UK and Scottish Governments announce major investment in offshore wind farm

A major offshore wind project has secured investment from the National Wealth Fund, Great British Energy and the Scottish National Investment Bank.

Pentland Floating Offshore Wind Farm will be developed off the coast of Dounreay in the far north of Scotland.

Over 1,000 jobs are predicted to be created through construction and operation of the wind farm, which will have the capacity to generate enough power for 70,000 homes.

The three investors, each putting up to £50m towards the project, have acquired an initial shareholding to participate in its development, which is being led by Highland Wind Limited. That company is owned by Copenhagen Infrastructure Partners P/S.

The National Wealth Fund was established by the UK Government in October 2024, while publicly-owned energy investment company GB Energy was created in May this year. Both are designed to help lever in private investment to clean energy projects.

Chancellor Rachel Reeves said: “Bolstering our energy security to lower people’s bills is key for boosting living standards and growing an economy that works for, and rewards working people. 

“This initial investment will help cement Scotland as a homegrown, clean energy powerhouse, powering tens of thousands of homes and supporting over a thousand good jobs.” 

The Scottish National Investment Bank was set up by the Scottish Government in 2020, also with the aim of providing capital to encourage private investment.

Deputy First Minister Kate Forbes said: “This is the bank's first direct investment in an offshore wind farm, sending a strong signal to the market that floating wind is of critical importance for Scotland's energy transition, our supply chain and our economy. 

“This means the bank can work closely with the developer to support the Scottish supply chain, enhance innovation, boost local job opportunities and receive financial returns.”

It is hoped the public investment will give confidence to private investors looking at UK projects.

Offshore floating wind is a major pillar of the UK Government’s ambition to meet all of the UK’s electricity demand through clean energy sources.

It is also part of the wider industrial strategy, aiming to anchor as much of the supply chain in the country as possible.

The announcement comes the closure of the Mossmorran ethylene plant was announced, the latest example of jobs being lost during the transition to net zero.

ExxonMobil, which owns the Fife plant, said it lacked a “competitive future” due to a combination of the economic and policy landscape of the UK and “market conditions, high supply costs and plant efficiency”.