Port bosses in Peterhead believe the Blue Toon is perfectly positioned to reap the rewards of a new “industrial revolution” taking shape across the north-east.
The historic transiton to coal-powered machinery and factories in the late 18th and early 19th centuries conjures up images of dirty chimneys belching pollution all day.
But the 21st Century equivalent is focused on green energy and far kinder to the planet.
And, according to the management team steering Peterhead Port Authority (PPA) through the energy transition, it can deliver an economic bonanza for the north-east.
The big game-changer
PPA board member John Wallace told The Press and Journal the port is more than ready for what lies ahead after a “transformation” of the business in recent years.
Fishing has always been the “backbone”and remains hugely important, Mr Wallace said.
Peterhead is also still ideally located for servicing the offshore oil and gas industry.
But when the town and its port seemed to have “reached a sticking point, with finite resources”, along came a new dawn, Mr Wallace said.
Energy transition has been the big game-changer and Peterhead is firmly on the map.
Race towards net-zero
A fast-changing north-east economy in the race towards net-zero has created many new opportunities for diversification. It has also driven substantial investment in infrastructure at the port as well as by other local businesses in recent years.
“We now have the potential for a complete change here, an industrial revolution,” Mr Wallace said, adding: “We are very much looking forward to the challenges that brings.”
He admitted the term “industrial revolution” was not ideal to describe what is happening across the north-east just now, because of its dirty energy connotations.
But it perfectly encapsulates the scale of economic transformation taking place, he said.
Last year PPA hired a new head of business development/energy transition, Keith Mackie, to help steer the port through the north-east’s changing economic landscape.
And it recently embarked on a major piece of work to help it best embrace opportunities presented by the energy transition. The masterplan study, led by experts at Dutch consultancy Royal HaskoningDHV, was commissioned by PPA and economic development quango Scottish Enterprise.
The port already provides a dedicated berth for crew transfer vessels operating on the Hywind Scotland floating wind energy project – a joint venture between Norway’s Equinor and Middle East renewables firm Masdar – 18 miles off the north-east coast.
Peterhead Port’s support for the offshore wind sector to date also includes its key role during development of the European Offshore Wind Deployment Centre off Aberdeen.
Meanwwhile, the port is part of a project aiming to create a “hydrogen highway” from Scotland to Rotterdam.
PPA’s bosses believe these activities are only the start of a pipeline of green energy opportunities that will deliver major economic benefits, including jobs, for Peterhead.
ScotWind will deliver work for all Scottish ports, PPA’s head of business development says
But will the establishment of two Scottish green freeports in Inverness and Cromarty Firth and the Firth of Forth not suck business away?
Definitely not, Mr Mackie insisted.
There will be plenty of work filtering down to other ports as multiple ScotWind green energy projects take shape in Scottish waters in the coming years, he said.
He added: “There will be significant demand on the supply chain over a long period.
“Some of the (bigger) contracts will go to the freeports but other work will filter down.”
Did you know that the Port of Peterhead has more than three km of berthing space with depths of up to 14 metres?
The Port operates 24 hours a day, 365 days a year and in 2022, a record £220 million worth of whitefish, pelagic fish and shellfish was sold over the quaysides. pic.twitter.com/gNAmaW38Ud— Peterhead Port Authority (@PeterheadPort) November 2, 2023
The pace of wind farm developments across Europe will drive an even bigger uptick in demand across the supply chain, Mr Mackie said, adding: “We have really an opportunity here to maximise the infrastructure. I am hopeful we will see a range of activities here.”
Mr Wallace said Scotland could use half dozen new ports to cope with future demand.
He added: “There are simply not enough facilities to handle all the projects we are seeing.”
According to Stephen Paterson, PPA’s acting chief executive, Peterhead can also reap rewards from the north-east’s newly-won status as one of 12 UK “investment zones”.
The region missed out on the chance to become one of Scotland’s two green freeports.
PPA and its North East Scotland Green Freeport consortium partners were “bitterly disappointed” to have their bid rejected by the UK and Scottish governments earlier this year.
But the group continues to keep up the dialogue on how to make the most of opportunities emerging in the energy transition, Mr Paterson said.
And he predicted the tax breaks coming to the region as an investment zone may not be so different from those being introduced in green freeports.
On prospects for the future at Peterhead Port, PPA’s chief financial officer and acting CEO said: “We are more confident than ever.”
It is crucial to make sure energy transition opportunities and job creation increase at least at the same same rate as oil and gas industry decline, he added.
Meanwhile, increased landings and big investments – tens of millions of pounds – in local infrastructure are a sign of good times ahead for the local fishing industry, he said.
Peterhead is Europe’s biggest white-fish port.
The Acorn carbon capture and storage project at St Fergus and oil and gas decommissioning are also expected to deliver new work in the town.
Mr Paterson is filling in at the top until the appointment of a permanent successor to former CEO Simon Brebner, who left the business in late August for family reasons.
Interviews took place last week and an announcement is expected soon, most likely early in the new year.
We now have the potential for a complete change here, an industrial revolution. We are very much looking forward to the challenges that brings.”
John Wallace, Peterhead Port Authority
Mr Wallace is himself a past CEO and was in charge at Peterhead Bay Authority when it merged with Peterhead Harbour Trustees to create PPA at the start of 2006.
The ingredients for the port’s future success are all there, he said.
These including a strong reputation and work ethic, together with the right skill sets.
Those responsible for managing the port in the past have made a big contribution to preparing it for the future and the next chief executive will have an “amazing role’ leading it through the myriad opportunities that lie ahead, Mr Wallace added.
“So much of what we do is international. This is encouraging. We will capitalise on it.”
Port supports 10,000 north-east jobs
PPA directly employs about 85 people but its activities support an estimated 10,000 jobs across the north-east. The port boasts several miles of quayside, with berthing depths of up to 46ft.
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