Elected members make first allocation of offshore energy development strategy funding

Elected members at today’s Special Meeting of the Full Council have approved the allocation of £2.2m of funding towards the next stage of the potential development of a deep-water quay near Scapa.  

The Council funding will come from the £4m budget that has been ring fenced to deliver the Council’s Strategic Offshore Energy Development Strategy – which itself comes from the Miscellaneous Piers and Harbours fund, which can only be used for activities related to the development of Orkney’s piers and harbours infrastructure.  

Additional external grant funding has been sourced and will be formally announced next month 

This funding package will be used to start work on a Pre-Construction Services Agreement (PCSA) – the final sign off of which is currently going through legal processes. 

The PCSA will see an external contractor carry out further work on behalf of the Council including detailed design, further ground investigation works and surveys. It will ultimately provide the information the Council needs to make an informed decision, enabling detailed planning, cost control and risk management – ensuring the project is viable and cost effective.  

The signing of a PCSA does not mean that a project has been given final approval by elected members – rather that the findings of the work carried out through the PCSA will feed into the final decision-making process of the Council in due course. 

Earlier this month elected members endorsed the draft Outline Strategic Offshore Energy Development Strategy which will set out how Orkney could position itself as a leading player in the offshore wind industry, bringing long-term economic, environmental, and social benefits to the community. 

The first iteration of the strategy will be submitted to the Policy and Resources Committee next year 

Oliver Reid is Chief Executive of Orkney Islands Council. He said: “Considering a project of this size, scope and complexity as part of our Offshore Energy Development Strategy is a significant undertaking for this organisation and indeed for Orkney.  

“It would involve facilitating the development of an entirely new harbour facility within Scapa Flow, unprecedented in terms of scale, logistical requirements and technical demands.

“In line with the previous decisions of the Council, today’s decision is not about approving the project, it’s about making sure the Council has access to all the information it needs to make an informed decision on the project bringing it to the next stage so it can be retained as a viable option for consideration alongside all the other options also being taken forward within the Strategic Offshore Energy Development Strategy.” 

Councillor Heather Woodbridge, Leader of Orkney Islands Council, said: “Development of our harbour infrastructure within Orkney in tandem with the development of the offshore energy sites in Scotland, could deliver considerable economic benefits to the area – especially as we look to counterbalance any potential downturn in the oil industry.  

“Improving our offer to the offshore energy industry would enhance our marine capabilities and strengthen our capacity to support future industrial and commercial activities – but any development has to be the right type of development, in the right place, at the right time, with the right funding package behind it.  

“All the work that we’re doing at present – including today’s decision– will lead us towards identifying whether a deep-water quay at Scapa is indeed the right option for Orkney.”