Sumitomo project set to boost jobs in the Highlands after Shetland subsea cable agreement
A Japanese manufacturer has announced a ‘significant new chapter’ for its Highland-based operations.
Sumitomo Electric Industries alongside SSEN Transmission has signed a capacity reservation agreement (CRA) for the supply and instalment of a second 525KV HVDC cable for a link 530 mile (330km) from Shetland and the mainland.
The agreement marks the latest step in a project to deliver a high-voltage subsea interconnector from its facility being built near the Port of Nigg on the Cromarty Firth.It follows on from the announcement in May 2024 that SSEN Transmission had selected Sumitomo and its partner, the Dutch maritime contractor Van Oord, as preferred bidder for the Shetland 2 project.
The need for a second HVDC link from Shetland to the main GB transmission system was confirmed by the independent Electricity System Operator, National Grid ESO, as part of its £58bn strategic network plan, Beyond 2030, published in March 2024.
Planned cable manufacture for the project is to be delivered from Sumitomo’s manufacturing facility, currently under construction in Nigg.
Cables of this type and technology have never previously been manufactured in the UK.
The Scottish factory is set to become Sumitomo’s flagship for offshore cabling in the UK and Europe, with construction of the £350million facility now well underway after ground was officially broken on 15 May 2024.
The facility will provide employment for 150 full-time equivalent jobs with knock-on effects expected to increase the number of indirect employment opportunities by at least double the full-time equivalent count.
Yasuyuki Shibata, chairperson of Sumitomo Electric UK and Europe commented: “We are delighted to have penned this Capacity Reservation Agreement with SSEN Transmission.
“This is a significant milestone for Sumitomo’s subsea cable factory investment in Scotland. Sumitomo and Van Oord are committed to successful construction of the HVDC link in a safe and timely manner.”
Rob McDonald, managing director of SSEN Transmission added: “We are delighted to reach this major milestone with Sumitomo and Van Oord for the Shetland 2 project.
“It’s great to see the progress being made at Sumitomo’s new cable manufacturing facility and we are extremely proud to be supporting their investment and the major boost to the Highland economy this will unlock.”
Energy Minister Michael Shanks said: “Our mission to make Britain a clean energy superpower brings with it vast opportunities to invest in our highly-skilled British supply chains, creating thousands of jobs in Scotland and across the UK.”
Acting Energy Secretary Gillian Martin said: “Scotland is fast becoming a renewable energy powerhouse, providing opportunities to grow our economy and create jobs while protecting the environment.
“The Scottish Government is allocating up to £500 million over five years to anchor the offshore wind supply-chain in Scotland, ensuring our workforce, businesses and communities all benefit from the offshore renewables revolution. This announcement builds on crucial support provided by the Scottish Government to Sumitomo, which will locate its cable factory at Nigg creating hundreds of jobs in the Highlands.”