November 20 (Renewables Now) - A deal has been reached to rescue Scottish fabricator Burntisland Fabrications Ltd (BiFab) and allow the company to continue work on its contract for the 588-MW Beatrice offshore wind farm, the Scottish government announced on Saturday.
A financial package has been provided by Seaway Heavy Lifting, SSE Plc (LON:SSE) and the partners to the Beatrice offshore wind project, JCE Offshore and Siemens, the government added and said it will make available a commercial loan to the stricken company if needed.
"I am pleased that after an extensive series of talks over the last week and two days of intense negotiations we have been able to broker a commercial agreement that lifts the threat of administration from BiFab and allows work on the current contract to continue," said First Minister Nicola Sturgeon.
The Scottish government admitted that work remains to be done to secure the long-term future of the company.
BiFab announced about a week ago it has filed a notice of intention to appoint administrators as it was facing a critical cash position. The Scottish fabricator employs about 1,400 people across its three sites, including permanent staff and workers employed via agencies. It serves the oil and gas, renewable energy and infrastructure industries.
The company is currently working on an order to produce 26 offshore jacket substructures for the Beatrice offshore wind farm, awarded by contractor Seaway Heavy Lifting. The project is being developed by SSE, which owns 40% of project, in partnership with Copenhagen Infrastructure Partners (CIP) and SDIC Power Holdings Co Ltd (SHA:600886), which hold 35% and 25%, respectively.
The wind farm, which will consist of 84 Siemens 7-MW wind turbines, is currently under construction in the Outer Moray Firth, Scotland.