SSEN Signs HVDC Framework with Sumitomo, Van Oord

SSEN Transmission has signed a long-term framework agreement with Sumitomo Electric Industries and Van Oord Offshore Wind UK for the engineering, supply, transport and installation of high-voltage direct current subsea cable systems. The arrangement is intended to support the delivery of future strategic subsea transmission reinforcements across SSEN Transmission's investment programme, with the proposed Shetland 2 HVDC link identified as the anchor project supporting Sumitomo Electric's investment in its new cable manufacturing facility at Nigg in the Highlands.

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 combines Sumitomo Electric's HVDC cable manufacturing and supply expertise with Van Oord's offshore transport and installation capabilities to support a range of future subsea transmission opportunities across the north of Scotland.

Shetland 2 HVDC Link and Capacity Reservation Agreement

The proposed Shetland 2 project will deliver a second 525 kV HVDC cable link connecting Shetland to the Scottish mainland. The Sumitomo Electric Van Oord Consortium was selected as preferred bidder by SSEN Transmission in May 2024, with the announcement made on 14 May 2024. A capacity reservation agreement for the supply and installation of the Shetland 2 link was signed between the consortium and SSEN Transmission on 23 January 2025, marking a significant milestone ahead of expected contract award status for the scheme later in 2024.

The cables for Shetland 2 will be delivered from Sumitomo Electric's state-of-the-art manufacturing facility at the Port of Nigg in northeast Scotland, north of Inverness in the Scottish Highlands. A groundbreaking ceremony for the new factory was held on 14 May 2024, with construction commencing on that date to enable the Shetland 2 project as the anchor project. The regulatory framework for Shetland 2 and Beyond 2030 investments was expected to be concluded by Ofgem shortly after the May 2024 preferred bidder announcement.

Strategic Partnership and Industry Statements

Sandy Mactaggart, director of offshore delivery at SSEN Transmission, said: "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."

Masaki Shirayama, managing director of Sumitomo Electric, said: "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."

Maurits den Broeder, managing director offshore energy at Van Oord, said: "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. 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."

SSEN Transmission stated the framework provides greater long-term visibility for delivery partners while supporting investment in skills, manufacturing capability and innovation. The Sumitomo Electric Van Oord Consortium was placed on SSEN Transmission's Framework of Contractors following a successful procurement exercise in the prior year. The investment in the Nigg facility represents a major jobs boost for the Scottish Highlands and positions the region as a strategic hub for HVDC cable manufacturing supporting UK transmission infrastructure development.