Sumitomo Electric Industries, Ltd., in consortium with Van Oord, has secured a Capacity Reservation Agreement (CRA) with SSEN Transmission for the supply and installation of the Shetland 2 HVDC cable link.

This landmark agreement signifies a major step forward for the Scottish energy sector, as the project will see the manufacture of the cables at Sumitomo Electric's new state-of-the-art facility in Nigg, Scotland. This is the first time cables of this type and technology have been manufactured in the UK.

The selection of Sumitomo Electric and Van Oord as preferred bidder for the Shetland 2 project in May 2024 paved the way for this significant development. Construction of the £350 million Nigg facility is progressing well, with piling works nearing completion and factory foundations currently being installed.

The facility is expected to create around 150 full-time jobs and will play a crucial role in supporting the growth of Scotland's renewable energy sector. Sumitomo Electric has committed to maximising the use of the local supply chain, with 55% of construction spend to date allocated to Scottish businesses.

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

Yasuyuki Shibata, Chair of Sumitomo Electric UK and Europe, said: "We are delighted to have penned this Capacity Reservation Agreement with SSEN Transmission. This is a significant milestone for Sumitomo Electric's subsea cable factory investment in Scotland. Sumitomo Electric UK & Europe and Van Oord are committed to successful construction of the HVDC link in a safe and timely manner."

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Arnoud Kuis, Managing Director Offshore Energy at Van Oord, said: "We are pleased to announce the signing of the Capacity Reservation Agreement with SSEN, representing a significant milestone for the Shetland2 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."

Rob McDonald, Managing Director of SSEN Transmission, said: "We are delighted to reach this major milestone with Sumitomo Electric and Van Oord for the Shetland 2 project. It's great to see the progress being made at Sumitomo Electric'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."

Poppy Gustafsson OBE, Minister for Investment, 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."

Michael Shanks MP, Energy Minister, 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 Electric'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."

Gillian Martin MPS, Acting Energy Secretary, 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 evolution.

"This announcement builds on crucial support provided by the Scottish Government to Sumitomo Electric, which will locate its cable factory at Nigg creating hundreds of jobs in the Highlands."