In Scotland, a significant redevelopment project is underway at a former coal-handling port near a decommissioned nuclear power plant. This initiative involves constructing a factory worth £2 billion, which will manufacture thousands of kilometers of subsea cables essential for transmitting renewable electricity.
The project in North Ayrshire is seen as a model for how Scotland can develop its local manufacturing capacity in the renewable energy sector, particularly given the increasing global interest and investment in this area. The Scottish and UK governments are keen to create new job opportunities in regions affected by the decline of traditional industries, such as oil and gas, in the transition to net zero emissions by 2030.
Laura Fidao, an investment director at the Scottish National Investment Bank, emphasized the importance of building a local supply chain. “Scotland has previously struggled to develop a local supply chain for fixed-bottom wind and instead relied heavily on imports. Our focus now is to change that with floating offshore wind projects,” she explained.
However, some experts in the industry have raised concerns about investing in emerging technologies. The subsea cables that XLCC plans to produce will play a crucial role in connecting offshore wind farms to the grid and ensuring effective electricity transfer across borders.
XLCC aims to start its commercial production of high-voltage direct current cables by 2030. Given the current demand is significantly higher than supply, this factory could address one of the major challenges in reaching net-zero targets. Notably, Japan’s Sumitomo is also constructing a similar factory in Nigg, aiming to begin production by mid-2026.
XLCC stands out for being a UK-owned business, which has garnered support from the Scottish National Investment Bank. Yet, there are lingering doubts regarding the company’s inexperience in this area, as it has never produced HVDC cables before. Some developers are cautious, citing the risk of slower offshore wind farm development that might limit their orders.
Despite these concerns, Fidao noted that XLCC is collaborating with experienced technical partners like China’s Orient Cable to ensure the production and testing of cables. The company has also engaged experts in HVDC manufacturing who are using well-established technology.
Moreover, XLCC has ambitions to serve large projects, such as the proposed subsea electricity link between Morocco and the UK, led by Xlinks, which is awaiting government approval. Recently, XLCC secured a £20 million investment from the Scottish National Investment Bank, building on earlier funding efforts.
The facility is projected to create approximately 900 long-term jobs, including over 200 apprenticeship roles. Additionally, there will be an emphasis on developing local ports to accommodate the construction of more offshore wind farms.
Scotland currently has around 40 gigawatts of offshore wind projects planned, all requiring subsea cables for energy transmission. Ian Douglas, CEO of XLCC, highlighted the intense competition for cable supplies, noting that some manufacturers are facing seven-year waits for HVDC cables due to high demand.
The expected production capacity for the XLCC facility in its first phase is 1,300 kilometers annually, with potential growth to 2,600 kilometers. As global demand for these cables is projected to reach 10,000 kilometers by 2030, the Scottish government is encouraging developers to source equipment locally, thereby bolstering the domestic supply chain.
Gillian Martin, Scotland’s acting net zero secretary, stated that creating a robust local supply chain will be critical for the success of future projects. “Companies will be looking at this facility for their cables as we move towards a more sustainable energy landscape,” she concluded.