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.

The spate of orders for cable-lying vessels (CLVs) has shown no signs of slowing as NKT reported ordering one and Taihan reported buying one.

A press release said that the NKT order, worth between $218 to $270 million, is from NKT HV Cables, a Swedish-based turn-key power cable manufacturer and installation company that is part of NKT. It is to be built by Vard and designed by Salt Ship Design AS, both firms based in Norway. The hull will be built at Vard Tulcea in Romani.

NKT said that the need for the CLV relates to the company’s “record order backlog and the strong market outlook.” The vessel will be constructed in parallel with NKT expanding its site in Karlskrona, Sweden. Both of those initiatives are scheduled to be operational in 2027.

Taihan reported that it has acquired South Korea’s only CLV, a 6,200-ton CLV specialized for submarine cables that is capable of self-propulsion and dynamic positioning. The vessel can load up to 4,400 tons of underwater cables. The addition, it said, will help the company future-proof its business “amid expected shortages of cable ships.”

Taihan notes that it plans to make full use of this vessel first for the Yeonggwang Nakwol Offshore Wind Power Project. “This acquisition positions Taihan competitively in turn-key projects that span from submarine cable production to laying. As there are only a few cable manufacturers with cable-laying capabilities, Taihan is set to lead in the burgeoning offshore wind power industry globally.”

The release said that the increasing demand for submarine cables is likely to cause a shortage of cable layers, leading to higher charter rates for such vessels. “Owning this vessel positions Taihan favorably to undertake projects steadily and tap into new revenue sources.”

NKT confirms that it has a capacity reservation from SSEN Transmission for Scottish power cable projects that it was previously given status as a preferred bidder.

A press release said that NKT has now reserved production and offshore installation capacity for SSEN Transmission for power cables for the two HVDC transmission lines that link Western Isles and Spittal-Peterhead. The projects will strengthen the interconnection of the Scottish transmission grid.

The parties have agreements ensuring production and offshore installation capacity for the 525 kV XLPE high-voltage direct current (HVDC) power cable systems for the two Scottish projects. NKT will be responsible for both on- and off-shore cable systems for the two links. The combined value of the two projects has not been set but is estimated to top €1 billion. Both projects are scheduled for completion in 2030.

“The reservation of production and offshore installation capacity is an important milestone in the great collaboration with SSEN Transmission and our continuous support of the green transition in Scotland,” said NKT President and CEO Claes Westerlind. “The projects are an excellent fit with our decision to expand our high-voltage production capacity in Karlskrona and add a new market leading cable-laying vessel to our fleet.”

The Western Isles and Spittal-Peterhead offshore HVDC transmission links are part of The Pathway to 2030 Holistic Network Design (HND) which is a major upgrade of the electricity transmission network across Great Britain that is required to help meet U.K. and Scottish Governments 2030 renewable energy and climate change targets. The Western Isles cable route calls for some 160 km of 525 kV HVDC cable, to be completed by the end of 2024, and the Spittal-Peterhead cable route calls for some 220 km of 525kV HVDC, to be completed by the end of 2025.

NKT has signed a contract to supply the high-voltage direct current (HVDC) onshore power cable system for the Hertel-New York project, which is the Canadian transmission line in the U.S. that will connect to the Champlain Hudson Power Express (CHPE) transmission line.

A press release said that NKT will design and manufacture a 2 x 60 km 400 kV HVDC onshore cable system that has an estimated value of €90 million. The power cables will be produced in Karlskrona, Sweden, and are expected to be delivered in 2024.

As a part of the overall transmission of sustainable hydropower from Canada to New York City, Hertel-New York will facilitate the onshore power transmission from the Hertel substation in Quebec, Canada, to the submarine section that continues to the U.S. border, where it connects to the CHPE transmission line. Once completed, the transmission line, one of the largest infrastructure investments in the history of New York, will help the state meet its goals of having 70% of power generation and consumption come from renewable energy sources by 2030.

“I am very satisfied that we have been awarded the contract for Hertel-New York which further cements our position as a key partner in ensuring the transmission of renewable power to New York,” said NKT President & CEO Alexander Kara. “This is a key project for NKT, and we are looking forward to close collaboration with Hydro-Québec. We aspire to continue to expand our market presence in Canada and the U.S. where we expect the green transition to create additional growth opportunities.”

TenneT, Netherland’s transmission system operator (TSO), has commissioned NKT, Nexans and a consortium of LS Cable, Jan De Nul and Denys to supply and lay some 7,000 km of power cable for offshore and onshore use that is valued at some €5.5 billion.

A press release said that TenneT, which serves as TSO for the Netherlands, and a significant part of Germany, owns and operates over 25,000 km of H-V lines and cables. It is now expanding that scope through 525 kV direct current cable systems for corresponding grid expansion projects. The company is completing the major tenders for grid connection systems that it started last year with this second framework agreement. These include 14 offshore connections, five of which had already been commissioned by the Dutch at the beginning of
2023, and one direct current project on land. The breakdowns for the orders are as follows.

NKT. The company will be responsible for connections for Nederwiek 3 in Geertruidenberg or Moerdijk, and Doordewind 1 and Doordewind 2, in Eemshaven. The order includes approximately 100 km of onshore cables as well as 300 km offshore cables divided into three onshore and two offshore sections to avoid cable laying in the submarine Capbreton Canyon. NKT will produce the power cables at the high-voltage factory in Karlskrona, Sweden, with expected commissioning of the full project by 2028.

Nexans. The company has received the order for the cable of the offshore projects BalWin3 and LanWin4 to be connected in Wilhelmshaven, as well as that of LanWin2, which leads to the Heide area in Schleswig-Holstein.

LS Cable consortium. The consortium of LS Cable, Jan De Nul, and Denys will be responsible for the other cable systems for the projects in Lower Saxony. These include BalWin4 and LanWin1, both of which are to be connected in the Unterweser area. The portfolio also includes LanWin5, which has its onshore network connection point in the Rastede area. The consortium has also been awarded the contract for the TenneT-side part of the 525 kV onshore DC project NordOstLink in Schleswig-Holstein. NordOstLink is a TenneT partner project with the transmission system operator 50Hertz.

The collective scope of the contracts includes cable design and engineering, production, delivery, project management and subsequent onshore and offshore laying of the 525 kV DC cables. Work will start in 2023, with onshore cable laying after 2025. At sea, cable-laying work is expected to begin in 2026. The offshore projects, each with a transmission capacity of 2 gigawatts, are expected to be operational by 2031 and NordOstLink by 2032.

TenneT COO Tim Meyerjürgens said that the project is an essential step for energy transition. “Together, with this award alone, we will implement around 7,000 km of DC cable for onshore and offshore grid connection systems in Germany and the Netherlands by 2032.” Each 2GW cable system will have a positive and negative conductor, a metallic return conductor and a fiber optic cable.

NKT announced plans to build a new factory, including a third extrusion tower in Karlskrona, Sweden, and a new market-leading power cable vessel.

A press release said that the investments are driven by an increasing demand for high-voltage power cables, strong order intake and a record order backlog of more than €7 billion at the end of Q1 2023. Since March 2023, NKT has confirmed high-voltage contract awards and booking commitments of more than €5 billion. “To deliver on this significant order intake, prepare for the continued strong market outlook and execute the record high order backlog, NKT will invest around €1 billion in its high-voltage power cable business.”

The investments will include a new CLV with record power cable-laying capacity and a significant extension of the Swedish production site in Karlskrona. “Here, NKT will build a new factory including a third 200 m extrusion tower adding end-to-end production capacity next to the existing facility. This will turn the site into the world’s largest high-voltage offshore cable production site.”

Driven by the previous investment program, more than 300 new employees have joined the Karlskrona factory since 2020. Now, NKT expects to welcome more than 500 new employees at the Swedish site towards 2027 following the investments.

Citing the need for more high-voltage cable production and installation capability, NKT President and CEO Claes Westerlind said that the company will continue to grow “in line with our strategic ambitions and to continue developing our turnkey power cable offerings to our customers.”

NKT will invest about €1 billion from 2023 to 2026. The new assets cited above will be operational from 2027. The investment program continues the lead of prior actions. In 2020, NKT initiated an investment program in its high-voltage factories driven by a major backlog of business won for German corridor projects and a positive market outlook. A key part of the program was to add a second extrusion tower to the Swedish factory in Karlskrona which has been completed. Additional investments were announced in 2022 following the continued positive market development.

NKT announced that it will sign a joint venture agreement with Taiwanese cable company, Walsin Lihwa, to provide technical support for the construction of the first subsea power cable factory in Taiwan.

A press release said that the factory will produce high- and medium-voltage AC offshore power cables mainly for the Taiwanese offshore wind market. This is expected to grow rapidly in the next decade to drive the green transition of the country. NKT will own a share of the joint venture and will act as the technical partner.

Aside from establishing a joint venture, the agreement includes a service agreement for building the factory, and another that will license NKT technology to the JV. When the factory is in operation, expectedly in 2027, NKT will generate revenue based on a royalty scheme and dividend from the joint venture. Final constitution of the joint venture is subject to customary regulatory procedures.

The partnership will see the establishment of the Walsin Energy Cable System Co. Ltd. (Walsin) with agreements that will result in the construction and operations of the Kaohsiung Submarine Cable plant. Walsin will own 90% of Walsin Cable, and NKT the remainder. The plant, which will primarily manufacture high-voltage export cables and medium-voltage AC cables to serve the offshore wind power market, is expected to undergo trial runs by the end of 2025, with full production by 2027.

“We expect high growth in the Asian market in the coming decades,” said NKT President and CEO Alexander Kara. “Taiwan is targeting to install additional 15 GW of offshore wind by 2035. The joint venture is ... an opportunity for us to participate in a new, growing market, which is otherwise challenging to serve. It is an important first step for NKT to establish presence in the Asian high- and medium-voltage market and a platform for future growth in the region.”

“Taiwan is blessed with an abundance of wind resources, presenting vast commercial opportunities in offshore wind power and submarine cable,” said Yu-Lon Chiao, chairman of Walsin Lihwa. “Walsin is honored to enter into a win-win partnership with NKT ... to further our clean energy strategy and contribute towards Taiwan’s green energy future”

NKT has signed a contract to supply the high-voltage direct current (HVDC) onshore power cable system for the Hertel-New York project, which is the Canadian transmission line in the U.S. that will connect to the Champlain Hudson Power Express (CHPE) transmission line.

A press release said that NKT will design and manufacture a 2 x 60 km 400 kV HVDC onshore cable system that has an estimated value of €90 million. The power cables will be produced in Karlskrona, Sweden, and are expected to be delivered in 2024.

As a part of the overall transmission of sustainable hydropower from Canada to New York City, Hertel-New York will facilitate the onshore power transmission from the Hertel substation in Quebec, Canada, to the submarine section that continues to the U.S. border, where it connects to the CHPE transmission line. Once completed, the transmission line, one of the largest infrastructure investments in the history of New York, will help the state meet its goals of having 70% of power generation and consumption come from renewable energy sources by 2030.

“I am very satisfied that we have been awarded the contract for Hertel-New York which further cements our position as a key partner in ensuring the transmission of renewable power to New York,” said NKT President & CEO Alexander Kara. “This is a key project for NKT, and we are looking forward to close collaboration with Hydro-Québec. We aspire to continue to expand our market presence in Canada and the U.S. where we expect the green transition to create additional growth opportunities.”