The Port of Inverness are driving their ESG strategy to achieve Net Zero emissions by 2038

Port Of Inverness Case Study (2)

The Port of Inverness is situated approximately 1 mile from the centre of the City of Inverness, which is the administrative capital of the Scottish Highlands. Lying at the mouth of the River Ness where it meets the Beauly and Inverness Firths with direct access to the North Sea, the Port with its naturally sheltered waters has been servicing the Scottish Highlands since the 13th century, making it one of the oldest continuous businesses operating in the Scottish Highlands.

 

The Port prides itself on being an integral part of the community and local economy providing a vital supply chain gateway for companies in the North of Scotland, taking its responsibility for ensuring a thriving and sustainable operation seriously. 

 

ESG 

As a Trust Port, the board are conscious of their wider responsibility to their stakeholders and led by their Chief Executive Sinclair Browne are driving their mature ESG strategy to achieve Net Zero emissions by 2038, which is 2 years ahead of the targets set by the Scottish Government.

Understanding the challenge 

In January 2023, the Port commissioned an independent expert to measure its carbon output with a view to formulating a plan for operations to become Net Zero by a definitive date. The studies aim was to measure the Port’s Scope 1, 2 and 3 emissions and outlined recommendations to reduce emissions in the respective scopes.  

Overlaying the capital investment programme with the ESG strategy

In response to this report, the Port management Team has identified a number of key investments that will reduce the carbon emissions and move towards their Net Zero goal:

  • In 2014, well before the most recent report, the Port invested in a 50kVA PV system on one of the transit shed roofs. As a result, the majority of forklift trucks on the Port are battery powered and use the electricity generated from the PV system to recharge their batteries. There are plans to invest in a further expanding their PV system capacity and feed the power generated into a battery energy storage system [BESS]. In the longer term the Port wants to generate much of its own electricity usage onsite.
  • In 2022, all hi-mast sodium light fittings were replaced by LED fitments. This has considerably increased the service life and therefore reduced the life cycle costs as well as electrical usage. Overall, the quality of lighting for nighttime working has also been considerably improved.
  • In 2023, an electric van was purchased for operational use, replacing the previous diesel vehicle. Already this has made an impact in terms of reduction of carbon emissions.
  • Over the next 10-years, the Port plans to replace both current pilot boats with new boats able to run on alternative bio-fuels with considerably lower emissions. As yet the alternative low/zero carbon fuels for maritime use is an emerging market with no clear winner therefore transitional fuels are required to meet the ports Net Zero targets. The Port will use the these transitional fuels in the short term to refine their requirements and monitor developments in the market.
  • The Port is also reviewing the provision of shore power for vessels berthing at the main commercial quays. Futureproofing plans are being developed to also incorporate the capability for delivering new alternative clean fuels to vessels whether this is hydrogen, methanol, ammonia etc. By having the infrastructure in place, the Port will be able to respond to market demand and trends.  

Quick wins 

  • The Port is currently assessing the viability of trialling HVO as a transitional fuel in one of the existing pilot boats. Current considerations involve looking at costs/environmental benefits/potential impact on boat engines and the robustness of the supply of the HVO to ensure continuity of port operations. This assessment should be complete in the coming months.
  • Ongoing monitoring of energy use is a constant theme and wherever possible energy use reduction and associated cost savings are considered.
  • Not only is energy use being monitored but consumption of other consumables – paper/water is also being monitored. Through shifting to a paperless administrative system, though recognising that in some instances paper copies are required. Ongoing migration onto the safety management system will further move the operation away from paper consumption.
Not only is energy use being monitored but consumption of other consumables - paper/water is also being monitored

To meet the ambitions of the Port, continued monitoring of potential funding sources from a range of partners is important. As a Trust Port, there are no external shareholders to call upon for additional finance therefore the Port Management Team actively seek alternative funding sources. Examples include:

  • Energy Savings Trust: interest free loan including an element of cashback was secured from EST to facilitate the conversion of the hi-mast lights.
  • Scottish Government EV Loan: the Scottish Government promoted the purchase of Electric Vehicles through the provision of an interest free loan and the Port was able to take advantage of this initiative.
  • Green Freeport: as part of the award of Green Freeport Status, the UK Government is offering £25m in terms of seed capital, parties can bid for tranches of this funding provided the project meets the Green Freeport criteria – energy transition, net zero through infrastructure. The funds have to be matched by the bidding party. It is hoped that the shore power project will benefit from this seed capital funding.

The future 

  • The Port will continue to look for opportunities that will assist in the drive for the business to become net zero by 2038 or earlier if possible.  

Summary 

It is often said that no two ports or operations are the same and that can be equally said for the implementation of the ESG strategy to meet the national and global environmental targets. However, the framework or roadmap to achieve these goals follow a similar trajectory irrespective of the operation or geographical location.  

Port of Inverness' ESG strategy highlights that the desire and vision that comes from the very top of the organisation. Driven by their responsibility to the local community they service and the will to operate with minimal environmental impact for future generations. They have developed, delivered, and continue to make progress integrating their ESG strategy within the wider business plan. 

Making short, medium, and long-term plans that can pick up the quick wins and identify and develop the future strategies are interdependent pathways to reach the port’s net zero targets. It is important to highlight the role in which central government funding plays in accelerating these measures to meet the required targets and secure a prosperous and sustainable future for the next generations

Date10/10/2024