The construction of the Spittal to Peterhead subsea electricity transmission project has taken a major step forward after the Scottish Government Marine Directorate granted its marine licence.

This milestone for the £22 billion+ investment programme will unlock significant opportunities for local businesses in the north of Scotland.

The Spittal to Peterhead High Voltage Direct Current (HVDC) subsea cable link is a 166km, 2GW connection between Sinclair's Bay in Caithness and Rattray Head near Peterhead. It is critical to strengthening the transmission network and supporting the UK's 2030 clean power ambitions.

The subsea cable will connect into the recently consented Netherton Hub near Peterhead in Aberdeenshire, and the proposed Banniskirk Hub in Caithness.

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SSEN Transmission has already awarded key contracts to local firms for the onshore cable sections, underpinning its commitment to creating local value:

• John Gunn & Sons, based in Caithness, will construct the onshore cable section at Spittal.

• Nicol of Skene, based in Aberdeen, will construct the onshore cable section at Peterhead.

David Inge, Offshore Development Portfolio Manager at SSEN Transmission, welcomed the news: "Securing this marine licence marks an important milestone for our programme... This progress isn't only about national ambitions; it reflects our commitment to bringing lasting opportunities to the communities where we work. Appointing Caithness-based John Gunn & Sons and Aberdeen-based Nicol of Skene demonstrates how we are ensuring local businesses benefit directly from this investment."

Brendan Reynolds, Project Manager at John Gunn & Sons, confirmed the contract provides a "significant opportunity to expand and upskill our existing workforce, boost the local economy through additional employment opportunities and support the local supply chain in the Caithness and the Highland region."

Main construction works are expected to begin following final design and procurement work, and subject to planning consent for the Banniskirk Hub.