NeuConnect Undersea Project Linking UK and German Energy Markets

NeuConnect – a vital new energy link between two of Europe’s largest energy markets – announced key contract awards in the region of £1.5bn (€1.9bn), bringing the first direct link between the UK and German energy markets an important step closer. Around 720km of land and subsea cables will form an ‘invisible highway’ allowing up to 1.4GW of electricity to move in either direction, enough to power up to 1.5 million homes over the life of the project.

Following significant market interest in NeuConnect’s procurement programme, two key contracts have now been awarded:

• Cabling works: The contract to design, manufacture, install, test, and commission the 725km interconnector has been awarded to Prysmian Group – a world leader in the energy and telecom cable systems industry.
• Converter Stations: The contract to design and build two converter stations in the UK and Germany has been awarded to Siemens Energy – one of the world’s leading energy technology companies.

Led by global investors Meridiam, Allianz Capital Partners and Kansai Electric Power, NeuConnect is a privately financed interconnector. Last year, UK Prime Minister Boris Johnson and former German Chancellor Angela Merkel outlined their support for the NeuConnect project, with the new UK-German energy link set to deliver a wide range of benefits including:

• Greater energy resilience and security of supply – NeuConnect will form an ‘invisible energy highway’ with subsea cables allowing 1.4GW of electricity to flow in either direction between the UK and Germany, helping to deliver a more secure and resilient energy supply, and with increased competition in each market also helping to deliver huge consumer benefits.
• A significant reduction in CO2, supporting net zero goals – by integrating renewable energy sources in the UK and Germany, detailed analysis commissioned by NeuConnect showed that the project will deliver a net reduction in carbon emissions of 16 MtCO2 over 25 years.
• The single-largest Anglo-German investment project and an important symbolic link – Along with creating an important new piece of energy infrastructure, NeuConnect is currently the single largest Anglo-German investment project and will represent an important symbolic link between the British and German economies.

With key contractors now in place, NeuConnect is on track to reach financial close in the coming weeks allowing works to start later this year.

“The need for more secure, sustainable energy infrastructure has never been greater, so we are pleased to reach another key milestone on the NeuConnect project, bringing this vital new energy link an important step closer. The selection of two world-class contractors gives us huge momentum and keeps us on track to reach financial close in the coming weeks and begin major construction work later this year,” Julia Prescot, Chair of the NeuConnect Board and Co-Founder at lead investor Meridiam, said.

“The announcement of NeuConnect’s contract awards comes just days after the UK Government’s British Energy Strategy set out ambitious targets to scale-up affordable, clean, and secure energy. This exciting project shows Siemens Energy is ready and able to help deliver a net-zero energy system. This is Britain’s Energy Strategy in action. The electricity connection between Great Britain and Germany will ensure greater security of supply and flexibility for both countries. It’s a perfect example that we can only achieve the energy transition by working together. NeuConnect will not only help accelerate the decarbonisation of our energy system, but it will also support levelling up and create hundreds of green jobs in Great Britain and Germany. We are delighted to be part of this world-first project which will bring sustainable energy to 1.5 million homes,” Mark Pilling, Vice President of HV Grids, GB&! at Siemens Energy, added.

“We are proud to put our best cable technologies at the disposal of NeuConnect, in this landmark interconnector project that achieves a step forward in Europe’s energy transition,” Hakan Ozmen, Executive Vice President Project Business Unit and Prysmian Powerlink CEO, noted.

Early-stage development input on the NeuConnect project was provided by Frontier Power and Greenage Power.

 

About NeuConnect project

NeuConnect project is being developed by an international, experienced consortium that includes Meridiam, Allianz Capital Partners on behalf of Allianz Group and Kansai Electric Power, with the project also supported by Greenage Power and Frontier Power as developers.

The key partners bring a proven track record in delivering large-scale energy infrastructure, creating a team with significant experience and expertise in interconnector projects.

Lead-investor Meridiam are founded on an ethos of taking a long-term approach to its investments, meaning the NeuConnect project will further benefit from Meridiam’s long-term commitment to invest in, develop and manage the asset over 25 years and beyond.