SSEN Transmission has entered into a Capacity Reservation Agreement (CRA) with Sumitomo Electric Industries, Ltd., together with consortium partner Van Oord, for the supply and installation of a second 525kV HVDC cable link between Shetland and the Scottish mainland, known as Shetland 2.

This significant milestone follows the selection of Sumitomo and Van Oord as the preferred bidder for the Shetland 2 project in May 2024. Notably, the project will see cable manufacture undertaken at Sumitomo's new state-of-the-art facility currently under construction in Nigg, Scotland. This marks a significant step forward for the UK's offshore wind industry, as cables of this type and technology have never previously been manufactured domestically.

Construction of the £350 million manufacturing facility in Nigg is progressing well, with piling works nearing completion and factory foundations currently being installed. The facility is expected to create around 150 direct jobs and is anticipated to have a significant positive impact on the local economy.

The Shetland 2 project will play a crucial role in enabling the connection of renewable energy from Shetland to the GB grid, supporting the transition to net zero emissions.

Rob McDonald – Managing Director of SSEN Transmission said: "We are delighted to reach this major milestone with Sumitomo and Van Oord for the Shetland 2 project. 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."

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Yasuyuki Shibata – Chair of Sumitomo Electric UK and Europe commented: "We are delighted to have penned this Capacity Reservation Agreement with SSEN Transmission. 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."

Arnoud Kuis – Managing Director Offshore Energy at Van Oord added: "We are pleased to announce the signing of the Capacity Reservation Agreement with SSEN Transmission, representing a significant milestone for the Shetland 2 project. At Van Oord, we take pride in contributing to this initiative with our extensive expertise in cable installation. This agreement underscores our shared commitment to delivering energy infrastructure and enhancing the energy transition."

Minister for Investment – Baroness Gustafsson OBE said: "Economic growth is an integral part of our Plan for Change, and this fantastic investment will play a key role in supporting our transition to net-zero. With clean energy being identified as a growth sector in our upcoming Industrial Strategy, we're not only helping to attract and secure investment, but delivering long-term, stable growth that supports skilled jobs across Scotland and the UK."

Energy Minister – Michael Shanks said: "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."

Acting Energy Secretary – Gillian Martin said: "Scotland is fast becoming a renewable energy powerhouse, providing opportunities to grow our economy and create jobs while protecting the environment. The Scottish Government is allocating up to £500 million over five years to anchor the offshore wind supply-chain in Scotland, ensuring our workforce, businesses and communities all benefit from the offshore renewables revolution. This announcement builds on crucial support provided by the Scottish Government to Sumitomo, which will locate its cable factory at Nigg creating hundreds of jobs in the Highlands."