SSEN Transmission has selected Sumitomo Electric and Van Oord as preferred bidders for the Shetland 2 525kV high voltage direct current (HVDC) subsea cable project.
Shetland 2 is to connect 330km between Shetland and mainland to bring 2GW of renewable electricity to GB network, which forms part of the latest GB wide strategic transmission network plan “Beyond 2030”, where £5bn of investment by SSEN is expected in the north of Scotland by 2035.
Sumitomo Electric has also announced construction of its subsea cable factory.
The factory, located in the Scottish Highlands, will supply “critical elements” for the reinforcement of the UK electricity transmission grid and for connecting renewable energy production facilities to the grid.
The factory will be commissioned in 2026.
Sumitomo Electric held a groundbreaking ceremony at the site at the Port of Nigg, inviting key stakeholders including leading representatives from the UK and Scottish Governments.
During the event SSEN Transmission made the announcement for the Shetland 2 project.
The event was hosted by Osamu Inoue, President and COO of Sumitomo Electric Group, and participants included Maairi McAllan, Scottish Cabinet Secretary for Net Zero and Energy and other representatives of the UK and Scottish Governments.
Rob McDonald, Managing Director of SSEN Transmission, said: “We are delighted to reach Preferred Bidder Status with Sumitomo Electric Industries and its subsea cable delivery partner, Van Oord Offshore Wind UK, for the manufacturer and installation of the Shetland 2 HVDC subsea link.
“Sumitomo’s investment in a new cable manufacturing facility in Nigg will help deliver a homegrown supply chain to help support our energy security and net zero infrastructure requirements.”
Arnoud Kuis, Managing Director Van Oord Offshore Wind, said: “As a consortium partner of Sumitomo Electric Industries, Van Oord Offshore Wind UK is very pleased to be nominated as the preferred contractor for the Shetland2 project by SSEN Transmission.
“The Sumitomo/Van Oord partnership exemplifies a synergy of expertise, driving forward a vision of sustainability, reliability, and excellence in building the energy infrastructure of the Shetland 2 project.
“We are very much looking forward to a successful collaboration with SSEN Transmission and making the Shetland2 project a success.”
The factory at Nigg has an investment value announced by the Scottish Government of £350m and will create more than 150 highly skilled jobs in the Scottish Highlands, using the local supply chain for production of cables and construction of transmission cable systems.
Inoue said: “I am pleased to announce commencement of this innovative High-voltage cable factory in Scotland, and sincerely appreciate SSEN Transmission’s decision to select us as the preferred bidder of Shetland 2 project to enable our significant investment here in the UK.
“Transmission cables are key essential infrastructures to make so called Energy Transition to renewables into reality.
“I believe, this factory will make good contributions towards establishment of local supply chains and to realise UK and Scottish Governments’ net zero initiatives.”
McAllan added: “Scotland is fast becoming a renewable energy powerhouse. Today’s ceremony highlights this and is an excellent example of the public and private sectors working together to grow Scotland’s economy and protect our environment – key objectives of the Scottish Government.
“Backed with £24.5m of public sector funding, this will be Sumitomo’s first cable factory in Europe and the first HVDC cable factory in the UK, creating hundreds of jobs.
“The fast-growing offshore wind industry offers significant opportunities to attract inward investment and unlock wider economic benefits, not least in our transformational Green Freeports.
“That is why we providing up to £500m to anchor the offshore wind supply-chain in Scotland to ensure our workforce, businesses and communities all benefit from the offshore renewables revolution.”