Ireland has strong potential to develop “a globally competitive offshore wind supply chain”, if efforts are aligned on an all-island basis, according to a report commissioned by InterTradeIreland (ITI).
Completed by Everoze energy consultants, it highlights the scale of the economic opportunity in offshore wind for small and medium businesses, if supported by coherent policy objectives by Governments in both jurisdictions.
The report was commissioned in the context of exceptional global wind resources off the shore of the island, commitments on net-zero carbon emissions, and ambitious targets for scale-up of renewables.
For the first time, it details an all-island picture of firm-level capability, mapping more than 160 companies across 12 supply chain sectors.
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Published on Wednesday, it identifies complementary strengths in areas such as engineering, logistics, vessels and cables, while highlighting the economic value of cross-Border collaboration and establishing “regional industrial clusters”.
It also details, however, challenges such as infrastructure capacity and skills shortages, while “fragmented policy landscapes must be addressed”. These are best tackled through action on an all-island basis to ensure local firms can fully participate in “this once-in-a-generation opportunity”, it says.
In tandem with scaling up renewables, the report finds there is a significant opportunity to establish supply chains for green hydrogen that “will likely materialise after 2030 in a meaningful way” – with its export being the most likely route to viability.
Everoze highlights the need for “a floating wind demonstrator” offshore facility to show how the technology can operate further out to sea, and to establish large industrial hubs close to key developments and ports used for operations and maintenance.
Along with building supply chains, it calls for supports to enable rapid expansion of grid infrastructure, reinforcement of the electricity network and availability of long-duration battery storage.
“This is the first time that SME capability in the renewable energy sector has been mapped across the island,” said ITI chief executive Margaret Hearty.
“There is a real opportunity for indigenous SMEs to enter the supply chain, which can be fully realised by working together . . . There are a number of recommendations that we, working with partners can help deliver, including supporting SME engagement through cluster development, procurement guidance, skills alignment and R&D collaboration across the island,” she added.
The report will support ongoing efforts to build a successful offshore wind energy industry, said Minister for Enterprise, Tourism and Employment Peter Burke. “The Government is committed to accelerating investment, both public and private, to ensure we have the conditions in place to achieve the energy transition, while also ensuring the competitiveness of the Irish economy.”
Minister for the Economy of Northern Ireland Caoimhe Archibald said a decarbonised energy system presented huge economic opportunities for the North in delivering “secure, affordable, clean energy”.
She said her department was committed to working across Government, the energy sector, business and academia, as well as partners across the island in delivering the opportunities detailed in the report.
Drawing lessons from international leaders such as the port of Esbjerg in Denmark, the report sets out a strategic roadmap focused on supporting collaboration, developing a robust local supply chain, aligning research and development, and building skills capabilities, said Paul Reynolds of Everoze.
“The recommendations outlined in this report will help InterTradeIreland and its partners to support cross-Border collaboration and maximise the opportunities for SMEs in the renewable energy sector across the island.”
