Scottish National Investment Bank provides £20M for subsea cable manufacturer XLCC  

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

Once complete, the facility will produce cables for offshore windfarms and other applications and support around 900 jobs, including more than 200 apprenticeships, and will be capable of producing thousands of kilometres of HVDC cable each year. 

XLCC chief executive 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.” 

The bank is Scotland’s development bank and is a mission-led impact investor. This investment aligns to its net-zero mission, which aims to address the climate crisis by developing a fair and sustainable economy. It delivers patient capital and takes a long-term view of investment. The investment is being made as part of the Scottish government’s commitment to invest up to £500M over five years to anchor the nation’s offshore wind supply chain, announced in October 2023. 

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 investments being delivered to harness the enormous potential of our offshore wind industry over five years – including £150M in the 2025-26 Budget. This project demonstrates that our focus on investment to support our delivery of net-zero is benefiting communities across the country, and transforming our economy.” 

The National Wealth Fund is also supporting the manufacturing facility at Hunterston. It announced an initial investment of £20M in September last year, with the option to invest a further £67M 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 and say the latest co-investment is an example of how the two institutions are jointly helping to boost Scotland’s renewable energy potential.