An international alliance of offshore cable companies has revealed plans to create a £923m factory on Tyneside.
海角视频-based Global InterConnection Group (GIG) and a subsidiary of Korean firm LS Group have formed a joint venture - LS Eco Advanced Cables - in a bid to set up a high voltage cable plant at the 11.7 hectare Tyne Renewable Quay site on the south bank of the Tyne. An exclusivity agreement has been reached with the Port of Tyne which will open the door to talks about securing a long lease for the location, which has a deep water berth on the river.
LS Eco Advanced Cables says it is aiming to secure planning permission by the end of the year, with hopes the facility could start production in 2027. The alliance says the plant will feed the growing green energy market, providing high voltage direct current (HVDC) cables for electricity transmission for wind and solar farms.
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In an announcement to investors on the Euronext Amsterdam stock exchange, where Global InterConnection Group is listed, it said it had progressed design specifications for the factory and had enlisted "strong national and local government support for the project". The joint venture needs to raise £923m to fund the factory’s construction with an offer to (GIG) shareholders on a first refusal basis.
Bosses say the demand for HVDC cables will escalate in coming years thanks to growth in the renewables market, electricity consumption more widely, and emphasis on energy security in national and international policy. They cite research from Goldman Sachs which suggests $128bn of investment is needed up to 2030 to service the demand.
Global InterConnection Group is the holding company of Atlantic SuperConnection (ASC)- the business which is developing a 1,794MW, 1,708km interconnector between Iceland and the 海角视频, with a national grid connection near Hull. The cable will bring geothermal and hydroelectric electricity to the 海角视频, and take offshore wind power to the existing Icelandic hydro dams, with pumped storage ‘refuelling’ the dams to create a 1,500 MW ‘clean battery’.
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ASC hopes to raise £1.2bn of equity funding towards the project, with an initial £30m investment being made to bring it to a final investment decision before construction can start. But the business will first need to raise £3.5bn, with indications it has the support of an investment bank.
In a message to shareholders, Global InterConnection Group said: "The new factory will deliver a substantial positive impact both environmentally and socially. LS Eco Advanced Cables intends to secure planning permission by the end of this year, with fully CIGRE-certified production expected in 2027.
"By providing the high-voltage cables to deliver dependable zero carbon energy, LS Eco Advanced Cables will help address the electricity supply volatility from growing dependence on wind and solar; reduce the 海角视频’s dependence on fossil fuels for peaking power; enhance energy security and reduce energy prices for 海角视频 consumers and businesses alike. HVDC cables reduce electricity transmission losses by at least 15% over even relatively short 150km cable lengths, compared to AC power cables."