Siemens announces major investment in Hull

This week the United Kingdom’s wind industry received a major boost as German manufacturing heavyweight Siemens announced plans to progress with the construction of  large-scale turbine production and installation facilities.

These new developments not only serve to underline and maintain the UK’s cutting edge turbine industry but will also create a significant number of jobs in Hull and the surrounding areas.

Siemens had been working on plans to invest £80 million in the creation of the production facilities for a number of years but the news announced yesterday has revealed that the level of investment has been doubled to £160 million. This doubling in the level of investment demonstrates the conglomerates confidence in the future of the British wind industry.

The £160 million investment will be split between two sites: the previously announced ‘Green Port Hull’ construction, assembly and service facility and a new rotor blade manufacturing plant in nearby Paull,in Yorkshire. In further good news Associated British Ports will also be heavily investing, to the tune of £150 million, in the ‘Green Port Hull’ Scheme.

This combined investment of £310 million represents a significant boost to Hull and the surrounding environs, an area of the UK long troubled by economic decline. The new facility is expected to directly create and support 1,000 jobs. Additional jobs will be created during the construction of the facilities and once construction is completed, indirectly in the supply chain and local economy.

Construction at the two sites is scheduled to commence this autumn. The swiftness with which this work is to be carried out again underlines the confidence which investors have in the UK’s wind industry and it’s potential to generate yet more of the UK’s electricity than it is already doing. The manufacturing plant is to be used in the construction of Siemens latest 6MW offshore turbine model. These new turbines have rotor blades which are over 75 meters long and when spinning cover an area greater than two and a half football pitches. A Siemens spokesman revealed that the facility would be the first of it’s kind in the world. Construction of the new turbine models is expected to commence in 2016 meaning that the turbines can be expected to be deployed in the UK’s Round 3 Offshore Wind Farms later in the decade.

Siemens’ chief executive of the energy sector Michael Suess made the following statement at the announcement of the increased investment:

“Our decision to construct a production facility for offshore wind turbines in England is part of our global strategy. We invest in markets with reliable conditions that can ensure that factories can work to capacity.

“The British energy policy creates a favourable framework for the expansion of offshore wind energy. In particular, it recognises the potential of offshore wind energy within the overall portfolio of energy production.

“The offshore wind market in Great Britain has high growth rates, with an even greater potential for the future. Wind power capacity has doubled here within two years, to roughly 10 gigawatts. By 2020, a capacity of 14 gigawatts is to be installed at sea alone to combine the country’s environmental objectives with secure power supply. Projects for just over 40 gigawatts are currently in the long-term planning.”

The announcement was welcomed by politicians, industry figures and activists alike. UK Energy Secretary Ed Davey commented:

“This deal is excellent news for the people of Hull and the Humber, the UK, the wind industry, and our energy security. We are attracting investment by backing enterprise with better infrastructure and lower taxes. As well as helping to keep the lights on and putting more than 1,000 people in work, this deal means we will help to keep consumer bills down as we invest in home-grown green energy and reduce our reliance on foreign imports. This deal shows our strategy for offshore wind is working; bringing investment, green jobs and growth, and helping keep Britain the number one country in the world for offshore wind.”

Industry trade body RenewableUK’s Chief Executive Maria McCaffrey said:

“This is a major coup for the British wind industry – it’s the green-collar jobs game-changer that we’ve been waiting for. Attracting a major international company like Siemens to the UK, creating 1,000 jobs manufacturing turbines at two sites in Yorkshire, proves that we can bring the industrial benefits of offshore wind to Britain. This is just the start – where Siemens are leading, a cascade of others will follow – and we’ll see very significant growth in the UK supply chain.

“The British offshore wind industry already employs more than 12,800 people in direct and indirect jobs. Our research shows that within the next ten years, that number could rise to as many as 44,000 jobs. By 2030, the UK offshore wind sector will need dozens of factories making innovative, hi-tech blades, turbine towers, cables and offshore substations. This is a massive economic growth area for UK plc – a clean energy industry for the future.

Major developments like today’s announcement from Siemens will help us to retain the UK’s global lead in offshore wind, as we already have more capacity installed than the rest of the world put together. The rest of the world is eyeing us enviously, wanting a slice of the action. Now we know that a substantial part of that action will be undertaken by British workers in a major industrial renaissance on British shores”.

Lindsay Leask, Senior Policy Manager at Scottish Renewables, said:

“The announcement by Siemens illustrates the scale of opportunity available to Scotland if we utilise our offshore wind potential.

“Scottish Renewables’ recent employment report showed that almost two thousand people are currently employed in the offshore wind sector in Scotland, and that it is before a single project is even under construction.

“With the recent Scottish Government decision to consent offshore wind projects in the Moray Firth, and a number of manufacturers having committed to bringing similar-sized factories to Scotland if they win orders, there is a real opportunity for Scotland to take advantage of the manufacturing and supply chain opportunities in the offshore wind sector, not just in the UK, but globally.

“Increasing the number of consented offshore wind projects means a growing pipeline of orders for manufacturers and allows them to justify investing in facilities in Scotland. The more manufacturers we have involved in the sector increases the level of competition and, ultimately, leads to faster cost reductions.

“We will continue to work with the supply chain to make sure they benefit from the huge opportunities in Scotland.”

The announcement of such major investment following so closely on the heels of heavy investment in grid infrastructure, sub-sea cables and the onshore sector makes the overwhelming case that the UK’s wind industry is flourishing and thriving. We at Intelligent Land Investments (Renewable Energy) are delighted to be playing our part, if perhaps on a slightly smaller scale. We have also invested large sums in the country’s infrastructure to improve wind capacity, help keep energy bills down and help the UK meet it’s renewable energy targets. Every month new turbines are consented or installed, both by ourselves and others in the industry. The upward trajectory of the UK’s wind industry is clear to see in the fact that every month new records are set for the amount of British electricity demand being met by wind energy.

 

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