Inverness and Cromarty Firth and the Firth of Forth have been jointly selected by the Scottish and UK governments to become Scotland’s first green freeports.
Following a rigorous assessment and selection process, the two winning bids will be supported by up to £52m in start-up funding, as well as getting tax reliefs and other incentives through a combination of devolved and reserved powers.
Applicants to become a freeport in Scotland were required to demonstrate how they would contribute towards a just transition to net zero emissions by 2045 and create new, green jobs. They were also required to set out how they would support high-quality employment opportunities with fair work conditions at their core.
Deputy First Minister John Swinney said: “This is a milestone achievement in the process to deliver green freeports for Scotland. Inverness and Cromarty Firth Green Freeport and Forth Green Freeport will support businesses to create high-quality, well-paid new jobs, promote growth and regeneration, and make a significant contribution to achieving our net zero ambitions.
“The successful applicants showed a strong determination to embed fair work practices, including payment of the Real Living Wage, and to enshrine net zero initiatives in their work.
“We look forward to working closely with them to ensure they deliver maximum positive impact and become operational as soon as possible.
“We will also work with the unsuccessful bidders to consider how they can build on the plans set out in their bids to deliver jobs and growth in their regions outside the green freeports programme.”
Levelling Up Secretary Michael Gove said: “Scotland has areas of outstanding opportunity, but there are also places that can benefit from more investment to truly level up communities that have been overlooked.
“This is a shared challenge faced by us all across the UK, which is why I’m delighted the UK and Scottish governments have collaborated to deliver two green freeports in Scotland, which will undoubtedly be transformative for future generations.
“Inverness and Cromarty Firth and the Firth of Forth are fantastic areas for these new freeports to set up, ensuring the benefits are felt right across Scotland.”
There were five bidders for the two places - the North East Scotland Green Freeport, Opportunity Cromarty Firth, Orkney Green Freeport, Forth Green Freeport and Clyde Green Freeport.
The Forth Green Freeport bid aspires to deliver up to an additional 50,000 jobs across the UK, generate £6bn in investment and contribute more than £4bn in GVA across sites in Grangemouth, Rosyth, Leith, Burntisland and Edinburgh Airport. Its activities will focus on renewables, advanced manufacturing, alternative fuels, carbon capture utilisation and storage, shipbuilding, logistics and the creative industries.
Charles Hammond, chief executive of Forth Ports and lead Forth Green Freeport bid partner with sites at Leith, Grangemouth, Rosyth and Burntisland, commented: “Together with our consortium partners, our bid will re-industrialise the nation and create large scale economic development.
“The benefits of trade will be spread widely into the communities that need it the most, through the establishment of a green growth investment corridor creating tens of thousands of jobs in low carbon logistics, renewable energy, green manufacturing and alternative fuels.”
The Inverness and Cromarty Firth bid aims to build a world-beating floating offshore wind manufacturing sector, with sites in the Cromarty Firth, Invergordon, Nigg and Inverness. It expects to create up to 25,000 new jobs and attract £2.6bn in inward investment. In addition to offshore wind manufacturing, it will focus on green hydrogen and creating a new innovation cluster.
The Scottish Government stated that it will publish more information on the outcome of the assessment and selection process in due course.
Sir Ian Wood, chairman of ETZ, said: “We congratulate both Cromarty and Forth Ports on their successful bids and wish them well in delivering their respective ambitions.
“We are, of course, hugely disappointed that the North East Green Freeport has not been approved.
“We have a world-class energy sector and the north east is uniquely positioned to meet both of these ambitions, so despite this set-back, we will continue to strive to bring large-scale, advanced manufacturing and technology to Aberdeen to maximise economic benefit from Scotland’s rapidly growing offshore wind and hydrogen sectors and accelerate pioneering carbon capture projects on the Buchan coast.
“However, the UK Government’s overly severe application of the Energy Profits Levy and the Scottish Government’s new position supporting a presumption against oil and gas exploration, are economically damaging and seriously risk creating an adverse environment for investment in the industry at a time we need to be doing all we can to maximise our energy security and sustain jobs to support energy transition and meet net zero targets.
“Awarding north east Scotland green freeport status would have significantly helped in ameliorating these policies,“ he continued, adding: “It is therefore now incumbent upon both governments to act swiftly and demonstrate their long term-support for the region through meaningful interventions that ensure we continue to play a leading role in securing both Scotland and the UK’s energy and economic security for generations to come.”
Stuart Patrick, chief executive of Glasgow Chamber of Commerce, said: “We are incredibly disappointed with today’s announcement on the Clyde Green Freeport bid.
“Overlooking Scotland’s entire west coast risks making both the UK Government’s Levelling Up strategy and delivery of the Scottish Government’s commitment to a Clyde Mission extremely challenging.
“Therefore, we would welcome immediate engagement with both governments to ensure Glasgow isn’t left behind – again.”
Scottish Renewables' head of energy transition and supply chain Emma Harrick said: “Both green freeports will help Scotland compete on the international stage as offshore wind develops to become the mainstay of electricity generation in the UK and we look forward to working with all partners to maximise the economic benefits which will be delivered.
“While today's announcement is welcomed by industry, further development measures will be required for the ports who are not successful in this process.
“We urge The Scottish Government to support all strategic Scottish ports in building essential infrastructure for offshore renewables to ensure island and coastal communities across the nation benefit from the fresh economic investment and regeneration opportunities which a home-grown clean energy supply brings.”
Meanwhile, the Scottish Greens finance spokesperson Ross Greer responded: “There is nothing green about so-called green freeports, they are a failed and dated Tory gimmick which hands public cash over to multinational corporations.
“Under the deal struck for Scottish freeports there are no hard requirements for the companies to meet climate targets or implement fair work practices.
“Freeports will only benefit the super-rich and the big corporations who have pushed hardest for them - local people and communities certainly won't see the benefit if precedent from across the world is anything to go by.”
Scottish Labour net zero spokesperson Colin Smyth said: “This announcement from the Tory government is simply a drop in the ocean when it comes to stimulating our economy.
“We cannot base economic growth on the dilution of workers’ rights that the greenports projects risk.
“We need to know how the ports that miss out on this scheme will be supported,” he added.
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