09 July 2026

Sumitomo Electric Industries, Ltd. (Sumitomo Electric), together with its project partner Van Oord Offshore Wind UK Ltd (Van Oord), has signed a HVDC Framework Agreement with SSEN Transmission, agreeing to proceed with initial design and engineering works for the proposed 525kV Shetland 2 HVDC link between Shetland and the Scottish mainland.

The Framework Agreement establishes a long-term strategic partnership between SSEN Transmission and the Consortium for the engineering, supply and installation of HVDC cable projects including the Shetland 2 link. The proposed Shetland 2 link will reinforce the electricity transmission network in the north of Scotland, enable greater integration of renewable energy, and support Scotland's and the UK's clean power and energy security objectives, while also delivering long-term economic benefits for local communities.

Under the Framework Agreement, SSEN Transmission and the Consortium expect to enter into a call-off contract in 2026 for the manufacturing of the 525 kV cables for the Shetland 2 link, subject to the necessary regulatory approvals. Cable manufacturing is expected to commence in 2Q 2027 at Sumitomo Electric's state-of-the-art submarine cable manufacturing facility at Port of Nigg, Scotland.

The over £350 million investment in the Scottish factory is expected to create more than 650 direct and indirect jobs once operational, as well as additional employment opportunities across associated and supporting supply chains. 670 direct and indirect jobs are expected to be supported through project execution, installation and related activities associated with delivery of the Shetland 2 link.

Combining Sumitomo Electric's more than 100 years of expertise in subsea cable systems with Van Oord's world-class offshore installation capabilities, the Consortium is committed to delivering the Shetland 2 link safely, reliably and efficiently. 

The Framework Agreement marks an important milestone in strengthening the long-term partnership between SSEN Transmission and the Consortium, fostering innovation, accelerating localization, and supporting the continued modernisation of Scotland's and the UK's electricity transmission infrastructure as part of the transition to a secure, resilient and low-carbon energy system.

Sandy Mactaggart, Director of Offshore Delivery at SSEN Transmission, said:
“Last month, SSEN Transmission published a landmark report – Re-energising the North: Transforming Scotland – which demonstrated the major economic opportunities of investing in the grid to build national energy security and achieve the country’s clean power ambitions. In the north of Scotland alone, our planned five-year investment programme stands to support up to 10,000 high-quality jobs, and 24,000 across Scotland.
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.
By providing greater certainty and visibility over future opportunities, we are helping create the conditions for inward investment in skills, manufacturing capability and innovation, while ensuring we have access to the specialist expertise required to deliver major projects safely, efficiently and responsibly."

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. 
Our Scotland factory at the Port of Nigg, together with our Business and EPC projects Centre of Excellence in Glasgow, demonstrates our long-term commitment to investing in local engineering capability, creating high-value skilled jobs, and strengthening resilient supply chains across Scotland and the UK. Through this Framework Agreement, we look forward to further strengthening our collaboration with SSE Group in the HVDC sector and supporting Scotland's and the UK's transition to a secure, resilient and low-carbon energy system."

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. It also reflects our deep commitment to the UK, where we have been active for more than a century, including through our long-standing work with several Government Agencies.
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. Through our UK organisation and local supply chain, we are committed to delivering projects in a way that creates lasting value for the regions where we operate.”