NeuConnect, a new energy link between the UK and Germany, has awarded contracts to the value of approximately £1.5 billion ($2 billion), a key milestone in the progress of the project.
The contract to design, manufacture, install, test and commission the 725km interconnector has been awarded to energy and telecom cable systems company Prysmian Group, and the contract to design and build two converter stations in the UK and Germany has been awarded to Siemens Energy.
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The NeuConnect project is a privately-financed interconnector, led by investors Meridiam, Allianz Capital Partners and Kansai Electric Power and is being delivered with UK and German government support.
Julia Prescot, Chair of the NeuConnect Board and Co-Founder at lead investor Meridiam, said: “The need for more resilient, 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.”
According to the NeuConnect statement, about 725km of land and subsea cables will allow 1.4GW of electricity to flow in either direction between the UK and Germany boosting energy security and resilience.
The project, said to be an important symbolic link between the British and German economies, will also help contribute to decarbonisation goals, reducing emissions by 16MtCO2 over a 25 year period.
NeuConnect is on track to reach financial close in the coming weeks allowing works to start later this year. The project is scheduled to be operational in mid-2020s.
Mark Pilling, Vice President of HV Grids, GB&! at Siemens Energy said: “…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…”
