Sumitomo has hailed a “significant milestone” for its Highland subsea cable factory after it signed a capacity reservation agreement (CRA) with SSEN Transmission.
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, requiring a 525KV HVDC cable for a link 530 mile (330km) from Shetland to the mainland.
The deal was a crucial underpinning for Sumitomo’s investment in its £350million cable manufacturing facility, which was backed with £24.5m of public sector funding from the Scottish Government. Next step will see the manufacturing deal confirmed with a contract award status.
The Scottish factory is set to become Sumitomo’s flagship for offshore cabling in the UK and Europe, with construction of the £350 million facility now well under way after ground was officially broken on 15 May 2024.
Sumitomo said the circa 1.6m sq ft (150,000 sq m) site build is progressing in accordance with the anticipated programme, with piling works nearing completion and factory foundations established.
Foundation work will be followed by steelworks and factory fit out in the next 12-15 months, the firm said.
Sumitomo has sought to involve the local supply chain in as many aspects of the project works as possible with a construction spend split, to date, of 55% in Scotland and 45% in the rest of the UK and Ireland.
Aberdeen’s Three60 Energy was one company to benefit, securing a multi-million pound deal to supply cable handling equipment for the facility.
The facility will provide employment for 150 full time equivalent (FTE) employees with knock-on effects expected to increase the number of indirect employment opportunities by at least double the FTE count.
Chair of Sumitomo Electric UK and Europe Yasuyuki Shibata commented: “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.”
SSEN Transmission managing director Rob McDonald commented: “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 added: “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.
“Sumitomo’s manufacturing facility is a fantastic example of the world-leading offshore expertise here in Scotland – which will play a huge part in the expansion of the UK’s homegrown clean energy sector.”
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