Net Zero Exports, Hyundai Partnership & New Green Tech
Scotland is leading the way on global climate action and just transition.
Companies which took part in the Scottish Government’s first ever business delegation at COP28 say they expect to generate an estimated £66.74 million in net zero export sales over the next three years, according to a new report published today.
A total of 19 net zero focussed Scottish companies attended the programme of business activities at the global climate summit in Dubai last year, supported by the First Minister Humza Yousaf and the Cabinet Secretary for Wellbeing Economy and Net Zero Màiri McAllan.
Of these companies, 14 reported forecast export sales of £66.74 million over three years, with three already reporting business won due to their participation. 94% of the delegation also stated they found the programme valuable, with 545 new contacts made.
As well as strengthening economic and investment relationships, the Scottish Government achieved a number of outcomes in relation to tackling climate change, including:
- highlighting Scotland’s experience and expertise in renewables when meeting with representatives from other governments including a bilateral meeting with the Prime Minister of Barbados Mia Mottley and the French Minister for Energy Transition, Agnés Pannier- Runacher
- announcing £2 million of additional funding to address loss and damage – helping to maintain the focus on the most vulnerable communities most in need of funding
- demonstrating the importance of delivering climate action at all levels of government, with the First Minister taking part in the Local Climate Action Summit
The report comes as the First Minister also launched a new piece of technology to decarbonise global shipping, and a memorandum of understanding was signed by the Scottish Government to unlock offshore wind expertise.
The development of an innovative retractable wingsail, which developer Smart Green Shipping estimates can save commercial shipping companies up to 30% fuel per year, has been supported by £1.8 million Scottish Enterprise grant funding and £1.35 million equity investment from leading Japanese shipping company MOL Drybulk and Scottish Enterprise. South of Scotland Enterprise has helped the company establish a base in Dumfries.
Technology to optimise a ship’s route based on weather forecast data will enable commercial vessels fitted with the sail to cut greenhouse gas emission and operating costs as well as reducing fuel consumption. The UN has said that shipping emits nearly 3% of global greenhouse gas emissions, therefore worldwide efforts to decarbonise the sector are crucial to meeting climate targets.
The rigid wingsail is entirely manufactured in Scotland from 100% recycled materials, and Smart Green Shipping has progressed the project with input from other Scottish engineering companies including Caley Ocean Systems and Malin. The First Minister raised the 20-metre FastRig wingsail for the first time today (17th April) at Smart Green Shipping’s test site at Hunterston Parc alongside Founder and Chief Executive Diane Gilpin.
Meanwhile, Deputy First Minister Shona Robison has welcomed the signing of a partnership between Scottish enterprise agencies and HD Hyundai Heavy Industries, which will unlock expertise in the design and manufacture of floating offshore wind substructures.
Scottish Enterprise (SE) and Highlands & Islands Enterprise (HIE) signed a Memorandum of Understanding (MoU) with the company in Edinburgh, described as a “vote of confidence” in Scotland, committing each other to pursue opportunities for floating offshore wind projects here. It is the company’s first agreement in Europe on floating offshore wind manufacturing.
HD Hyundai Heavy Industries is the world’s largest shipbuilding company and a major manufacturer of equipment such as the floating substructures that form a critical part of the multi-billion offshore wind supply chain. The latest in a series of key developments in the sector, the MoU follows the First Minister’s announcement of strategic investment of up to £500 million over the next five years to unlock private investment in ports, manufacturing and assembly work to anchor the offshore wind supply chain in Scotland.
It also builds on recent announcements of international investment into the renewable energy supply chain, including the planned £350 million Sumitomo cable factory in the Port of Nigg, based in the Inverness and Cromarty Firth Green Freeport area. Up to £24.5 million of funding has been committed to this project by the Scottish Government, SE and HIE.
Tackling climate change is an environmental and moral imperative, and if done right it also presents perhaps the biggest socioeconomic opportunity of our generation.
GRAEME
I welcome the findings that the Scottish Government’s first ever business delegation at COP28 say they expect to generate over £66 million in net zero export sales over the next three years.
Additionally, by helping companies like Smart Green Shipping invest in innovation, we can drive growth, create jobs and increase productivity while driving the transition to net zero in the shipping sector.
The partnership agreement with Hyundai too is a vote of confidence in Scotland and our offshore wind industry – demonstrating our ability to develop the international relationships upon which investment that will help us reach our climate targets is founded.
Background
- COP28 Outcomes report – Scottish Government costs for participating in COP28 were around £400,000.
- Smart Green Shipping – The FastRig wingsail is currently undertaking tests on land in preparation for the first FastRig wingsail being fitted to a ship, which is expected to happen later this year.
- Delivering net zero energy opportunities – landmark funding to unlock renewables investment
