The UK Infrastructure Bank (UKIB) announced that it will support an investment in subsea HVDC cable manufacturer XLCC to develop a new world-leading factory in Hunterston in Scotland.

A press release said that the funding consists of an initial £20 million from the UKIB with an option to invest a further £67 million upon XLCC achieving specific development and funding milestones.

“The financing will help XLCC develop its factory in Hunterston, Scotland, which once completed will have capacity to produce thousands of km each year of leading edge HVDC cable,” the release said. The UKIB commitment is complemented by additional investment from existing and new investors. This is incremental to the funding of over £40 million raised by the company to date, to design the product, complete detailed design activities for the factory and to achieve full planning permission at the site.

“The project is firmly in line with the Bank’s twin missions to help tackle climate change and support regional and local economic growth,” the release said. Once complete the Hunterston factory will create around 900 permanent jobs including over 200 apprenticeships.

Ian Douglas, XLCC’s CEO, said that XLCC’s mission is to provide critical elements of the infrastructure that are essential to the energy transition and will reduce project costs to the benefit of the U.K. consumer.

XLCC’s already has its first order: four 3,800-km-long cables to connect solar and wind renewable power generation in the Sahara to the U.K. for the Xlinks Morocco-UK power project. “We look forward to delivering a factory of great local and international importance for HVDC subsea cable,” said XLCC Project Director Alan Mathers. “The U.K. will be positioned as a world leader in the green economy, with the site at Hunterston playing a key role in connecting cheap, green energy from renewables projects around the world.”