The AFC joins the mega-project to transport green energy from Morocco to England
Xlinks, the promoter of a $25 billion investment project to transport clean electricity from Morocco to the UK, is opening up its capital to a new investor. The new investor, Africa Finance Corporation (AFC), joins other global players in the energy market.
Due to be launched in 2021, the Xlinks mega-project has a new shareholder. Investment company Africa Finance Corporation (AFC) is injecting $14.1 million into the project. This investment confirms AFC’s strategy of investing increasingly in large-scale renewable energy infrastructures across Africa. For example, the Lagos, Nigeria-based company recently announced its participation, alongside Canadian company SkyPower, in the construction of a 1,000 MWp photovoltaic solar power plant in the Democratic Republic of Congo (DRC).
The project in which the AFC is involved in Morocco is much bigger. It involves the construction of solar and wind farms with a combined capacity of 11.5 GW in southern Morocco. These infrastructures will be equipped with electricity storage systems, providing 3.6 GW of clean energy. The electricity generated will be transported to the UK via a 4,000 km undersea cable.
In 2021, Xlinks estimated the cost of the project at 25 billion dollars. The London-based company also planned to begin construction of the first phase of its undersea cable in 2027, followed by a second phase from 2029. “The arrival of AFC as an investor is an important step in the development of the project (…). AFC’s mission to promote economic growth and industrial development on the continent is perfectly aligned with the expected outcomes of the Morocco-UK Energy Project,” explains James Humfrey, Xlinks’ Chief Executive Officer.
The AFC joins French hydrocarbon giant TotalEnergies, which has taken a minority stake of $25 million. Investors in the Xlinks mega-project also include Abu Dhabi National Energy Company (Taqa), which has injected $31 million. British company Octopus Energy has also joined the project with a $6 million investment.
