London Daily

Focus on the big picture.
Sunday, Apr 20, 2025

Clean energy start-up Xlinks wins Abu Dhabi backing for £18bn project

Clean energy start-up Xlinks wins Abu Dhabi backing for £18bn project

Xlinks, which wants to build a 3,800km cable between Morocco and the UK, is close to finalising a funding round that will include commitments from the Middle East and Octopus Energy.

An Abu Dhabi-listed energy company is in advanced talks to provide financial backing to Xlinks, a British-based startup hoping to build the world's longest undersea cable to help meet future UK energy needs.

Sky News has learnt that Taqa, which has operations spanning oil and gas, water and carbon capture and storage, is negotiating the purchase of a significant stake in the prospective £18bn project.

Sources said that an agreement could be struck within weeks as part of development capital fundraising which Xlinks is close to finalising.

In total, the British company is expected to raise more than £30m of new funding in its latest round.

Octopus Energy, the group which has become one of Britain's biggest residential gas and electricity suppliers, is also thought to be participating.

Xlinks wants to construct a 3,800km cable between Morocco and the UK that could transmit enough electricity to power more than seven million British homes.

It would involve a large-scale onshore wind, solar and battery electricity generation site in the north African country supplying power exclusively to the UK energy grid.

The project, which is expected to cost £18bn to fund, received a significant boost last week when it was named by the government as a project of interest in its energy blueprint, Powering Up Britain.

'Vital national interest'

"The UK's energy security is a vital national interest: so too, however, is the urgent need to stick to the government's 2035 net zero electricity system target and avoid short-term thinking that may derail the transition to clean, abundant sources of energy," Simon Morrish, Xlinks chief executive, said last week.

"We welcome the government's determination to work with Xlinks to implement our renewable energy venture.

"This first of its kind Xlinks Morocco-UK Power Project will meet up to 8% of the UK's electricity demand with renewable energy, reducing consumer bills and adding to security of supply in the process."



'Frustratingly slow' talks with Whitehall


The government's support comes five months after Sir Dave Lewis, the former Tesco chief executive, complained of "frustratingly slow" talks with Whitehall about providing support to the project.

Xlinks' ambitious proposals to transport energy from the Sahara to Devon via a subsea cable represents a mammoth engineering assignment.

The development funding will fuel the technical aspects of Xlinks' work, with the ambition of the link running at full capacity by the end of the decade.

The company has assembled an impressive board which also includes Sir Ian Davis, the former Rolls Royce Holdings chairman, as a non-executive director.

It will need to advance plans to secure the billions of pounds of financing required to construct vast facilities in Morocco as well as UK factories that would manufacture the necessary subsea cable.

'One of the most sophisticated British energy projects ever conceived'


Manufacturing sites in Hunterston, Scotland - where a nuclear power plant is being decommissioned - on Teesside and at Port Talbot in Wales have been secured and are under development.

The cable manufacturing operations will be overseen by XLCC, which will have separate funding arrangements from Xlinks.

Xlinks intends to raise a combination of debt and equity to fund one of the most sophisticated British energy projects ever conceived.

The company was founded by Mr Morrish, a former winner of the accountancy firm EY's entrepreneur of the year award.

Xlinks believes its £18bn blueprint will be attractive to investors for a number of reasons, not least because of the scale of the clean energy it would deliver that would make a significant contribution to Britain's transition to net zero emissions.

'Low geopolitical risk'


Sir Dave has previously said that a crucial factor would be Xlinks' low geopolitical risk because of Britain's centuries-old trading relationship with Morocco and the north African country's ambitions of growing the energy sector as a share of its exports.

The company also says it will be able to deliver energy at £48-per-megawatt hour, below the government's own forecasts and therefore generating long-term savings for consumers.

It is also significantly cheaper at that level than the nuclear energy due to be generated by a new fleet of power stations being built in the UK in the coming decades.

Xlinks has not been seeking direct government funding, but is in talks with officials about settling on a predictable price that a Contract for Difference mechanism would provide.

Octopus Energy struck a financial and strategic partnership with Xlinks last year.

An Xlinks spokesman said the company did not comment on "market rumour or speculation".

Newsletter

Related Articles

0:00
0:00
Close
This is Vienna, Austria in 2025.
Boeing Jet Returns to US from China Amid Tariff War
Canadian Federal Election: Candidates' Positions on US-Canada Relations and Donald Trump
Resentencing Hearing for Menendez Brothers Who Killed Their Parents Delayed Amid Legal Disputes
Australian Woman Gives Birth To Stranger's Baby In IVF Mix-up
US Sets Deadline for Russia-Ukraine Peace Deal Brokerage
Italy Introduces 'Sex Rooms' in Prisons for Inmates
California Launches Legal Challenge Against Trump Administration's Tariffs
"Groundless": China Dismisses Zelensky's Claims It's Supplying Arms To Russia
UK Psytrance Festival Cancelled Amid Local Protests Over Noise Concerns
French Far-Right Writer Renaud Camus Denied Entry to UK
UK Police Force Updates Search Policy for Trans Individuals in Custody
Italian Prime Minister Giorgia Meloni Meets with Donald Trump to Discuss EU-US Trade Tensions
Canada's Federal Party Leaders Engage in Final Debate Ahead of General Election
Ukraine and US Sign Outline of Minerals Deal
Fast Food Chain Refuses to Apologize for Online Comment About Katy Perry's Space Voyage
New York Attorney General Letitia James Faces Criminal Referral for Alleged Mortgage Fraud
Mark Cuban admits support for Trump executive order: ‘Gotta be honest’
US Senator Meets with Deported Immigrant in El Salvador Amid Custody Dispute
U.S. State Department Raises El Salvador’s Safety Ranking, Making It Safer Than France and Other European Nations
UK Government Assumes Control of British Steel's Scunthorpe Plant Amid Shutdown Threat
UK MP Wera Hobhouse Denied Entry to Hong Kong During Family Visit
Bangladesh Issues Arrest Warrant for UK MP Tulip Siddiq
China Urges United States to Cancel Tariffs Amid Escalating Trade Tensions
The Empire’s USD Pyramid Scheme Is Working Brilliantly—So Why ‘Fix’ It?
China Raises Tariffs on U.S. Goods to 125% Amid Escalating Trade Dispute
Elon Musk Reports $150 Billion in Projected Government Savings Amid Fraud Investigations
U.S. and Panama Finalize Defense Agreements Amid Canal Access and Chinese Influence Concerns
China Stands Firm Amidst Trade Disputes with the US: A Factual Analysis
U.S. Tariff Escalation Sparks Global Trade Tensions
Helicopter crashes in NYC with four people on board.
Australia Dismisses China's Suggestion to Collaborate Against US Tariffs
EU Postpones Response to US Tariffs
The Trump Administration is contemplating removing Chinese companies from U.S. stock exchanges.
Violent Incidents and Public Safety Concerns Escalate in London and County Durham
UK MP Arrested on Suspicion of Rape and Child Sex Offences
UK Gears Up to Respond to US Tariffs with Industrial Strategies and Trade Initiatives
‘Rocky’ star Dolph Lundgren and his wife Emma Krokdal bask in the Miami sunshine following the actor’s lengthy health struggles.
Spain Encounters Countrywide Protests as Housing Crisis Intensifies
Alisha Lehmann's Modeling Campaign and Public Controversy Stir Debate Ahead of UEFA Women's Euro
U.S. Firms with Major International Revenue Exposure in Light of New Tariffs
President Trump Calls on the Federal Reserve to Reduce Interest Rates in Light of New Tariffs
President Trump Prolongs TikTok Sale Deadline by 75 Days
Global Markets Dive Amid Rising U.S.-China Trade Conflicts
British comedian Russell Brand faces charges of rape and several sexual assaults.
Kanye West Reveals in a New Song That His Wife Bianca Censori Has Departed from Him
Actor Jean-Claude Van Damme Accused of Having Sex with Human Trafficking Victims
Tom Cruise Pays Tribute to Val Kilmer at CinemaCon
Europe Pursues Digital Autonomy Amidst Transatlantic Strains
OpenAI Lands Unprecedented $40 Billion Funding.
×