World-leading wind energy company Gamesa will create around 40 high-value jobs by this summer for its planned Offshore Wind Technology Centre, the First Minister said today as he announced £1.5m regional selective assistance to support the development of the renewables base on the outskirts of Glasgow.

Having selected Scotland, Gamesa announced earlier this year that Glasgow was its preferred location for the centre, subject to final agreements on financing.

Following a meeting between the First Minister and Gamesa Chairman and CEO Jorge Calvet, in Edinburgh this week, the company has confirmed that the Centre will be located at Strathclyde Business Park, about eight miles east of the city centre, and that it has started the recruitment process.

Gamesa expects to be employing around 40 engineering staff by July/August, with the potential to grow this to more than 100 by the end of this year - rising to 180 within three years of the Centre beginning operations. It is due to be officially opened in the autumn.

Gamesa have indicated they are also prepared to invest in manufacturing, logistics and operations & maintenance (O&M) in Scotland, conditional upon development of offshore wind projects in the area, securing government support and the availability of sites for prototypes. If implemented successfully, Gamesa's offshore plan could represent an investment of around 50 million euro in Scotland and create 300 direct jobs in the country.

The First Minister said: "I was delighted again to meet Sr Calvet and to hear about his plans for the company to develop its next generation wind turbines. Gamesa is one of the world's leading turbine manufacturers and the decision to establish its Offshore Wind Technology Centre at Strathclyde Business Park is a huge boost for the Greater Glasgow area and for Scotland's rapidly growing renewable energy sector.


"I'm very pleased that Gamesa has secured premises for the new Centre and the recruitment process is already underway, with around 50 people expected to be employed there within the next few months, and many more to follow. The Scottish Government, together with our partners in Scottish Development International and our enterprise agencies, are committed to maintaining optimum conditions for continued inward investment in our world-leading renewables industry."

Sr. Calvet said: "Our commitment is strong and we are preparing to play a role in the offshore wind market. Our Offshore Technology Centre in Glasgow represents an important step in this strategy. Our offshore plans could generate significant local, skilled and sustainable jobs over the coming years. I would like to recognise the support and commitment from the Scottish Government and its development agencies during the ongoing discussions around these investment plans."

Adrian Gillespie, Senior Director of Energy and Low Carbon Technologies, Scottish Enterprise, said: "Gamesa has made speedy progress in securing a suitable location for its Offshore Wind Technology Centre and it is extremely encouraging that recruitment is already underway for the initial intake of engineering staff. Such progress is a clear demonstration of the favourable business environment Scotland has to offer the renewables sector. We are pleased to back the company with a Regional Selective Assistance grant and will continue to work closely with Gamesa to support the development of their business in Scotland."

The company is working to launch two offshore platforms (the G11X-5.0 MW and G14X-6/7 MW) and it has also announced that the UK will be the centre of its offshore wind business. It plans to invest over 150 million euro there by 2014. Gamesa estimates that the construction and development of its offshore wind business in the United Kingdom will create over 1,000 direct jobs and another 800 indirect jobs at local suppliers.

Exclusivity agreements for developments amounting to up to 10GW of offshore wind generation capacity in Scottish waters over the next decade have been granted through the Crown Estate's Round Three and Scottish Territorial Waters leasing rounds.

Over its previous four-year term, the Scottish Government consented 42 renewable energy projects and in 2009, more than a quarter (27.4 per cent) of electricity demand came from renewables. There are around 7 GigaWatts (GW) of renewables capacity installed, under construction or consented around the country. In May the Scottish Government's raised its target for renewable electricity generation in 2020 from matching 80 per cent to 100 per cent of consumption levels.

Scotland has some of the greatest renewable resources in Europe, with as much as a quarter of the continent's offshore wind and tidal energy potential and an estimated 10 per cent of its wave power capacity. The Offshore Valuation Study published in May 2010 estimates Scotland's practical offshore renewables resource at 206 GW. Harnessing just a third of this generation potential could enable Scotland to meet its own domestic electricity needs seven times over by 2050 - positioning the country as a massive net exporter of renewable energy.

Regional Selective Assistance (RSA) is the main national scheme of financial assistance to industry. It provides discretionary grants to investment projects that will create and safeguard employment in areas designated for regional aid under European Community law. Payment of RSA is made in instalments, typically over several years as job and capital expenditure targets are met.

(GK/KMcA)