Sir Michael Fallon: 'Boosting the offshore sector target could create 25k jobs'

According to former energy minister, Rt. Hon Sir Michael Fallon MP’s latest report, it is recommended that the government establishes a new target for offshore wind projects.

The report, ‘Winning Locally, Going Global’ is aiming to create a new 60 per cent UK content target, as the current 50 per cent target is close to being met by some wind farm developers.

Fallon wants the higher target to be set for the remaining £550m spent by 2025. According to the MP, each wind farm development should be reported in a more transparent way which includes added value in both jobs and local skills.

The report also recommends the UK offshore wind industry should agree a ‘sector deal’, placing it at the heart of the government’s Industrial Strategy.

Fallon said: “This is a pivotal moment for offshore wind. The huge investment to date has repaid the confidence shown by the government in its future over the last six years.

“Strong UK supply chains and innovative high technology SMEs are the keys to winning new contracts. Brexit offers fresh opportunities to use our freedom from artificially restrictive EU procurement rules to develop a world-beating industrial sector.”

To support the proposal in question, the report highlights the need for a supply chain accelerator programme, as recommended by the Offshore Wind Council.

This would build upon the government’s new Supply Chain Competitiveness Programme, which should be used to target areas like this region.

Left to right: Wilton Engineering’s chief executive, Bill Scott; Sir Michael Fallon and Tees Valley Mayor, Ben Houchen.

He added: “If the sector is able to invest as a result of higher local content, it can grow and export throughout the world.

“Given the explosion of interest in offshore wind in overseas markets, positive policy, strategic planning and early investment could deliver more than 25,000 jobs in the UK over the next decade.”

Public spending is already allocated up to 2025, therefore Sir Michael recommends the government set out the full timetable for each future auction, helping the sector to plan, invest and recruit.

Bill Scott, Wilton Engineering’s chief executive, added: “I welcome this report as a major contribution to thinking about the future of the offshore sector in the UK.

“We are on the cusp of something that can deliver sustainable solutions to the massive growing demand for electricity in the developed world.

“The North East is home to innovative businesses that form a major link in the offshore wind supply chain. However, the UK supply chain needs the government to maintain its commitment to local content from our own licences.

“This spur is driving the investment and planning we need to create a viable business sector that could enable green renewable electricity generation to become commonplace throughout the world.”