A Scottish subsea equipment specialist has won backing for international expansion from a private equity heavyweight amid signs investors expect the shift to renewables to fuel a boom in the sector.

Subsea Technology & Rentals secured investment from Baird Capital in a deal which provided it with firepower to capitalise on growth opportunities around the world amid booming investment in offshore windfarms.

It is thought the deal placed a multi-million dollar valuation on STR, which expanded into the renewables market after focusing on the oil and gas business.

Andy Dyer, director with Baird Capital’s Global Private Equity team noted STR provides highly technical survey equipment into the subsea sector. He said this is set to benefit from significant infrastructure investment, “particularly into offshore wind”.

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The deal was announced a day after the results of the landmark ScotWind auction underlined the scale of the investment that is likely to be made in the development of windfarms off Scotland in coming years.

A range of international oil giants competed successfully in the round, including BP, Royal Dutch Shell and TotalEnergies. ScottishPower and SSE were also offered seabed option agreements.

Another Scottish subsea equipment specialist, Ashtead Technology, saw its shares surge 12 per cent yesterday after it issued a bullish update on trading in the year ended December 31.

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Aberdeen-based Ashtead said: “The Company performed strongly throughout the year, benefitting from improving market conditions across both the Company’s offshore wind and oil and gas end markets.

“Unaudited full year revenues are expected to be approximately £55m, up 30% on the prior year.”

Ashtead Technology floated on the Aim market in November. Shares in the firm closed up 24p at 224p.