NKT is awarded a framework agreement with Dutch-German transmission system operator Tennet, and has been tapped as turnkey supplier for the turnkey power cable project, connecting France and Spain.

Additionally, NKT has bagged enough sizable high-voltage projects to mull new investment potentials as well as a potential equity issuance, reads a couple of company press statements.

The framework agreement stipulates that NKT is to supply several high-voltage direct current (HVDC) on- and offshore power cable systems. The award is a multi-year framework agreement with firm commitments on three specific projects.

The Tennet agreement runs to 2028 with a possible extension to 2031 and the contracts apply to offshore wind farms Nederwiek 3 and Doordewind 1 & 2 at a combined 6GW. The contracts are expected to be called off in 2025 and will have a combined value of approx. EUR 1.5 bn.

NKT has also bagged an order from INELFE, a joint venture between Spanish Red Eléctrica and French Réseau Transport d’Électricité.

The order comes at a value of EUR 600m and EUR 550 above standard metal prices, and it includes some 100 kilometers of onshore cables as well as 300 kilometers offshore cables. Full commissioning of the project is slated for 2028.

The cable maker informs that none of the orders prompt changes to 2023 guidance. 

The Tennet order brings NKT’s 2023 high-voltage project awards and firm commitments to EUR 5bn. 

As disclosed in a company announcement from February 22, the company has prepared to expand its production and installation capacity on ”significant” high-voltage project awards. As a result, NKT will roll out investment in additional production capacity and capabilities, including a third extrusion tower on an existing factory in Karlskrona, Sweden.

NKT is mulling the extent of additional installation capacity and capabilities and how it is to be secured going forward.

Lastly, the cable manufacturer has obtained commitments on guarantee capacity from banks and export credit agencies. NKT will as soon a possible, and no later than the end of May, share additional information about size of investment, updated medium-term financial ambitions and a potential equity issuance to support the growth opportunities, the statement reads.