NKT announced that it has won an order worth some €2.2 billion for two power cable projects and that it plans to invest in additional high-voltage capacity in Germany.

A press release said that NKT has been awarded two onshore power cable projects by Amprion, a German transmission system operator (TSO). The order calls for NKT to provide high-voltage AC and DC onshore power cable systems for the ongoing expansion of the German power grid. 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 €1.2bn, NKT continues the positive development from 2023 and increases the high-voltage order backlog to approximately €12 billion.

The projects include Korridor-B V48, an onshore corridor project with a route length of approximately 430 km of 525 kV HVDC power cables; and Rheinquerung, which will require approximately 20 km of 380 kV AC and 50 km of 110 kV AC power cables for extension of the onshore power grid in Germany. The two projects, expected to be commissioned from 2029 to 2031, were described as “a key element in the acceleration of the Energiewende, Germany’s long-term strategy for the transition to renewable energy by 2045.”

“Contracts like the one with NKT are fundamental to driving forward the energy transition,” said Amprion CTO Dr. Hendrik Neumann. “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.”

Based on demand, NKT has decided to invest approximately €100 million for additional capacity at its existing factory in Cologne. 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 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.