Manufacturing & Supply Chain

XLCC will create the UK’s first HVDC factory in Hunterston, which will transform the job market for the local community and bring in wider investment opportunities as the area becomes a key hub for the country’s Net Zero industry. XLCC will work closely with Team Scotland partners including Scottish Enterprise, North Ayrshire Council, Skills Development Scotland and local schools/colleges to deliver the project in ways that will maximise economic benefits for the region and its people.

HVDC cables enable efficient long-distance electricity transmission, perfect for connecting power grids via undersea connectors. They have a significant role to play in global electricity supply as countries look to boost energy security by identifying more renewable sources. Recent industry projections indicate that subsea cable demand will outstrip supply by 2.5 times in 2030. Some of the existing manufacturers have supply backlogs of nine years, presenting a bottleneck for the energy transition that XLCC can help resolve.

The grant to XLCC highlights not only Team Scotland’s commitment to facilitating the green energy transition but also the desire of all partners to invest in the nation as it works towards its net zero transition goals.

Ian Douglas, CEO of XLCC, said:“We welcome the decision by Scottish Enterprise to award XLCC this £9 million grant. As we continue to work towards building a greener future for Scotland and the wider UK, investing in and mobilising the power of local communities is vital and this grant helps us set our Hunterston project on the best footing. Green energy is the future, and we want to empower Scotland to be part of the transition.”

Adrian Gillespie, CEO of Scottish Enterprise, said: “XLCC’s plans for Hunterston have the potential to be transformational for the regional economy and an extremely important addition to Scotland’s offshore renewables capability. Together with our Team Scotland partners, we’re working closely with the company as it seeks to address the enormous and growing demand for HVDC cables both in Scotland and internationally.”

Neil Gray, Scottish Government Wellbeing Economy Secretary, said: “This milestone £1.4 billion project is a welcome vote of confidence in Scotland’s renewable energy revolution. That is why Scottish Enterprise is supporting with £9 million to attract wider private sector investment.

“We are working with industry to deliver a net zero economy in which no one – not least our energy workforces and the communities they support – can be left behind. There are expected to be more jobs in energy production by 2050 than there are now so I hope this investment spurs on further progress.

“Our offshore renewables capabilities are accelerating more widely over the next five years, with up to £500 million additional Scottish Government investment and work progressing on our Green Industrial Strategy. This will help create thousands of sustainable jobs and can secure a just transition for our energy sector and a fairer, greener Scotland for everyone.”

Councillor Marie Burns, Leader of North Ayrshire Council, said: “This is one of the largest ever investments in Scotland and the significance of this development cannot be overstated. It is incredibly exciting for the North Coast, North Ayrshire and beyond.

“Not only is the development likely to create 900 full-time jobs and a range of training and apprenticeship opportunities but it will also secure offshore renewable energy supplies for the entire country.

“As a Community Wealth Building Council, we are determined to grow our economy for the benefit of local communities and bring investment into the area and are delighted that XLCC has committed to growing their operation here, in Hunterston underlining our belief that Hunterston’s unique location and connectivity is of national economic importance.”