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Scotland’s Green Freeports: powering investment in energy transition

Last updated: August 2025

The Green Freeports in Scotland are unlocking affordable opportunities for global investment in energy transition. Inside their tax sites, eligible investors can benefit from generous tax breaks, customs incentives, and access to world-class renewable energy infrastructure.

Financial incentives to maximise energy transition investment

Scotland does much more than share its energy innovations across the world. It invites the world to invest in its highly viable renewable energy sector of the future.

From wind energy to wave power, hydrogen to clean heat, the nation offers globally-significant investment opportunity across this industry. It provides a prime location for organisations to innovate and invest in a crucial chapter in time towards achieving net zero. 

Central to this is Scotland’s Forth Green Freeport and the Inverness & Cromarty Firth Green Freeport.

Together, they aim to attract in excess of £14.4 billion in investment over the next decade. Both Green Freeports are supported by attractive financial incentives for investors around the world to expand and thrive in Scotland's energy transition sector.

Each Green Freeport has three tax sites which together cover 600 hectares.

Each location offers 100% first-year capital allowances for qualifying investments in plant and machinery. These allow companies to deduct the full cost from taxable profits immediately instead of over several years. 

The Green Freeports offer several advantages for both trade and investment companies. These include designated customs sites where eligible businesses can benefit from the suspension, deferral, or elimination of import duties and VAT. Goods brought into these zones can be stored, processed, or re-exported without incurring customs charges. VAT is only payable when goods enter UK circulation, improving cash flow and reducing time and resource spent on administrative tasks.

Eligible businesses operating within the tax sites can also benefit from 100% business rates relief for five years, significantly reducing overheads. 

The Green Freeports have received significant support from ourselves, Scottish Enterprise, and partners including Scottish Government, Scottish National Investment Bank (SNIB), and the National Wealth Fund. Regional enterprise agencies encompass Highlands and Islands Enterprise (HIE) and Invest Fife. All partnerships align with the Scottish Government's priorities around Fair Work First, a just transition to net-zero and high-quality job creation.

The Forth Green Freeport covers key sites, including Grangemouth, Rosyth, Leith, Burntisland and Edinburgh Airport.

This location unites a group of public and private sector partners. These include Forth Ports, Babcock International, INEOS, Scarborough Muir Group, Calachem, and the three local authorities of Fife, Falkirk and Edinburgh to drive economic growth, innovation, and a just transition to net zero. 

Benefits of Scotland’s Green Freeports 

Scotland’s energy transition sector is world-leading. Its talent, infrastructure and commercial opportunities are attracting investors from all over the world.   

  • Financial incentives for global investors

    Companies including wind energy developers, turbine manufacturers, hydrogen producers and tech firms have a cost effective way to invest in Scotland's energy supply chains.

  • Aim to attract £14.4 billion in investment

    A projected initial investment value on the strength of world-class opportunities in Scotland's thriving energy transition sector.

  • Talent on tap to power your investment

    Scotland’s high-skilled talent pool is driving the renewable energy sector, making the Green Freeports a highly attractive proposition. 

 

Inverness an Cromarty Firth Green Freeport is located on the Cromarty Firth and is among the largest green engineering areas in the UK.   

It has three tax sites and comprises six key locations: Port of Cromarty Firth, Port of Nigg, Highland Deephaven, Port of Inverness, Inverness Campus, and Ardersier Energy Transition Facility. Each strategic site has its own distinct offering, but together they combine into a powerful ecosystem for the development of clean, sustainable energy.

Enhanced allowance for buildings and structures 

Each tax site offers an Enhanced Structures and Buildings Allowance at a rate of 10% per year. Compared with the standard 3.3%, this enables businesses to write off construction costs over a decade. Those acquiring land or property within the tax sites may also benefit from full or partial relief on Land and Buildings Transaction Tax (LBTT) in Scotland. This can help eligible investors reduce the cost of establishing their operations. LBTT relief is not automatic, it must be claimed and is subject to conditions.

Green Freeport synergy for investors 

The two Green Freeports aims to work collaboratively, with each one or both providing investors with opportunities. Their complementary nature is part of what makes them a unique opportunity for investors. While the Inverness & Cromarty Firth Green Freeport has experience of oil and gas decommissioning, the Forth Green Freeport lends itself to advanced manufacturing. Both sites offer distinct advantages in capacity and sector diversity, but also in their overlapping capabilities, giving investors flexibility.

Sarah Murray, Chief Executive of Forth Green Freeport, says: “Importantly, the supply chain can be anywhere in Scotland, yet the close working relationships between the two give investors a north and south capability and an enriched supply chain. We're using incentives to anchor in investors that are typically big international manufacturers. We'll ensure we build the supply chain around this.”

Sarah believes that adopting a ‘Team Scotland’ approach is crucial to match international investors with the right site and opportunity. The key is pairing investors’ needs with the right capability.

The Forth Green Freeport tax sites went live in June 2024, covering 533 hectares across the Firth of the Forth. They are strategically located to offer investors compelling tax and customs incentives.

Subject to approval, this Green Freeport may receive up to £25 million in seed capital funding to enhance infrastructure within its area, and create the best commercial environment to encourage private sector investment. This could support initial projects identified for development, with funding matched by private and public sector partners.

Dot Smith, Enterprise and Business Development Manager at Fife Council, says: "International investors looking to leverage Scotland’s expanding green energy sector will find the Forth Green Freeport compelling. This is due to its robust infrastructure, comprehensive policy support and strong industry collaborations in Fife. Its strategic location and partnerships ensure a thriving environment for innovation and growth."

Inverness & Cromarty Firth Green Freeport attracts Sumitomo Electric

The Green Freeports are already proving a huge drawcard for international investors. This has included large multinational companies that are attracted by Scotland and the Green Freeports' excellent infrastructure for energy transition. 

At the Inverness & Cromarty Firth Green Freeport, huge Japanese corporation Sumitomo Electric Industries Ltd will set up its first UK operation. The power cable giant has invested £350 million to build a high-voltage subsea cable manufacturing facility within the Port of Nigg. It will cover 15 hectares adjacent to the port, demonstrating the level of global confidence in the site's significant investment potential in renewable energy. 

Adrian Gillespie, Chief Executive of Scottish Enterprise, says: “Sumitomo Electric’s high voltage subsea cable manufacturing is a critical addition to Scotland’s growing offshore wind supply chain.

"Our energy transition mission aims to accelerate technology innovation, supply chain capability and investment in manufacturing and key infrastructure.”

The Green Freeports attracted Japanese corporation, Sumitomo Electric, to invest £350 million in a new cable manufacturing facility.  

Fuelled by private and public investment

Forth Green Freeport aims to attract up to £7.9 billion in public and private investment over 10 years, and create 34,500 jobs. These include 6,000 direct jobs on tax sites, and a further 18,500 jobs supported indirectly in supply chains and through wages. Jobs will be directly linked to sectors like offshore wind, hydrogen, sustainable fuels, modular manufacturing, and logistics. 

At this site, the Grangemouth site, under Project Willow, is looking to attract a range of alternative fuel and sustainable manufacturing. For example, energy generation firm, RWE, is progressing with a green hydrogen investment. This site is also suited to producing sustainable aviation fuels and supporting industrial biotechnology.

Importantly for both Green Freeports, a planning protocol commits all partners to work together to facilitate the planning process, and a wider  consenting processes. 

Scotland's pipeline of energy transition skills

Having access to Scotland's energy transition workforce, highly-skilled across the supply chain, make the Green Freeports an enticing proposition for global investors like Sumitomo Electric.

Across both regions, there is strong talent availability in key sectors such as offshore wind, hydrogen, advanced manufacturing, maritime engineering, logistics, and digital technology. The workforce is supported by a network of world-class universities and colleges, including the University of Edinburgh, Heriot-Watt, and the University of the Highlands and Islands. These institutions provide specialised training in renewable energy, engineering, data science and low-carbon technologies. 

Alison Wilson, Investment and Development Manager at Inverness & Cromarty Firth Green Freeport, says: “We understand that investment creates career opportunities. We ensure young people are inspired to be part of the facility, both at the forefront of the energy sector and across the supply chain.”

Helping to make talent affordable is the sites' National Insurance Contributions (NIC) relief programme, available to eligible employers. This offers 0% NIC on salaries up to £25,000 per year for three years per eligible employee. This can add up to millions in savings for large employers.

Dynamic catalysts for scaling innovation

Scotland’s Green Freeports are more than designated economic zones. They're dynamic catalysts for scaling innovation in clean energy. With powerful financial incentives, strategic locations, skilled talent, and a renewable energy ecosystem, the sites are brimming with investment opportunity. 

Companies investing in these zones are not only reducing their set-up and running costs, they're benefiting from a forward-thinking movement that is revolutionising energy transition.

Scotland provides the perfect platform to make it happen.

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