The Scottish National Investment Bank (SNIB) has announced £20m of support for a subsea cable manufacturer playing a role in the energy transition.

The investment in XLCC will support a new manufacturing facility on the site of the former Hunterston Terminal in Ayrshire.

Once complete it will support about 900 jobs, including more than 200 apprenticeships, and will be capable of producing thousands of kilometres of high voltage cable each year.

Ian Douglas, CEO of XLCC, said: “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 investment is being made as part of the Scottish Government’s commitment to invest up to £500m over five years in the nation’s offshore wind supply chain, announced in October 2023.

Craig Stevens, investment director at SNIB, 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.”

Acting Net Zero and Energy Secretary Gillian Martin said: “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 £150 million 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.”

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.

SNIB and the NWF have signed a memorandum of understanding to better support and share insight about Scotland’s renewable and offshore wind market.

This latest co-investment is seen as an example of how the two institutions are jointly helping to boost Scotland’s renewable energy grid potential through mission-focused capital.

Lewis McIntyre, managing director of Port Services at Peel Ports Group said the investment “is yet another vote of confidence in Hunterston’s vast potential to support the UK’s energy transition” and create green jobs in Ayrshire, and the wider supply chain.

“We expect the overall redevelopment of Hunterston to attract c.£3bn in inward investment and create over 5,000 jobs.”

Wealth Fund progress

The Treasury has announced that thousands of jobs have been fuelled by the Chancellor’s National Wealth Fund in the last six months, with almost £1.6 billion of investment unlocked across the UK.

With £27.8 billion of firepower, the NWF will help drive the government’s Plan for Change.

The jobs that have been created will support the digital and clean energy sectors, including 6,500 expected to be created in the retrofit sector. The NWF is providing a financial guarantee that will see Lloyds and Barclays deliver £1 billion of funding to deliver improvements such as low carbon heating and insulation in social housing.

Task force meets

An independent taskforce has met for the first time to ensure the North Sea’s strategic transition from oil and gas to a renewable future, while safeguarding up to 200,000 jobs. 

The North Sea Transition Taskforce brings together a diverse group of experts from industry, sustainability, supply chains, academia, and unions. Its three aims are to protect jobs, support the energy transition, and secure the long-term future of the North Sea as a vital national asset.  

The meeting at the British Chambers of Commerce, marked the first step in creating an organised plan for transitioning from oil and gas to renewable energy while addressing challenges associated with licensing, decommissioning, investment, and the workforce.