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GE Vernova injects USD 10.2 mn into Xlinks: US-based energy equipment manufacturing and services company GE Vernova has invested USD 10.2 mn in UK-based investment company Xlinks First’s Morocco-UK interconnector project, according to a statement. This investment has contributed to Xlinks First’s latest funding round, which with the new investment has now closed at USD 110 mn, Xlinks First CEO James Humfrey told Bloomberg. With the new investment, GE Verenova has become a minority stakeholder in the project, in efforts to “accelerate [its] delivery and buildout,” the statement added.
Where are the funds going? “Xlinks is still in the development stage and plans to use much of the money it’s raising to conduct detailed surveys along the route where it aims to lay its cable,” Humfrey told Bloomberg.
In good company: GE Vernova has joined France’s TotalEnergies, US’ General Electric, Abu Dhabi’s Taqa, and most recently infrastructure provider and developer Africa Finance Corporation (AFC) in backing the 3.8k km interconnection project linking Morocco with the UK. AFC announced earlier this week that it will invest USD 14.1 mn in the project. The UK’s renewables firm Octopus Energy is also an investor, the statement notes.
Xlinks is also negotiating for government support: The company is looking to access UK government incentives offered to offshore wind farms to help support the project, Humfrey said, adding that Xlinks would have to reach a price between GBP 70-80 per MWh (in 2012 terms) in order to do so — a price higher than in current UK onshore wind and solar projects according to Bloomberg.
About the project: The interconnection project will comprise a 3.8k km high-voltage direct current (HVDC) subsea cable transporting 3.6 GW of renewable energy — nearly 8% of the UK’s current requirements — from a 10.5 GW solar and wind farm in Morocco’s Guelmim-Oued Noun region to Britain’s power grid in Devon. It will also include a 20 MW battery storage system. Xlinks was scheduled to begin construction on its interconnection project last April.
ICYMI- Cost of Xlinks interconnector could reach USD 30 bn: Xlinks recently updated guidance on construction costs and the strike price for the project which will now cost an estimated GBP 22-24 bn (USD 27-30 bn) and meet the required strike price.
