Sep 20, 2019
NKT has entered a Preferred Supplier Agreement (PSA) as main contractor for delivery and installation of high-voltage DC on- and offshore export cable systems to the prospective Dogger Bank offshore Wind Farms Creyke Beck A/B. The project is being developed as a joint venture by Equinor (50%) and SSE (50%).
Dogger Bank Wind Farms Creyke Beck A/B was notified today that it was successful in the UK allocation of Contracts for Difference (CfD), which is a key step towards a final order. Such 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.
The NKT order for Dogger Bank Wind Farms Creyke Beck A/B will comprise the manufacture of approx. 4x175 km of 320 kV DC offshore export power cables and approx. 4x32 km of 320 kV DC onshore export power cables as well as installation by the cable-laying vessel NKT Victoria.
For NKT, the final order will have an estimated contract value of approx. EUR 360m in market prices, equivalent to approx. EUR 300m in standard metal prices. The power cables will be manufactured in Karlskrona, Sweden, with expected production-start in 2020, and installation expected to commence from end-2021.
NKT President and CEO Alexander Kara says: - 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.