Tyne Renewable Quay 11.7ha development site is part of the Tyne Clean Energy Park; Source: Port of Tyne
Thanks to an agreement with the Port of Tyne from May 2024 for a limited but extendable period of exclusivity, one of the UK’s foremost deep-sea ports agreed to refrain from entering into third-party transactions to allow time to negotiate agreements for the grant of a long lease relating to the Tyne Renewables Quay site for the development of an HVDC cable factory.
A new step to bring this cable factory to life has been taken with a head of terms, which the port signed with LS Eco Advanced Cables (LSEAC), a joint venture between Global InterConnection Group (GIG) and one of the subsidiaries of LS Group, a Korean cable manufacturer, formed to advance the development of the factory, subject to planning permission.
The option for lease is anticipated to enable the development of the HVDC cable factory, which will be operated by GIG’s joint venture partner and one of the subsidiaries of LS Group. While LS Eco Advanced Cables seeks to develop a cable factory it imagines as the world’s largest high voltage direct current factory, GIG has informed its shareholders that the HVDC cable factory development still has considerable risks to overcome.
The main achievements to date encompass the agreement in principle of a joint venture, the factory site selection, the production of factory design specifications, and the enlistment of strong national and local government support for the project. Further progress is expected before the end of 2024 as LS Eco Advanced Cables intends to secure planning permission by the end of this year, with fully CIGRE-certified production expected in 2027.
“A severe global shortage of high voltage cable is causing a critical bottleneck in the energy transition, with constrained supply paired with rapidly growing demand from the interconnector, offshore wind, and grid upgrade projects that are needed to reach net zero. The new factory will deliver a substantial positive impact both environmentally and socially,” highlighted GIG.
In line with this, LS Eco Advanced Cables plans to help address the electricity supply volatility from a growing dependence on wind and solar; curb the UK’s dependence on fossil fuels for peaking power; enhance energy security and reduce energy prices for UK consumers and businesses alike. The provision of high-voltage cables is expected to deliver dependable zero-carbon energy, since HVDC cables are said to cut electricity transmission losses by at least 15% over even relatively short 150 km cable lengths, compared to AC power cables.
With market analysts claiming that accelerated demand for HVDC cables comes along with a severe shortage in the supply of HVDC cable manufactured to the required high standards, GIG is building an integrated platform to acquire, develop, service, supply, and invest in interconnector cables and wider energy transmission infrastructure projects.
These projects entail three interlocking divisions composed of advanced cables: high voltage direct current cable manufacturing facility; global interconnectors: a diversified portfolio of development, construction, and operation stage interconnectors; and GIG services: commissioning, design, planning, and whole-of-life operational expertise.
The subsea cable factory at the Port of Tyne is not the only HVDC factory South Korea’s LS Group is involved in, as one of its subsidiaries recently confirmed its intention to construct a manufacturing facility for HVDC subsea cables in Virginia, which is anticipated to establish the largest factory of this kind in the United States.
