The Scottish National Investment Bank has announced a £20m boost for subsea cable manufacturer XLCC.
The investment will support the company’s development of a new manufacturing facility at the former Hunterston Terminal in Ayrshire.
Once complete, the manufacturing facility will support around 900 jobs, including more than 200 apprenticeships.
It will be capable of producing thousands of kilometres of high-voltage direct-current HVDC cable each year, with the capacity to transport electricity over long distances.
XLCC’s chief executive officer Ian Douglas 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 investment is being made as part of the Scottish government’s commitment to invest up to £500m over five years to anchor the nation’s offshore wind supply chain.
The Bank’s investment director Craig Stevens 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 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 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.
The Bank and the NWF have signed a memorandum of understanding (MoU) to support and share insight about Scotland’s renewable and offshore wind market.