Scots investment bank invests in cable firm XLCC

SNIB investment director Craig Stevens, XLCC CEO Ian Douglas, and SNIB investment director Laura Fidao

The Scottish National Investment Bank has announced a new £20 million investment in subsea cable manufacturer XLCC.

The investment will support the company’s development of a new manufacturing facility at the brownfield site of the former Hunterston Terminal in Ayrshire.

XLCC’s High-Voltage Direct Current (HVDC) cable will efficiently transport electricity over long distances.

Once complete, the facility will support around 900 jobs, including more than 200 apprenticeships, and will be capable of producing thousands of kilometres of HVDC cable each year.

The UK’s National Wealth Fund (NWF) is also supporting the manufacturing facility at Hunterston. It announced an initial investment of £20 million in September last year, with the option to invest a further £67 million upon XLCC achieving specific milestones.

The bank and the NWF have signed a memorandum of understanding to better support and share insight about Scotland’s renewable and offshore wind market.

XLCC CEO Ian Douglas said: “We welcome the investment from the Scottish National Investment Bank as we deliver on our mission to provide the critical infrastructure that is essential to the energy transition.

“By 2030, demand for subsea cables is expected to be two and a half times greater than the supply. The Hunterston facility will help us meet this demand and bring highly skilled jobs to Ayrshire.”

Scottish National Investment Bank investment director Craig Stevens said: “Realising Scotland’s potential as a global clean energy producer depends on a robust local supply chain. XLCC is a critical component of that chain, enabling the transport and connectivity of our clean power. We are excited for the future of this company and the economic benefit it will bring to Scotland.”

Acting Cabinet Secretary for Net Zero and Energy Gillian Martin said: “XLCC’s manufacturing facility at Hunterston will not just help increase Scotland’s offshore wind manufacturing capability but support hundreds of high quality green jobs and drive new growth across the local, regional and national economies as part of our net zero transformation.

“The investment in XLCC is the first in a series of strategic, commercial investments being delivered to harness the enormous potential of our offshore wind industry over five years – including £150 million in the 2025-26 Budget. This project demonstrates that our focus on investment to support our delivery of net-zero is benefitting communities across the country, and transforming our economy.”