Repositioning North East Scotland as the Net Zero Energy Capital of Europe

Welcome to ETZ Ltd’s Autumn Quarterly Update where we outline the significant progress ETZ Ltd is making as we work to reposition Aberdeen and the North East of Scotland as a globally recognised energy cluster focussed on the delivery of Net Zero.

We want to protect and create as many jobs as possible, ensuring a sustainable and vibrant future for the region and the people who live and work here. Our organisation has been operational for a little over two years and we have made significant progress on our dual areas of focus both as a regional catalyst for energy transition and the delivery of the Energy Transition Zone. This region is one of the most attractive locations in the world to accelerate low carbon technologies and our focus at ETZ Ltd is to unlock the opportunity to its fullest potential.

ETZ Ltd Teachers and Careers Advisors Session

ETZ Ltd welcomed teachers and career advisers from schools across the region, including Lochside and Hazlehead Academies, to our newly renovated W-ZERO-1 building in the Wind Campus of the Energy Transition Zone. We provided an update on our wide range of activities, with a particular focus on our Jobs and Skills Plan which will support the provision of employment and career opportunities for future generations.

We were also joined by bp's Hisham Hamid (CEng) who described the vast range of opportunities the company has created to engage young people and our local workforce to support emerging hydrogen projects with the Zone. The visit concluded with a tour of the Zone showcasing our specialist campus model and progress on our transformational anchor projects.

Acorn Approval and Awarding of North East Investment Zone a “Significant Boost” for Region

The Scottish and UK Governments announced earlier this year that the North East of Scotland and Glasgow City Region have been chosen as Investment Zones following a joint selection process. Each will be supported by up to ￡80 million through a combination of fiscal incentives and flexible funding over five years. Our Chairman, Sir Ian Wood, responded to the positive announcement which will take effect in the 2024/2025 financial year. Following a significant period of engagement from a wide range of businesses and organisations, including ETZ Ltd, the UK Government approved the Acorn Carbon Capture & Storage Cluster at St Fergus on to its Track-2 process as part of further development of the technology. Our Chairman, Sir Ian Wood, welcomed both announcements:

“The decision to support the Acorn Project is hugely welcome and marks a significant step in ensuring the North East of Scotland retains its status as a globally recognised energy hub. This announcement follows extensive efforts from the wider business community to encourage the UK Government to accelerate plans for the Scottish cluster which remain one of the most most cost-effective locations to advance CCUS in the UK given the capacity for CO2 storage in the North Sea and the existing oil and gas infrastructure available to repurpose for CO2 transport and storage. Vitally, there is also a huge opportunity for Scottish oil and gas firms, domestic supply chain companies and our wider economy to harness the skills and expertise of our current workforce in the coming years and contribute significantly to meeting net zero targets."

“The awarding of an investment zone to the North East of Scotland is a significant boost to our region and we are grateful to both the Scottish and UK Governments for recognising the need to support us as we continue to transform our Regional economy. Our reputation as an innovative and productive region is both hard won and well deserved, and today’s announcement will help secure our position as one of most attractive locations anywhere in the UK, and indeed Europe, for investment in low carbon technologies across different sectors."

Energy Minister Joins ETZ Supply Chain Roundtable

The Scottish Government Energy Minister Gillian Martin visited ETZ Ltd’s office to take part in a valuable roundtable discussion with energy supply chain businesses across the North East to learn about the opportunities and challenges they face in accelerating their own energy transition ambitions.

Net Zero Technology Centre Chief Impact Officer, Roy Stenhouse, also joined the discussion to provide an update on the organisation’s hugely exciting and ambitious Hydrogen Backbone Link Project, which has the potential to accelerate the enabling of UK production and connect demand across Europe with supply from Scotland and the UK.

Fit 4 Offshore Renewables - New Round Opens for North East Scotland Businesses

Offshore Renewable Energy (ORE) Catapult has entered into its fourth round of Fit 4 Offshore Renewables (F4OR) supported by ETZ Ltd. This tranche will enable a further 19 companies to get ready for offshore renewable opportunities, made possible by a further ￡288,000 in funding from ETZ Ltd.

Freda Miller, Supply Chain Programme Manager at ETZ Ltd, said

“Fit For Offshore Renewables has firmly established itself as a market-leading programme providing companies with the skills, insights, and expertise needed to capitalise on the vast energy transition opportunities before us.

“ETZ Ltd is proud to support the programme’s fourth phase of activity across the North East of Scotland which will positively impact up to 19 companies seeking to accelerate their own low-carbon ambitions. The programme continues to grow from strength to strength and directly aligns with our ambition to reposition the region as a globally recognised energy hub focussed on the delivery of net zero.”

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Offshore Europe 2023

ETZ Ltd connected with several industry partners and stakeholders at SPE Offshore Europe in September which instilled a renewed sense of excitement for the future of the energy industry in the region. For the past five decades, the North East of Scotland has been at the forefront of the energy sector, underpinned by a world-class oil and gas industry. At ETZ Ltd, our goal is to transform the region into a globally recognised integrated energy cluster focused on the delivery of net zero. The conference proved to be a valuable opportunity to share our ambition for the future of the region’s energy landscape with a diverse range of delegates representing organisations and companies from around the world.

Scottish Renewables Awards

We were delighted to sponsor the Green Business Growth Award at the Scottish Renewables Net Zero Energy Transition Awards. The evening celebrated individuals and organisations embarking on their energy transition journey and provided deserved recognition of the remarkable advancements taking place across the industry.

Congratulations to all nominees for the award, including Port of Aberdeen, Forth Ports Limited, ACE Winches and of course, the winner, Balmoral Group. As a key service provider to the offshore wind sector, Balmoral, was recognised for increasing its manufacturing capacity by 40%, opening a quayside shore-to-ship facility in Montrose, and growing its renewables workforce from 10 to 30.

ETZ Ltd Successfully Pilots Supply Chain & Pathway Fund

ETZ Ltd Chief Executive, Maggie McGinlay, and Supply Chain Programme Manager, Freda Miller, joined Scottish Government Energy Minister, Gillian Martin MSP, in visiting supply chain firm Dron & Dickson in Aberdeen. The company specialise in integrated supply, installation and maintenance of harsh and hazardous area electrical equipment and are recipients of ETZ Ltd’s ￡1 million Challenge Fund pilot, backed by the Scottish Government’s Just Transition Fund. Grant funding of between ￡50k and ￡250k, which is matched by company contributions, has been awarded to companies to accelerate innovation and market entry, support business growth and create new jobs in the energy transition into the low-carbon market.

Invest in the Largest Dedicated Energy Transition Complex in Scotland

ETZ Ltd continues to take forward the phased development of a unique Energy Transition Zone adjacent to the now operational ￡420 million deep water, non-tidal development at Aberdeen South Harbour and in doing so aims to create 2,500 direct jobs and a further 10,000 in energy transition related jobs across the region.

A dedicated masterplan process covering the entirety of the Zone has been progressed and now a comprehensive investment programme is underway to deliver market-ready, net zero exemplar’ properties and development sites, subject to planning, for high-value manufacturing and the wider energy transition supply chain.

This will include the creation of specialist campuses for Marine Development, Offshore Wind, Hydrogen, Innovation, and Skills - each of which will be anchored by a transformational project to catalyse further investment in each sector. The Zone will provide businesses with the unique opportunity to invest in the largest dedicated energy transition complex in Scotland. High-quality amenities including greenspaces, active travel and a green energy network will ensure that the zone becomes an exemplar, low-carbon development, and the perfect location for future net zero investment.

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Scotland’s first Dedicated Energy Incubator & Scale Up Hub Announced

ETZ Ltd has embarked on a partnership with the Net Zero Technology Centre (NZTC) and the National Manufacturing Institute Scotland (NMIS) to deliver Scotland’s first Energy Incubator and Scale Up Hub (EISH). The Hub will provide leading technology development and research facilities and has secured welcome funding from bp and Scottish Enterprise. As the Innovation Campus’ transformational anchor project, the ￡6.5 million 3000sqm facility will support supply chain expansion and deliver a cutting-edge innovation ecosystem.

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ETZ Ltd Enters ￡1.5m Joint Venture to Expand Wind Campus

ETZ Ltd entered into a ￡1.5 million deal with West Coast Estates Ltd to redevelop and refurbish a second property in the Energy Transition Zone’s Wind Campus in Alten’s Industrial Estate. The investment in the W-Zero-2 Building (formerly 1 Minto Drive) will trigger much-needed revitalisation of the 2000 sq. m. brownfield property, making it purpose-built for high-value manufacturing and supply chain companies seeking to service the offshore wind industry.

Iftikar Mian, Owner of West Coast Estates, said:

“The North East of Scotland is undergoing a remarkable transformation as it seeks to capitalise on the massive opportunities afforded by new and green energies. We have certainly picked up a certain buzz around the city and region and there is definitely increased interest from businesses across the country seeking to invest in the Energy Transition Zone. That is precisely why we have chosen to partner with ETZ Ltd to develop W-Zero-2 and I firmly believe this marks the exciting and early steps in the rejuvenation of not only Altens Industrial Estate, but the wider Aberdeen economy as well.”

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Subsea Engineering Firm Commits Future to Aberdeen with Plans to Treble Headcount

Aberdeen City Council co-leader, Cllr Christian Allard, and Cllr Martin Greig welcomed new tenants to the W-Zero-1 building last month to mark the formal opening of the building. Subsea technology and services company, HonuWorx, has committed its long-term future to Aberdeen by choosing to locate its headquarters in the W-Zero-1 building of the Wind Campus in the Energy Transition Zone. The company currently has 12 employees with plans to treble that in the next 2-3 years whilst targeting upwards of ￡30 million investment to support its growth plans.

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Dedicated Energy Transition Skills Hub Set to Open in 2024

In September, the Net Zero Cabinet Secretary, Mairi McAllan MSP, visited Aberdeen to announce the creation of Scotland’s first dedicated Energy Transition Skills Hub. Supported by ￡4.5m from the Scottish Government Just Transition Fund, ETZ Ltd is working in collaboration with North East Scotland College and lead corporate sponsor Shell who are investing ￡1.8m to help 1,000 people into energy transition jobs across five years.

The transformation of the building into a state-of-the-art teaching facility will enable greater local community and school engagement with plans already underway for a dedicated outreach programme. A mobile classroom staffed with an outreach worker and equipped with interactive technology will visit local schools aiming to inspire and educate future generations on energy transition career opportunities. The funding also supports plans to remove barriers to learning and provide opportunities for flexible training, which will allow local residents to access upskilling or reskilling courses that work for them around existing working or childcare commitments.

Expected to open next summer, the Hub will be built on the site of a disused dairy facility adjacent to NESCol as an extension to the existing campus and will singlehandedly quadruple the capacity of the existing training facilities at the college, transforming the student experience. This project will also contribute to the ongoing rejuvenation of the Altens Industrial Estate and is a tangible example of a just transition in practice.

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Community Engagement

ETZ Ltd has now completed a series of masterplan community consultation events covering plans for activity across the entire Energy Transition Zone. Three events designed to encourage dialogue with members of the public were held at Torry United Free Church with two further community engagement events held over the summer. These focussed on the allocated greenfield development sites adjacent to Port of Aberdeen’s recently completed deep water South Harbour that unlock vital offshore renewable energy investment within the Zone.

Further to these consultations Chief Executive, Maggie McGinlay, and Director for Land and Planning, Neil Young, attended an open meeting of Torry Community Council in July to discuss the proposals. ETZ Ltd recognises the strength of sentiment around the proposed loss of greenspace within St Fitticks Park and is committed to supporting the Torry community to achieve tangible and positive outcomes as we facilitate a transition for Aberdeen and the wider region’s future low carbon economy.

ETZ Ltd is advancing a long-term community benefit programme which includes a Community Fund to support local projects that will be launched in coming months.

Port of Aberdeen Open Day

ETZ Ltd staff had the pleasure of hosting a stand and greeting hundreds of visitors at the Port of Aberdeen’s Open Day on Sunday, 23 Sept. Those who stopped by had the chance to learn and ask questions about our plans and aspirations to establish North East of Scotland as a globally recognised energy cluster. It was an exciting event with 10,000 visitors to the South Harbour over the course of the day. ETZ was delighted to be included amongst the impressive group of stakeholders present, many of whom demonstrate the region’s strong commitment to net zero.

For further information about the Energy Transition Zone please get in touch: [email protected] or visit our website: etzltd.com