NKT secures framework agreement and record order for five power cable projects supporting the German Energiewende

Company Announcement

29 September 2023
Announcement No. 28

NKT secures framework agreement and record order for five power cable projects supporting the German Energiewende

NKT has been awarded a combination of five on- and offshore power cable projects embedded in a long-term framework agreement by the German TSO 50Hertz. With a combined value of approx. EUR 3.5bn, the order is a new company record for NKT.

50Hertz, a German transmission system operator, has selected NKT to provide several 525 kV XLPE high-voltage direct current (HVDC) on- and offshore power cable systems for the ongoing development of the German power grid. The award is a multi-year framework agreement with firm contracts for five specific turnkey projects enabling the German transition to renewable energy. The five projects have a combined order value of approx. EUR 3.5bn which sets a new company record for NKT and increases the high-voltage order backlog to more than EUR 10bn.

NKT President and CEO Claes Westerlind says:
- This is a historic order and a major milestone for NKT and we are very excited to continue the collaboration with 50Hertz in their ambitious development of the 525 kV HVDC transmission grid. We are looking forward to further strengthening this relationship, where we are currently executing the cable projects for the two SuedOstLink transmission lines and the offshore cable link Ostwind 2. With this record award, we confirm the strength and versatility of our HVDC power cable program, our strong position in the market and continue to be a key supplier for the German Energiewende.

50Hertz CEO Stefan Kapferer says:
- With these contracts, we are taking a major step towards enabling Germany to achieve the goal of climate neutrality by 2045. High-capacity power lines – whether overhead lines, cables on the seabed or underground cables on land – are the backbone of the energy transition. Their production and installation require exceptional technological expertise. In NKT, we have a partner with whom we have already worked on other projects and who represent 'Made in Europe' quality. We look forward to the cooperation.

The contracts awarded to NKT under the framework agreement are for the five projects SuedOstLink+ (SOL+), Ostwind 4, DC32 (NordOstLink+), LanWin 6 and the German part of the Bornholm Energy Island project, covering approx. 2.500 km of core cables. The five projects range from offshore wind export cable systems, onshore energy connections as well as a hybrid interconnector for an offshore energy island and are expected to be commissioned from 2029 to 2035. Additional HVDC projects can be added under the framework agreement.