Sumitomo Electric Industries, the firm behind a new £350 million manufacturing plant in the Highlands, has been named as preferred bidder for a subsea cable project.
SSEN Transmission chose the Japanese firm to manufacture and install a proposed second link to connect Shetland to the national electricity grid on the Scottish mainland.
Sumitomo will carry out the project with subsea cable installation partner Van Oord Offshore Wind UK.
Work has begun in Nigg to create the high voltage cable plant, which is expected to create around 330 jobs over the next 10 years.
The first Shetland high voltage direct current (HVDC) link is on track to be completed this summer.
‘Great news’ for Highland economy
SSEN Transmission managing director Rob McDonald said the new Nigg investment by Sumitomo was “great news for the Highland economy”.
He added: “Sumitomo’s investment in a new cable manufacturing facility in Nigg will help deliver a homegrown supply chain to support our energy security and net-zero infrastructure requirements.
“This will support hundreds of skilled jobs in the region, helping unleash the economic potential the clean energy transition presents for the north of Scotland.
“We now look forward to concluding contractual negotiations with the Sumitomo Electric Van Oord consortium in the coming week and months.”
Mr McDonald said SSEN would also continue “constructive engagement” with Ofgem, the UK and Scottish governments and wider stakeholders to establish the regulatory framework for Shetland 2.
As well as facilitating connection of three offshore wind farm sites near Shetland, the second HDVC link is expected to “support decarbonisation and energy security ambitions”.
Sumitomo Nigg cable plant
Sumitomo is carrying out a “ground-breaking ceremony” at Port of Nigg today.
Osamu Inoue, the Japanese firm’s president, said the new factory would contribute to the energy transition.
Mr Inoue added: “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 the UK and Scottish governments’ net-zero initiatives.”
Van Oord Offshore Wind managing director Arnoud Kuis called the Sumitomo-Van Oord partnership a “synergy of expertise”.
SSEN said contractual negotiations would continue in advance of contract award status for the Shetland 2 scheme later this year.
Attracting inward investment into projects like the new Nigg high voltage cable plant delivers a “major boost” to the UK and Scottish governments’ ability to secure cleaner, more secure energy for future generations, the firm said.
Scotland is becoming ‘renewable energy powerhouse’ minister says
Energy Secretary Màiri McAllan said Scotland was “fast becoming a renewable energy powerhouse”.
Projects across the country are providing opportunities to “grow our economy and create jobs, while protecting the environment”, she added.
Ms McAllan continued: “This announcement by SSEN Transmission is a further vote of confidence in that process and follows yesterday’s significant investment by the Scottish National Investment Bank in Ardersier Port.”
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