NKT wins preferred supplier nomination in UK

Equinor and SSE have nominated NKT as preferred supplier for export cables to two offshore wind farms.
Photo: NKT
Photo: NKT

NKT seems set to win a major cable contract worth DKK 2.7 billion (EUR 360 million).

The UK's latest big Contract for Difference (CfD) auction winners, Scottish utility SSE and Norwegian oil major Equinor, have nominated the Danish cable company as preferred supplier for two Dogger Bank offshore wind projects Creyke A and B, for which SSE and Equinor just secured support from the third CfD round.

"I am excited that our long-term customers of Equinor and SSE have selected NKT as turnkey provider of the cable systems for the Dogger Bank Wind Farms Creyke Beck A/B and recognize us as a high-voltage DC technology partner in the market. In addition, I am pleased to observe the continued European focus on increasing the use of renewable energy sources, which is a trend from which NKT sees good growth opportunities," writes NKT President and Chief Executive Alexander Kara in a statement.

NKT expects that the final firm and unconditional order will have a contract value of approximately EUR 360 million, entailing delivery and installation of high-voltage export cables, both on land and at (sub)sea.

"[The] confirmed order is now conditional upon final contract negotiations and that the project owners provide NKT a notice to proceed. Furthermore, NKT notices that the outcome of the judicial review, which has been lodged against the CfD auction process, is currently unknown," NKT writes in the statement.

The order will include manufacturing of 4x175 kilometers of 320 kV DC offshore export cables, roughly 4x32 kilometers of 320 kV DC onshore export lines as well as installation to be carried out by cable-laying vessel NKT Victoria.

The transmission lines will be produced at NKT's factory in Karlskrona, Sweden, with production set to begin in 2020 with installation projected to commence in late 2021.

English Edit: Daniel Frank Christensen

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