NeuConnect will deliver significant carbon savings and play a key role in meeting ‘net zero’ targets says new report
New energy link will see reduction of 16 million tonnes of carbon emissions and improve security of energy supply in UK and Germany
NeuConnect will make “a vital contribution to the UK’s green ambitions” says UK Minister for Investment
NeuConnect will deliver significant carbon benefits an independent new report has shown, with the interconnector between the UK and Germany helping deliver a 16 million tonne reduction in CO2 – the equivalent of planting 28 million new trees or removing 400,000 cars off the road in a year.
NeuConnect is a privately-financed £1.4bn interconnector that will create the first direct link between UK and German electricity networks, connecting two of Europe’s largest energy markets for the first time. Over 700km of subsea cables will form an ‘invisible highway’ to allow 1.4GW of electricity to flow in either direction, helping to deliver a more resilient and sustainable supply in the UK and Germany.
The UK and Germany have set ambitious targets for ‘Net Zero’ carbon emissions by 2050, and the UK Government’s recent Energy White Paper included analysis that underlined the role interconnectors can play in decarbonisation targets. With NeuConnect, the UK will be able to tap into significant renewable energy sources in northern Germany, while in the German market – where wind turbines are frequently powered-down due to excess energy being created – the link will help reduce ‘bottlenecks’ and curtailments by opening up an important new market for surplus renewable energy to be exported to.
To further assess NeuConnect’s contribution to UK, German and European decarbonisation objectives, global advisors FTI CL Consulting were commissioned to carry out a detailed analysis of the project. The headline results of the FTI-CL report (available here) show that NeuConnect will:
- Result in a net reduction in carbon emissions of 16 MtCO2 over 25 years – the equivalent of planting 28 million new trees or removing 400,000 cars off the road in a year
- Play a significant role in enabling Europe to reach its Net Zero targets
- Facilitate greater integration of renewable generation between the UK and Germany while also improving the security of supply in each country
NeuConnect is being developed by an international consortium led by Meridiam together with Allianz Capital Partners on behalf of Allianz Group and Kansai Electric Power, with the project also supported by Greenage Power and Frontier Power.
Gerry Grimstone, UK Government Minister for Investment, said:
“The UK Government has redoubled its efforts on taking sustainable and green opportunities to global investors as we work to meet our Net Zero ambitions and lead the global shift to a clean economy.
“NeuConnect continues to be an important national project, with green investments such as this one making a vital contribution to the UK’s green ambitions as we build back better, and greener, from Covid-19.”
Julia Prescot, partner at Meridiam and Chair of the NeuConnect Board said:
“Investment in green energy is more important than ever, and this new report clearly shows the carbon benefits at the heart of the NeuConnect plans. In an important year on the project, there is a firm commitment to deliver this vital new energy link from all of the investors behind NeuConnect.”
NeuConnect CEO Christophe Vanhove said:
“Supporting ‘net zero’ ambitions are the driving force behind NeuConnect and this new report underlines the huge ‘green’ benefits the project will deliver by significantly reducing carbon emissions. As we target reaching financial close in 2021, this report gives us huge momentum as we head into an important year for the NeuConnect project.”
The delivery of the NeuConnect project continues to make strong progress, with a major procurement programme worth over £1bn well underway, lands secured in the UK and Germany with local planning processes well advanced, 700km of seabed surveys completed, and the project receiving Project of Common Interest (PCI) status placing it on the list of Europe’s priority energy projects.
About Meridiam: Meridiam was founded in 2005 by Thierry Déau, with the belief that the alignment of interests between the public and private sector can provide critical solutions to the collective needs of communities. Meridiam is an independent investment Benefit Corporation under French law and an asset manager. The firm specializes in the development, financing, and long-term management of sustainable public infrastructure in three core sectors: mobility, energy transition and environment, and social infrastructure. With offices in, Addis Ababa, Amman, Dakar, Istanbul, New York, Luxembourg, Paris, Toronto and Vienna, Meridiam currently manages US$8 billion and more than 80 projects and assets to date. Meridiam is certified ISO 9001: 2015, Advanced Sustainability Rating by VigeoEiris and applies a proprietary methodology in relation to ESG and impact based on United Nations’ Sustainable Development Goals (SDGs).