Sumitomo Electric Signs Long-Term HVDC Cable Deal With SSEN, Advances Shetland 2 Link

2026/07/14

Photo: The signing ceremony

Sumitomo Electric Industries has signed a long-term framework agreement with Scotland’s SSEN Transmission for high-voltage direct current (HVDC) subsea cable projects, advancing work on the Shetland 2 transmission link as Britain expands its grid to accommodate more renewable energy.

The Japanese cable manufacturer will work alongside Van Oord Offshore Wind UK to begin initial design and engineering for the project, which will connect the Shetland Islands with the British mainland. The agreement also establishes a framework for cooperation on future HVDC subsea cable projects.

Under the partnership, Sumitomo Electric will design, manufacture and supply the cables, while Van Oord will handle offshore installation. The arrangement positions the companies as preferred partners for SSEN Transmission’s planned investment in subsea transmission infrastructure.

Shetland 2 will use 525-kilovolt HVDC subsea cables to carry electricity from the islands to the mainland. The link is intended to support renewable energy development in northern Scotland and move power to consumers across Britain, contributing to the country’s energy security and decarbonization goals.

Subject to regulatory approval, Sumitomo Electric expects to sign the cable manufacturing contract in 2026, with production scheduled to begin in the second quarter of 2027.

The cables will be manufactured at the company’s new factory at the Port of Nigg in Scotland, where Sumitomo Electric is investing approximately £350 million. The facility is scheduled to begin operations in September 2026 and is expected to support more than 650 direct and indirect jobs. Installation and other work associated with Shetland 2 are expected to support approximately 670 additional jobs.

Sumitomo Electric secured preferred bidder status for the Shetland 2 cable package in 2024. The latest agreement formalizes a broader, long-term partnership spanning cable design, manufacturing and installation, combining the company’s subsea cable expertise with Van Oord’s offshore construction capabilities.

The deal comes as Britain steps up investment in transmission infrastructure to connect new renewable generation, particularly offshore wind, with major centers of electricity demand. Grid operators are planning multiple subsea links to accommodate rising renewable output, creating a growing pipeline of projects for HVDC cable suppliers.

Sandy Mactaggart, SSEN Transmission’s director of offshore delivery, said the company’s announced grid investment plans could support up to 10,000 jobs in northern Scotland and up to 24,000 across Scotland over the next five years.

He also highlighted the role of long-term framework agreements in encouraging investment in workforce development and manufacturing capacity, helping suppliers prepare for large transmission projects.

For Sumitomo Electric, the partnership strengthens its position in the European HVDC market. The company regards Britain as a key base for its European operations and plans to expand local sourcing and strengthen its supply chain through the Nigg factory and its Glasgow sales, engineering, procurement and construction operations.



Sources: Sumitomo Electric Industries, Nikkei