The funding will support the £2.3m initial ground investigation and design stage for the development.
Led by Stornoway Port, Deep Water South is the second phase of its deep water expansion and is designed to unlock opportunities in offshore wind, strengthen renewable energy infrastructure, and establish Stornoway as one of Scotland’s most strategically important ports for the sector.
The development is expected to create skilled jobs, support local supply chains and help ensure young people can build long-term careers in the islands.
It will also provide a positive boost to the Arnish fabrication yard and its workforce, as well as greater flexibility for loading and unloading.
The existing Deep Water Terminal, opened in 2024, accommodates large cruise liners, freight ferry, offshore renewables vessels, and provides laydown space for storage and industrial use.
With the terminal serving cruise ships in summer, the Port plans to develop Deep Water South, just south of the existing terminal, to enable year-round offshore renewables operations.
The new berth will accommodate a range of floating offshore wind vessels, such as anchor handlers, heavy‑lift ships, blade carriers and barges, and provide associated laydown and storage space to support large-scale construction and operations. It will also be designed to allow integration of wind turbine towers, nacelles and blades onto floating foundations.
As part of Magnora Offshore Wind’s ScotWind bid, the Talisk project has committed to using Stornoway Port for construction and operations, and the berth will enable these activities.
The HIE approval forms part of the Scottish Government’s commitment to invest up to £500m over five years in offshore wind supply chains and port infrastructure – reflecting the national importance of projects such as Deep Water South.
HIE’s investment will contribute to the enabling and detailed design works. Contractor McLaughlin & Harvey has been appointed, with the investigation works due to start in January.
Cabinet Secretary for Climate Action and Energy Gillian Martin said:
“Offshore wind represents a huge economic opportunity for the whole of Scotland delivering jobs and attracting major investment across the country.
“Stornoway’s location, skills and existing port infrastructure make it vital to supporting the delivery of some of the enormous economic opportunities presented by our growing offshore wind industry.
“The proposed expansion of the Deep Water Terminal at Stornoway Port is the latest example of the growth within our offshore wind sector – which is reflected in our updated ambition for offshore wind capacity.
“Increasing our offshore wind capacity ambition to up to 40GW by 2040 reaffirms our commitment to growing the offshore wind sector – giving certainty to investors – and will help to support our national climate ambitions.”
HIE’s investment will contribute to the enabling and detailed design works. Contractor McLaughlin & Harvey has been appointed, with the investigation works due to start in January.
Joanna Peteranna HIE’s director of operations at HIE, said:
“Stornoway is the only port in the north-west to accommodate large vessels, opening opportunities in cruise tourism, offshore renewables and freight.
“Offshore wind represents a huge opportunity for the Highlands and Islands, and for Scotland, and this proposed new berth will further strengthen infrastructure, unlocking even more opportunities for growth.”
Stornoway Port is providing the remaining £463,917 to fund the project. Alex Macleod, chief executive of Stornoway Port, said:
“This is a hugely significant step forward for Stornoway and the wider Outer Hebrides. Deep Water South is about unlocking the next phase of opportunity, supporting offshore wind, strengthening renewable energy infrastructure and ensuring Stornoway is ready to play a leading role in Scotland’s energy transition.
“The approval of HIE’s support will allow us to move towards detailed design and enabling works with real momentum. It reflects strong confidence in the Port’s long-term vision and in the role Stornoway can play in Scotland’s offshore wind industry.
“Our investment alongside HIE underlines our commitment to delivering infrastructure that brings lasting economic benefits to the islands.”
Ends.