The Scottish National Investment Bank Invests £20 Million in UK’s First HVDC Cable Factory
The state-owned Scottish National Investment Bank is investing £20 million (around €23.7 million) in subsea cable manufacturer XLCC which will support the development of the UK’s first HVDC cable factory, located in North Ayrshire, Scotland.
The new manufacturing facility is located at the brownfield site of the former Hunterston Terminal in Ayrshire and is expected to support around 900 jobs, including more than 200 apprenticeships, once complete.
The Scottish National Investment Bank is Scotland’s development bank and exists to provide patient (long-term) debt or equity investments to businesses and projects that support the development of a fairer, more sustainable Scottish economy.
It is a public limited company (plc), established in November 2020, wholly owned by Scottish Government ministers, on behalf of the people of Scotland, but operates independently from the government. The investment is said to align with its net-zero mission.
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 that is 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 National Wealth Fund (NWF) is also supporting the manufacturing facility with an initial investment of £20 million, announced in September 2024, including the option to invest a further £67 million upon XLCC achieving specific milestones.
The bank and the NWF have signed a memorandum of understanding (MoU) to better support and share insight about Scotland’s renewable and offshore wind market.
“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,” said Acting Cabinet Secretary for Net Zero and Energy Gillian Martin.
“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 first order for the new factory includes four 3,800-kilometer-long cables for the Xlinks Morocco-UK power project, while additional Memorandums of Understanding (MoU) have been secured for domestic projects.
