The funding consists of an initial £20m from the UKIB with an option to invest a further £67m upon XLCC achieving specific development and funding milestones.

The investment is set to create hundreds of skilled jobs, with XLCC expecting to employ 900 people at the plant, which could also support thousands of supply chain jobs.

UKIB said the plant will have the capacity to produce thousands of kilometres of leading-edge, high-voltage cables a year.

Scottish Renewables director of Offshore, Colin Palmer, said: “This welcome package of investment will provide a shot in the arm for Hunterston and Scotland’s wider renewable energy supply chain.

“Building the advanced manufacturing capabilities here in Scotland for renewable energy is crucial for securing the highly skilled jobs and vital inward investment needed for our just transition.

“The development of HVDC cable manufacturing at Hunterston is another positive signal at a time confidence is needed for our industry, particularly for offshore wind and electricity networks which are critical for energy security.

“It also demonstrates that the direct economic benefits of our clean energy transition can be felt across all corners of the country.”

The construction phase is due to start next year.