Inverness Caley Thistle are set to benefit from a multi million pound deal that will see a hydro scheme on Loch Ness change hands.
Norwegian firm Statkraft has acquired the Red John pumped storage project from green energy group Intelligent Land Investments (ILI).
It is the first hydro project acquisition in Scotland for Statkraft, Europe’s largest renewable power generator.
Following a series of surveys, construction is expected to start in 2026, with the aim of having the project operating by 2029.
ILI, Caley Thistle’s main shirt sponsor, conceived the 450MW project in 2015.
It obtained planning permission for the scheme at Dores in 2021 after a public inquiry.
Hundreds of jobs predicted
The Red John project, previously costed at £625 million, is expected to create hundreds of jobs during construction and local permanent posts once operational.
As part of the deal, Statkraft will operate a park and ride scheme at the Caledonian Stadium’s north car park during construction when it is not being used by the club.
The move will generate regular income for the club.
The hydro scheme will capture surplus renewable energy and store it until needed which the developers say will help provide security of supply as the electricity network shifts from fossil fuels.
Statkraft already has a number of pumped storage plants in Norway and Germany.
It also has more than 350 other hydro power plants, including Rheidol, near Aberystwyth.
The deal strengthens its presence in Scotland where it has a base in Glasgow and operates the Keith Greener Grid Park in Moray.
It also operates several wind farms, while projects in planning or under construction are worth at least £2bn of potential future capital investment in Scotland.
In March, it announced it is providing scholarships for students at the University of the Highlands and Islands.
Last month it was revealed as a premier sponsor for Highland Renewables, a partnership between the tourism and renewables sectors.
Statkraft will provide specific support for a series of roadshows by MSP Kate Forbes, an ambassador for Highland Tourism Community Interest Company, who helped launched Highland Renewables.
Commitment to the Highlands
Iain Robertson, head of Statkraft Scotland, said the Red John acquisition expands its relationships in the Highlands.
“This acquisition and the jobs it will bring further cements our commitment to the region, and to Scotland.
“But there needs to be an appropriate support mechanism in place, so we’re now looking to the UK Government to provide the certainty that will allow us to proceed with confidence.”
Mark Wilson, CEO of ILI, said the Red John deal reflects its confidence in Statkraft to realise is potential and “rekindle Scotland’s hydro legacy”.
“Our intentions were always to take it to a certian stage then pass the baton to an experienced developer to bring this to fruition.”
He said ILI remains committed to Caley Thistle and the deal will mean a “considerable injection of cash” into the club.
“We see ourselves being part of Caley Thistle for a long time in the future.
“This is a big step forward for the club. It’s fantastic news, a major positive and good news all round.”
Caley Thistle chairman Ross Morrison also welcomed the news.
“It’s a big boost financially for us,” he said.
Other pumped storage schemes on Loch Ness
Highland Council’s south planning applications committee objected to the Red John plans in 2019 over fears for public safety in the eventually of a reservoir breach.
A later public consultation in Dores brought mixed views on the scheme.
Red John is one of three pumped storage projects operating, or in the pipeline, at Loch Ness.
SSE has an existing pumped hydro scheme at Foyers and Stratera Energy have submitted an application for a 600MW project near Whitebridge first announced in 2021.
Conversation