£80 million transformational investment for NE | ONE

Sir Ian Wood KT GBE has donated £40 million from his family charity, The Wood Foundation, toward accelerating economic diversification and energy transition across North East Scotland.

The not-for-profit and private sector-led organisations Opportunity North East (ONE) and ETZ Ltd, both chaired by Sir Ian, are to benefit from £20 million each to build on their significant progress in creating jobs and economic opportunities across the region.

The announcement was made as First Minister of Scotland, John Swinney MSP, met with Sir Ian Wood and the chief executives of Opportunity North East and ETZ Ltd, Jennifer Craw and Maggie McGinlay, in Aberdeen. The First Minister confirmed the Scottish Government will match The Wood Foundation’s £40 million contribution over the course of the next parliamentary term in a multi-year funding agreement, should it be re-elected following next May’s Holyrood Elections.

Leader of the Scottish Labour Party, Anas Sarwar MSP, has also confirmed his party will match fund the donation should he become First Minister, meaning an additional £40 million injection to the North East economy is all but assured.

ONE was established in 2015 with a £64 million funding commitment from The Wood Foundation and, to date, its programme activity has delivered £135 million of additional economic value for the region, identifying the opportunities and tackling constraints in the growth sectors of digital tech, food, drink and agriculture and life sciences.

Its unique private sector model will continue to support the diversification of the north east economy with the growing digital tech cluster on track to more than double in size creating an additional 3,000 high-value jobs over the next decade, a life science cluster that will double the number of commercial companies by 2030, and the accelerated growth of the food, drink and agriculture sector already supporting 22,000 jobs in the region.

Established in 2021, ETZ Ltd is responsible for spearheading North East Scotland’s energy transition with a clear focus on ensuring the region remains a global leader in energy excellence, with a world-class supply chain, pioneering low carbon projects, and a thriving economy.

ETZ Ltd’s activity to date has unlocked £90 million investment in four years since its creation, working with public, private and academic delivery partners. It delivers region-wide, targeted supply chain support programmes and is taking forward the phased development of the Energy Transition Zone, a world class supply chain hub adjacent to the new £420 million Aberdeen South Harbour with dedicated campuses for offshore wind, hydrogen, innovation and skills.

The additional ETZ Ltd funding will go toward meeting the organisation’s stated ambition of creating 2,500 direct jobs in the zone, 10,000 energy transition related jobs across the region and unlocking up to £140 million of private sector investment by 2031.

Sir Ian Wood, Chair of Opportunity North East and ETZ Ltd, said:

“I’m delighted that my family charity, The Wood Foundation, will make a long-term investment in two organisations that will continue to play a pivotal role in transforming North East Scotland’s economy.

“There is no getting away from the fact the region’s economy finds itself at a critical juncture. There has been a series of substantial and very concerning jobs announcements across in recent months and there are growing fears that we are not embarking upon a just transition – one that protects jobs and our world-class energy supply chain.

“Through the leadership of ONE and ETZ Ltd, we have taken major strides over the last ten years in diversifying our economy to significantly improve the strength and opportunities in the digital, life sciences, food and drink, and tourism sectors. In the four years since the creation of ETZ Ltd we have made a tangible and positive impact in ensuring this region remains an internationally recognised hub of energy excellence.

“However, there remains a great deal of work to do and I’m in the fortunate position of being able to help contribute to this region’s success through the support of The Wood Foundation.

“Both ONE and ETZ Ltd have established themselves as trusted partners of industry, academic institutions and local and national governments as it is only working collaboratively that we can secure future success. I therefore warmly welcome the pledge made to match fund the £40 million contribution that will help North East of Scotland become one of the most resilient economies in the UK, leading the drive to a low carbon future.”

First Minister of Scotland, John Swinney MSP, said:

“The positive impact of Sir Ian Wood’s philanthropic generosity over the years is utterly remarkable and continues to benefit thousands of people across Scotland and overseas.

“His unwavering passion for his home city of Aberdeen, where he built one of the world’s largest energy services companies, inspired the creation of ONE and ETZ Ltd, two pioneering examples of how private-public partnership models can work effectively, creating sustainable economic opportunities for individuals, companies and sectors across North East Scotland.

“The Scottish Government has been proud to partner with both organisations over the years in recognition of the fact that North East Scotland has a massive role to play as an internationally recognised hub of energy excellence as we transition toward renewables but also as a region of excellence for its burgeoning digital tech, life sciences, food and drink sectors.

“There is no doubting of the pressing need to support the North East of Scotland achieve a just and managed transition and that is why I’m more than happy to confirm that my government, if elected, will match fund the transformational and hugely generous personal investment from Sir Ian over the course of the next parliamentary term.”

Scottish Labour leader, Anas Sarwar MSP, said:

“ONE and ETZ Ltd are important organisations for the North East of Scotland and have a proven track record of working in partnership with government and industry to secure economic growth and opportunity across the entire region.

“The UK Government has demonstrated its commitment to both, and Scottish Labour will do the same. So I’m pleased to confirm that a Scottish Labour government I lead will continue to back this commitment.

“Scottish Labour are committed to delivering economic growth and backing our entrepreneurs so we can secure an economically vibrant future for our country, including Aberdeen and the North East.”

ONE Chief Executive, Jennifer Craw MBE, said:

“As global economies navigate a rapidly changing world, private sector leadership is delivering the regional ambition of diversifying the north east economy.

“This funding from The Wood Foundation and commitment of additional future support from senior politicians is a vote of confidence in the ONE model and its delivery to date. It anchors the regional ambition that ONE will translate into investment and project activity, delivered at pace in partnership with incredible founders, business leaders across the growth sectors and public sector partners. This ambition, world-class entrepreneurial training and vibrant ecosystem means founders will grow and scale their businesses, creating high value jobs.”

ETZ Ltd Chief Executive, Maggie McGinlay, said:

“To ensure North East Scotland remains a thriving hub of energy excellence, we must have government and industry working in partnership to support our world-class supply chain who will lead the delivery of the vast pipeline of energy transition projects, particularly offshore wind, on our doorstep.

“Today’s hugely welcome announcement exemplifies that collaborative approach and will be instrumental in our ability to take forward an accelerated programme of activity that means this region positions itself as the most attractive location in Europe for investment in low carbon technologies.

“All of us at ETZ Ltd are indebted to Sir Ian for his outstanding generosity and continued commitment to realising our ambition.”