NKT secures framework agreement and record order for five power cable projects supporting the German Energiewende
29 Septembre 2023 - 11:08AM
NKT secures framework agreement and record order for five power
cable projects supporting the German Energiewende
Company Announcement
29 September 2023 Announcement No. 28
NKT secures framework agreement and record order for
five power cable projects supporting the German
Energiewende
NKT has been awarded a combination of five on- and offshore
power cable projects embedded in a long-term framework agreement by
the German TSO 50Hertz. With a combined value of approx. EUR 3.5bn,
the order is a new company record for NKT.
50Hertz, a German transmission system operator, has selected NKT
to provide several 525 kV XLPE high-voltage direct current (HVDC)
on- and offshore power cable systems for the ongoing development of
the German power grid. The award is a multi-year framework
agreement with firm contracts for five specific turnkey projects
enabling the German transition to renewable energy. The five
projects have a combined order value of approx. EUR 3.5bn which
sets a new company record for NKT and increases the high-voltage
order backlog to more than EUR 10bn.
NKT President and CEO Claes Westerlind says: - This is a
historic order and a major milestone for NKT and we are very
excited to continue the collaboration with 50Hertz in their
ambitious development of the 525 kV HVDC transmission grid. We are
looking forward to further strengthening this relationship, where
we are currently executing the cable projects for the two
SuedOstLink transmission lines and the offshore cable link Ostwind
2. With this record award, we confirm the strength and versatility
of our HVDC power cable program, our strong position in the market
and continue to be a key supplier for the German Energiewende.
50Hertz CEO Stefan Kapferer says:- With these contracts, we are
taking a major step towards enabling Germany to achieve the goal of
climate neutrality by 2045. High-capacity power lines – whether
overhead lines, cables on the seabed or underground cables on land
– are the backbone of the energy transition. Their production and
installation require exceptional technological expertise. In NKT,
we have a partner with whom we have already worked on other
projects and who represent 'Made in Europe' quality. We look
forward to the cooperation.
The contracts awarded to NKT under the framework agreement are
for the five projects SuedOstLink+ (SOL+), Ostwind 4, DC32
(NordOstLink+), LanWin 6 and the German part of the Bornholm Energy
Island project, covering approx. 2.500 km of core cables. The five
projects range from offshore wind export cable systems, onshore
energy connections as well as a hybrid interconnector for an
offshore energy island and are expected to be commissioned from
2029 to 2035. Additional HVDC projects can be added under the
framework agreement. In recent years, NKT has invested in
high-voltage capabilities and capacity in Cologne, Germany, and
Karlskrona, Sweden, after growing its order backlog significantly.
In Q2 2023, NKT launched an approx. EUR 1bn investment program in
Karlskrona to support the transition to renewable energy. The award
from 50Hertz is an excellent fit with the decisions made to expand
high-voltage production capacity and add a new market leading
cable-laying vessel to the fleet. NKT will continue to assess the
need for additional investments across both sites.
Increased sustainability focusTo ensure a
strong sustainability profile of the upcoming projects, 50Hertz has
included Environmental Cost Indicators as key selection criteria in
the projects awarded to NKT. Thereby both parties agree to the
highest standards for the environmental focus in the projects and
set a continuous incentive to reduce the carbon footprint of the
power cable systems.
In order to decrease carbon emissions, NKT will produce the
power cables at its high-voltage factories in Cologne and
Karlskrona. Both sites are operating on renewable electricity and
are located close to the installation sites in the North Sea,
Baltic Sea and in Germany thereby reducing the carbon footprint
from transportation. Furthermore, NKT will complete the offshore
cable installation using the cable-laying vessel NKT Victoria,
which is one of the most energy and fuel-efficient in the industry,
and/or the new market leading cable-laying vessel operational from
2027.
With the project awards, 50Hertz continues the ambitious
extension of its high-voltage transmission grid and increased
generation of energy from offshore wind as a key element in the
acceleration of the Energiewende – Germany’s long-term strategy for
the transition to renewable energy by 2050.
The order does not change the 2023 financial outlook for
NKT.
Key facts:
- Customer: 50Hertz
Transmission GmbH and 50Hertz Offshore GmbH
- Combined contract value of five specific
projects: Approx. EUR 3.5bn in market prices (EUR 3.1bn in
std. metal prices).
- Subjects in contracts: None. All contracts are
firm from 29 September 2023.
- Project specifications:
- SuedOstLink+
(SOL+): Northern extension of the onshore German
corridor. SuedOstLink with approx. 440 km of core cables.
- Ostwind 4:
Approx. 345 km of core cables to connect 2GW offshore wind in the
Baltic Sea.
- DC32 (NordOstLink+): Onshore
corridor projects with approx. 375 km of core cables.
- LanWin 6:
Approx. 900 km of core cables to connect 2GW offshore wind in the
North Sea.
- Bornholm Energy Island (German
part): Offshore interconnection of the energy
island to be located close to Danish island Bornholm located in the
Baltic Sea. Approx. 490 km of core cables.
- Cable specifications: In total 2.500 km of
core cables (DC and metallic return).
- Schedule: The five projects are expected to be
commissioned from 2029 to 2035.
ContactInvestor Relations:
Michael Nass
Nielsen, Head of Investor Relations, Tel.: +45 2494
1654Press:
Louise W. Naldal, Head of
Group Communications, Tel: +45 2982 0022
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