U.K. Says 'No' to Chinese Wind Turbines

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

The U.K. government blocks plans by Chinese wind turbine maker Mingyang for a major manufacturing plant in Scotland on security grounds.

No Chinese Offshore Wind Turbines

The U.K. government has cited national security concerns for its decision to refuse Mingyang Smart Energy Group's plans to build a major wind turbine manufacturing facility in Scotland.

The proposed £1.5 billion (US$2 billion) project to manufacture nacelles and blades would have been located at Ardersier Port in the Scottish Highlands but has been the subject of lengthy discussions between the government and Mingyang over the past two years. Minister of State for Energy Security and Net Zero, Lord Whitehead, stated: "Today I am setting out the Government position on the supply of offshore wind turbines from Mingyang, a Chinese turbine supplier. This has followed offshore wind developers seeking the Government's view on the use of Mingyang Smart Energy turbines in British waters and in our energy system. After careful consideration, Government's view is that we cannot support the use of them in U.K. offshore wind projects. We have informed offshore wind developers of this. We will always act to protect our national security, and we are committed to strengthening and prioritising resilient and sustainable offshore wind supply chains." It is unclear how the ban will affect Mingyang's 2025 deal with U.K. green energy company Octopus Energy, which had plans to use its turbines in up to 6 GW of onshore wind projects. 

Who is Mingyang?

Mingyang is the fourth-largest wind turbine manufacturer worldwide and the largest Chinese manufacturer when it comes to the offshore wind sector. In recent years the company, which has installed more than 25,000 turbines globally and has a total renewable capacity exceeding 155 gigawatts (GW), has been working to secure a European wind turbine manufacturing foothold. It has been an uphill battle. Mingyang had been chosen as the turbine supplier for Germany's 300-megawatt (MW) Waterkant project but was replaced last summer by Siemens Gamesa following industry and government statements related to Chinese government subsidies, cybersecurity and the potential impact on the local supply chain. 

Mingyang Defiant

Mingyang said that the government's decision was a "missed opportunity for the U.K. to benefit from increased competition in a capacity-constrained global turbine market, to accelerate cost reductions in wind energy, and to unlock significant industrial investment in the U.K." It stated that it is a non-state owned or controlled company listed in Shanghai with a secondary listing in London and pointed out that it had spent two years addressing the government's main national security challenge: data and cybersecurity. Horatio Evers, chief executive officer Europe for Mingyang said: "We remain motivated to continue developing options in the U.K. and across Europe. Developers are approaching us because they want access to our technology -- and for good reason. The electrification of industry and the path towards independence from fossil fuels can be achieved faster and more affordably with our solutions. Mingyang remains fully committed to its internationalisation strategy, accelerated investment and industrial localisation plans in the U.K. and wider European markets."

Reaction

Scotland's First Minister reacted angrily to the decision, claiming he'd been "blindsided." Responding on X: "Deeply disappointed that the U.K. Labour government has blocked Ming Yang's investment in our renewables industry--putting up to 1,500 Scottish jobs at risk. At the very moment we should be building clean energy, they are sabotaging Scotland's industrial future."

Inverness and Cromarty Firth Green Freeport, which represents Ardersier Port and many other Highland ports, called the decision "hugely disappointing." Industrial Info is tracking nine projects at Ardersier Port worth US$1.3 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports. 

Key Takeaways

• The U.K. government has blocked plans by Chinese wind turbine maker Mingyang to build a Scottish turbine plant.
• Security concerns were the main reason for the decision.
• Mingyang vows to continue its goal of securing a European manufacturing hub.

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