Full clarity and route forward for all Strategic Investment Model (SIM) projects

Since February 2024, the Strategic Investment Model Working Group has been working to ensure that  the 38 projects which reached the end of Stage 1 continue to move forward.

On the 19^th February 2023, the Strategic Investment Model Working Group published the list of 38 projects that had successfully completed Stage 1 (excluding the 6 requesting confidentiality) and details of two of the three pilot projects moving into Stage 2 of the SIM process.

All SIM projects have now been given details of next steps through the SIM. This notice sets out further details on the categories of project going forward in the SIM:

• Priority projects assessed as of high relevance and interest to developers. Three priority projects were announced in February 2024 as SIM pilots (Port of Nigg, Port of Cromarty Firth and a third supply chain project). A further seven priority projects have been selected to join these 3 pilots, with facilitated meetings now being planned between each of the projects and offshore wind developers. Of these 10 projects, 5 are port facilities, 4 are supply chain proposals and 1 is an equipment project. These priority projects all strong potential for sector collaboration. Two of these priority projects remain confidential, with details not shared outside the SIM Group.
• Progress There are 19 projects with good or medium interest and relevance to developers. The SIM will support these projects to self-facilitate collaborative engagement with developers, and also bring them together at a marketplace style event later in 2024. These projects are being chosen to progress because of high relevance to supporting offshore wind deployment and good potential for collaboration. Three of these progress projects remain confidential, with details not shared outside the SIM Group.

Over the next few months, offshore wind developers and partners will work collaboratively alongside each project to address how to best support it accelerate forward to be ready in time for offshore wind build out in Scotland.

A number of projects are being routed to support outside the SIM that can better assist. These Referral projects may require further development before a collaborative investment could be looked at. These projects are being referred to their local enterprise agency or other organisation to continue discussions on ways in which the project can be supported.  Each of these projects has produced a prospectus and sector feedback to help in future market engagement from their Stage 1 involvement.

Details of the announced priority and progress projects are set out below:

Priority

• Port of Nigg (Global Energy Nigg Ltd) - already announced
• Port of Cromary Firth expansion (PoCF) - already announced
• Burntisland Deep Water FOW Facility (Forth Ports Ltd)
• Hunterston HVDC Cables Factory (XLCC Ltd)
• Port of Aberdeen South Harbour Upgrade (Port of Aberdeen)
• Ring Crane Development (Sarens PSG)
• Scapa Deep Water Quay (Orkney Islands Council)
• Wind Turbine OEM Facility (Mingyang Smart Energy Group Ltd.)

Progress

• Fabrication Facility Extension & Upgrade (Harland & Wolff (Methil) Ltd
• Flotta Ultra Deep Water Quay (Repsol Resources UK Limited)
• Fraserburgh New South Harbour (Fraserburgh Harbour)
• Kintore Pile Manufacturing Facility (eFab Limited)
• Kishorn Port Upgrade (Kishorn Port Limited)
• Micropile Fabrication & Production Facility (Subsea Micropiles (UK) Ltd)
• Mobile Heavy Lift Ring Crane (Heavy Lift Projects Ltd)
• Montrose O&M Energy Hub (Montrose Port Authority)
• Nigg Tubular Manufacturing Facility (Global Energy Nigg Ltd)
• Scapa Flow Mega Hub (Aquatera & Orcades Marine)
• Secondary Steel Fabrication Facility (Forsyths Ltd)
• Semi-submersible Barge Development (PSG Marine & Logistics)
• Stornoway Offshore Wind Hub (Stornoway Port and H&W Arnish)
• Temporary Storage – Floating Offshore Wind (TS-FLOW©) (Offshore Solutions Group Ltd)
• Tower and Foundation Manufacturing Facility (Dajin Heavy Industry Co. Ltd)
• Wet Storage Mooring Grid (Tymor Marine Limited)

Gillian Morrison, Supply Chain Development Manager at Crown Estate Scotland, and Chair of the SIM Working Group said “the Strategic Investment Model is successfully demonstrating that collaboration can help prioritise sector effort and focus. Our next task is to accelerate action to support infrastructure and supply chain growth of chosen projects.

“Out of the 45 projects that applied to the SIM, we now have 10 priority projects identified. These are the projects seen as offering best opportunities for collaborative approaches between offshore wind developers, Government Agencies, investors, ports and supply chain companies to unlock investment.

“A further 19  projects are also being selected to progress into Stage 2. This wider group also offer benefits and opportunities for collaboration. To ensure that these port and supply chain projects can keep moving forward, the SIM will be working to help each of these coordinate collaborative discussions directly with relevant offshore wind projects.

”In the weeks and months ahead, SOWEC will work alongside the different projects, agencies and offshore wind developers. Our goal is to help each project accelerate and get the confidence it needs to reach final investment decision and commit to growth in Scotland. Through this shared ambition we can raise our sights and secure the investment we need for our supply chain.”

The Stage 2 process is ongoing, with productive initial meetings held for the first three priority projects. There is significant learning coming from this process that will help catalyse future sector collaboration in Scotland. 

History of the SIM

In May 2023, the Strategic Investment Model launched a call for proposals for port infrastructure and top tier supply chain projects to be built in Scotland. The SIM came out of sector work to develop a “Collaborative Framework”, and has involved Scottish offshore wind projects, including all ScotWind projects, plus the Scottish Government and its agencies.

By June 2023, 45 proposals were received in the first SIM application process which was launched at All Energy in May 2023. The SIM Working Group and programme manager Arup then worked with these 45 proponents to review eligibility. 38 projects successfully concluded Stage 1. Arup supported each of these infrastructure and supply chain projects to develop a prospectus setting out its offer to the offshore wind market.

Between December 2023 and mid January 2024, offshore wind developers within the SIM reviewed each prospectus. These offshore wind projects have returned expressions of interest to the SIM identifying which of the infrastructure and supply chain projects they wish to meet with collectively to discuss their supply chain needs.

Following an initial review of these expressions of interest, three initial projects were invited for exploratory meetings to look at how best they can be supported through the SIM in its Stage 2 process. Initial meetings took place across February/March 2024.

Notes

• More information on the Strategic Investment Model can be found at: https://www.offshorewindscotland.org.uk/the-scottish-offshore-wind-industry/sowec/sim/
• The SIM Working Group is comprised of offshore wind developers (including all ScotWind developers and a number of INTOG developers), the Scottish Government, enterprise agencies and Crown Estate Scotland.
• The Scottish Offshore Wind Energy Council (SOWEC) is a collaboration between the Scottish public sector and the offshore wind industry. SOWEC has a clear vision and goals which is focused on growing the sector, ensuring the Scottish offshore wind industry is more sustainable, competitive, and commercially-attractive, both domestically and in the global offshore wind market. SOWEC supports the SIM Working Group in taking forwards the SIM.
• The SIM Programme Manager is sustainable development consultancy Arup. Arup was appointed to this role following a tender process run by Crown Estate Scotland on behalf of SOWEC. Arup is a collective of designers, consultants and experts working globally. Founded to be humane and excellent, we collaborate with our clients and partners, using imagination, technology and rigour to shape a better world.

To follow up on this release please contact Maf Smith, Lumen Energy & Environment, maf.smith@lumenee.cc / 07768 531501