Carbon Neutral Islands: financing roadmap

Island Annex – Hoy & Walls

This section outlines the proposed developments in Hoy & Walls, coordinated by Local Anchor Organisations and Community Development Officers who are responsible for leading the implementation of the CNI project at the local level.

Island Context

Economic Activity:

Limited economic activity. The largest sector is agriculture, followed by hospitality. Economic activity goes up during the tourist season. There is no industrial activity on island, save some pier and marine operations in Lyness.

Greenhouse Gas Emissions: 16,871 tCO2e

Agriculture: 4,651 tCO2e

Energy: 3,193 tCO2e

LULUCF: 6,333 tCO2e

Transport: 2,490 tCO2e

Waste: 204 tCO2e

Projects

Hoy & Walls Collective Retrofit Project

Capital cost: Phase 1 <£50,000 , Phase 2 > £1,000,000

Financial year: 2025/2026, 2026/2027, 2027/2028 , 2028/2029

Context: Historically, residents of Hoy & Walls have struggled to get retrofit work done on their homes because accredited contractors are reluctant to travel to the island for a single house visit as it is not cost- and time-effective. As such, island residents fall behind when it comes to achieving Scotland’s ambitious target for 2040; that no more than 5% of households should be in fuel poverty. At present, 31% of Orcadian households are in fuel poverty.

Local stakeholders: Orkney Islands Council – Island of Hoy Development Trust – Orkney Housing Association Ltd – THAW Orkney (charity) – Home Energy Scotland – Orkney Local Energy Advisory Group.

Key risks: Logistical Challenges: Transportation of materials. Given the project’s location, transporting building materials and equipment could face delays due to material availability in Orkney, weather conditions and limited ferry capacity impacting project timelines and costs.

Logistical Challenges: Transportation of materials. Given the project’s location, transporting building materials and equipment could face delays due to material availability in Orkney, weather conditions and limited ferry capacity impacting project timelines and costs.

Limited local contractors: There is a shortage of skilled contractors to do retrofit installations in Orkney, which could lead to delays, increased costs, or limited project scope.

Stakeholder Engagement: Coordination between stakeholders. Effective collaboration between on-island stakeholders and off-island partners could be complicated by geographical distances and differing priorities, leading to potential delays or conflicts. Establishing a singular project delivery lead/team would be key to overcoming this risk and ensuring there is a direct line of communication for all project partners to this person/team.

Financial and funding risks.

Renovation fund limitations.

Technical issues: Some homes may present unforeseen structural issues that complicate insulation or draft-proofing, requiring specialised solutions and delaying the project. Extensive home surveys/reports must be conducted prior to work starting to filter homes that may have structural issues. Those homes with extensive and costly structural issues/other barriers to conducting works will be considered for the renovation fund.

Weather-related risks: Adverse weather, especially during the winter months, could delay the installation schedule.

Economic Factors: Rising inflation rates could increase material and labour costs, straining the project budget and potentially leading to scope reductions.

Hoy Heritage Centre Retrofit and Restoration Project

Location: Hoy Heritage Centre, Hoy – north end of the island, near the Moaness ferry terminal.

Capital cost: <£50,000

Financial year: 2025/2026

Context: The Hoy Heritage Centre is exploring innovative site-specific energy efficiency solutions that respect the building’s rich heritage while meeting modern sustainability needs. This includes investigating the feasibility of re-commissioning their turbine, installing solar panels, and also exploring the most efficient heating options. Alongside these efforts, the project will also focus on essential building maintenance, ensuring the Heritage Centre’s sustainable future while maintaining its historic integrity.

Local stakeholders: Friends of the Hoy Kirk SCIO – Island of Hoy Development Trust – Contracted Labourers.

Key risks: Financial and funding risks: Despite securing majority funding, there may be unforeseen costs or delays that could lead to budget overruns. If additional funding is required, it may be difficult to secure, impacting project completion.

Weather-related risks; Delays in delivery due to the weather.

Grid Connection Approvals: Potential delays with approval from Scottish and Southern Electricity Networks (SSEN) – any delays in the approval process could impact project timelines.

Heritage Preservation Conflicts: Balancing modern energy efficiency solutions with the preservation of the Heritage Centre’s historical integrity could pose challenges. Certain modifications may not align with heritage conservation standards.

Longhope Lifeboat Museum Trust Restoration and Development Project

Location: Brims – just outside Longhope on the other side of the Ayre causeway, in the setting of the original lifeboat launch shed.

Capital cost: <£50,000 (requirement from CNI), project capital cost > £200,000

Financial year: 2024/2025 – 2025/2026 – 2026/2027 – 2027/2028

Context: This project aims to both restore and further develop the museum’s facilities to widen and improve access to the heritage, develop new audiences and increase participation. This will also ensure the future sustainability of the heritage to benefit future generations. The National Lottery Heritage Fund has awarded development funding of £224,800 to help Longhope Lifeboat Museum progress their plans to apply for a full National Lottery grant at a later date. The project aims to carry out essential repair and restoration work to the museum building and slipway, refit the vintage lifeboat and design and construct a new build visitor centre adjacent to the museum. In addition, other activities will be developed including an improved online presence, improved interpretation and a volunteering and skills development programme. Discussions are underway with the CNI CDO on Hoy about how to integrate sustainability initiatives throughout the development and delivery of this project, as well as to ensure that sustainability and energy efficiency measures are integrated into the buildings themselves.

Local stakeholders: Longhope Lifeboat Museum Trust – Island of Hoy Development Trust – Main Funders (National Lottery TBC) – Contractors and other development partners (TBC).

Key risks: Financial and funding risks: Despite securing majority funding, there may be unforeseen costs or delays that could lead to budget overruns. If additional funding is required, it may be difficult to secure, impacting project completion.

Weather-related risks: Delays in delivery due to the weather.

Grid Connection Approvals: Potential delays with approval from Scottish and Southern Electricity Networks (SSEN) – any delays in the approval process could impact project timelines.

Heritage Preservation Conflicts: Balancing modern energy efficiency solutions with the preservation of the Heritage Centre’s historical integrity could pose challenges. Certain modifications may not align with heritage conservation standards.

Heritage Preservation Challenges: Balancing the restoration of the museum with modern updates may create conflicts with heritage preservation standards, potentially leading to regulatory hurdles.

Weather related risks: Adverse weather, especially during the winter months, could delay the schedule.

Technical feasibility issues: The integration of sustainability and energy efficiency measures into the museum and visitor centre may present technical challenges that impact the design and implementation phases.

Capacity of museum staff to take this project forward.

Project Scope Creep: As discussions progress, there is a risk that the project scope may expand beyond the initial plans, leading to increased costs and potential delays.

YM Community Hall Retrofit Project

Location: Longhope, South Walls

Capital cost: Phase 2 – Internal Roof Underdrawing (funded FY 24/25, due complete by end of 2024/2025) < £50,000

Phase 3 – Roof Replacement and Solar Panels > £100,00

Phase 4 – upgrades to facilities e.g., toilet block > £100,00

Financial year: 2024/2025, 2025/2026, 2026/2027

Context: The YM Community Hall has long been a cornerstone of our community, offering a vital space for events, activities, and gatherings. However, rising energy costs have made maintaining the hall increasingly unsustainable.

The IoHDT, who are responsible for the building, intends to transform the hall into an energy-efficient, eco-friendly building that will not only reduce running costs but also ensure its sustainability for future generations. This overhaul will modernise the space, significantly lowering its carbon footprint and ensuring the YM Community Hall remains a vibrant hub for years to come.

Local stakeholders: Island of Hoy Development Trust – Orkney Islands Council – YM Empower SCIO.

Key risks: Logistical challenges: Transportation of materials. Given the project’s location, transporting building materials and equipment could face delays due to material availability in Orkney, weather conditions and limited ferry capacity impacting project timelines and costs.

Limited local contractors: There is a shortage of skilled contractors to do retrofit installations in Orkney, which could lead to delays, increased costs, or limited project scope.

Stakeholder Engagement: Inadequate engagement with community members and local stakeholders could result in a lack of support or buy-in for the project, undermining its success and sustainability.

Financial and funding risks: Unforeseen expenses or changes in funding availability could jeopardise the project’s budget, leading to potential scope reductions or delays in implementation.

Renovation fund limitations: Limited availability of renovation funds or changes in grant criteria may restrict the scope of the retrofit, impacting the effectiveness of energy efficiency measures.

Technical issues: Unforeseen technical challenges during the retrofit, such as structural issues or complications with existing systems, may lead to delays and increased costs.

Weather-related risks: Adverse weather conditions during the retrofit process could lead to delays in construction, impacting the project timeline and budget.

Economic Factors: Rising inflation rates could increase material and labour costs, straining the project budget and potentially leading to scope reductions.

ReUse Hub Development

Location: Lyness (TBC): Multiple proposed sites, but most popular site identified is in Lyness near the Scapa Flow Museum and Lyness Ferry Terminal.

Capital cost: Phase 1 – Purchase of Site estimated < £50,000, Phase 2 – Construction of facilities est < £200,000

Financial year: 2025/2026, 2026/2027

Context: This project aims to deliver a multifunctional re-purposing and recycling facility that will promote upcycling, repair, and waste reduction.

Tackling multiple island concerns, this project will reduce waste disposal, fly tipping, and reduce lifecycle emissions by encouraging the community to engage in repair activities and creative upcycling.

This will foster skill sharing, behavioural change, a positive social experience and other benefits along side waste reduction, increased circular economy activities, and a reduced waste-based carbon footprint.

Local stakeholders: Island of Hoy Development Trust – Orkney Islands Council – Employability Orkney – Zero Waste Orkney.

Key risks: Financial and funding risks. Inability to secure necessary funding could hinder the project’s viability, leading to a shortfall that impacts the scope of facilities and programs offered.

Technical issues: Unforeseen technical challenges, such as issues with utilities or structural integrity during renovation, could lead to unexpected costs and project delays.

Weather-related risks: Adverse weather conditions during the renovation and setup phases could impede construction timelines and affect the ability to carry out outdoor activities.

Economic Factors: Rising inflation rates may increase the costs of materials and labour, straining the project budget and potentially leading to compromises in design.

Stakeholder participation and capacity: This project requires high levels of long-term community buy-in and active engagement with facilities. Without clear demonstration of need and interest to deliver, this project will not be able to progress to development. Following development, constant engagement will be required to ensure facilities are being used efficiently.

IoHDT’s Green Community Transport Scheme E-Bike Hub Expansion

Location: Island-wide

Capital cost: Phase 1 < £50,000, Phase 2 > £50,000, Phase 3 > £50,000, Phase 4 < £100,000

Financial year: 2025/2026, 2026/2027

Context: The Island of Hoy Development Trust’s (IoHDT) E-Bike Project is part of their wider Green Community Transport Scheme (CTGS). The intention is to provide alternative and sustainable transport options to private vehicle use to island residents and visitors. This includes the electrification of the community bus fleet and the e-bike scheme.

The IoHDT’s Green Community Transport Scheme is set to expand its E-Bike Hubs across the island. Building on from the establishment of Hub 1 in Longhope, they plan to establish two new hubs – one in Lyness and another in Moaness – at each of the ferry terminals, specifically targeting commuters and tourists. Access to E-Bikes is important for encouraging active travel and reducing reliance on vehicles for short journeys.

Phase 1 – Launch and Ongoing Refinement of Longhope Hub

Phase 2 – Expansion to Lyness

Phase 3 – Expansion to Hoy

Phase 4 – Renewable Integration

Local stakeholders: Island of Hoy Development – Trust – Orkney Islands Council – HiTrans.

Key risks: Transportation of materials. Given the project’s location, transporting building materials and equipment could face delays due to material availability in Orkney, weather conditions and limited ferry capacity impacting project timelines and costs.

Stakeholder Engagement: Insufficient engagement with local communities, commuters, and tourists could result in low awareness and utilisation of the E-Bike hubs, undermining the project’s objectives of promoting active travel.

Financial and funding risks: Potential shortfalls in funding or unanticipated expenses could limit the scope of the expansion, affecting the number of E-Bikes available and the overall success of the initiative.

Technical issues: Technical challenges related to the E-Bike charging systems or hub infrastructure could arise, leading to operational disruptions and affecting user satisfaction.

Weather-related risks: Adverse weather conditions during the installation of the new hubs could delay project completion.

Economic Factors (Inflation) Increasing inflation rates may drive up the costs of equipment and installation services, potentially exceeding the initial project budget and requiring adjustments to the planned expansion.

Peatland Restoration

Location: Whole island

Capital cost: Phase 1 < £50,000, Phase 2 < £50,000

Financial year: 2025/2026, 2026/2027, 2027/2028

Context: The CNI Project aims to partner with key stakeholders to explore and initiate peatland restoration projects on the Island of Hoy. Despite the RSPB managing 4,000 hectares of the island as a nature reserve and developing a peatland restoration plan for this, there remains significant areas of peatland available for further restoration efforts.

Several key landowners have expressed interest in discussing potential projects, highlighting the expectation on farmers and landowners to invest in environmentally-friendly schemes.

This initiative also presents an excellent opportunity for collaboration with universities and educational institutions, offering a real-world case study for the study and practice of peatland restoration techniques.

Phase 1 – conduct preliminary investigation into what sites on the island would be most suitable for a peatland restoration project and create a long-term peatland restoration project plan, consulting with relevant stakeholders.

Phase 2 – Deliver the peatland restoration project, monitoring and adapting over time.

Phase 3 – Expand restoration project to other viable sites across the island according to the long-term restoration project plan.

Local stakeholders: Nature Scot – RSPB – Orkney Islands Council – Landowners – Educational Body TBC – Peatland Action (and other relevant peatland groups)

Key risks: Stakeholder Engagement Challenges: Difficulty in securing consistent participation and support from key stakeholders, including landowners, farmers and local communities, may hinder project progress and effectiveness.

Funding Limitations: Inadequate financial resources or fluctuations in funding availability may restrict the scope of restoration efforts and limit the ability to implement long-term plans effectively.

Site Suitability Issues: Preliminary investigations may reveal that selected sites are less suitable for restoration than anticipated due to unforeseen environmental or ecological factors, complicating project execution.

Monitoring and Evaluation Difficulties: Establishing effective monitoring protocols to assess the progress and success of restoration activities may prove challenging, impacting the ability to adapt strategies over time.

Climate Variability: Changes in weather patterns or extreme weather events could disrupt restoration activities, alter site conditions, and pose risks to the project’s long-term sustainability.

Regulatory Compliance: Navigating environmental regulations and obtaining necessary permits for restoration activities may introduce delays and additional complexities to the project timeline.

Technical Challenges: Restoration efforts may encounter unexpected technical issues, peatland restoration is still a fairly new field and there is not an agreed approach, which could delay implementation and increase costs.

IoHDT Community-Owned Housing Project

Location: Island-wide

Capital cost: Phase One <£50,000, Phase Two > £500,000, Phase Three < £50,000 , Phase Four >£1,000,00

Financial year: 2025/2026, 2026/2027, 2027/2028, 2028/2029

Context: The IoHDT is launching a transformative project to address the housing challenges in Orkney.

Hoy, with its natural beauty, accessible transport links and close-knit community, offers an excellent quality of life, but a shortage of affordable housing options has made it difficult for younger generations and working professionals to stay or settle here.

The intention is to develop modern, energy-efficient, low-cost flats, creating opportunities for individuals and families to make Hoy their home, bringing fresh energy and skills to our community. This will be a multiphase community-owned housing project.

Phase one of this project also offers the chance to create a “demonstration home” by using the most effective and up-to-date retrofit technology, tailored to the building’s needs, to create an energy-efficient, low-cost home. Through this investment, the CNI project aims to break down societal barriers to retrofit procedures, such as perceived complexity, high costs, and inefficiency.

Phase 1 – Project Development of Housing Development 1

Phase 2 – Construction of Housing Development 1

Phase 3 – Project Development of Housing Development 2 (Multiple Properties)

Phase 4 – Construction of Housing Development 2 (Multiple Properties)

Local stakeholders: Island of Hoy Development Trust – Hoy & Walls Community – Orkney Islands Council

Key risks: Long term funding challenges: Delays on match funding or application failure may delay phases and development. Year-to-year funding cycle complicates long-term, multi-year developments.

Local authority: Sale of asset. Local Authority may decide to put the property on the open market, or to withdraw opportunity of sale.

Planning Permission (delays, or lack of permission granted): Availability of contractors: Development depends heavily on contractors being available. If local contractors are not available, sourcing these from south with add significant cost and delays, which may mean the project is not viable to proceed.

Weather conditions: adverse conditions, especially during the winter, may affect the timeline.

Community Woodland and Green Space

Location: TBC. An area of pre-existing woodland and an underdeveloped brownfield site above St Colms village in Longhope has the most potential.

Capital cost: Phase 1 – Planning < £50,000

Phase 2 – Acquiring Funding and Purchase of Site < £50,000

Phase 3 – Developing Site > £50,000

Financial year: 2025/2026, 2026/2027, 2027/2028

Context: Community woodlands and green spaces deliver a huge range of benefits, including;

• Recreation space
• Biodiversity and conservation opportunities
• Social inclusion

Alongside this, enhancing our woodlands and greenspaces will support natural carbon capture and storage capacity.

A primary aim of this project is to develop a sense of connection to place for the community, increasing awareness and direct hands-on engagement with nature, snowballing up to a greater understanding of the global climate crisis and our role in reducing our impact through carbon reduction and greater community sustainability.

The woodland and green space will have a woodland area with pathways, and a greenspace with a picnic bench and a “forest school” learning area. There will be a pedestrian pathway installed along the main road to the nearest car park or housing estate.

Phase One – Planning our community woodland and green space, including appropriate surveys of potential sites and development of land management plans.

Phase Two – Acquiring funding and subsequent purchase of our community woodland and green space.

Phase Four – Developing the site and facilities, including development of picnic benches, forest school accessories, and pathways.

Local stakeholders: Island of Hoy Development Trust – Hoy & Walls Community – Orkney Islands Council – Woodlands Trust – Orkney Native Woodland Project – Nature Scot – RSPB – Community Woodlands Association – Local nurseries

Key risks:

Funding insecurity.

Lack of locally trained contractors with knowledge of woodland and greenspace creation.

Environmental degradation caused by malpractice.

Health and safety associated with site use, and insurance costs.

Renewable Energy

Location: Island-wide

Capital cost: TBC

Financial year: 2026/2027: Pre project planning

2027/2028: Feasibility and design

2028/2029 : Capital fundraising and construction

Context: Exploring the renewable energy potential on Hoy & Walls, focusing on how to meet the island’s energy demand through sustainable sources. At present we have a community turbine, which is reaching end of life, and there is a proposed 6-turbine windfarm coming to the island, owned by Orkney Islands Council. We would like to explore community-ownership models and alternative technologies, e.g., hydroelectric.

Local stakeholders: TBC

Key risks: TBC