The British company behind a near £1bn plan to bring a massive cable factory to the banks of the Tyne has come out of a joint venture set up to drive the vision forward.
Global Interconnection Group (GIG) joined forces with South Korean firm LS Cables & Systems last year and announced £923m plans to develop a high voltage direct current (HVDC) cable facility at the Port of Tyne. The proposals have subsequently gone on show to the public, promising 500 jobs and many more to be created in the supply chain.
In an update to investors, the Guernsey-registered group said LS Cables would now take on full responsibility for building and operating the factory. Companies House filings show GIG has also relinquished its minority stake in the LS Eco Advanced Cables joint venture.
GIG now says the factory will build two, 1,708km interconnector cables to link the º£½ÇÊÓƵ with Iceland, for its ambitious Atlantic Superconnection vision which involves bringing volcanic geothermal power from Iceland to the º£½ÇÊÓƵ via a £3.5bn subsea link that will connect to the National Grid near Hull. The group, led by city financier Edi Truell, says the plan can save the country from the type of power blackouts that happened in Spain and Portugal early this year, by balancing intermittent sources of energy such as wind generation with low carbon electricity from the North Atlantic island.
GIG has been explicit that it needs to raise "very substantial funds" to move the Superconnection plans forward. In April, it announced the spinout of the project as a private company, which is said to have led to interest from an unnamed major infrastructure fund looking at subscribing to £1.2bn in equity.
In its update to investors, GIG said: "Our collaborative joint venture has achieved a significant milestone in creating the opportunity for Tyneside to be a global centre of excellence for HVDC cable production, critical to securing the º£½ÇÊÓƵ supply chain for the energy transition. The LS Eco Advanced Cables joint venture has been pivotal in this achievement: identifying a prime factory site; leading discussions at both local and national Government levels; and bringing stakeholders together across planning, construction, and the supply chain.
"The joint effort has laid the foundation for the º£½ÇÊÓƵ HVDC cable supply chain to support major energy infrastructure projects, including GIG’s flagship Atlantic SuperConnection interconnector between Iceland and the º£½ÇÊÓƵ. As the project enters its next phase of development, LS Cables & Systems, with its depth of manufacturing facility expertise, is best placed to take the operational reins. Atlantic SuperConnection’s cable supply contract will serve as the anchor order for this material investment.
"We are proud of what has been accomplished through our collaboration and are excited to continue advancing the HVDC interconnection sector, reinforcing our commitment to sustainable, resilient, and secure energy infrastructure."
A planning application for the cable factory is due to be submitted to South Tyneside Council later this year. The factory complex is likely to include manufacturing space, testing facilities and offices as well as a 202-metre tower where the cables could be stretched and sheathed. It is hoped the factory could be up and running in 2027.
