NKT will provide high-voltage alternate current (AC) and direct current (DC) onshore power cable systems for the ongoing expansion of the German power grid.
Mar 19, 2024
Leading cable and cable accessories supplier to the energy sector, NKT, has been awarded two onshore power cable projects by the German TSO Amprion.
With the order, NKT further reinforces its position as the leading provider of power cable solutions for the German transition to renewable energy and consequently invests in additional high-voltage capacity at its existing factory in Cologne, Germany.
Amprion, a German transmission system operator (TSO), has selected NKT to provide high-voltage alternate current (AC) and direct current (DC) onshore power cable systems for the ongoing expansion of the German power grid.
The order comprises ±525 kV HVDC cables for project 48 of the direct current project Korridor B. The project, with a route length of around 430 km, provides for an underground cable connection between the Heide West substation in Schleswig-Holstein and Polsum in North Rhine-Westphalia.
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NKT was also commissioned with the cables for the approximately 10-km-long partial underground cabling section of the EnLAG14 line project, the Rhine crossing between Voerde and Rheinberg.
With the award of these two specific turnkey projects, NKT will design, manufacture and install the high-voltage power cable systems with voltage levels of 110 kV, 380 kV AC and 525 kV DC. With a combined value of approximately EUR 1.2 billion, NKT continues the positive development from 2023 and increases the high-voltage order backlog to approximately EUR 12 billion.
NKT President and CEO Claes Westerlind said, “We are excited to continue the long-term collaboration with Amprion in their ambitious development of the power grid supporting the transition to renewable energy.
“With this award, we leverage our local footprint, strong commitment to sustainability and confirm the strength of our high-voltage power cable capabilities. We are also very pleased to continue building upon our strong position in the German market.
“With these project awards, Amprion progresses the extension of its high-voltage transmission grid as a key element in the acceleration of the Energiewende, Germany’s long-term strategy for the transition to renewable energy by 2045,” he added.
Amprion CTO Dr. Hendrik Neumann said, “Contracts like the one with NKT are fundamental to driving forward the energy transition. Only if we can procure the necessary resources on the market in time, we stay on schedule and on course for project success. Korridor B in particular plays an important role in achieving our climate targets.”
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In support of the continued expectations of a strong high-voltage market outlook, especially in Germany, and the award from Amprion adding to an already record-high order backlog, NKT has decided to invest approximately EUR 100 million in additional capacity at its existing factory in Cologne.
The investment will be funded within NKT’s existing capital structure. The added capacity is planned to be gradually operational from 2027 and is expected to support NKT’s medium-term financial ambition of delivering RoCE above 20 percent.
The majority of power cables for the two projects will be manufactured in Cologne, which is operating on renewable electricity and is located close to the installation sites in Germany.
The local footprint will significantly reduce the carbon footprint of the power cable systems, help create and maintain highly qualified German jobs supporting the transition to renewable energy in general and Germany’s leading position within this transition.
A release issued by Ampiron said that by awarding the contract to the Danish company NKT, Amprion has secured cable capacities for the HVDC connection Korridor B as well as an important section of the EnLAG 14 line project. The contracts have a total volume of approx. EUR 1.2 billion and secure important resources for Amprion.
The transition to a climate-neutral energy system in Germany and Europe is the key challenge facing society in the coming years. Amprion is contributing to a climate-friendly, secure and efficient energy system by expanding the grid.
