Loch Ness hydro project deal set to generate hundreds of jobs and boost energy security

Hamilton-based Intelligent Land Investments Group has taken the Red John project from initial conception to being development ready.

A Loch Ness hydro scheme has been acquired in a move that should support hundreds of jobs during construction and strengthen UK energy security.

Norway-headquartered renewable power generator Statkraft said it had agreed to acquire the Red John pumped storage hydro scheme from Intelligent Land Investments Group (ILI). The 450-megawatt scheme, conceived in 2015, was granted consent by Scottish Government ministers in June 2021. Statkraft said the acquisition demonstrated its commitment to “helping Scotland meet its renewable energy targets and strengthening UK energy security”.

Located on a site some 14 kilometres south-west of Inverness, the scheme will capture excess renewable energy, and store it until needed. Pending a final investment decision, the project promises to support hundreds of jobs during construction and provide locally based permanent jobs once operational.

Statkraft is a developer and operator of technologies such as wind, solar, grid stability, hydropower, battery storage and green hydrogen. Picture: Oliver Tjaden/Statkraft

Statkraft, a developer and operator of technologies such as wind, solar, grid stability, hydropower, battery storage and green hydrogen, already has a strong presence in Scotland, including a local headquarters in Glasgow and Keith Greener Grid Park in Moray, as well as operating several wind farms. Other projects in planning or under construction together represent at least £2 billion of potential future capital investment in Scotland, the firm, which was founded in Norway more than a century ago, said.

Kevin O’Donovan, Statkraft’s UK managing director, said: “Statkraft is fully committed to supporting the UK in strengthening its energy security and helping to secure the economic benefits of the net zero transition. The acquisition of this significant pumped hydro storage scheme will play a key role in that. But there needs to be an appropriate support mechanism in place, so we’re now looking to the UK government to provide the certainty that will allow us to proceed with confidence.”

ILI, which is based in Hamilton, has taken the Red John project from initial conception to being development ready. The firm has a 4.7-gigawatt (GW) portfolio comprising both pumped storage hydro and battery storage projects.

Chief executive Mark Wilson said: “From its inception until now, Red John has been eight years in getting to this stage and has required the expertise and dedication of a fantastic team. I would especially like to thank the ILI team, Aecom, TLT, PwC and everyone who has helped in reaching this exciting milestone. Entrusting Red John to Statkraft reflects our confidence in their capability to realise its potential and rekindle Scotland’s hydro legacy.”

He added: “As we stand on the threshold of a greener future where long-duration storage like Red John is paramount, we believe the UK can lead in renewable energy paired with energy storage as a keystone for the energy transition. There are over 5GW of pumped storage hydro projects in the UK pipeline which will inject billions into the economy and create over 15,000 new jobs. We encourage the UK government to provide the support mechanisms now for long duration storage and strive to become a world leader in achieving net-zero.”