NKT Secures Major Contract for Renewable Energy Connection
NKT Secures Major Contract for Renewable Energy Connection
Company Announcement
NKT has entered into a significant agreement with Energinet, establishing a connection between the pioneering Bornholm Energy Island and Zealand. This contract involves a high-voltage direct current (HVDC) power cable system, marking a substantial milestone for both Denmark's and Europe's grid infrastructure.
As the Danish transmission system operator, Energinet has chosen NKT to deliver a 525 kV HVDC power cable system, encompassing both onshore and offshore routes. The comprehensive project, valued at around EUR 650 million, includes design, production, and installation of a power cable system extending 200 kilometers offshore and 16.8 kilometers onshore. Claes Westerlind, President and CEO of NKT, expressed his enthusiasm about this collaboration: "We are delighted and proud to continue our long-term partnership with Energinet on such an innovative project that enhances interconnections between Denmark and Germany. The Bornholm Energy Island is critical for improving energy security and promoting renewable energy exchanges across Europe. With this award, we reaffirm our commitment to developing a sustainable energy infrastructure, showcasing our high-voltage power cable capabilities."
Situated in the Baltic Sea, the Bornholm Energy Island is poised to receive up to 3.8 GW of offshore wind power from future wind farms. The energy generated will be transmitted to both Germany and Denmark through two HVDC offshore interconnector systems. NKT's recent agreement aligns with a previous turnkey contract awarded in 2023, forming part of a broader framework collaboration with German TSO 50Hertz to connect the energy island to the German power grid.
In a strategic move to minimize carbon emissions, the high-voltage cables will be manufactured at NKT's eco-friendly factory located in Karlskrona. This facility operates solely on renewable energy and is conveniently close to the North Sea installation site, thus reducing transportation-related carbon footprints. The offshore cable installation will be conducted using the advanced cabling vessel, NKT Eleonora, which is currently under construction and expected to begin operations in 2027. Once fully operational, NKT Eleonora will stand out as one of the most advanced and fuel-efficient cable-laying vessels available.
This new contract, while ambitious, will not alter NKT's financial outlook for the surrounding years.
Key Facts:
- Customer: Energinet Eltransmission A/S
- Contract Value: Approximately EUR 650 million (market prices)
- Project Specifications:
- Turnkey project for approximately 200 km 525 kV offshore HVDC power cable system
- Manufacturing of approximately 16.8 km 525 kV HVDC onshore power cable system
- Schedule: Project anticipated to be operational by 2032.
Contact Information
For investor inquiries, reach out to Jacob Johansen, Head of Investor Relations, at +45 2169 3591 or jacob.johansen@nkt.com.
For media information, contact Louise Westh Naldal, Head of Group Communications, at +45 2982 0022 or louise.westh.naldal@nkt.com.
Frequently Asked Questions
What is the significance of the Bornholm Energy Island project?
The Bornholm Energy Island aims to bolster energy security by connecting renewable offshore wind energy to the power grids of Denmark and Germany.
What technology is NKT using for this project?
NKT is deploying high-voltage direct current (HVDC) technology, renowned for its efficiency in transmitting energy over long distances.
How does NKT plan to manufacture the power cables?
The power cables will be produced at NKT's renewable energy-powered facility in Karlskrona, which is strategically located near the installation site.
Who is the main client for this project?
The primary client for this contract is Energinet Eltransmission A/S, Denmark's transmission system operator.
What are NKT's future plans for the cable-laying vessel?
The NKT Eleonora, under construction, is planned to be one of the industry's most advanced cable-laying vessels, operational by 2027, minimizing the carbon footprint of installations.
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