A new industrial development in northern Scotland offers the UK a chance to lead in the global transition to a lower carbon economy. XLCC’s plans to build an HVDC factory in Hunterston could open the way to securing new sources of clean power from Morocco – and also lay the foundations for an emerging export industry.

Electrification is crucial for starting the transition to a lower carbon economy.

Currently, around 20% of national (and global) energy consumption is from electricity, with a growing share from non-fossil fuels. The shift has been driven by falling solar panel and wind turbine costs. But more is needed to achieve net zero targets in time to mitigate climate change risks.

More of the economy needs to be electrified, including home heating, transportation and industrial production. The current 20% share from electricity needs to increase, to 30% and then 40%.

Making connections

XLCC’s plans at Hunterston in Scotland are important, given this need to scale up.

In 2022, the company won planning permission to build an HVDC manufacturing facility at a former coal terminal, in Hunterston. It would involve the construction of a 185-metre high extrusion tower. XLCC’s plans involve an investment of up to £1.7 billion in the Scottish factory.

XLCC’s plans focus on producing HVDC cables. These addresses the challenge of electricity transmission loss between production and the place where it is used.

Historically, power-producing plants – coal or gas – had to be located near towns and cities. That is changing and XLCC’s technology offers a significant advancement.

The company focuses on deploying and managing polyethylene-coated cables, which reduce losses and make long-distance transmission more economical. The company will provide HVDC links within and between countries, with a focus on offshore transmission.

England already consumes power generated in Scotland. That business is set to grow with the UK’s rising demand. As older nuclear plants close, this supply will meet increasing needs, boosted by AI centres, which require plenty of power.

HVDC lines will also provide power links from offshore wind farms to the shore. At Dogger Bank, 130 km into the central North Sea, the world’s first HVDC offshore substation was installed, with commissioning in 2023.

Reaching out

HVDC links can also import power to the UK and Europe from areas with abundant wind or solar energy.

One ambitious project is a 4,000 km undersea line from Morocco’s Guelmim Oued Noun region to the UK. That line could provide as much as 3.5 GW of power, supported by a planned 5 GW battery facility. This should produce near consistent clean energy for southern England.

XLCC is going to play a leading role in delivering the Moroccan power to England, under the Xlinks project.

The best economics for producing wind and solar power are driven by specific locations, for instance in the wind-swept North Sea or the deserts of North Africa. Breakthroughs in HVDC transmission technology open a new phase where these areas become viable supply sources. Over time, electricity trade, regardless of distance between producer and consumer, will be as easy as current oil or gas trade.

XLCC faces challenges, such as aligning regulations across countries in a sector usually managed locally.

The UK government has recognised the potential importance of the Xlinks plan by declaring it a nationally significant infrastructure project (NSIP).

Going global

Yet, the economic potential is enormous. For Scotland, dealing with the decline of North Sea oil and gas, XLCC offers jobs and starts fulfilling hopes for a low-carbon industry. The company will initially employ 900 people, including 200 apprentices.

HVDC manufacturing is a growth industry with ambitious plans around the world, similar to the Morocco-UK plan.

For instance, SunCable is working on plans for a 5,000 km HVDC link from Australia’s Northern Territory to Singapore.

Just as the offshore oil and gas sector grew from a small base 50 years ago, there’s potential to support the global energy transition by using advanced technology. The entire world needs to electrify, so XLCC could take a role in meeting this demand for delivering low cost and low carbon power.

When renewable energy demand starts to break free from location, it can play a growing role in doubling electricity’s share in the energy mix.

Many basic industrial elements of the transition, such as solar panel and EV production, are dominated by China. But grid technology, including state of the art cables, can give the UK a chance to secure a place in the next phase of the global energy business.

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