The UK’s Port of Tyne and LS Eco Advanced Cables have entered into negotiations for a long-term lease for a cables factory.
LS Eco Advanced Cables is interested in potential for a high voltage direct current (HVDC) factory on the Tyne Renewables Quay site in north-east England, which would be worth an investment of £923m.
The parties have signed an agreement for a limited but extendable period of exclusivity during which the Port of Tyne has agreed to refrain from entering into third party transactions in order to allow the parties time to negotiate agreements for the grant of a long lease relating to the Tyne Renewables Quay site.
An HVDC cable factory would be subject to planning permission.
LS Eco Advanced Cables is a joint venture between Global InterConnection Group and one of the subsidiaries of LS Group, a South Korean cable manufacturer, formed for the purpose of advancing development of the factory.
LS Eco Advanced Cables intends to secure planning permission by the end of this year, with full 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 UK’s dependence on fossil fuels for peaking power, enhance energy security and reduce energy prices for UK 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.
In other news Global InterConnection Group has appointed Amelia Henning as it new chief executive.
Until March 2024 Henning was a member of the Australian fund manager, QIC’s Global Infrastructure Equity team, based in London.