Neuconnect awards over £1.5bn of major contracts as first ever UK-Germany energy link moves and important step closer
Tuesday 12 April 2022
NeuConnect – a vital new energy link between two of Europe’s largest energy markets – today 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.
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 – oneof 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 netreduction 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.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.”