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In the shadow of a decommissioned nuclear power station, a former coal-handling port in North Ayrshire is set to host a £2 billion factory producing thousands of kilometres of subsea cable for transmitting renewable energy. Located in one of Scotland’s most deprived areas, the regeneration project is a test of the nation’s ability to foster manufacturing capacity in the renewable energy supply chain, key to the UK’s ambition to decarbonise power by 2030.
The UK and Scottish governments aim to harness the economic benefits of the net zero transition to replace well-paid jobs lost in the oil and gas sectors. Decades after the closure of coal mines, policymakers hope projects like this will revitalise local economies. Laura Fidao, investment director at the Scottish National Investment Bank (SNIB), noted criticisms over Scotland and the UK relying on imported equipment for fixed-bottom wind projects in the past. According to Fidao, the focus now is building a robust domestic supply chain for floating offshore wind developments.
The factory, located at Hunterston, is being developed by start-up XLCC. It plans to begin commercial-scale production of high-voltage direct current (HVDC) cables by 2030. These cables are crucial for decarbonising energy as they link offshore wind farms, improve grid infrastructure, and create interconnectors to transfer power between nations. With demand for HVDC cables exceeding supply by a factor of two and a half, XLCC aims to address one of the largest bottlenecks in the net zero transition.
Japan’s Sumitomo began constructing the UK’s first HVDC factory in 2022 at the Highland port of Nigg, with production anticipated by 2026. While XLCC is a start-up, its UK ownership and efforts to collaborate with technical partners, such as China’s Orient Cable, have attracted major funding. SNIB has invested £20 million in the project with the potential for further funding of up to £67 million as development progresses.
The facility at Hunterston is projected to create approximately 900 long-term jobs, including over 200 apprenticeships, with an additional 300 project management roles. Expanding port infrastructure in Scotland is seen as essential to support the assembly and operation of offshore wind farms as well as the broader renewable energy supply chain. SNIB has also partnered with the UK government to invest in other significant infrastructure projects, such as the Ardersier port in the Moray Firth.
Scotland has a pipeline of 40 gigawatts of offshore wind projects, all of which require subsea cables to transmit energy to the mainland. Ian Douglas, XLCC’s chief executive, highlighted the fierce competition for cable supplies, with European manufacturers such as Prysmian, Nexans, and NKT having significant order backlogs. XLCC’s first phase of construction is expected to yield a production capacity of 1,300km of cable annually, potentially doubling to 2,600km in future phases.
To ensure local economic benefits, future seabed lease agreements in Scotland will include requirements for supply chain involvement. Acting Secretary for Net Zero and Energy, Gillian Martin, stressed the importance of demonstrating local supply chain ties to encourage developers to source domestically. Investors and energy companies, she said, are already viewing Hunterston as a viable option for cable production.
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