NKT will deliver 545 km of onshore power cables to transmission system operator Elia Transmission Belgium (ETB) for a major grid upgrade.

A press release said that the order for the cable will strengthen Belgium’s transmission grid, and was received under an existing framework agreement between NKT and ETB., which manages the high-voltage transmission grid that has some 9,000 km of overhead lines and underground cables. The latest order is related to a prior order of 72 km of 380 kV AC onshore power cables recently awarded under the same agreement.

“This is one of the largest orders in the segment 70 kV and 150 kV AC onshore NKT has ever received and shows the importance of the lower high-voltage levels in the transmission grid,” said Lukas Sidler, EVP, HV Solutions Cologne. The cables will be produced at NKT’s Cologne, Germany, and Velke Meziříčí, Czech Republic, factories, with delivery and installation planned from 2025-2027.

In Belgium, electricity consumption is expected to rise by 50% by 2032 while renewable energy sources are adding more power to the system. In 2023, Belgium generated a record-breaking 21.5 TWh (a 23% increase compared with 2022) from wind and solar generation, making up 28% of the country’s electricity mix.

In other news, NKT reported that it is expanding its operations in Alingsås, Sweden, to boost the production capacity of high-voltage accessories. The company is currently constructing a new hall in Alingsås for testing power cable accessories up to 525 kV that is needed to meet what the company described as the growing demand driven by the transition to renewable energy. Besides boosting the production capacity of high-voltage accessories, with the new hall NKT is seeking to enhance its research and development efforts.

“With our new high-voltage test facility, we’re meeting NKT’s strong growth in the global market. This investment in Alingsås enables us to support the renewable transition by supplying complete power cable systems for on- and offshore wind parks and interconnectors,” said John Sjöström, Head of Operations at NKT in Alingsås.

NKT reports that construction has started on the company’s cable extrusion tower in Karlskrona, Sweden, for what it said will be the world’s largest factory for high-voltage offshore power cables.

A July 31st press release said that the slipform casting of concrete had started for the site’s third extrusion tower, which will become the second tallest tower in Sweden. Over the coming months, a truck per hour will supply concrete to the tower, ensuring its rapid ascent to 200 meters to stand as a landmark of NKT’s ongoing investments in production capacity and capabilities. “The beginning of the slip forming is a major milestone in the expansion of the factory in Karlskrona,” said Darren Fennell, executive vice president and head of HV Solutions Karlskrona in NKT. “The ongoing investments ... prepares us for the positive development we expect in the high-voltage power cable market.”

The extrusion tower is crucial in adding insulation to the high-voltage power cables produced at the Swedish facility. The construction of the tower is part of a larger investment program in NKT’s high-voltage power cable business, which also includes a second cable-laying vessel, set to be operational from 2027 alongside the factory expansion. As part of this growth, NKT plans to recruit over 500 new employees by 2027 and is on track with the hiring process in Karlskrona.

NKT has confirmed that it will be a partner for two Scottish power cable projects with SSEN Transmission.

A press release said that last August, NKT had confirmed that it had reserved production and offshore installation capacity for a venture of Scottish transmission system operator (TSO) SSEN Transmission. The company plans to build two high-voltage direct current (HVDC) transmission links running from the Western Isles to the Scottish mainland, and from Spittal in Caithness to Peterhead.

NKT has now signed a framework agreement with SSEN Transmission, and the parties have agreed to proceed with initial work for the two interconnectors issued under the framework agreement. The project will support the decarbonization of the power system in Great Britain.

The limited notice to proceed with the projects reflects the exceptional collaboration with SSEN Transmission on interconnector projects like the Caithness-Moray HVDC Link and the ongoing Shetland HVDC Link, said Darren Fennell, EVP & Head of HV Solutions Karlskrona in NKT.

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. SSEN Transmission plays a central role in executing on the HND, supporting the journey to meet UK and Scottish Governments 2030 renewable energy and climate change targets. The HND sets out a single, integrated grid design that supports the large-scale delivery of electricity generated from offshore wind.

The Western Isles cable route is approximately 160 km of 525 kV HVDC with a transmission link capacity of 1.8 GW. The Spittal-Peterhead cable route is approximately 220 km of 525 kV HVDC with a transmission link capacity of 2.0 GW. Both projects include on- and off-shore route length, and are scheduled for completion in the first half of 2026.

NKT reports that it will deliver 1,300 km of 20 kV cables to distribution system operator (DSO) Tauron to support a stronger, more robust power grid in Poland.

A press release said that with more than 400 employees in Poland, NKT is committed to the country and supporting its power grid upgrade projects. It noted that renewable power is playing an increasingly important role in Poland’s energy mix with a goal of it making up more than 30% of the country’s energy mix by 2030. This will include a significant increase of installed capacity in solar power of approximately 5-7 GW in 2030 and between 10-16 GW by 2040.

The 20 kV power cable will be delivered throughout 2024-2025 to the Tauron Group, which was described as the largest electricity distributor in Poland. The Tauron Group supplies 51.6 TWh of electricity over an area of 57,000 sq km, serving 5.8 million customers in Southern Poland.

NKT plans to invest up to €100 million in additional production capacity and capabilities at its medium-voltage factories in Denmark, Sweden and Czech Republic to meet growing demand from customers for medium-voltage power cables required for grid upgrades and renewable energy projects across Europe.

A press release said that the medium-voltage power cable market has grown steadily in recent years driven by the transition to renewable energy and the continued electrification of societies. Electrical grid operators are in the process of conducting major upgrade projects to keep apace. In response, NKT is investing in additional medium-voltage capacity and capabilities spread across three of its production sites in Asnaes, Denmark; Falun, Sweden; and Velke Meziříčí, Czech Republic. The investments in Falun and Velke Meziříčí have started while the investment in Asnaes is now initiated.

“NKT is well positioned ... to strengthen our position as a key partner to our customers in the green transition of societies,” said NKT EVP Head of Applications Carlos Fernandez. “As more renewable projects come online, a major upgrade of the European power grid is needed. Current medium-voltage production and installation capacity is not sufficient to meet the increasing demand in the market. The investments will support NKTs continued growth journey in line with our strategic ambitions and enable vital grid upgrades and renewables projects across Europe.”

In recent years, the Applications business line has optimized its factory footprint across geographies to increase efficiency and specialization. With this process successfully completed, focus has shifted towards expansion of the medium-voltage sites. The investments will add 20-110 kV production capacity and capabilities and further progress layout optimizations of the factories.

The investments across the three sites will strengthen NKTs market leading position. The new production capacity is anticipated to be progressively operational in 2025 and 2026 and the investments will lead to the additional recruitment of around 150 new colleagues. The investments are expected to support NKT’s medium-term financial ambitions including delivering RoCE above 20%.

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.