NeuConnect Project: A new era of energy security as UK-Germany connection begins
Construction of the NeuConnect project, a £2.4bn/€2.8bn vital energy link between the UK and Germany, has officially started. The project is set to interconnect two of Europe’s most significant energy markets for the first time, spearheaded by global investors including Meridiam, Allianz Capital Partners, Kansai Electric Power, and TEPCO.
The NeuConnect project will position itself as one of the world’s largest interconnectors with 725km of land and subsea cables creating an ‘invisible energy highway’ between the UK and Germany. This infrastructure is designed to support the transfer of up to 1.4GW of electricity in either direction, enhancing energy security and resilience, and facilitating the integration of renewable energy sources in both nations.
The project will construct new converter stations in Kent, England and Lower Saxony, Germany, connected via subsea cables. These cables will pass through British, Dutch, and German waters. NeuConnect’s main contractors, Prysmian Group and Siemens Energy, have begun work in the UK, with preliminary works also starting in Germany. Full construction in Germany is expected to begin in early 2024, and the project should be operational by 2028.
The NeuConnect link will be capable of supporting up to 1.4GW of electricity flow in either direction, enough to power approximately 1.5 million homes over the project’s lifetime. Independent analysis suggests that the project will generate over £1.7bn in UK consumer benefits over 25 years and contribute to a significant reduction in CO2 emissions, thus aiding the attainment of net zero goals.
Furthermore, NeuConnect will also symbolically represent an important infrastructure link between the British and German economies. UK Minister for Investment, Lord Johnson, and the German Ambassador to the UK, Miguel Berger, have expressed their support for the project, acknowledging its potential contribution to energy security and net zero objectives, investment growth, and continued Anglo-German relations.
The project reached financial close in July 2022 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). Since then, a range of site surveys and archaeological activities have been carried out, allowing construction work to commence in the UK.
Current works across the NeuConnect project include onshore drilling in the UK, UK converter station works, offshore surveys, cabling production, and site works in Germany. The construction of the UK converter station will begin next year, while major construction in Germany is set to commence early the next year.