German transmission system operator Amprion has selected Japan’s Sumitomo Electric to produce high-voltage direct current (HVDC) cables for two projects, collectively valued at more than €3bn.
Sumitomo Electric will manufacture the cables in Germany by acquiring a 90% interest in local cable producer Südkabel from the Wilms Group.
The acquisition will conclude in October 2024.
The move will bolster Südkabel's capital by €30m, with Sumitomo Electric further committing to invest €90m to enhance the manufacturer's cable production capabilities.
The HVDC cables will be utilised for the Korridor B V49 project and a segment of the Rhein-Main-Link project.
Spanning 300km and 650km respectively, the two projects are integral to Germany's plan to distribute renewable energy from the North Sea to major consumer regions.
The completion of both projects is targeted for 2033.
The supply contract for the Korridor B project and the preferred supplier agreement for the Rhein-Main-Link project are expected to provide both Amprion and Sumitomo Electric with a decade of planning stability.
The cables, which include the industry's most advanced 525kV HVDC technology, will be produced at Südkabel's facility in Mannheim.
Amprion and Sumitomo Electric are currently collaborating on the A-Nord HVDC project, which involves a 300km connection from Emden to Osterath, near Düsseldorf.
Sumitomo Electric managing director Masaki Shirayama said: “We are delighted to have been selected by Amprion as a cable partner for two major HVDC projects in addition to the A-Nord project currently under execution.
“With the acquisition of Südkabel, we can fully localise our business in Germany to support Amprion and the country’s energy transition. Along with our new submarine cable factory under construction in Scotland, we will further reinforce and expand our high-voltage power cable manufacturing capabilities in Europe.”
Amprion chief technology officer Dr. Hendrik Neumann stated: “The contract and the preferred supplier agreement with Sumitomo Electric are crucial to enabling us to implement the Korridor B49 and Rhein-Main-Link projects on schedule and to our ability to play our part in achieving the nation’s climate goals.
“We are delighted to have found a partner in Sumitomo Electric that is building up extensive production capacities in Germany. This will generate value added in Germany and is also the most sustainable solution for implementing our projects thanks to the short transport routes.”
In April 2024, Sumitomo Electric announced that it is set to establish a new power cable manufacturing facility in Scotland, UK.
The new facility in the Highlands will meet the needs of the offshore wind industry by providing cables for offshore wind farms and grid connections.
