Islands Growth Deal

17/03/21 | Reaction

The UK and Scottish Governments have today (March 17) signed the Heads of Terms for the Islands Growth Deal with the leaders of Comhairle nan Eilean Siar, Orkney Islands Council, and Shetland Islands Council.

Responding, Ben Miller, Senior Policy Manager at Scottish Renewables, said: 

“We welcome today's signing of the Islands Growth Deal between the UK and Scottish Governments, Orkney, the Outer Hebrides and Shetland. 

“We know that Scotland's rural communities are best placed to harness our country's abundant renewable energy resources and all three of these remote island groups have already demonstrated ground-breaking low-carbon innovation. 

"The £16.5 million funding for the joint Islands Centre for Net Zero will not only help accelerate the islands transition to a zero-carbon energy system but also create new jobs and bring enormous investment to the local economy. 

"Investment in the Dales Voe Ultra-Deep Water Port project for oil and gas platform decommissioning will also open up opportunity for the offshore renewable sector which is set to grow over the next decade.

"Green hydrogen is set to play a key role in our future energy system and investment of up to £5 million in the Shetland Clean Energy Project and £11 million for the Outer Hebrides Energy Hub will help develop hydrogen production from the islands' wind and marine resources, reducing carbon emissions and providing opportunities for business development and skilled islands-based employment.

"It's also great to see a £240 million Net Zero Hydrogen Fund for capital co-investment in new low-carbon hydrogen production announced today as part of the UK Government's Industrial Decarbonisation Strategy."



  • The Heads of Terms for the Islands Growth Deal can be viewed on the UK Government website.
  • The UK Government's Industrial Decarbonisation Strategy can be found on its website.