Sumitomo and Van Oord Enter Capacity Reservation Agreement

Sumitomo Electric Industries, in partnership with Van Oord, has successfully entered into a Capacity Reservation Agreement (CRA) with SSEN Transmission to facilitate the delivery and installation of a groundbreaking second 525kV HVDC cable link connecting Shetland to the Scottish mainland.

Significance of the Shetland 2 Project

This significant contract follows SSEN Transmission's announcement in May 2024, where Sumitomo and Van Oord were selected as the preferred contractors for the Shetland 2 project—a key development aimed at enhancing the reliability of energy transmission in the region.

Manufacturing Facility in Scotland

The cables, which promise to revolutionize the energy landscape, will be produced at Sumitomo’s state-of-the-art manufacturing facility that is currently being built in Nigg, located in northeast Scotland. Notably, this marks the first instance of such advanced cable manufacturing taking place on U.K. soil, positioning the facility as Sumitomo's flagship for offshore cabling not just in the U.K., but across Europe.

Progress at the Site

Currently, the site—spanning an impressive 150,000m²— is making substantial progress, with piling works nearing completion and the foundation of the factory well underway.

Industry Leaders' Perspectives

Yasuyuki Shibata, Chair of Sumitomo Electric UK and Europe, expressed enthusiasm over the agreement. "We are thrilled to have inked this Capacity Reservation Agreement with SSEN Transmission. This milestone reflects our significant investment in the subsea cable factory in Scotland. Together with Van Oord, we are dedicated to constructing the HVDC link efficiently and safely."

Arnoud Kuis, Managing Director of Offshore Energy at Van Oord, echoed these sentiments: "The signing of the CRA is an important achievement for the Shetland 2 project. Our experience in cable installation will be invaluable to this initiative, and we are committed to supporting the energy transition through reliable infrastructure."

Rob McDonald, Managing Director of SSEN Transmission, elaborated on the implications of the agreement: "Reaching this major milestone with Sumitomo and Van Oord is extremely gratifying. We're excited to witness the ongoing progress at Sumitomo's new manufacturing site, which we are confident will provide a significant boost to the Highland economy.”

Broader Implications

This development not only emphasizes a shift toward sustainable energy but also showcases the growing expertise in offshore energy infrastructure within the U.K., paving the way for future innovations in the sector. With renewable energy at the forefront of global efforts to combat climate change, projects like Shetland 2 are critical to ensuring a robust and reliable energy supply for years to come.