Hopes that a new generation of floating windfarms could power a jobs boom in Scotland have been dashed after an oil giant lost interest in a £3bn project

The SNP Government is facing fresh threats to its credibility after renewed claims about the potential for a green energy boom in Scotland were undermined by a disastrous reverse on a key initiative.

Ministers were left reeling last week after Shell scrapped plans for a floating windfarm project that had generated huge excitement.

The oil and gas giant announced it had decided to hand back the lease for the CampionWind project that it was awarded as part of the flagship ScotWind round, which it was claimed would deliver a major boost to Scotland’s net zero aspirations.

Shell made the decision after investing lots of time and effort in trying to work up a plan to deliver one of the new style floating windfarms that the SNP Government decided could power a boom in offshore supply chain activity.

Floating windfarms can be moored further offshore than those with foundations on the seabed allowing them to harness stronger and more consistent winds.

Three years after bidding successfully in the ScotWind round in 2022, Shell appears to have had a dramatic change of heart about the proposed CampionWind development east of Aberdeen.

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In a statement made in support of its ScotWind application Shell held out the prospect that CampionWind could generate £3.2 billion work for the Scottish supply chain.

The company said: “We welcome the opportunity to develop floating offshore wind at a commercial scale in Scotland and will work to collaborate with relevant parties openly and constructively if awarded a site via the ScotWind leasing process.

“We are committed to a future that is green and believe we can deliver a successful project which will help the

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