The development of the project is following a typical infrastructure capital investment program as set out below:

THE SUPERCONNECTION

GLOBALLY RECOGNISED TECHNOLOGY BRINGING CLEAN ENERGY FROM ICELAND TO THE UK

The development of HVDC technology can be traced back as far as the 1880s. Modern 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.

Today, HVDC is only used in point-to-point connections. The technology requires conversion to and from alternating current (“AC”) to HVDC at each end point via a voltage-source converter (VSC) station, as most onshore electricity grids are AC based. The conversion from AC to HVDC, and vice versa, is technically the most complicated part of the entire process.

Fortunately, our VSC stations will be located on land, making them easier to maintain. The type of VSC stations that we will use are well-established and have a smaller footprint and increased weather resistance.

For long distance bulk electrical power transmission, HVDC transmission is a superior technology to AC systems for a number of reasons:

• the efficiency of HVDC is only limited by the design of the cable (both conductor and insulator) and the operating temperature;

• HVDC transmission can achieve very low transmission losses, using generated electrical energy more efficiently and making it very economical;

• for submarine power cables, HVDC avoids the heavy currents required to charge and discharge the cable capacitance each cycle;

• HVDC allows asynchronous AC grids or AC grids with different frequencies to be connected, improving the stability and economy of each grid;

• the power flow through an HVDC cable is fully controllable in either direction and has inherent overload capability that can be actively used for peak supply. This facilitates effective stabilisation of a network against disturbances due to rapid changes in power; and

• HVDC (particularly XLPE) cables are unobtrusive and environmentally friendly.

THE ADVANCED MANUFACTURING FACILITY

ADVANCED MANUFACTURING CAPABILITY FOR THE NORTH EAST OF ENGLAND

The global market for HVDC cabling faces a major capacity challenge. Atlantic SuperConnection is developing a world class manufacturing HVDC cable facility in the North East of England to overcome this obstacle.

The Advanced Manufacturing Facility will be a joint venture with an existing and world leading HVDC subsea cable manufacturer. It will be built in a port in the North East of England. The enormous HVDC cables require direct access to very large ships for transportation and export and Atlantic SuperConnection has been working with the local authorities in the region to deliver the project.

This exciting development would provide:

• significant investment in the North East of England;

• a new and strategically important high-tech manufacturing capability;

• a source of hundreds of jobs and strong economic growth and social benefit for the region; and

• import substitution and export opportunities

Atlantic SuperConnection is currently undertaking an assessment of the ports in the North East of England to find the best potential sites for the facility. Three ports have been shortlisted.