Scottish Enterprise has awarded a £9 million grant to the high voltage direct current cable (HVDC) manufacturing firm, XLCC.
The cash is set to help continue the development of their £1.4 billion Hunterston cable manufacturing facility, a site that will create 900 jobs once fully operational.
The news follows planning approval of the proposed site from North Ayrshire Council in May.
Adrian Gillespie, chief executive of Scottish Enterprise, said: “XLCC’s plans for Hunterston have the potential to be transformational for the regional economy and an extremely important addition to Scotland’s offshore renewables capability.
“Together with our Team Scotland partners, we’re working closely with the company as it seeks to address the enormous and growing demand for HVDC cables both in Scotland and internationally.”
XLCC says it will work closely with Team Scotland partners including Scottish Enterprise, North Ayrshire Council, Skills Development Scotland and local schools/colleges to deliver the project in ways that will “maximise economic benefits for the region and its people.”
The Ayrshire firm sees a potential bottleneck in cable manufacturing moving forward as subsea cable demand is set to grow 2.5 times by 2030.
XLCC points to some suppliers having backlogs as long as nine years, this is an issue it aims to assist with following the delivery of its Hunterston facility.
The firm manufactures HVDC cables which are used for long-distance electricity transmission.
These are “perfect” for connecting power grids via undersea connectors, the Ayrshire business adds.
XLCC chief executive, Ian Douglas, said: “We welcome the decision by Scottish Enterprise to award XLCC this £9 million grant.
“As we continue to work towards building a greener future for Scotland and the wider UK, investing in and mobilising the power of local communities is vital and this grant helps us set our Hunterston project on the best footing.
“Green energy is the future, and we want to empower Scotland to be part of the transition.”