Cable and optic fibre company Nexans has signalled its confidence in the offshore wind industry, pledging to invest €90 million to support growth in the sector.
The money will be spent on a new 53m tower that will provide insulation for onshore cables at its plant in Belgium, which in turn will produce 3,000mm2 of 525kV HVDC onshore cables to connect three offshore wind products to the German grid.
The three future wind farms – BalWin 3, LanWin 4 and LanWin 2 – in the North Sea will be operated by TenneT, the Dutch transmission system operator that also operates in a large part of Germany, where electricity is destined for.
TenneT has contract Nexans for the grid connections with an initial value of €1.7 billion that will allow the company to connect 6GW with its subsea cables to the German grid.
BalWin 3 and LanWin 4 are due to be commissioned in 2031.
The significantly increased expansion targets for offshore wind energy across Europe and in Germany are leading to a simultaneous increase of demand for capacities of construction companies in the field of HVDC technology, offshore platforms and cable systems. This is causing shortages among manufacturers and resulting in necessary planning changes for the realisation of offshore grid connections.
“The ability to produce land cables up to 525kV is a game-changing capability that will enable us to drive the transition forward for years to come,” said Pascal Radue, EVP of Nexans’ Generation and Transmission Business Group. “We are looking forward to completing this critical upgrade in our infrastructure to keep pace with the ever-increasing electricity demand globally.”
€90 million may sound like a lot, but it’s a drop in the ocean for Nexans, which reported sales of €6.5 billion in 2023.
Keep up to date with the latest industry news Maritime Journal;
https://lnkd.in/e65BPhgZ