NKT has secured an order for two power cable projects in Germany, awarded by transmission system operator (TSO) Amprion.
Amprion has selected NKT to provide high voltage alternate current (AC) and direct current (DC) onshore power wire systems for the ongoing expansion of the German grid, helping to increase renewables penetration.
With the award of these two specific turnkey projects, NKT will design, manufacture and install the cable systems with voltage levels of 110 kV, 380 kV AC and 525 kV DC.
The schemes have a combined value of €1.2bn increasing NKT’s high voltage order backlog to approximately €12bn.
In support of the continued expectations of a strong high-voltage market outlook, especially in Germany, and the award from Amprion, NKT has decided to invest approximately €100m 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%.
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 two schemes are expected to be commissioned from 2029 to 2031.
NKT president and chief executive Claes Westerlind (pictured) 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.”
Amprion chief technology officer Hendrik Neumann added: “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.”