Danish cable manufacturer NKT has secured a contract from German transmission system operator (TSO) Amprion to supply high-voltage alternating current (AC) and direct current (DC) onshore power cable systems.
The two turnkey projects are integral to the expansion of Germany's power grid and are valued at €1.2bn.
NKT will design, manufacture and install power cable systems with voltage levels of 110 kilovolts (kV), 380kV AC and 525kV DC.
For the Korridor-B V48 onshore corridor project, the company will supply 430km of 525kV high-voltage direct current (HVDC) power cables.
For the project in Rheinquerung, 120km of 380kV AC cables and 50km of 110kV AC power cables will be supplied to extend onshore power grid capacity.
To be commissioned between 2029 and 2031, these initiatives are pivotal to Germany's Energiewende, the country's transition to renewable energy by 2045.
Amprion chief technology officer Hendrik Neumann stated: “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.”
In anticipation of a strong high-voltage market, particularly in Germany, NKT is investing €100m in its Cologne facility to increase capacity.
The investment will enhance NKT's production capabilities gradually by 2027 and aims to achieve a return on capital employed above 20%.
The Cologne factory, which operates on renewable electricity and is situated near the project sites, will produce most of the cables.
NKT president and CEO Claes Westerlind stated: “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 and 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.”
In August 2023, TSO TenneT selected eight companies, including NKT, for a €1.5bn high-voltage AC cable supply in Germany and the Netherlands.
The selection, which followed a tender process, also includes Brugg Kabel, LS Cable & System, Prysmian Netherlands, Südkabel, Taihan Netherlands, TBEA Shandong Luneng Taishan Cable and TKF BV Twentsche Kabelfabriek.
These companies were chosen based on their ability to meet project timelines and material availability.
