NKT Secures Major High-Voltage Projects with TenneT

NKT Secures Major High-Voltage Projects with TenneT

NKT has exciting news to share as it has been awarded two significant turnkey projects in Germany under an existing framework agreement with TenneT. These projects play a crucial role within TenneT’s 2GW Program, one of Europe’s most ambitious energy transition initiatives.

Partnership Strengthened Between NKT and TenneT

As the Dutch-German transmission system operator, TenneT has chosen NKT to provide high-voltage direct current (HVDC) systems at 525 kV. This agreement marks another milestone in the already robust partnership, reinforcing NKT’s prominent position in the high-voltage DC power cable market.

Claes Westerlind, President and CEO of NKT, expressed his enthusiasm about the partnership. He stated, "We are thrilled to once again be selected as a key partner for TenneT’s ambitious 2GW Program. Our collaboration reflects our dedication to advancing the energy transition in Europe, primarily through the efficient transport of wind power from the North Sea to the onshore grid."

Details of the Awarded Projects

The projects awarded are known as LanWin7 and a segment of NordOstLink. Expected to be called off in 2026-2027, these contracts carry a substantial combined value of approximately EUR 1 billion, covering cable design, engineering, production, and installation, both onshore and offshore.

Project Characteristics

With this latest award, NKT has now secured five projects under the framework agreement, which is set to continue until 2028, potentially extending into 2031. This consistent growth underscores NKT's leadership in the global energy market.

Key Specifications of the Projects

Both projects highlight specific characteristics important for infrastructure development:

• Project Scope: The scope covers cable design, engineering, production, and installation on- and offshore.
• Cable Specifications:
  • LanWin7 will feature a route length of 320 km, using a 525 kV XLPE HVDC power cable system designed for both on- and offshore applications.
  • NordOstLink (partial) will have a route length of 65 km, utilizing a 525 kV HVDC power cable system aimed for onshore use.
• Project Overview:
  • The LanWin7 project is pivotal for enhancing offshore grid connection systems, particularly connecting to a multi-terminal hub in Pöschendorf, Schleswig-Holstein, known as NordHub. This facility will integrate several direct current (DC) and alternative current (AC) connections, thereby facilitating the effective transport of wind energy from offshore sites to the mainland.
  • The NordOstLink project is designed to lay additional cables that will boost the overall capacity and flexibility of the grid.
• Timeline: The contracts are anticipated to be activated in 2026-27, with commissioning slated between 2033-34.

Impact on NKT's Financial Outlook

Importantly, the awarding of these projects will not alter the financial outlook for NKT for the upcoming year. The focus remains on leveraging technology and innovation to support Europe's pressing energy needs.

Contact Information for Inquiries

Investors:
Jacob Johansen, Head of Investor Relations
+45 2169 3591 / jacob.johansen@nkt.com

Press:
Louise Westh Naldal, Head of Group Communications
+45 2982 0022 / louise.westh.naldal@nkt.com

Frequently Asked Questions

What are the new projects awarded to NKT?

NKT has been awarded the LanWin7 and NordOstLink projects under a framework agreement with TenneT.

What is the scope of these projects?

The projects cover cable design, engineering, production, and both on- and offshore installation of high-voltage cable systems.

What is the expected value of the contracts?

The combined value of the contracts is approximately EUR 1 billion.

When do the projects expect to be activated?

Contract call-offs are expected to occur in 2026-27.

How does this affect NKT's financial outlook?

The awarding of these projects will not impact NKT's financial outlook for the upcoming year.

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