BUSINESS: Green freeport status welcomed by businesses and academics
Register for free to read more of the latest local news. It's easy and will only take a moment.
Scotland’s development agency for the Highlands and Islands has welcomed the news that a bid to secure green freeport status for the Cromarty Firth has been successful.
The Opportunity Cromarty Firth (OCF) bid is a collaboration of more than a dozen organisations representing industry, academia and the public sector around the Easter Ross and Inverness area.
The aim is to stimulate transformational regeneration through economic activity in manufacturing, and from local and inward investment, innovation, skills development and employment.
READ MORE: Inverness and Cromarty Firth Green Freeport officially confirmed by Scottish and UK Governments
The OCF area has been highlighted as the main location for the UK to benefit from floating wind manufacturing.
Reacting to the news, HIE’s chief executive Stuart Black, said: “We congratulate Opportunity Cromarty Firth (OCF) on their successful bid. This is fantastic news.
“Our collective belief in the region and the key ports’ capacity and capability to play an essential role in offshore wind and green hydrogen delivery has been confirmed by the dedication, commitment and resolve shown by the bid partners.
"This paves the way for even greater industry collaboration. The consortium’s physical assets, natural resources, experienced supply chain, and can-do people have proven to be a winning combination that can lead to future success.
“The Highlands and Islands will play a critical role in meeting the challenging net zero targets at both Scotland and UK levels. Green freeport status for the Cromarty Firth will be a huge asset, driving collaboration between industry, academia and the public sector to stimulate transformational regeneration through economic activity, investment, innovation and skills development.
“It will attract large-scale manufacturing and create thousands of green jobs that complement the skills of the local workforce and accelerate Scotland’s and the UK’s progress to achieving net zero targets.
“A green freeport will also build on recent significant investments made in ports and harbours across the region and the historic and ongoing strengths here in energy, engineering and life sciences.
“It will be a key enabler for supply chains of the future, rapidly accelerating domestic manufacturing capacity in an area with a long-standing industrial heritage.
“We very much look forward to our region working in partnership with OCF, as we seek to secure maximum socio-economic impact, not just around the Cromarty Firth and Inverness but throughout many parts of the Highlands and Islands.”
Sheelagh Cooley, real estate partner in the Edinburgh office of law firm Shoosmiths, also welcomed the successful bid.
She said: “The confirmation of two green freeports in Inverness and Cromarty Firth and the Forth represents an opportunity to drive forward new development, regeneration and economic growth in Scotland.
“The potential impact of these projects, however, must not be limited to the immediate vicinity of the green freeports. Rather, true success hinges on the ability to also revitalise surrounding towns and cities, many of which are economically deprived.
“In Inverness and Cromarty Firth, the introduction of a green freeport is said to have the potential to unlock £2.5bn of new private sector investment – creating up to 25,000 jobs. This is alongside developing wind power technology, with its port facilities already supporting offshore wind projects.
“While the introduction of green freeports is governed by UK legislation, the model’s legislative structure is subject to devolved and reserved powers. The sites are intended to be secure custom zones where business can be carried out inside a land border, but where different custom and tax rules apply - offering various regulatory and financial incentives.
“From a planning perspective, the green freeports are likely to operate under extended permitted development rights. Combined with a streamlining of the consenting process for development, this type of relaxed planning regime could, in theory, allow schemes – residential, commercial and infrastructure - to be brought forward at speed and avoiding certain barriers.
“Unlike the UK government’s freeport model, and investment zone proposals, Scottish green freeports are subject to additional requirements, including on carbon neutrality and paying the real Living Wage.
“The Forth green freeport could act as a catalyst for the manufacture of offshore wind turbines, shipbuilding and energy systems. It encompasses several ports, industrial and logistics sites, as well as Edinburgh Airport, with the consortium behind the bid outlining that it could lead to a boom in job creation and economic growth that is rooted in renewable energy and decarbonisation.
“The successful bidders will now work with the Scottish and UK Government to determine a governance structure for each site. A process that must balance deregulation and economic growth with protecting the environment and assisting the transition to net zero.
“Subject to compliance with the regulatory controls, green freeports should provide a welcome opportunity for growth in the Scottish economy, especially in the energy, infrastructure and manufacturing sectors.”
Dr Liz Cameron CBE, Chief Executive, Scottish Chambers of Commerce, also welcomed the award.
She said: “It is great news for Scottish business that the UK and Scottish Governments have finally confirmed the sites of the two winning bids. It’s important now that both governments act swiftly to ensure that the successful sites are operational at the earliest opportunity, we are all competing to attract investment and trade.
“Whilst it will be very disappointing for those areas who were not successful, we would urge both governments to now consider, in partnership with the business community, other incentives and initiatives which could be developed from the innovation demonstrated by the other bidders.”
Professor Chris O’Neil, principal and chief executive of UHI Inverness, said: “The awarding of Green Freeport status to Inverness and Cromarty Firth will have a transformative impact on the economic fortunes of the community we serve.
"We are poised, together with our UHI partners, to meet the subsequent skills and knowledge demand.
“We have the expertise in engineering, research, technology, design and construction to provide a highly-skilled and aspirational workforce, including trainees, apprentices, graduates and researchers.
“As well as being well-placed to meet the associated need for talent, we also have the established industry links and capacity for knowledge exchange to make valuable collaborative contributions to the creation of a global green hub.
“Our talented and committed students have proved their resilience by studying while coping with the consequences of a pandemic and then a cost-of-living crisis, and this
announcement is significant in that it represents an improved future and enhanced opportunities for many of them.
“Current and upcoming students will complete their learning journey knowing there is the potential for attractive employment on our doorstep in an expanding industry.
These prospects will help retain local talent and will also appeal to a generation of students who are environmentally conscious and willing to embrace a sector that supports their values.”
