Spanish wind turbine manufacturer Gamesa has today revealed major plans to invest up to €150m in developing a new offshore wind hub at Edinburgh’s Port of Leith, in a move that Prime Minister David Cameron hailed as “fantastic news” for Scotland and the UK’s emerging offshore wind industry.

The company confirmed it had signed a memorandum of understanding (MOU) with the Port of Leith to develop two manufacturing facilities, which could eventually create around 800 new jobs.

The manufacturer said it planned to build blades and nacelles at one plant, while the other facility would be dedicated to port logistics and operations and maintenance.

The decision comes a year after Gamesa first revealed its shortlist for potential manufacturing hubs, although Leith was only added to the list in December after Dundee was dropped as a potential site.

Gamesa chairman and chief executive Jorge Calvet said the move would help establish the UK as the centre of Gamesa’s global offshore wind operations. However, he added it would only pursue the investments if market conditions remain favourable, providing a clear warning to government that the plans could be shelved if the upcoming electricity market reforms fail to provide sufficient impetus to the UK’s emerging offshore wind energy market.

Up to three wind farm projects have been identified in the area by the Crown Estate under its Scottish Territorial and Round Three leasing rounds, including the giant Firth of Forth zone being developed by SSE Renewables and Fluor, which could supply 3.5GW of green energy by the early 2020s.

“If market conditions are favourable this would mean many high quality jobs for the area,” Calvet said.

“I have only praise for the support we have received throughout this process from government ministers and agencies across the UK. We hope to play a central role in strengthening the UK’s offshore wind energy sector and improving security of energy supply in the future.

“In achieving this we would also minimise any environmental impact whilst continuing to invest in and build relationships with the local communities with which we shall be working. Selection of Leith, as our preferred partner for the MOU aimed at establishing a UK manufacturing base is only a first stage, but an important one.”

The news was welcomed by Cameron as a major boost for the UK’s wind industry, and specifically Scotland’s ambition to lead the global offshore wind market.

“This is fantastic news for Scotland and shows that the UK remains an attractive place for foreign investment,” he said in a statement.

“Scotland benefits from UK-wide initiatives to promote renewables and access to the entire UK consumer market. That coupled with the economic security that comes from being part of one of the world’s most successful unions makes Scotland an obvious place for companies like Gamesa to invest in.”

The news follows hot on the heels of Wednesday’s Budget, which saw Chancellor George Osborne distance himself from previous comments that had been interpreted as hostile to renewbles. In carefully worded comments, he insisted renewables would prove a “crucial” part of the UK’s energy mix.

Climate Minister Greg Barker hailed the Budget as unequivocal evidence that the government is fully committed to providing long-term support to the renewble energy industry.

Attention will now inevitably turn to Siemens and Vestas, both of which are currently considering locating major new ofhsore wind factories in the UK.

The news also came as the Scottish government granted permission for Gamesa to develop an 18-turbine wind farm in Dumfries and Galloway, after the local council initially rejected the application on the grounds the project would be unsightly.

Councillors last year rejected an application filed by Gamesa to develop a wind farm in Carscreugh Fell, by Glenluce, which would include 18 turbines and a control building with 40 rooftop solar photovoltaic panels.

Councillors refused to grant consent last year over concerns about the wind farms’ visual and archaeological impact, despite the fact that the council’s planning officials had recommended approval for the project.

A reporter for Scottish Ministers confirmed earlier this week that the project should go ahead on the grounds that it would boost the supply of green energy. She maintained the turbines would be visible, but would not “overwhelm the skyline or dominate the landscape” in many of the nearer sites.

She also dismissed a proposal by Scottish Natural Heritage and Historic Scotland to remove six of the turbines, maintaining such a move would reduce the amount of energy from the site, while retaining any visual impact.

“There are some inherent shortcomings, but they are offset by the potential energy production benefits of the proposal and, I am satisfied that in this case, the balance in favour outweighs the potential for the immediate surroundings to suffer negative effects from the turbines,” she concluded.

Stakeholders now have six weeks to appeal against the Scottish government’s decision if they wish to do so.

The decision is likely to be welcomed by the renewable energy industry, which has long-standing concerns that developers are struggling to get a fair hearing in local planning processes.