfarm Limited. Some committee members are with me in the room and others join us remotely. I ask witnesses to wait a few seconds before speaking to allow broadcasting colleagues on our sound desk to turn your microphones on. I will start the questions. You do not all have to respond to every question. In the process of their questioning and discussion with you, committee members may interject and ask further questions, so there is no need to wait for me, as convener, to let you back in. Furthermore, following the evidence session, you can submit in writing any further thoughts that you might have or want to develop on what we discuss today. What benefits, economic or otherwise, are offshore wind developments bringing to Scotland? What are the possibilities for the future, bearing in mind the UK Government’s very recent announcements? You can raise your hand or type R in the chat box to indicate that you want to respond. Nick Sharpe is indicating that he wants to speak. I am afraid that we cannot hear Nick. Perhaps the sound desk can do something about that. Jim Smith also wanted to come in, so we will try him while we try to resolve the sound issue for Nick Sharpe.
In the same item of business
The Convener
Con
Welcome back. Agenda item 3 is our inquiry on BiFab, the offshore wind sector and the Scottish supply chain. Our witnesses join us remotely. I welcome Jim Sm...
Jim Smith (SSE Renewables)
Can you hear me, convener?
The Convener
Con
Yes. Thank you. We can hear you.
Jim Smith
I will use Beatrice wind farm as an example. It is currently Scotland’s largest wind farm, although it will soon be overtaken by Moray East wind farm. We est...
The Convener
Con
One billion pounds sounds like a big figure, certainly pre-inflation. Can you quickly tell us where that £1 billion to Scotland comes from, a bit more specif...
Jim Smith
I might not have all the numbers broken down exactly; I would be happy to submit them in writing to the committee. A significant part comes through the const...
The Convener
Con
I suppose that that is one of the things that we want to hear about. If parts are sent offshore for construction, the benefit does not necessarily come to Sc...
Jim Smith
The Offshore Renewable Energy Catapult carried out work to consider the potential in the UK—not just in Scotland. I think that it estimated that, currently, ...
The Convener
Con
Is it not also about awarding contracts to companies that prefabricate things in Scotland? You said that the current level “could” be 50 per cent, which does...
Jim Smith
We estimated that over the life of Beatrice it would probably be around 50 per cent.
The Convener
Con
All right. You mentioned one or two things that you could share with the committee. It would potentially be helpful if you did that. I wonder whether we can...
Matthieu Hue (EDF Renewables UK)
I echo what Jim Smith said. Throughout the development phase of our projects, from development to construction and operation, developers seek to work with th...
The Convener
Con
I would like to clarify something—it might be my fault for not picking it up. Did Jim Smith talk about 50 or 15 per cent?
Matthieu Hue
He said 50 per cent, unless I am mistaken.
The Convener
Con
Jim Smith can correct us both, if you are.
Jim Smith
That is right; I said 50 per cent.
The Convener
Con
Thank you. I think that Nick Sharpe has logged out and logged back in again. We will try to bring him in.
Nick Sharpe (Scottish Renewables)
Fingers crossed, we will try again. Can you hear me now?
The Convener
Con
Yes—excellent. We can hear you loud and clear. Please carry on.
Nick Sharpe
As a representative of the industry body for renewable energy in Scotland, it is my place to set out the overall picture for offshore wind and the economic b...
The Convener
Con
The Scottish Government has hosted some wind supply chain summits. Have any of you attended them? I see Nick Sharpe nodding to indicate that he has, and I t...
Nick Sharpe
One of the reasons why the most recent supply chain summit came together in January was to talk about new methods that the Scottish Government wanted to empl...
The Convener
Con
Are you saying that what has come out of that summit is an on-going review?
Nick Sharpe
That is my understanding, yes.
The Convener
Con
Nothing else?
Nick Sharpe
There is also the supply chain development statement, but that is probably a separate issue that we can discuss later.
The Convener
Con
Jim Smith, can you comment on what has come out of the summits?
Jim Smith
I would reiterate what Nick Sharpe said. Part of the work was around the supply chain development plans that have been talked about in relation to the upcomi...
The Convener
Con
That might be part of the discussion, but part of the problem is that, rather than coming to Scottish companies, contracts go overseas, well beyond these sho...
Maurice Golden
Con
My question, which I will put to Nick Sharpe first, is on jobs that are linked to the offshore wind supply chain. Alex Salmond promised 28,000 green jobs by ...