SSEN Transmission has signed a long-term framework agreement with Sumitomo Electric Industries and Van Oord Offshore Wind UK.
Under the framework agreement, Sumitomo Electric will provide engineering, procurement and supply services for HVDC cable systems, while Van Oord will be responsible for offshore transport and installation activities.
The arrangement is designed to support a range of future subsea transmission opportunities across SSEN Transmission’s investment programme, with the proposed Shetland 2 project representing one of the first potential projects to be progressed under the agreement.
The news comes as Sumitomo Electric invests over £350 million into a new HVDC cable manufacturing facility at Nigg, which SSEN said is expected to create more than 650 direct and indirect jobs once operational. With 670 jobs also set to be supported through
The new framework brings together Sumitomo Electric’s expertise in the manufacture and supply of HVDC cable systems with Van Oord’s extensive offshore transport and installation capabilities, creating a long-term partnership positioned to support the delivery of critical energy infrastructure as Scotland and the UK continue their transition to a cleaner, more secure energy system.
As the electricity transmission owner for the north of Scotland, SSEN Transmission is leading a significant programme of investment to connect homegrown low carbon generation. Subsea HVDC links will play an increasingly important role in that programme, providing the capacity needed to transport large volumes of renewable electricity over long distances efficiently and reliably, it explains.
Sandy Mactaggart, director of offshore delivery at SSEN Transmission, said, “Last month, SSEN Transmission published a landmark report – Re-energising the North: Transforming Scotland – which demonstrated the major economic opportunities of investing in the grid to build national energy security and achieve the country’s clean power ambitions. In the north of Scotland alone, our planned five-year investment programme stands to support up to 10,000 high-quality jobs, and 24,000 across Scotland.
“The framework agreement with Sumitomo Electric and Van Oord is a significant part of turning this great potential into reality. It provides a strong foundation for long-term collaboration and supports our ambitions to deliver the critical subsea infrastructure needed across the north of Scotland in the years ahead.
“By providing greater certainty and visibility over future opportunities, we are helping create the conditions for inward investment in skills, manufacturing capability and innovation, while ensuring we have access to the specialist expertise required to deliver major projects safely, efficiently and responsibly.”
Masaki Shirayama, Sumitomo Electric MD, added, “This Framework Agreement marks an important milestone in the strategic partnership between SSEN Transmission and Sumitomo Electric. Building on more than 100 years of expertise in subsea cable technology, we are proud to contribute to the successful delivery of the Shetland 2 link.
“Our Scotland factory at the Port of Nigg, together with our Business and EPC projects Centre of Excellence in Glasgow, demonstrates our long-term commitment to investing in local engineering capability, creating high-value skilled jobs, and strengthening resilient supply chains across Scotland and the UK.
“Through this Framework Agreement, we look forward to further strengthening our collaboration with SSE Group in the HVDC sector and supporting Scotland’s and the UK’s transition to a secure, resilient and low-carbon energy system.”
Maurits den Broeder, MD offshore energy at Van Oord, commented, “The signing of the framework agreement is an important milestone for Van Oord in the offshore HVDC market and marks the start of a long-term collaboration with Sumitomo Electric in offshore transmission. It also reflects our deep commitment to the UK, where we have been active for more than a century, including through our long-standing work with several Government Agencies.
“By combining our complementary expertise, we are well positioned to support the delivery of this critical infrastructure and the efficient transmission of renewable electricity into the wider UK energy system. Through our UK organisation and local supply chain, we are committed to delivering projects in a way that creates lasting value for the regions where we operate.”
