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Image Credit: XLCC
Scotland’s state-owned development bank, the Scottish National Investment Bank, has committed £20 million (€23.7 million) to subsea cable manufacturer XLCC. This move will accelerate the development of the UK’s first High Voltage Direct Current (HVDC) cable factory in North Ayrshire. This landmark project, located on the former Hunterston Terminal brownfield site, is expected to create 900 jobs, including 200 apprenticeships, once fully operational.
The Scottish National Investment Bank was established to support long-term economic growth and fund projects that align with Scotland’s net-zero ambitions. Since November 2020, it has operated as a public limited company (plc) wholly owned by the Scottish Government but functions independently.
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.”
This funding aligns with a broader initiative, as the National Wealth Fund (NWF) is also injecting an initial £20 million, announced in September 2024, with an option to increase investment to £67 million, contingent on XLCC meeting key project milestones.
To strengthen collaboration in the renewable and offshore wind market, the Scottish National Investment Bank and the NWF have signed a Memorandum of Understanding (MoU) to share insights and drive investment in critical green energy infrastructure.
“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.”
XLCC’s first significant order from the factory includes producing four 3,800-kilometer-long subsea cables for the Xlinks Morocco-UK power project, a transformative initiative designed to deliver renewable energy from North Africa to Britain. Additionally, several MoUs have been secured for domestic energy projects, solidifying Scotland’s position as a leader in high-voltage cable manufacturing.
This investment marks a significant milestone in Scotland’s transition to a greener economy. It reinforces Scotland's role in global energy infrastructure while fostering job creation and technological innovation in renewable energy.
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