Proposed £1.5bn Chinese investment in Ardersier is one of the largest in recent memory but it remains shrouded in secrecy after two years of UK and Scottish government talks
The largest single investment in the Highland economy from the private sector remains shrouded in secrecy after news of a £1.5 billion Chinese proposal broke on Friday.
Ming Yang revealed that the Ardersier energy transition facility within the Inverness and Cromarty Firth Green Freeport is its preferred base to create the UK’s largest wind turbine plant estimated to create 1500 jobs.
This comes following two years of talks involving the Scottish and UK governments while the Chinese energy giant said it would invest up to £750 million in the first phase of the development alone.
The owners of the Port of Ardersier, Haventus, said only that they are in talks about the energy transition facility but commercial sensitivity meant they could not confirm a £1.5 billion Chinese proposal.
The company confirmed that it is “in ongoing discussions with a number of prospective counterparties” but it “does not publicly disclose details of any active commercial negotiations.”
A spokesman said: “Haventus is in ongoing discussions with a number of prospective counterparties regarding the potential use of Ardersier Energy Transition Facility to support the offshore wind industry and the achievement of the UK’s clean energy ambitions.
“Haventus does not publicly disclose details of any active commercial negotiations.”
The chief executive of the Highland green freeport, Callum Macpherson said: “There are a number of parties from across the world that have expressed interest in investing in the Inverness and Cromarty Firth Green Freeport.
“That underlines the importance of the fair work and environmental charters that are integral to the green freeport governance arrangements.
“Any investment of scale is rigorously appraised by the UK government, and indeed the Scottish government, before any project gets the go-ahead.”
Mr Macpherson was speaking after news of the bid raised eyebrows amid unease that such a big facility would be under the control of Beijing after Haventus secured £100 million of taxpayer investment.
The joint credit facility to “underpin the creation of a nationally significant infrastructure facility to support industrial-scale deployment of fixed and floating offshore wind.”
The energy transition facilities provider got a £50 million investment from the Scottish National Investment Bank and UK Infrastructure Bank in May to go with the private finance of £300 million.
Unease had been expressed about the proposals after Conservative MP Nick Timothy and former SNP MP Stewart McDonald both expressed misgivings around energy security.
Last November, Mr Timothy asked UK energy minister Michael Shanks about Ming Yang's plans, calling on the government to rule out investment from "hostile states."
He said that as it "benefits from huge subsidies in China" and that any investment was subject to "serious questions about energy and national security" – concerns echoed by the former SNP MP.
Mr McDonald called for Ming Yang to be banned from the North Sea, citing Norway’s recent decision to reject the company “for a similar project” but UK government energy secretary Michael Shanks said he would "encourage investment".
Min Yang’s UK chief executive, Aman Wang said: "We firmly believe that by moving forward with our plans to create jobs, skills and a supply chain in the UK, we can make this country the global hub for offshore wind technology.
"We fully support the government's mission to become a clean energy superpower, and I'm confident that once the plans are approved we can make a valued contribution to this goal."
A UK government spokesperson said: "This is one of a number of companies that wants to invest in the UK. Any decisions made will be consistent with our national security."
A Scottish government spokesperson said: “This port is strategically important to the growth and success of the offshore wind sector.
"This illustrates the strength of opportunity and huge economic potential that the Scottish offshore wind sector offers.
"We recognise that Ming Yang's investment is subject to a decision from the UK government and look forward to the outcome of that process."