Mohammedia – Plans for a giant undersea cable factory in Scotland have been put in question after a proposed £25 billion energy line between Morocco and Britain was turned down by the British government.
This has left XLCC, the British firm working on the initiative, postponing construction on a high-voltage subsea cable plant for what it termed a “strategic reset.”
The firm reported that several big projects for clean energy sources in Europe have been put on hold, reduced in scale, or abandoned, causing instability for subsea cable suppliers. Consequently, this has resulted in XLCC’s cost-cutting and shedding jobs, with six employees already made redundant.
The setback follows Energy Secretary Ed Miliband’s decision to block the Xlinks Morocco–UK interconnector project, a 2,500-mile power link that would have transported solar and wind energy from southern Morocco to Britain.
Industry insiders told The Telegraph that the rejection dealt a heavy blow to XLCC, which had planned to manufacture the four giant cables needed for Xlinks at its new factory in the Port of Hunterston, North Ayrshire.
Xlinks project and Moroccan perspective
The aim of the Xlinks project, which was headed by ex-Tesco CEO Sir Dave Lewis, was to meet up to 8% of the power required by the UK through renewable energy sourced from Morocco.
The initiative would promote industrial collaboration between both nations and pave the way for Morocco to become a green energy hub for Europe in the future.
According to Medias24, the plant was largely reliant on the Xlinks deal, and this has resulted in immediate consequences due to the suspension.
The work on permit amendments for Hunterston has been put on hold, with construction, set to begin in April 2026, now facing delays. Production, which was earlier targeted for 2029, will now be delayed by several years.
Local officials in North Ayrshire have expressed frustration with this delay, warning that it will cost Scotland much-needed jobs and investment.
According to the latest statement by XLCC, it remained committed to building “a world-leading HVDC cable manufacturing and installation business” in Scotland but admitted that market demand had shifted “further out in time.”
The company added that several key orders required to justify the factory would now arrive later than expected.
At the same time, the Xlinks consortium is contemplating alternative courses for itself, as Medias24 reported that a possible line between Morocco and Germany might be investigated.
Despite this scenario, XLCC made it clear that worldwide market demand for high-voltage DC cables would continue to be strong in the long term, with shortages dubbed “a critical bottleneck in the energy transition.”
According to a statement by the UK’s Department for Energy Security and Net Zero, it is working with several firms, including XLCC, to promote investment and hasten the development of a local supply chain.
Initiatives such as Great British Energy and a £1 billion industry fund for offshore wind components aim to enhance local manufacturing and decrease dependence on overseas suppliers.
Currently, LCC’s assessment will carry on into next year, which means that the future for the Hunterston factory, and for a British-Moroccan energy link, is unclear.
