Work starts on £2.4bn NeuConnect Interconnector project between UK and Germany

Led by investors Meridiam, Allianz Capital Partners, Kansai Electric Power and TEPCO, NeuConnect will become one of the world’s largest interconnectors. The project involves the installation of 725km of land and subsea cables that will allow up to 1.4GW of electricity to flow in either direction. This is expected to boost energy security and help to integrate renewable energy sources in both countries.

In a statement, minister for investment, Lord Johnson said: “This £2.4bn project doesn’t just demonstrate continued global investor confidence in the UK, but also the successful work we are doing with our European neighbours to drive investment and deliver vital new infrastructure. The first spade in the ground is a significant milestone on a project of national importance, so I offer my congratulations to NeuConnect and its investors.”

NeuConnect will construct new converter stations on the Isle of Grain in Kent, England and the Wilhelmshaven region in Lower Saxony, northern Germany, connected by subsea cables travelling through British, Dutch and German waters. NeuConnect’s main contractors, Prysmian Group and Siemens Energy, have now started works in the UK with preparatory works also underway in Germany where construction will begin in early 2024. 

NeuConnect is expected to be operational by 2028, helping to deliver over £1.7bn in UK consumer benefits over 25 years and a net reduction in carbon emissions of over 13MtCO2 in the same timeframe.

Miguel Berger, German ambassador to the UK, said: “NeuConnect is a key project to support Germany and the UK in achieving their climate targets and to boost energy security. It is the largest Anglo-German infrastructure project and will enable us to share excess power – preventing renewable energy from being wasted. NeuConnect’s 725km power highway will be the first direct energy link between the UK and Germany. With construction underway in Kent, and major construction due to start early next year in Wilhelmshaven at the German end, speedy progress can be expected.” 

NeuConnect reached Financial Close in July 2022 with a consortium of over 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 Financial Close last year, site surveys and archaeological activities have been carried out, allowing construction work to now begin in the UK.