April 26, 2023
TAQA to invest GBP25 million (AED113 million) and Octopus GBP5 million (AED22 million) into Xlinks development phase.
Upon completion by 2030, the project will supply 8% of the UK’s electricity needs from renewable sources in Morocco.
Xlinks First Limited has reached a critical early milestone with the successful closing of its new development funding round raising GBP30 million. The investment comes after securing GBP25 million (AED113 million) of investment from Abu Dhabi National Energy Company PJSC (TAQA), one of the largest listed integrated utility companies in the Middle East and North Africa region and GBP5 million (AED22 million) from global energy technology business, Octopus Energy Group.
With their investment, TAQA and Octopus are validating Xlinks’ plans to lay the world’s longest high-voltage direct current (HVDC) subsea cables between the UK and Morocco, passing Portugal, Spain and France as part of the Morocco – UK Power Project. It is a first-of-a-kind long-distance renewable energy generation and cross-border export project being planned globally, addressing the growing demand for firm power capacity.
Xlinks will supply the UK with 3.6GW of renewable energy-sourced electricity amounting to nearly 8% of the nation’s current requirements and enough to power seven million British homes by the end of the decade. The UK’s Department for Energy Security and Net Zero has established a dedicated team to work with Xlinks to consider the merits of the project and understand how it could contribute to the UK’s energy security.
The electricity will be generated in the Guelmim Oued Noun region of Morocco by a 10.5GW facility of solar and wind farms, supported by 20GWh/5GW of battery storage. The facility will be connected to the UK power grid in Devon, South West England, via four 3,800km subsea HVDC cables, which will be manufactured in the UK. This project will rely on the Moroccan renewable energy expertise whilst supporting its leading role globally in the fight against climate change and providing further value to its natural resources and reinforcing its renewable energy export strategy. The project will create around 10,000 jobs in Morocco during construction and lead to significant foreign direct investments in the country.
Simon Morrish, CEO of Xlinks, said: “Xlinks’ ambition is to supply British households with secure, affordable, and green energy all year round. With this investment and support from our partners TAQA and Octopus, along with the support received from both the UK and Moroccan Governments, we take another step toward achieving that ambition. The huge potential of the Morocco – UK Power Project will help the UK accelerate its transition to clean sources of power, increase energy security and reduce consumer bills.”
Jasim Husain Thabet, TAQA’s Group Chief Executive Officer and Managing Director, commented: “As a champion of low carbon power and water, TAQA’s investment in the Xlinks project shows that we are serious about helping reduce emissions whilst maintaining the security of energy supply that societies depend on. We are already working on a large scale HVDC subsea project in Abu Dhabi, and we own and operate one of the world’s largest solar PV plants. This investment offers the chance to bring both our infrastructure and renewable power expertise to the table to benefit the UK and Morocco.”
Greg Jackson, CEO and founder of Octopus Energy Group, said: “This partnership between Xlinks, TAQA and Octopus enables us to drive forward one of the most visionary energy projects in the world. When people ask ‘how will you power heat pumps and electric cars when it’s not windy?’- this is a big part of the answer. This is a new global industry, and the UK and our partners can do it first, helping cement Britain as a leader in the transition to low-cost renewable energy – bringing down bills, powering industry and creating green jobs both in the UK and Morocco.”