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Siobhan Wagner
Chief reporter
An ill wind
Media reports suggest plans to build three new offshore wind turbine manufacturing facilities that could create an estimated 60,000 new jobs will be cancelled following the Coalition government’s spending review.
The previous government pledged £60m towards upgrading the infrastructure around ports to enable wind turbine manufacturing in this country, crucial for delivering Round 3 offshore wind projects.
Following the former chancellor’s promise to beef up the ports, Siemens indicated it would invest more than £80m to develop an offshore wind turbine production facility in the UK. Similarly General Electric proposed spending around €110m on an offshore turbine factory in the UK that would employ 1,900 people.
Mitsubishi had earlier announced plans for investing up to £100m on an offshore wind turbine factory in the UK.
But the Guardian reports today the £60m promised for Britain’s ports is rumoured to become another casualty of the spending review. According to the newspaper, the Department of Energy and Climate Change (DECC), which is to provide half the £60m required, is still fighting for the funds. However, this enthusiasm isn’t being echoed by the Department for Business, which was expected to give the other half, or the Treasury.
As The Engineer reported in June the government’s port investment is strategically important for the development of the offshore wind industry. The £60m competition would involve UK ports bidding for money to rejuvenate their facilities.
Despite all of the UK’s potential, its existing infrastructure is in no way capable of sustaining a turbine manufacturing industry. Especially considering the growing size of turbines, which would be impossible to transport on the country’s roads.
Any announcement signifying retracted support for the ports will likely scuttle plans for building offshore wind turbine plants in the UK. Siemens, for one, was clear its decision to build a plant in the UK was bolstered mostly by the government’s pledged support for port infrastructure.
As an island nation with currently the world’s largest installed offshore wind capacity and high-level of expertise in the field, the UK seems like a natural home for turbine manufacturing.
While recent figures suggest the wind industry is dipping into its first recession, the government shouldn’t be shortsighted. With renewable energy targets still needing to be met, the Coalition should be wary before making any moves that could discourage investment into an industry that will likely create jobs and boost the UK’s economy into the future.
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Readers' comments (18)
Anonymous | 8 Oct 2010 12:41 pm
So, again, if the government does not invest in a particular area of industry we are going to miss the boat again, literally. With big companies like Siemens poised and ready, waiting for the government to honour its pledge for support, it seems to be a 'no-brainer' to me! But hey, I am just a lowly engineer that does not understand big business and infrastructure stuff! I have to leave these decisions to people 'Qualified' to lead the country out of the recession.
I will be interested to know what kind response will be expected from us on the anouncement of rising unemployment and lack of jobs for engineers in the future.
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Carolynne Campbell | 8 Oct 2010 12:47 pm
We will all have to get used to funding things from non-governmental sources. We all agree on the need for cuts - but in every instance people are saying - 'Don't cut on my patch'.
If the wind-farm deal is so good, the facilities will get built.
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Anonymous | 8 Oct 2010 12:55 pm
Whilst not being the greatest fan of wind turbines, I can see that they have a place in our future energy portfolio. What's more interesting though is another governments apparent ability to kill off a fledgling industry poised to take off in the UK, only for it to establish elsewhere in the world. This will no doubt enable us to buy back the technology at a grossly inflated price in a few years time. Well done to all concerned.
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Brian | 8 Oct 2010 12:56 pm
About time too - if a project is worth doing then private companies need to cough up and invest, and not expect the ever suffering Tax payer to add to their profits.
There is enough 'subsidies' for green energy - it's up to the providers to invest. If they can't see that, then doubt has to be placed on the viability of the project.
Government capital investment should be limited to things only governments can do or that are for the common good.
Such as Engineering and science research, defence, health.
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Malcolm | 8 Oct 2010 12:57 pm
It's critically important that the government sees the bigger picture of new green jobs and Britain being at the forefront of the offshore wind industry. I suggest that all readers send a letter or email to the chancellor, George Osbourne, to spell out the opportunites for green investment in their area. Write to him at George Osbourne MP, HM Treasury, 1 Horse Guards Road, London SW1A 2AQ or email private.office(at)hmtreasury.gsi.gov.uk
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Philip Baker | 8 Oct 2010 1:06 pm
Mostyn Harbour, Airbus, Composite wing, Broughton, does any of these words ring a bell in the trade department of this new big society government ?
I don't think so, as it involves engineers who have to work for a living and who are an alien race to the current cabinet with their monied backgrounds.
Unless the media backed by the public of this Great Britain make a crescendo of noise, to encourage the resurrection of manufacturing, then all the savings will be pointless, as this country continues to drift down into a 3rd world state.
Manufacturing is the only way the UK will make a living in this world, and the building of bigger ports to service these specific fledgling new era jobs will evaporate before they have started.
In the past, industries only looked at unit costs and later found to their peril, that whole life costs were actually more relevant.
So this government must not just look at the lowest cost for national needs, when UK citizens could be involved making our own country needs.
What do I mean ? ships, trains, aircraft, food, power generation & distribution, all of these activities are being slowly obsoleted, by the closure of companies who's owners are not UK based.
The Thatcher government started the ruin and this group of marketing elite's will finish it off, and those of us who have to work for a living, well will have to learn the new skills of how to live in a 3rd world country.
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Lewis Lack | 8 Oct 2010 1:07 pm
It is not so simple as stepping back and saying "If the wind-farm deal is so good, the facilities will get built" - our neighbours across the North Sea and English Channel are building up their ports using public funds. We really need to think about the jobs and offshore wind market - we lost the onshore wind market to the Danes, let's not jeopardise the offshore wind market.
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S. Martin | 8 Oct 2010 1:37 pm
Perhaps it is the vast expense of such energy production, and a cost argument which is killing them off. Remember that wind and tidal generation are the most expensive forms of energy production when there are better, cheaper alternatives which should be considered.
Maybe it is the political bias which is killing these schemes off, and the realisation they will leave another expensive taxpayer burdon for many years. Something not needed in the current political and economic climate.
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I.Thomas | 8 Oct 2010 2:15 pm
Why invest billions in something as unreliable as wind turbines when you have to back them up with conventional resorces "just in case"?
Tidal and nuclear is the obvious way forward. We won't be charging our battery powered cars on wind power!
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P.MacLean | 8 Oct 2010 2:30 pm
Philip Baker, I agree totally with your thoughts. I have personally had to relocate due to the Thatcherite decimation of the North East of England, and now witness the general decline of all Engineering businesses in the Midlands & South due to lack of government support or understanding for that matter. We need renewable energy initiatives as well as Nuclear Power stations. Our 3rd world country, in 10 years time, will be subject to power black outs and unprecedented unemployment. It is about time Vince Cable & Co. put his money where his mouth is, and actually influence government leadership to actually lead the way to save the nation. If we do not manufacture & sell product, then we will NEVER reduce deficit, no matter what cuts are put in place. Wakey Wakey Government!
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