UK Infrastructure Bank invests in subsea cable maker XLCC
UKIB’s investment will help fund a new cable manufacturing facility in Hunterston, Scotland, with an initial £20 million (US$26.7 million) investment potentially rising by a further £67 million (US$89.6 million).
“Industry projections indicate that demand for subsea cables will soon exceed existing supply chain capacity,” said John Flint, CEO of UKIB. “Our support for XLCC is intended to provide confidence to the market, crowding private investment into this sector to boost production capacity in an industry set to have a significant impact on the UK‘s transition to net zero.”
XLCC’s proposed Hunterston site would be able to produce thousands of kilometres of HVDC cabling every year.
The Hunterston-built cables will transport clean energy over long distances, connecting wind farms in the North Sea to the national grid.
Once completed the factory will create around 900 permanent jobs including more than 200 apprenticeships to support the growth of the UK’s offshore wind sector.
“XLCC’s mission is to provide critical elements of the infrastructure that is essential to the energy transition and will reduce project costs to the benefit of the UK consumer,” said Ian Douglas, CEO of XLCC. “The creation of the Hunterston facility in Scotland brings significant investment to the UK, creating highly skilled jobs in advanced manufacturing and project management for decades to come.”
The news was welcomed by Ofgem, the UK’s energy regulator.
“Britain is seeing the biggest transformation of the energy grid for decades. It will have long-term benefits for us all – true energy security, cutting emissions and protecting consumers,” said Jonathan Brearley, CEO of Ofgem.
“It demands unprecedented levels of public-private investment in clean power, so we welcome the UKIB’s commitment today to green industry, jobs and growth.
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