Crown Estate Scotland helps tenants to deliver more than £2bn in economic value, finds new report

New research analysing the economic impact created by land, seabed and property manager Crown Estate Scotland has revealed that, in one 12-month period, it helped its tenants generate an economic impact of £2.1bn while supporting almost 17,000 jobs.

The report by Biggar Economics also found that Crown Estate Scotland has the potential to support investment of almost £100bn in the renewable energy sector in the next 10-15 years, primarily through leasing the seabed but also through its work supporting infrastructure and the offshore wind supply chain.

The study examined how Crown Estate Scotland supports its tenants and customers across a wide range of key industrial sectors, including renewable energy, Carbon Capture and Storage (CCS), agriculture, forestry, and the blue economy, as well as providing financial support for community projects across the country.

Established in 2017, Crown Estate Scotland manages the Scottish Crown Estate, which includes around 50 per cent of the foreshore and seabed out to 12 nautical miles (nm); around 35,000 hectares of land across four rural estates, and minerals rights across much of Scotland. In addition, on behalf of Scottish Ministers, it manages the rights of offshore renewables and gas storage out to 200nm.

Crown Estate Scotland – which is a public corporation – manages assets valued at £665m (as of 31 March 2024) and has, since 2017, generated more than £270m for public spending.
The report’s key findings include:

Crown Estate Scotland could enable £96.1bn in investment over the next 10-15 years in the offshore wind energy sector. This could generate at least £15.7 billion GVA and annually support 21,200 jobs. This is through its role in leasing the seabed and its support for infrastructure and the offshore wind supply chain.
The expected investment associated with the ScotWind and the Innovation and Targeted Oil & Gas (INTOG) offshore wind leasing rounds is a combined £96.1bn. (£78.5bn ScotWind & £17.6bn INTOG).
Leasing of land and seabed in 2023 - 24 generated £134.9m in income, with the majority of this given to the Scottish Government for public spending.
Scottish firms could directly secure between an estimated £28.6 and £34.8bn in contracts for INTOG and ScotWind projects.
Ongoing spend for ScotWind & INTOG projects – operation & maintenance (O&M) – beyond the initial construction phase is estimated annually at between £698 and £772m along with an estimated 9,500 and 10,600 jobs.
Finfish farming generated £475m in 2023, supporting more than 5,500 jobs, whilst shellfish production totalled £17.4m and 295 jobs.
Marina and moorings generated £12.8m and supported 445 jobs.
Economic impact associated with farming was £30m and supported 464 jobs.

Crown Estate Scotland’s Sustainable Community Fund has, since 2020, distributed more than £1.4m to help build affordable homes, renovate community centres, install ground-source heat pumps, provide Electric Vehicle (EV) charging points, create community orchards, plant seagrass meadows, and fund skills training opportunities for young people.

Crown Estate Scotland’s Chief Executive, Ronan O’Hara, said: “This new report captures both the huge impact Crown Estate Scotland’s work is already having in supporting key industries throughout Scotland, as well as underlining the massive potential for us to help secure close to £100bn in further investment in the renewable energy sector.

“I believe we can do this, working collaboratively, bridging between colleagues in the public sector, our valued tenants and the wider private sector, to create lasting value for Scotland. We have the capability and business model to create long-term wealth for the people of Scotland and now is the time to unlock and realise this potential.

“Farming, aquaculture, CCS, and above all renewable energy are sectors developing rapidly, and we are well placed to play a pivotal role in helping to make Scotland a green energy powerhouse and secure a sustainable, low-carbon future for Scotland, the UK and the wider world.

“This report shows the substantial economic growth and job creation which we are part of, as well as the crucial support we provide to communities, enabling people across Scotland to achieve the ambitions of greatest importance to them.”

Cabinet Secretary for Rural Affairs, Land Reform and Islands, Mairi Gougeon said:
“I welcome this report, which underlines just what an important role Crown Estate Scotland has in helping to deliver a wide range of Scottish Government policies and bringing wider benefits to Scotland.

“As manager of the Scottish Crown Estate, Crown Estate Scotland effectively supports the delivery of Ministerial priorities, particularly in terms of helping us to realise the many opportunities that exist for the growth of a fairer, greener wellbeing economy and in how we respond to, mitigate and adapt to climate change.”