Northern Ireland could be poised to reap the rewards of a £25bn green energy bonanza promising thousands of jobs over the next decade after a global wind farm giant made Belfast its UK hub.
In what will be the biggest development in its history, Belfast Harbour will provide the first purpose-built port for the production of offshore wind farms in the UK, working on the assembly and installation of huge turbines and their foundations for DONG projects in the Irish Sea in a £50m deal.
And with tens of billions expected to be spent on offshore wind farms in the Irish Sea over the next decade, industry experts are predicting that other major firms could locate here with the potential for thousands of jobs in the long-term.
The 450-metre quay and 50-acre building space will be sited on land which was reclaimed from the sea in 1960 but kept vacant in anticipation of a major development for over 50 years.
Dunmurry firm, Farrans Construction Ltd, has been selected as main contractor, providing 150 workers.
When it is completed in 2013, it is expected that the ‘offshore wind logistics terminal’ will create 300 jobs in total. The work, which will require one million tonnes of stone from local quarries, will also help reap huge rewards for the supply chain.
Len O’Hagan, Belfast Harbour chairman, said that work has been ongoing for four years to help bring the project to Belfast and the potential for growth is staggering.
“Around £25bn is expected to be spent in the Irish Sea alone over the next 10 years and the potential for further growth is very exciting,” he said.
“In a difficult economic environment, certain sectors are doing well and renewables is where the focus should be.
“Demand in the sector is growing and as a result we are accelerating our land reclamation programme so that we can accommodate potential further expansion. If you look at the figures, with a £50m investment leading to 150 construction and 300 long-term jobs at DONG, we could easily see 1,000 jobs in Northern Ireland in the wind farm industry alone if others decide to invest.
“Over the 10-year period, if you do the maths, the potential for job growth is huge.”
Christian Skakkebaek, UK country manager for DONG, said that a combination of logistics, infrastructure, location and talent had helped secure Belfast as the location for the hub.
“We needed a harbour with a particular proximity to the Irish Sea, with effective logistics, with the right kind of people,” he said.
“We also needed a deep water port and a building space which could provide scope for current and future opportunities.
“We looked at a series of locations around the UK but kept coming back to Belfast.
“It is going to be very interesting over the next 10 years to see how the industrialisation of the wind farm and renewables sector will assist local economies.”
Michael Doran, director of Action Renewables, which advises public and private bodies on renewable energy, said Northern Ireland “is well placed to become a north European hub for wind-powered energy”.
DONG
Dansk Olie og Naturgas A/S (DONG) Energy was founded in 1972 to manage resources in the Danish sector of the North Sea.
The majority of the company (73%) is owned by the Danish government, and it is the largest power producer in Denmark, responsible for 49% of the country’s electricity and 35% of its heat.
It also owns facilities in Germany, Sweden and Norway, where it focuses on deep drilling, oil and gas production, and hydro and wind power. DONG has built five of the 10 largest offshore wind farms in the world.
Analysis: Catalyst to make Belfast renewable energy hub
The announcement that the DONG Energy facility for the assembly of turbines for offshore wind farms is to proceed at Belfast Harbour is one of the most welcome pieces of news I have heard in almost 20 years as an energy lawyer.
It underlines the growing opportunities for Northern Ireland businesses flowing from the ongoing expansion of the green energy sector in the United Kingdom.
Turbine installation and pre-assembly operations will largely be run out of this facility at Belfast Harbour, which will benefit from major upgrade works.
Belfast Harbour was well chosen by DONG Energy as its location is particularly suited to Irish Sea projects, and its |deepwater facilities provide the necessary access for the purpose-built installation vessels which will ferry the turbines out to sea and into position.
As a result, Belfast Harbour is now well placed to capitalise on this development as other offshore energy projects are expected to follow in the Irish Sea.
To add perspective, this is one of the largest investments by Belfast Harbour to date and provides an opportunity for Northern Ireland to become one of the UK’s leading green energy hubs.
Hats off to Belfast Harbour for landing this one at this time — as it is said, “a rising tide lifts all boats”, and there is every reason to believe that this will translate into the development of local businesses and job growth in Northern Ireland.