The UK Infrastructure Bank (UKIB) has earmarked a hefty £87m for the development of a new subsea cable factory in the Scottish town of Hunterston. The funding is set to be granted to XLCC, an Essex-based cable manufacturer.
The state-owned development bank, UKIB, has committed to an initial investment of £20m, with an additional £67m dependent on XLCC achieving certain milestones. The project is anticipated to generate around 900 permanent jobs and over 200 apprenticeships upon completion, with the facility churning out thousands of km of high-voltage cables annually.
“Industry projections indicate that demand for subsea cables will soon exceed existing supply chain capacity,” stated John Flint, the UK Infrastructure Bank’s chief executive. “Our support for XLCC is intended to provide confidence to the market, crowding private investment into this sector to boost production capacity in an industry set to have a significant impact on the UK’s transition to net zero.”
XLCC boss Ian Douglas commented: “The creation of the Hunterston facility in Scotland brings significant investment to the UK, creating highly skilled jobs in advanced manufacturing and project management for decades to come.”
This comes as the government and energy regulator Ofgem aim to expedite a number of electricity transmission projects in an effort to accelerate the delivery of the UK’s offshore wind supply, as reported by City AM.
In August, Ofgem approved the £3.4bn Eastern Green Link Two, a subsea cable between Yorkshire and North-East Scotland, hailed as an “electricity superhighway.”
“Britain is seeing the biggest transformation of the energy grid for decades. It will have long-term benefits for us all true energy security, cutting emissions and protecting consumers,” said Jonathan Brearley, Ofgem’s chief executive.
“It demands unprecedented levels of public-private investment in clean power, so we welcome the UKIB’s commitment today to green industry, jobs and growth.”