Dáil Éireann Debate, Thursday - 16 May 2024
58. Deputy David Stanton asked the Minister for Transport to outline the way in which southern ports will be supported in marshalling parts and assembling turbines for offshore wind power generation in relation to the newly published draft south coast designated maritime area plan; and if he will make a statement on the matter. [21970/24]
View answerI congratulate the Minister and his Department on the work done on the designated maritime area plan, DMAP, which was published recently. There is more work do to there. However, my question today has to do with the southern ports. The Minister will be aware that Doyle Shipping Group has pulled out of anything to do with offshore wind and assembly of turbines. The Port of Cork has planning permission in place, which runs out next year. It needs funding to carry on with the development to take part in the construction, assembly and deployment of turbines.
I thank the Deputy for raising this issue. I am committed to facilitating the commercial State ports under my remit as positive contributors to the offshore renewable energy, ORE, industry to support Ireland in meeting its ambitious targets of 5 GW of installed offshore wind capacity by 2030, with a further 2 GW in development for the production of green hydrogen and other non-grid uses. Supporting the development of port infrastructure is a core objective of the national offshore wind delivery task force and the Department is working very closely with the task force in this regard.
In 2021, the Department published a policy statement on the facilitation of ORE by commercial ports in Ireland. This policy statement emphasises the importance of port facilities for ORE developments. A dedicated ORE ports facilitation division has been established in the Department to facilitate ports as they progress plans to service the offshore wind industry.
I welcome the recent publication of the draft south coast designated maritime area plan, SC-DMAP, by the Department of the Environment, Climate and Communications which recognises ports as a key component within the ORE supply chain. The presence of a significant number of strategically positioned ports, including the Port of Cork, within proximity to the south coast, speaks to this region’s potential to become a focal point for offshore wind development. I anticipate the development of the SC-DMAP will help to establish a stable, commercial environment for investments in port development by providing a transparent pipeline of proposed future fixed offshore wind projects. The Department will continue to support southern State ports through regular engagement and exploration of financing options with a view to maximising all opportunities for commercial State ports. This includes potential financing partners such as the EU through the Connecting Europe Facility, CEF, Fund, the Ireland Strategic Investment Fund and the European Investment Bank. This can be evidenced by the assistance given to ports that applied for funding under the 2023 call for the EU’s CEF Fund to further their offshore wind projects.
The situation is extraordinarily serious. Planning in place in the Port of Cork runs out next year and it may be very hard to extend it or get new planning. The rubber is hitting the road very quickly because the port needs funding very soon to expand. Will the Minister of State tell me where that money is going to come from? That is the bottom line here. We were told the port needs up to €120 million to develop properly. With Doyle Shipping Group off the pitch now, it means there will be no facility on the south coast, unless the Port of Cork can get moving. Does the Minister of State agree?
The Port of Cork needs Government support. Above all, it needs clarity and confidence pretty soon because time is running out. Talk of ISIF, the EIB and so on is all very well but what is needed are certainty and decisions. Can the port get the funding and, if so, from where? It is a State company and I understand state aid is an issue. Unless clarity is given, the fantastic plans we have for offshore wind may on the south coast may not be realised. That is why I tabled this question and it is why I raised the matter as a Topical Issue recently. I am still waiting for answers.
I will conclude what I was about to say and then respond to the Deputy's direct question.
The Port of Cork has been assisted by Department officials in applying for the EU's Connecting Europe Facility. We provided support and guidance on those applications. This can help the port obtain 30% of the costs for infrastructure and up to 50% of the costs for other studies. The results of these calls are expected in June or July of this year. We are working with the port on that. Furthermore, the Department of Transport signed an advisory agreement with the European Investment Bank. This output will be crucial to identifying how Irish ports will contribute to the meeting of our 2030 offshore targets
The results of the call will be announced in June. We are working with the Port of Cork with a view to ensuring this progresses. That is the current context. The Connecting Europe Facility has a clear role to play in the context of the infrastructure that is required. This development is key in ensuring wider progress offshore.
The Minister of State gives me only some comfort because he stated, and he can correct me if I am wrong, that the port can obtain 30% of the costs. That is not enough. It needs 100% of the cost to have certainty. There are many companies looking at this and making serious investment decisions to the tune of billions of euro. We need clarity here. The Minister of State said we are going to have 30% of the cost, but there still is not clarity. Can the Port of Cork enter into a public private partnership, PPP, with the private sector, if that is possible, to get the funding to carry out the essential work that is needed? Members of the Oireachtas committee went to Belfast where we found they are way ahead of us. We do not want a situation where many of the turbines will be assembled in France or Wales and towed over to Cork, resulting in the loss of jobs in the Cork and south coast area. We need clarity. I implore both the Minister and Minister and State to put their minds to this. The great plans we have for offshore wind cannot and will not happen unless this is sorted quickly.
There is a need to ensure progress on this. We are engaging regularly with the Port of Cork on its needs, both in meetings and through correspondence, in respect of the proposed development at Ringaskiddy. There is extensive engagement with the corporate governance division on the financing needs of the port. The offshore renewable energy ports division, which was established last year, has also been extensively engaging with the Port of Cork on this matter in the context of the CEF, but also on the timelines the Deputy set out.
The bottom line for the Government is to ensure that we make progress on this and meet our objectives on offshore renewable energy. We are obviously working with the Port of Cork on that. It has various financing options, some in the private sector and some through the Connecting Europe Facility, potentially. A decision will be made on that and communicated to us very soon. We are continuing with this and we obviously want to see progress on this to ensure we meet the objectives set out in the 2030 targets.
