Irish-Norwegian energy start-up Imera plans to build an €180 million power line between England and Belgium. Barry O'Halloranreports.

The group yesterday lodged an application for a licence to operate an electricity interconnector with British energy regulator Ofgem.

Its chief executive, Rory O'Neill, confirmed yesterday that the application is to build and operate a power link that will connect England and Belgium. The estimated cost of the project is €180 million, according to Mr O'Neill.

The move follows an application to the same agency at the end of last month to build two such interconnectors between France and Britain.

Imera is already working on a the development of two interconnectors that will carry electricity between Ireland and Wales. These will cost €170 million each to build. The group announced before Christmas that it had won regulatory approval for these interconnectors.

Eirgrid, the State agency that operates the Republic's national electricity grid, is building an interconnector that will connect the east coast with Wales.

In theory, interconnectors will boost competition in the Irish electricity market, and help cut the cost of power charged to consumers and businesses.

Imera recently decided to include a fibre-optic broadband cable with a power line that will come ashore at Arklow in Co Wicklow. The first phase of work on that project is under way and it is likely to operating by 2010.

Hutchison, the Hong Kong-based conglomerate that owns mobile network 3, will operate the broadband link.

The interconnector will carry 350 megawatts of power, roughly equivalent to a medium-sized electricity generating plant.

Imera is 30 per cent owned by its Irish-based management and 70 per cent-controlled by Norwegian plc Oceanteam. The Scandinavian company specialises in undersea work such as cable laying.

Mr O'Neill said the merger with the Norwegian operator means it can keep this element in-house.

Its Irish owners and managers deal with the regulatory and planning side of the business.

Mr O'Neill founded Imera a number of years ago with fellow director Grace Samodal. He originally worked with Bord Gáis, but left to found independent gas trading business Vayu, which he subsequently left. Swiss group Glencor now owns Vayu.

Oceanteam works throughout the North Sea and Baltic.