ECOSSE Subsea Systems is to clear the seabed and provide trenching services for the £1.2 billion Caithness to Moray transmission link.
The Aberdeen firm has signed a letter of intent with engineering group ABB which is working on the cabling aspect of the undersea link on behalf of SSE subsidiary Scottish Hydro Electric Transmission.
ESS, founded in 1996, said the contract may be the largest it has won depending on which options are selected.
The cable will carry 1.2 gigawatts of renewable energy generated in Scotland into the main UK network.
Keith McDermott, ESS commercial director, said: "Our commitment and significant investment in pre-lay trenching techniques is now resulting in the award of multi-million pound contracts like the Caithness Moray transmission cable project."
SSE director of transmission Dave Gardner, said: "We are delighted that a local company and local workers are to benefit from such a significant piece of work on the Caithness-Moray project."
Mr Gardner confirmed all those working on the project will receive the living wage.
He added: "Through these initiatives we are determined to ensure that local people and the local economy get as much economic benefit from the project as possible."
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