Danish cable manufacturer NKT has been awarded two onshore power cable projects by the German transmission service operator (TSO) Amprion. With this order, NKT further strengthens 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 the Danish firm to provide high-voltage alternate current (AC) and direct current (DC) onshore power cable systems for the ongoing expansion of the German power grid. NKT will design, manufacture and install the high-voltage power cable systems with voltage levels of 110 kilovolts (kV), 380 kilovolts (kV) AC and 525 kilovolts (kV) DC with the award of these two specific turnkey projects.
Specifics of the projects
The Korridor-B V48 is an Onshore corridor project with a route length of approximately 430 km of 525 kilovolts (kV) HVDC power cables.
Whereas the Rheinquerung will have Cable lengths of approximately 120 km of 380 kilovolts (kV) AC and approximately 50 km of 110 kilovolts (kV) AC power cables for extension of the onshore power grid in Germany.
The combined value of the projects
The two turnkey projects are integral to the expansion of Germany’s power grid with a combined value of approximately EUR 1.2billion, NKT continues the positive development from 2023 and increases the high-voltage order backlog to approximately EUR 12billion.
NKT president and CEO Claes Westerlind highlighted the excitement of their continued 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, he added”
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.
Amprion chief technology officer Hendrik Neumann stated that its contracts like these with NKT that are fundamental to driving forward the energy transition. He added that this can fully be achieved only if the necessary resources on the market are procured in time, staying on schedule and on course for project success.
Capacity building
In anticipation of a strong high-voltage market, particularly in Germany, NKT is investing EUR 100million in its Cologne facility to increase capacity.
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 Return on Capital Employed (RoCE) above 20%.
The majority of the 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. Korridor B in particular plays an important role in achieving our climate targets.
About NKT
Founded in 1891 during the second industrial revolution, NKT has pioneered the cable industry in the Nordics. Connecting a greener world with high-quality power cable technology and takeing centre stage as the world moves towards green energy. NKT designs, manufactures and installs low, medium and high voltage power cable solutions enabling sustainable energy transmission. This has been made possible with offices and production sites in more than 16 countries and 4500+ employees.
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