Scotland reveals green investment portfolio plans
A total of ten projects have been unveiled for Scotland, as part of the nation’s new green investment plan. The schemes vary from various low-carbon solutions to eco-friendly and recycling schemes.
Some of the largest schemes include a £250mn hydrogen infrastructure programme in one of Scotland’s largest settlements, Aberdeen. In addition, the nation has made plans for a £200mn green business park, which will be the first of its kind in the nation.
A low-carbon renewable energy park is also included in the portfolio in addition to a £3mn plastics recycling facility, which is to be located in Perthshire.
New infrastructure for electric-vehicle charging is also included in the plans, with a company called Forev focused on the development and maintenance of a number of public charge-points. This will further encourage the nation’s motorists and visitors to switch to greener transport alternatives.
The plan is set to bring Scotland closer to its goal of becoming a net-zero nation by 2045. In addition to this £1.16bn scheme, a total of £3bn-worth of projects are in the pipeline for the nation, awaiting green finance investment.
The plans are set to benefit Scotland’s construction sector.
Fiona Hyslop, Economy Secretary, explained: “Worth around £300 trillion globally, we know that the market for green finance is burgeoning and Scotland's natural assets and reputation for innovation make it a highly attractive place for that investment.”
“We know investors need credible projects that reduce emissions to match their own green ambitions. By assessing these projects before they go to market, the Green Investment Portfolio gives global investors the confidence they need to back projects in Scotland.
She then went on to say: “The range of opportunities within this portfolio will expand over time to include £3 billion of projects ready for green finance investment, covering sectors from environmentally sustainable commercial real estate to low emission transportation and green energy.”
“Working in partnership with business, we are committed to ensuring that economic growth promotes happiness and improves the opportunities, life chances, and wellbeing of every citizen in our country.”
Additional investments are also planned including a £100mn fund for green jobs and a further £60mn for the decarbonisation of the industrial and manufacturing sectors within the nation.
David Stirling, Director of Mossend International Railfreight Park operator Peter D Stirling Ltd, said: “We are fully supportive of the Scottish Government’s target to achieve net-zero emissions by 2045 and indeed are contributing to this by providing Scotland’s largest zero-carbon, multi-modal rail freight park. The Green Investment Portfolio is a valuable tool to help us reach out to global investors.”
“With future plans including Scotland’s first 775-metre electric rail terminal, we hope to benefit many local businesses as well as those based across Europe and beyond.”
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.