The recent signing of a Capacity Reservation Agreement (CRA) between Sumitomo Electric Industries and Van Oord with SSEN Transmission marks a pivotal moment in the energy landscape of Scotland. This agreement sets the stage for the installation of a second 525kV high-voltage direct current (HVDC) cable link between Shetland and the Scottish mainland, a project that promises to bolster both energy infrastructure and economic development in the region.
This initiative, dubbed the Shetland 2 project, is not just a technical upgrade; it represents a significant leap forward in the UK’s capability to produce high-tech subsea cables. For the first time, cables of this caliber and technology will be manufactured domestically, thanks to Sumitomo’s new flagship facility currently under construction in Nigg, northeast Scotland. The ambitious 150,000m2 site is on track with its construction schedule, with piling works nearly complete and factory foundations underway. This development is not just about the cables; it’s about establishing a manufacturing hub that could redefine the offshore cabling sector in the UK and Europe.
Yasuyuki Shibata, Chair of Sumitomo Electric UK and Europe, expressed enthusiasm about the CRA, stating, “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.” This sentiment is echoed by Arnoud Kuis, Managing Director Offshore Energy at Van Oord, who emphasizes the importance of their expertise in cable installation, saying, “This agreement underscores our shared commitment to delivering energy infrastructure and enhancing the energy transition.”
Rob McDonald, Managing Director of SSEN Transmission, also highlighted the broader implications of this partnership, noting, “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.” This collaboration not only strengthens the energy grid but also promises to create jobs and stimulate local economies, a win-win for all stakeholders involved.
Looking ahead, the implications of this project extend beyond immediate construction and installation. As the world grapples with the urgent need for renewable energy solutions, the establishment of a robust domestic manufacturing capability for advanced subsea cables positions the UK as a potential leader in the green energy transition. This could lead to further investments and innovations in offshore wind and other renewable projects across the region.
In a sector often characterized by reliance on foreign imports, the Shetland 2 project could serve as a catalyst for a more self-sufficient energy future. As the UK aims to meet its ambitious carbon reduction targets, initiatives like this underscore the importance of local manufacturing in achieving those goals. The successful execution of the Shetland 2 project could very well set a precedent for similar ventures in the future, promoting a sustainable energy ecosystem that benefits both the economy and the environment.
