Major wind farm contract awarded to local firm

A £14.m. construction contract for Orkney Islands Council’s six-turbine wind farm at Quanterness outside Kirkwall has been awarded to local firm Heddle Construction.

The Balance of Plant (BOP) contract includes final design, building of civils and electrical works in advance of turbine installation.

The contract has been awarded following a competitive tendering process.

The project – in development since 2019 – was unanimously backed by elected members in February last year and will see six 149.1m turbines built at the site in St. Ola, situated between Kirkwall and Finstown.

The 28.8MW wind farm will generate electricity which will be exported via the new interconnector. By exporting this electricity, the project will provide the Council with much need income to protect and enhance existing services.

In October last year it was announced that the Council had secured the backing of the National Wealth Fund for the project through a loan covering the cost of the project

Nordex were announced as the turbine suppliers in August last year  Turbine Contracts Awarded for Quanterness Wind Farm

Founded in 1972 by Ian Heddle and now led by his son Derek, Heddle Construction employ over 20 staff in their Kirkwall base.

Initially created to construct farm buildings, the firm has expanded over 50+ years adding a variety of specialised services to their portfolio.

Their crane hire operation is perhaps the most visible element of their business, with their distinctive blue fleet of Liebherr machines engaged on projects throughout Orkney.

In recent years they have firmly established themselves as experts in the renewable energy field, offering a range of vital services to the wind and marine power sectors.

Derek Heddle is Managing Director of Heddle Construction – he said: “As a long-standing local business with a proven track record in renewable energy, we are delighted to be awarded the Balance of Plant contract for this landmark project. Given its scale, we are immensely proud to keep delivery in local hands, setting a clear benchmark for future developments. We look forward to partnering with Orkney Islands Council to deliver a high-quality, locally led project that continues to invest directly in Orkney’s workforce and skills.”

Council Leader Heather Woodbridge said: “I’m delighted that this significant contract has been awarded to Heddle Construction, a well-established local company with a strong track record of delivering major infrastructure and renewable energy projects across Orkney. Securing a local contractor for such an important stage of the development means the economic benefits of the project will be felt here in our communities, supporting local jobs, businesses and supply chains throughout the construction phase.

“The Orkney Community Wind Farms project represents a major investment in Orkney’s future. As well as generating renewable energy that will contribute to Scotland’s and the UK’s net zero ambitions, it will provide a long-term source of income for the Council, helping to protect and enhance the services our communities rely on.

“This contract award, along with the supplier engagement event which took place last month, demonstrates our commitment to maximising opportunities for local businesses and ensuring the benefits of the wind farm are shared as widely as possible across Orkney.”

Archaeology Trial Trenching Work Starting at Quanterness Wind Farm Site 

Archaeological trial trenching will begin at the Quanterness Community Wind Farm site this week. This follows geophysical survey work carried out earlier this year.

The works will be undertaken by a small team of local archaeologists and contractors which will involve machine excavating approximately 60 trenches across the site. The trench locations are designed to investigate all geophysical anomalies identified in the earlier survey.

This is an important part of the development process, helping us identify and protect any archaeological features before construction begins in 2027.

Meet the Contractors Event for Quanterness Wind Farm

An event is being held later this month to bring local suppliers and contractors together with the main contractors for the Council’s Quanterness wind farm project.

The informal, drop-in session will provide an opportunity for the local supply chain to meet the main project contractors and learn more about upcoming supply and subcontracting opportunities arising from the development.

The contractors in attendance will include:

👉Principal Designer – Mott MacDonald

👉Turbine Supplier – Nordex

👉Distribution Network Operator – SSEN Distribution & Freedom Group – SSEN Distribution’s Contract Partner

The event will take place in the King Street Halls, Kirkwall, on Wednesday 22 July between 2pm-6pm.

If you would like any further information, please email your query to orkneywindfarms@orkney.gov.uk

Read more here – https://bit.ly/4oWyW4M

Ecology & Archaeology Work at Quanterness Wind Farm Site 

Pre-construction ecological and archaeological surveys are underway at the Quanterness Community Wind Farm site. 

Ecologists are carrying out ground truthing assessments, recording any plants, animals, birds and habitats present. The findings will guide how construction is planned and scheduled so that sensitive species are not disturbed.  

Archaeologists are also on site to complete geophysical surveys. This involves using ground penetrating radar to detect any buried features or structures.  

These surveys form an important part of the wind farm’s development process, ensuring that local wildlife and cultural heritage are protected throughout construction, planned for 2027.

National Wealth Fund backs Orkney Islands Council’s community wind farm project

Orkney Islands Council (OIC) has secured a loan from The National Wealth Fund (NWF) for its six-turbine wind farm at Quanterness.

The 28.8MW wind farm will generate electricity which will be exported on to the national grid, supplying green energy to homes and businesses in support of Scotland’s and the broader UK’s clean energy ambitions. By exporting the energy, the project will also – provide a source of income for the Council.

The £62.1m debt facility, provided through its Local Authority Advisory and Lending team, will cover the cost of the project build.

The project – in development since 2019 – was unanimously backed by elected members in February this year and will see six 149.1m turbines built at the site in St. Ola, situated between Kirkwall and Finstown.

It is forecast that the project will generate average annual surpluses of more than £3m (in today’s money) for the Council, providing a revenue stream to protect and develop public services – accumulating an expected £120m over a 25-year term.

The wind farm will also support the delivery of the Scottish and Southern Electricity Networks (SSEN) interconnector cable, which will be used to transport the electricity to the Scottish mainland.

In addition, the project will provide a £144,000 annual location specific community benefit scheme for community driven projects – 60% of which is planned to go to Kirkwall and St Ola Community Council as the host community, with the remainder being split amongst the remaining 19 community councils.

The NWF loan provided to Orkney Island Council, provides low-cost, flexible and long-term financing for the community wind farm, meaning no further draw from the Council’s Strategic Reserve Fund (SRF) is required to deliver the project – with an option to return funds spent to date back to the SRF through the loan.

Councillor Heather Woodbridge is Leader of Orkney Islands Council. She said: “This is the latest stage in what is an immense project for our Council, not only in its scale and ambition but also in its transformative impact on our community and the services we provide.

“Elected Members unanimously backed the project at the start of this year – which is testament to the importance of the project in securing the future stability of public services in Orkney.

“The Quanterness project – as well as supporting the interconnector – will provide the Council with much needed income to support vital Council services.

“In our discussions with our community they have been consistently clear that they hugely value the services we provide, and they want to protect them. In order to achieve that community aspiration this Council must explore all opportunities available to us – and the Quanterness wind farm is a great example of that.”

Chancellor of the Exchequer, Rachel Reeves, said:

“We are investing in Britain’s renewal, and this loan will provide clean energy for homes and businesses to strengthen Scotland’s energy security for years to come.

“This is just one of billions of pounds worth of investments being announced today at our Regional Investment Summit, reversing decades of underinvestment and decline, slashing red tape to open up opportunities for businesses and kickstarting economic growth in every corner of the UK.”

Lorna Pimlott, National Wealth Fund Managing Director, Local Authority Advisory & Lending, said:

“Not only will the Quanterness wind farm help to maximise Orkney’s natural resources to support key public services and projects for local people but this important project will allow the Council and the community to contribute significantly to Scotland’s, and the broader UK’s, clean energy ambitions. Furthermore, delivery of the windfarm will help create employment and investment opportunities across Orkney and the wider region.”

For more information on the NWF’s Local Authority offer visit our website: www.nationalwealthfund.org.uk

In August contracts were awarded following a procurement process to Nordex for the design, supply, transport, installation, and commissioning of the turbines and a Maintenance Service Agreement for 25 years of operations and maintenance service.

It is anticipated that work will get started on site in Spring 2027.

Turbine Contracts Awarded for Quanterness Wind Farm 

Turbine supply and maintenance contracts have now been signed for Orkney Islands Council’s Quanterness Community Wind Farm.

The project was backed by elected members in February and will see six turbines built at the site in St. Ola, situated between Kirkwall and Finstown.

The development not only helped secure a new interconnector for Orkney, but will also generate profits which will support local services and community priorities for decades to come – including a community led benefit scheme.

Following a rigorous procurement process, leading wind turbine manufacturer Nordex has been awarded two key contracts: a Turbine Supply Agreement for the design, supply, transport, installation, and commissioning of the turbines and a Maintenance Service Agreement for 25 years of operations and maintenance services. 

The company’s turbine model, the N133/4.8, features a rotor diameter of over 133 metres and a tip height of nearly 150 metres, making them among the most advanced and efficient turbines in their class. Each turbine will be capable of generating 4.8MW and collectively the six turbines will provide a total export capacity of 28.8MW.

Chris Purnell, Strategic Projects Director at Orkney Islands Council said: “The awarding of contracts, following a rigorous procurement process, marks a key milestone in the delivery of this Community Wind Farm at Quanterness.

“These contracts will provide the design, delivery, and set up of the wind turbines as well as ensuring they are maintained and operating effectively for the 25 years of their lifespan.

“We thank all organisations who were interested in this contract opportunity and look forward to working with Nordex on progressing this project.”

Joe Trodler, Business Development Manager at Nordex UK & Ireland said:

“This project highlights the strong partnerships between Nordex, local councils, and community partners, and we are incredibly pleased to contribute to such an important step towards community-led green energy.

“The smooth collaboration with Orkney Islands Council and it’s advisors has been a real privilege and showcases what’s possible when we work together to harness exceptional local renewable resources.”

The Award Notice can be viewed on the Public Contract Scotland website here: https://www.publiccontractsscotland.gov.uk/search/show/search_view.aspx?ID=JUL535521

Unanimous Decision to Back Quanterness Wind Farm Project

Elected members at today’s Policy and Resources Committee have unanimously given their backing to plans for the Council to build and operate a six-turbine 28.8MW wind farm at Quanterness in St Ola.

A similar project at Wee Fea in Hoy has been paused whilst a reappraisal of the project is carried out, in light of the current grid connection costs attached to the project.

A decision on a third project in Faray will come in front of Councillors in 2027.

The Council has been developing proposals for council-owned wind farms since 2016, with a view to securing a new interconnector for Orkney, as well as generating income for the local authority to protect council services.

The project at Quanterness – which comes at an estimated build cost of £50m – will generate a clear profit of £3.3m per year (in today’s money) for the 25-year lifespan of the project accumulating an expected £120m over that full term.

In addition, the project will provide a £135,000 location specific community benefit scheme for community driven projects – 60% of which will go to Kirkwall and St Ola Community Council as the host community, with the remainder being split amongst the remaining 19 community councils.

Render of Quanterness site

The costs for the Hoy project – although identical in size – were expected to reach £77m, with the key additional element being the additional grid connection costs form the project to the Finstown substation which over the last six months have doubled from those previously quoted.

Whilst the Hoy project would still have been expected to turn a net profit, the Council felt that the financial risk at this time was too high – and that further options, including other connection solutions, should be explored before any final decision is taken.

The financial models have been subject to substantial due diligence reports from external advisors and significant third-party scrutiny. Both Quanterness and Hoy had secured a Contract for Difference (CfD) a government backed revenue stabilisation mechanism for low carbon electricity generation

Planning permissions are in place for both projects until 2031.

It is intended to fund 100% of the project costs for Quanterness from debt finance, such that no further draw form the Council’s Strategic Reserve Fund is required to deliver the project.

Commencement of the construction of the Quanterness project would be expected in 2027 with generation getting underway in 2028.

Council Leader Heather Woodbridge said: “This is a significant moment for Orkney Islands Council and a huge decision for elected members, which will now be progressed to full council to approve in two weeks time. The business case for the Quanterness project clearly stacks up and whilst Hoy was not as robust and will therefore not go ahead at this point – the door remains open for future consideration.

“Orkney securing a new interconnector – and the economic benefits that will bring – simply would not have been possible had the Council not taken a developer approach, bringing forward proposals for three council-owned projects which all contributed towards the needs case being met.

“As well as its contribution towards securing this vital infrastructure investment, the Quanterness project will also provide the Council with much needed income to support vital Council services. Through our recent budget challenge survey, our community was clear that they hugely value the services we provide and they want to protect them – to achieve that community aspiration this Council must explore all opportunities available to us.

“The officer hours and commitment that have gone into developing this project – and the time spent by elected members scrutinising that work at every step of the way – is immense and testament to the importance and validity of the decision made in the Chamber today.”

The new electricity transmission link between Orkney and the Scottish mainland could be worth at least £371 million to the Orkney economy, rising to £807 million if the wave and tidal energy industry makes use of the cable too.

The decision from today’s meeting will be subject to ratification at a meeting of the Full Council on 4 March.

Turbine Talk – Successful completion of Groundwork Investigations in Faray 

Orkney Community Wind Farms has reached another milestone with the completion of Groundwork Investigations (GI) in Faray.   

Central Alliance, supported by local contractors, completed the works in June 2024 marking the conclusion of all land GI works for the project, following investigations at Quanterness and Hoy in the Autumn of 2023.  

Marine GI works on Faray are expected to commence in 2025. 

The work involved drilling a series of boreholes and digging test pits across the sites to ascertain the soil, rock and geological conditions. To do this, excavators and small mobile drilling rigs were required. With this complete, samples will be sent away for laboratory testing which will result in an extensive geology report being prepared. 

With insights gathered from this essential testing, design engineers will have the necessary information available to make informed decisions for the site’s infrastructure including the roads, hardstandings, cable trenches and foundations that will be required as part of the development. 

By accurately assessing the ground conditions at the wind farm site, engineers can optimise foundation designs, selecting the most suitable type of foundation (e.g., shallow or deep foundations) based on the ground’s characteristics.   

This informed decision-making helps reduce unnecessary construction expenses and prevents overdesigning, as the civil works can be tailored to the specific ground conditions of the site. 

Moreover, identifying any geotechnical challenges in advance allows project managers to plan for potential mitigation measures and adjust the construction timelines accordingly, minimising delays and unexpected costs – contributing to the cost-effectiveness and overall efficiency of the project. 

The next major milestone will see the business case for Hoy and Quanterness wind farms  presented to Elected Members to decide on whether to proceed with the projects.  If the projects go ahead, construction could begin in 2026 with a view to start generating electricity in 2028.  This is likely to take place at the end of this year or early next year with the investment decision for Faray taking place at a later date. 

Turbine Talk – ‘Local authorities have a transformative opportunity to lead on decarbonisation’

A recent report exploring the potential for public ownership of clean energy in North East Scotland highlighted Orkney Community Wind Farms as an exemplar case study of how councils can meet financial challenges while tackling the climate emergency.

The research, carried out by Transition Economics and Platform, was developed to showcase the opportunities that public ownership of energy generation could create for local authorities.

The case study mirrors our own viewpoints, emphasising the benefits that a council-owned development could bring to our communities – namely an annual income for the council, direct financial benefit to communities, helping to meet net zero aspirations and economic potential from the new interconnector.

It also discusses the reality that common resources in Scotland, such as wind and sun, are exploited for profits which largely go to private companies, both across the UK and Europe.

One of the Council’s motives in developing Orkney Community Wind Farms is that all profits will stay in Orkney. The likelihood of private companies developing on or near the three sites (Quanterness, Hoy and Faray) was high – and it would have meant that Orkney residents would still be impacted by the wind farms but with far less benefit.

The research also reveals that public ownership of electricity generation is commonplace across Europe which has shown that it improves democratic accountability and provides a direct benefit to communities at a local level, both of which are vital for Orkney.

Kristopher Leask, Kirkwall West and Orphir Councillor, contributed to the publication. He said: “For too long, communities across Scotland have seen the private sector exploit our world-leading renewable energy resources.

“Local authorities have a transformative opportunity to lead on decarbonisation and reclaim infrastructure for the common good. I’m delighted that groups in the North of Scotland are campaigning for this future and hope that other local authorities follow Orkney to restructure the energy relations which are so central to our lives.”

The article, Public Energy Potential, can be viewed by clicking the link. There you will be able to download a full briefing of the research as well as the Orkney case study.

Turbine Talk – Successful completion of Groundwork Investigations in Quanterness and Hoy

Another important step for the wind farm project has been achieved with the completion of the Groundwork Investigations (GI) successfully carried out in Quanterness and Hoy.

The GI works took around four weeks to complete, starting from early October, and managed to finish on time despite the month’s inclement weather.

Central Alliance, part of the RSK Group, a global leader in the delivery of sustainable solutions, secured the contract to carry out the works following the Council’s tendering process this past summer.

Site Investigations are an important part of any wind farm development. The work involved drilling a series of boreholes and digging test pits across the sites to ascertain the soil, rock and geological conditions. To do this, excavators and small mobile drilling rigs were required.

With this complete, a number of samples will be sent away for laboratory testing which will result in an extensive geology report being prepared.

With insights gathered from this essential testing, design engineers will have the necessary information available to make informed decisions for the site’s infrastructure including the roads, hardstanding’s, cable trenches and foundations that will be required as part of the development.

In addition, these GI works will contribute to cost-effectiveness and overall efficiency of the project. By accurately assessing the ground conditions at the wind farm site, engineers can optimise foundation designs, selecting the most suitable type of foundation (e.g., shallow or deep foundations) based on the ground’s characteristics.

This informed decision-making helps reduce unnecessary construction expenses and prevents overdesigning, as the civil works can be tailored to the specific ground conditions of the site.

Moreover, identifying any geotechnical challenges in advance allows project managers to plan for potential mitigation measures and adjust the construction timelines accordingly, minimising delays and unexpected costs.

In essence, comprehensive Ground Investigations act as a preventive measure that enhances the overall success and sustainability of wind farm projects by mitigating risk.

The GI works for Faray will be carried out in early summer of 2024 when weather and conditions allow.   

The outcome of these surveys will feed into the business model which will be presented to Elected Members next year who will then make the final decision on whether to go ahead with the projects.