Power cable supplier NKT has been selected as the preferred turnkey supplier for a high-voltage offshore wind farm project in Europe, the company said Monday, without sharing the identity of the client.
As the main contractor, NKT will deliver and install high-voltage DC on- and offshore export cable systems to an unnamed European offshore wind farm.
The company has two HV power cable production facilities in Northern Europe: Cologne, Germany, and Karlskrona, Sweden.
The potential order for NKT will comprise the manufacture and delivery of more than 500 km total production length of 320 kV DC offshore export power cables, accessories as well as installation by the cable-laying vessel NKT Victoria.
For NKT, the order is expected to have an estimated contract value of above EUR 250m (approx. DKK 1,865m) in market prices, equivalent to approx. EUR 200m (approx. DKK 1,490m) in standard metal prices.
A firm order is conditional upon final contract negotiations and that the project owners provide NKT a notice to proceed, the company said.
NKT President and CEO Alexander Kara says: "This Preferred Supplier Agreement for another turnkey high-voltage DC offshore windfarm proves that the European move towards renewable energy has momentum and that NKT is a key contributor in this transformation.
"We expect the offshore wind segment to increase further in the years ahead, and with our proven technology, strong focus on sustainability in the entire value chain and proven track record we are well-positioned to take active part in that growth potential.
The European Union last week said it planned to transform its electricity system to rely mostly on renewables within a decade and increase its offshore wind energy capacity 25-fold by 2050.
Renewable sources like wind and solar provide roughly a third of EU electricity today, but the EU says that share will need to expand to about two-thirds by 2030 to put the bloc on track for its plan to become climate neutral by 2050.
The European Commission said in its offshore renewable energy plan that the EU's climate change targets required 60 gigawatts (GW) of offshore wind by 2030 and 300GW by 2050.
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