Wind Energy – Funding Package
A funding package has been agreed to secure an estimated £350 million inward investment project for Scotland from Sumitomo Electric UK Power Cables (SEUK).
SEUK is a subsidiary of Japanese company Sumitomo Electric Industries (SEI).
In May 2023, SEI announced plans to develop a power cable factory in the Scottish Highlands, which would supply high voltage cables to the growing offshore wind energy sector in the area.
Now the Scottish Government, along with Highlands and Islands Enterprise (HIE) and Scottish Enterprise, have approved up to £24.5 million in public sector support to secure the project. This comprises £19.37 million in Scottish Government funding, £4.6 million from HIE and £530,000 from Scottish Enterprise.
With offshore wind developments like ScotWind increasing in Scotland and the UK, the market demand for high voltage cables has rapidly increased. The market reports there are currently extended lead times for cable supply which, in turn, slow the development of offshore wind projects.
SEUK’s new factory will help reduce those lead times while also strengthening energy security.
The £25.4 million in funding will support the project as it begins to invest in its plant and equipment, construction of a new purpose-built factory, and long-term land leasing and associated costs.
The site is located within the recently designated Inverness and Cromarty Firth Green Freeport boundary, which was a key factor in the company’s decision to invest in the Highlands.
This is one of the biggest ever inward investment projects for the Highlands and Islands, and is a fantastic opportunity for the region and for the country as a whole. We expect to see hundreds of high-quality employment opportunities created during the construction phase and beyond, including opportunities throughout the supply chain.
