A CLEAN, RENEWABLE ENERGY PARTNERSHIP
Bringing geothermal and hydro-electrical power from Iceland to the UK. Delivering commerce, infrastructure and employment.
- 1 Provide clean energy to UK replacing fossil fuel use
- 2 Provide Iceland with a new source of revenue
- 3 Help address the looming UK energy gap
ATLANTIC SUPERCONNECTION STARTED DEVELOPING OUR PROJECT IN 2012. SINCE THEN ATLANTIC SUPERCONNECTION HAS MADE SIGNIFICANT PROGRESS ON IMPORTANT ASPECTS OF THE PROJECT...
Atlantic SuperConnection is developing a 1,500km subsea High Voltage Direct Current (HVDC) cable to bring 1.2GW of baseload geothermal and hydro-electrical power from Iceland to the UK.
This would provide green power to approximately two million British homes at a price below competing low carbon sources, including new nuclear. This project will also significantly benefit Iceland providing increased grid security as well as significant economic benefits.
In 2008, the Climate Change Act introduced a legally binding target to reduce the UK’s greenhouse gas emissions to at least 80% below 1990 levels by 2050.
The UK Government has agreed, as part of this target, to close all coal plants by 2025. At the same time, around 7.5 GW of nuclear capacity will come to the end of its operating life. New nuclear plants are being developed but will not come on line until after 2025.
Iceland is ideally placed to provide the UK with a proven, cost competitive and reliable baseload supply from operating and underdeveloped hydro and geothermal energy. Iceland currently generates 100% of its electricity from low carbon energy resources for domestic and industrial use, and is estimated to only be producing about one-third of its total potential energy generation capacity.
POLITICAL SUPPORT FOR THE PROJECT
Following Atlantic SuperConnection’s initial development of its project, in 2012, under the stewardship of Charles Hendry as Minister of Energy, the Icelandic Government and UK Government entered into a Memorandum of Understanding “…to explore the possibility of developing an electricity interconnection between Iceland and the UK…”
Between 2012 and 2015, Atlantic SuperConnection continued developing the project. On 28 October 2015 the then UK Prime Minister, David Cameron met with the then Icelandic Prime Minister Sigmunder Davio Gunnlaugsson and they agree to explore further the project. Heads of terms were signed to establish the Iceland Energy Task Force to consider the project. The Task Force issued its Joint Statement in July 2016 which was supportive of the project. Atlantic SuperConnection believes there are benefits to the Task Force continuing and supporting the areas mentioned in the Joint Statement – “further government to government discussions and investigations into regulatory approaches, revised regulatory models and a possible joint cost-benefit analysis to better understand the project economics and assumptions”.
The development of the project is following a typical infrastructure capital investment program as set out below:
2014 to 2016
Deciding on and selecting:
- - Cable route and design
- - Cable supplier options
- - EPC Contractor options
- - Connection options
- - Revenue models
- - Funding models
- - Route and cable design
- - Preferred contractors
- - Revenue model and contracts
- - Connection Agreements
- - Debt & Equity Funding
2018 to 2022
- - Cable manufacture
- - Cable laying
- - Cable connection
- - Project Finance compliance
- - Revenue contracts
- - OPEX
- - New energy supply options
- - Debt Finance
The development of HVDC technology can be traced back as far as the 1880s. However, the modern form of HVDC transmission uses technology developed in Sweden and Germany in the 1930s with the first commercial installations in the Soviet Union and Sweden in the 1950s.
HVDC is only used in point-to-point connections and requires conversion from alternating current (“AC”) to HVDC and back again at each end point via a converter station as all onshore electricity grids are AC based.
The conversion from standard AC to HVDC, and vice versa, is technically the most complicated part of the entire process. Fortunately the converter stations are located on land making them relatively easy to maintain.
ASC is currently in the process of obtaining bids from HVDC cable manufacturers and HVDC converter stations in relation to our Project.
Edmund has over 30 years of financial services experience in private equity and debt markets, including leadership positions in banking, private equity, pensions, insurance and debt investment.
He trained at Bankers Trust Co in New York, following which he was appointed a Director of Hambros Bank in 1991; Chief Executive of Hambro European Ventures in 1994; led the 1998 buyout and formation of Duke Street Capital; and was responsible in 2000 for creating and building Duke Street Capital Debt Management.
Fiona is an international energy expert with over 20 years experience of the international energy markets, including development, structuring, EPCs, international legal and regulatory development and compliance, licensing and financing.
She is recognised as an expert in the development and financing of nuclear projects by the International Atomic Energy Agency (IAEA). She has also worked in the oil and gas industry and other forms of electricity generation, including hydro, solar and coal.
Matt is an expert in Oceanography and has been an advisor for Atlantic SuperConnection since 2013. He led our work on the hydrographic surveying and HVDC power cables.
Matt is currently working toward a PhD on Undersea Cable Route Optimisation. Previously Matt undertook a Masters in Oceanography at the University of Southampton before joining the Royal Navy.