The SNP may approve a £20 billion wind turbine factory in collaboration with China despite concerns over national security, Scotland’s deputy first minister suggested.
Kate Forbes indicated that Mingyang, a Chinese wind turbine manufacturer, may get approval to work alongside Britain’s Cerulean Winds to construct hundreds of floating wind turbines to decarbonise the oil and gas sector in the North Sea.
Cerulean Winds, which is exploring options with global wind turbine manufacturers, said no formal agreements have been signed.
The deal has been subject to widespread criticism over fears China is a “hostile state”. The EU Commission is also investigating if Chinese manufacturers are receiving subsidies from Beijing, in a move to protect European industry.
Conservative MP Nick Timothy raised concerns to the Commons, saying: “Mingyang benefits from huge subsidies in China but there are serious questions about energy security and national security.
“The Secretary of State says he wants to end reliance on foreign autocrats, but when he was asked about this on the radio this morning, he had no answer. Will the ministers rule out allowing any turbines that might be controlled by hostile states?”
Energy minister Michael Shanks replied: “We are encouraging investment in the UK to build the infrastructure that we need in the future.”
A spokesman for the Chinese embassy in London said the deal isn’t a threat but an opportunity, encouraging the two sides to “work together to create a fair, just and non-discriminatory business environment”.
They said: “China and the UK have broad space for cooperation in clean energy. Such cooperation produces substantial benefits, and can support the UK in achieving climate goals.
“China’s modernisation constitutes no threat to any other country, but will bring new opportunities to global growth, including to the UK economy.”
In an interview with the Financial Times, Forbes said there may be room for both Mingyang and Denmark’s Vestas, another manufacturer which has plans for a factory in Leith, Edinburgh.
She said: “I think if you look at the ambitions right now for the transition, the transformation required in our supply chain needs to be enormous.
Forbes said “an element of caution” would be needed when weighing up its decision, but said that Scotland would work “carefully on a case-by-case basis with any inward investor”.
The project is planned to create six gigawatts of energy, which would require potentially 500 floating wind turbines, costing a potential £20 billion.