- UKIB commits $116 million to Essex-based XLCC for a Hunterston factory, creating 900 jobs and 200 apprenticeships.
- Investment boosts subsea cable production, aiding UK’s net-zero target and encouraging private sector investment.
OUR TAKE
The UKIB’s investment in XLCC’s Hunterston facility underscores a strategic move to bolster the UK’s renewable energy sector, particularly in offshore wind. This not only aids in meeting net-zero targets but also stimulates local economies through job creation. It’s a win-win, fostering environmental sustainability alongside economic growth.
–Vicky Wu, BTW reporter
What happened
The UK Infrastructure Bank (UKIB) has committed $116 million (£87 million) to fund the development of a new subsea cable manufacturing facility in Hunterston, Scotland. The investment, awarded to Essex-based XLCC, will initially see $27 million injected, with a further $70 million dependent on XLCC achieving specific milestones. This project is anticipated to generate approximately 900 permanent jobs and over 200 apprenticeships, contributing significantly to the local economy. The factory is designed to produce thousands of kilometres of high-voltage cables annually, addressing an impending shortage in the global subsea cable market.
According to UKIB CEO John Flint, the investment aims to encourage additional private investment in the sector to increase production capacity and support the UK’s transition to net-zero carbon emissions. XLCC’s CEO Ian Douglas stated that the Hunterston facility would bring substantial investment to the UK, creating skilled employment in advanced manufacturing and project management.
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Why it’s important
This investment by the UKIB in XLCC’s Hunterston facility marks a significant step towards ensuring the UK meets its growing demand for renewable energy infrastructure, particularly in the realm of offshore wind energy. As the government and energy regulator Ofgem push for accelerated delivery of offshore wind projects, the new cable factory will be instrumental in supporting these initiatives. The $4.5 billion Eastern Green Link Two project, recently approved by Ofgem, exemplifies the scale of infrastructure required to achieve Britain’s ambitious energy transition.
Ofgem CEO Jonathan Brearley highlighted the transformative effect of these investments on the nation’s energy security, emissions reduction, and consumer protection. The UKIB’s financial backing not only bolsters the country’s green industry but also paves the way for sustainable job creation and economic growth, aligning with the overarching goal of achieving net-zero emissions.
