First UK-Germany energy link reaches financial close
The €2.8 billion NeuConnect project, the first ever energy link between the UK and Germany, has reached financial close, allowing work to begin later this year.
The project reached financial close with a consortium of more than 20 national and international banks and financial institutions including the UK Infrastructure Bank, European Investment Bank (EIB), and Japan Bank for International Cooperation (JBIC).
With this milestone and a series of major contracts recently awarded, NeuConnect will begin early works later this year, with commercial operations expected by 2028.
The investment to build the interconnector will amount to €2.8 billion, with the EIB set to contribute up to €400 million for the financing of the European part.
“Putin’s illegal invasion of Ukraine shows it is more important than ever that we strengthen close energy bonds with European partners who are rapidly moving away from using Russian gas,” UK’s Energy and Climate Change Minister Greg Hands said.
“When it comes online, NeuConnect will open new opportunities for the UK to export clean, and cheaper, renewable energy and reduce our exposure to volatile global fossil fuel prices.”
The 1.4 GW NeuConnect interconnector will see two new substations built on the Isle of Grain in Kent, UK, and the Wilhelmshaven region in Lower Saxonia, northern Germany, connected by over 700 kilometers of subsea cables traveling through British, Dutch and German waters.
Works will start on site in the UK and Germany later this year, with major construction to lay subsea cables and build substations starting next year.
Siemens is the contractor for the converter stations and Prysmian will manufacture and install the cable.
The project is a privately-financed interconnection led by investors Meridiam, Allianz Capital Partners and Kansai Electric Power.