Tyneside to Host £923m HVDC Cable Factory for Iceland-UK Interconnector
A major new factory is proposed on the River Tyne, UK, where a £923 million high-voltage direct current (HVDC) cable factory is planned to support the landmark Atlantic SuperConnection (ASC) project linking Iceland and the UK. The facility, to be developed by LS Eco Advanced Cables Ltd. (LSEAC)—a joint venture between UK-based Global InterConnection Group (GIG) and a subsidiary of Korea’s LS Group—will manufacture the subsea cables critical to this ambitious interconnector.
Strategic Investment for the Green Energy Revolution
The proposed factory, to be built at the Tyne Renewable Quay site within the Port of Tyne, is designed to produce advanced HVDC cables for undersea electricity transmission. These cables will enable the transport of clean, renewable energy generated from Iceland’s geothermal and hydroelectric resources directly to the UK, and vice versa, with the potential to also export UK offshore wind power back to Iceland for pumped hydro storage. The ASC project, featuring two 1,708km cables and a 1,794MW capacity, is one of the world’s most advanced submarine cable developments and is expected to provide up to 1.8GW of low-carbon, baseload energy to the UK grid.
Economic and Social Impact
The factory is forecast to create 500 direct jobs and an additional 1,000 across the supply chain, with a strong emphasis on engineering and advanced manufacturing roles. LSEAC, in partnership with local authorities and educational institutions, plans to invest in training and skills development to ensure long-term benefits for the North East workforce1. North East Mayor Kim McGuinness hailed the project as “a new industrial icon” for the region, reinforcing the area’s status as a hub for the green energy revolution and advanced manufacturing.
Atlantic SuperConnection Current Status
The project has recently advanced with a spin-out of ASC Energy from Global InterConnection Group in April 2025, a move intended to facilitate fundraising and progress the project toward a Final Investment Decision (FID). Technical feasibility has been confirmed, the full seabed survey mapping is complete, and a crucial connection agreement with the UK National Grid near Hull has been secured
Project Timeline and Industry Support
LSEAC has launched a public consultation running until June 18, 2025, to gather feedback from the local community before submitting a final planning application to South Tyneside Council later this year. The joint venture aims to secure planning permission by year-end, with a target to commence production in 2027. The project has secured an exclusivity agreement with the Port of Tyne, and enjoys strong national and local government backing, as well as support from major investors.
Supply Chain and Market Outlook
Under a framework agreement signed in December 2024, LS Cable & System will be the sole supplier of HVDC cable for the Atlantic SuperConnection, positioning the Tyneside factory as a cornerstone of the project’s supply chain. Industry analysts expect demand for HVDC cables to surge, driven by the rapid expansion of renewables and the need for robust energy interconnections across Europe. Research cited by the joint venture suggests that up to $128 billion in investment will be needed globally for HVDC infrastructure by 2030.
A New Era for UK-Iceland Energy Collaboration
The Atlantic SuperConnection is expected to deliver significant benefits on both sides of the North Atlantic: providing the UK with secure, affordable, and low-carbon energy, while boosting Iceland’s GDP through clean energy exports. With the Tyneside factory at its heart, the project exemplifies the scale and ambition required to meet Europe’s decarbonisation and energy security goals.
