Role of Ports in supporting floating offshore wind

The energy transition will require significant investment in infrastructure in ports, grid and supply chain facilities. This investment is a fundamental requirement for the UK to achieve its Net Zero ambitions and will pay dividends for the UK economy.

Background to study

BiGGAR Economics supported Royal Haskoning DHV to assess the economic impacts associated with the port investment proposals outlined in the report “Industry Roadmap 2040: Building UK Port Infrastructure to Unlock the Floating Wind Opportunity”. The study was commissioned by RenewableUK, Scottish Renewables, The Crown Estate and Crown Estate Scotland.

We considered what each of the port investment scenarios would mean in terms of GVA and employment for the UK economy. This included considering how the floating offshore wind sector would develop in the years to 2040 by applying a learning rate, as the sector becomes more efficient and benefits from economies of scale. The analysis was to be used to support investment decisions made by the UK Government and therefore was designed to be compliant with the UK Government’s Green Book.

The team at RHDHV found that up to 11 ports around the UK will need to be transformed as fast as possible into new industrial hubs to enable the roll-out of floating offshore wind at scale. The report contained a series of recommendations which could see 34 gigawatts (GW) of floating wind installed in UK waters by 2040.

Economic Analysis findings

The economic impact analysis found that there will be significant economic benefits from investing in port infrastructure to support the offshore wind sector. This investment will enable:

a greater level of deployment in UK waters, as ports will no longer be a constraining factor for the construction of new projects. It is not realistic to rely on ports outside the UK to achieve the floating wind ambitions as all countries are working towards a greater level of offshore wind and face their own port constraints; and
the development of manufacturing clusters, near the fabrication and assembly areas for the turbines and the floating foundations. This will support manufacturing employment and enable the UK to attract a greater share of the capital expenditure associated with the floating offshore wind sector.

For every £1 invested in port infrastructure now, will generate £4.30 Gross Value Added for the UK economy by 2040!

This investment will also enable significant employment opportunities to be realised in the UK. Our analysis estimated by 2040 this investment would support up to 45,000 jobs across the UK.