The company will undertake civil engineering works at the converter station site near Boddam, Peterhead. This crucial component of the project will connect the 436km subsea HVDC cable system to the existing transmission network.
The appointment of a local firm highlights the project's commitment to engaging the local supply chain and boosting the regional economy. David Smith Contractors Ltd has already created nine new full-time jobs and expects to sustain and potentially increase employment opportunities as the project progresses.
The civil engineering works will involve excavating the site and preparing a level platform for the construction of the converter station building. The project is scheduled for completion by July 2024.
The contract was awarded by BAM Nuttall, the principal contractor responsible for delivering the converter stations at both ends of the subsea cable, in partnership with Hitachi Energy.
Jamie Wallace, from SSEN Transmission, is EGL2 Lead Project Manager for the Peterhead converter station site. He said: "This announcement demonstrates how investing in upgrading the electricity grid to transmit green energy and the creation of good quality local jobs go hand in hand.
"David Smith Contractors Ltd has already worked with another of our key contractors, Keltbray, in carrying out enabling works as part of the EGL2 project – constructing a first-class platform for our temporary site welfare and office complex.
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"During our public consultations held in advance of the project we made a commitment to engage with the local supply chain while delivering social value in the community.
"This appointment underlines the commitment we share with our partners to maximise local employment and business opportunities, which will continue throughout the construction phase of the project and beyond."
David Smith, from David Smith Contractors Ltd, said: "We are delighted to have been awarded this contract, extending our involvement in the EGL2 project and providing more opportunities for local employment.
"Our company prides itself on utilising the local workforce, with 125 current employees and a commitment to using local supply chains.
"We also have a commitment to supporting local communities and institutions such as schools, colleges, charities along with our involvement with local volunteering events.
"Through these connections we hope to continue to highlight the career opportunities available within civil engineering."
Alan McWilliam, Project Director for BAM Nuttal Ltd, said: "This multimillion-pound contract represents a significant portion of the overall scheme, and underlines BAM's strong commitment to engaging with local suppliers to ensure there is a benefit to the wider community.
"With the programme running through the winter months, engaging David Smith Contractors Ltd as a local supplier with the knowledge and expertise to work in challenging winter conditions was key in the selection process.
"We are looking forward to working with the team to deliver the works successfully and create more opportunities for local employment now and into the future."
Peterhead South and Cruden councillor Stephen Smith, who represents Boddam, added: "It's vital that the local economy benefits from the work currently being carried out in the area by energy companies and I'm delighted that David Smith Contractors have been awarded this contract.
"The company has a proud record locally and this contract will mean more of the investment being made in energy infrastructure stays within the North-east economy. I look forward to more such contracts being awarded as this, and other, projects progress."
Delivered as a joint venture by SSEN Transmission and National Grid, EGL2 is a £4.3bn* project that will include the longest HVDC subsea cable in the UK. It comes as part of a £20bn investment programme led by SSEN Transmission to upgrade the electricity transmission network in the north of Scotland, supporting thousands of jobs and providing an economic boost to the country while helping to deliver Scotland and the UK's energy security and clean power targets.
The area around Peterhead is set to play a key role in this activity. SSEN Transmission recently submitted a planning application to Aberdeenshire Council for its Netherton Hub development to the west of the town, which if granted will provide another significant boost to the economy and create more opportunities for local employment.
