On May 14, 2024, Japan’s Sumitomo Electric marked a pivotal moment in the UK’s energy future with the groundbreaking ceremony for its new subsea cable factory in Scotland. Located at the Port of Nigg, this facility is poised to play a crucial role in reinforcing the UK’s electricity transmission grid, connecting renewable energy sources, and propelling the nation towards its Net Zero Target.
This ambitious project, backed by a £350 million investment from the Scottish Government, represents more than just an economic boost—it’s a testament to Scotland’s growing influence in the global green energy sector. Set to be operational by 2026, the factory will generate over 150 skilled jobs in the Scottish Highlands, fostering local talent and enhancing the region’s economic resilience.
In a world increasingly defined by the urgency of climate action, the significance of this development cannot be overstated. Scotland has already distinguished itself as a leader in renewable energy, with a five-fold increase in renewable power since 2010—second only to Germany in Europe. The new factory’s production of high-voltage direct current (HVDC) cables will be instrumental in harnessing and distributing this clean energy across the UK, helping to drive down costs and increase energy security for British consumers.
The partnership between Sumitomo Electric and local firms, such as the multi-million-pound deal with THREE60 Energy for cable storage carousels, underscores the potential of public-private collaboration in achieving national energy goals. Moreover, the announcement that Sumitomo, in conjunction with Van Oord, has been selected as the preferred bidder for the Shetland 2 HVDC subsea cable project further cements Scotland’s role in the UK’s energy transition.
The Shetland 2 project is not merely an infrastructure endeavour; it is a strategic investment in the UK’s energy future. By connecting 2 GW of renewable electricity from Shetland to the mainland, this project will contribute significantly to the UK’s 2035 transmission network plan, which anticipates a £5 billion investment in northern Scotland.
As Scotland continues to position itself as a renewable energy powerhouse, the collaboration between government and industry, exemplified by Sumitomo’s investment, sets a benchmark for what can be achieved when environmental stewardship and economic growth go hand in hand. The construction of the UK’s first HVDC cable factory is not just a milestone for Scotland—it is a beacon of hope for a sustainable and secure energy future for the entire nation.
This momentous development reinforces Scotland’s commitment to becoming a global leader in the green energy sector. With the factory’s completion on the horizon, Scotland is not just building cables; it’s building a legacy of innovation, sustainability, and prosperity.