THE Scottish National Investment Bank has announced a new £20m investment in subsea cable manufacturer XLCC.
The investment will support the company’s development of a new manufacturing facility at the brownfield site of the former Hunterston Terminal in Ayrshire and will support around 900 jobs, including more than 200 apprenticeships.
XLCC’s high-voltage direct current (HVDC) cable will transport electricity over long distances and will produce thousands of kilometers of HVDC cable each year.
Ian Douglas, CEO of XLCC, said: “We welcome the investment from the Scottish National Investment Bank as we deliver on our mission to provide the critical infrastructure essential to the energy transition.
“By 2030, demand for subsea cables is expected to be two and a half times greater than the supply.
“The Hunterston facility will help us meet this demand and bring highly skilled jobs to Ayrshire.”
The Bank is Scotland’s development bank and is a mission-led impact investor, and has said that this investment aligns with its net-zero mission, which aims to address the climate crisis by developing a fair and sustainable economy.
This investment is being made as part of the Scottish Government’s commitment to strategically invest up to £500m over five years to anchor the nation’s offshore wind supply chain, announced in October 2023.
Craig Stevens, investment director at the Bank, said: “Realising Scotland’s potential as a global clean energy producer depends on a robust local supply chain.
“XLCC is a critical component of that chain, enabling the transport and connectivity of our clean power.
“We are excited for the future of this company and the economic benefit it will bring to Scotland.”
The National Wealth Fund (NWF) is also supporting the manufacturing facility at Hunterston, it announced an initial investment of £20m in September last year, with the option to invest a further £67m upon XLCC achieving specific milestones.
Acting cabinet secretary for Net Zero and Energy Gillian Martin said: “XLCC’s manufacturing facility at Hunterston will not just help increase Scotland’s offshore wind manufacturing capability but support hundreds of high-quality green jobs and drive new growth across the local, regional, and national economies as part of our net zero transformation.
“The investment in XLCC is the first in a series of strategic, commercial investments being delivered to harness the enormous potential of our offshore wind industry over five years – including £150m in the 2025-26 Budget.
“This project demonstrates that our focus on investment to support our delivery of net-zero is benefitting communities across the country, and transforming our economy.”
