Xlink’s project connecting the UK and Morocco with a power line has reportedly received backing from Abu Dhabi-based energy company Taqa.
According to reports by Sky News, the energy company, which has ties to oil and gas, water and carbon capture and storage, is looking to acquire a “significant stake” in the £18 billion project.
The project, which had been announced in September 2021, is set to utilise wind and solar technology in Morocco to provide the UK a total capacity of 10.5GW, with a capability of exporting 3.6GW of renewable energy.
This is equivalent to an average of 20 hours today and could be enough to power around 8% of the UK’s electricity requirements.
The electricity generated will be transported from a site in Morocco’s Geulmim Oued Noun region to the UK via four 3,800km HVDC subsea cables which, Xlinks has said, will be the longest of their kind.
Taqa would invest in the project via a development capital fundraising which Xlinks is reportedly close to finalising. Octopus Energy is also rumoured to be participating in the capital fundraise having previously entered into a financial and strategic partnership with the Xlinks in May 2022. At the time, Octopus said further investments were under discussion.
Current± reached out to both Octopus and Xlinks on the investment rumours but both stated “we do not comment on market rumour or speculation”. Current± also reached out to Taqa however received no response at the time of publication.
Xlink has previously highlighted a number of benefits that should arise once the project becomes operational by the end of this decade. These include using the Contracts for Difference scheme (CfD) to make the project a source of revenue delivering energy at £48/MWh and providing about 1,350 new UK green jobs by 2024.
In 2021, Current± caught up with Xlinks’ CEO Simon Morrish to discuss how the project is an “overwhelmingly compelling solution” to the UK’s need for baseload power.
