Billion-Euro Contract for Underground Wind Power Cable Project Approved

Shift to renewable resources - Billion-Euro Contract for Underground Wind Power Cable Project Approved

The growth of Germany's "power highways" continues: Network operator Amprion has reached a deal with Japanese firm Sumitomo Electric for the supply of multi-billion-euro earth cables for two direct current lines. Announced in Dortmund this Thursday, the total contract value is a whopping over three billion euros, according to Amprion. These thick cables will channel wind power from the north to the south.

SüdKabel in Mannheim will be the cable manufacturer, and Sumitomo Electric plans to acquire 90% of SüdKabel's shares from previous owner Wilms. The acquisition is scheduled for September. Sumitomo Electric revealed their plans to invest 90 million euros in expanding the company's production capacities.

With its founding in 1898, SüdKabel has 260 employees who earned a combined 140 million euros in 2023, Sumitomo shared in a statement.

Sumitomo Tapped for 525 kilovolt High-Voltage Cable Supply

Sumitomo Electric will provide 525 kilovolt high-voltage cables for the approximately 260-kilometer-long direct current connection between Wilhelmshaven (Lower Saxony) and Hamm (NRW), set for completion in 2031. This connection falls under the Corridor B project.

Sumitomo's responsibilities don't stop there; they will also be the supplier for part of the so-called Rhine-Main Link, a 500-kilometer-long earth cable direct current line slated for operation in 2033. Contracts for the final cable supply for this project are to be finalized in the next two years.

State Secretary: Power Highways Vital for German Energy Transition

"Power highways are vital for the German energy transition and the transformation of our economy," said Michael Kellner, State Secretary in the Federal Ministry of Economics. By procuring high-voltage direct current cables from a German production facility, Amprion is supporting the economy and fostering strategic and energy policy autonomy. Meanwhile, the representative for Baden-Württemberg at the Federal Government, Rudi Hoogvliet, added, "This major order from Amprion emphasizes that the energy transition is also a key to new, green economic growth in Baden-Württemberg and beyond."

Familiar Face: Amprion and Sumitomo's Long-Standing Partnership

Amprion and Sumitomo have a long-standing relationship – the Japanese company similarly provides a 380-kilovolt cable system for the 300-kilometer-long direct current connection A-Nord, scheduled for operation in 2027. Amprion is one of the four transmission network operators in Germany, in charge of the high-voltage transmission lines that transport electricity over significant distances. There are 866 distribution network operators in Germany for the lower voltage levels, the Federal Network Agency discloses.

Read also:

1. The approval of the billion-euro contract is a significant step in Germany's transition to green electricity, as Amprion will use the cables from Sumitomo Electric for its power highways, transporting wind power from the north to the south.
2. The partnership between Amprion and Sumitomo Electric extends beyond the current project, with Sumitomo also providing a 380-kilovolt cable system for Amprion's A-Nord project, set for operation in 2027.
3. The deal between Amprion and Sumitomo Electric will see the Japanese firm supplying 525 kilovolt high-voltage cables for the Corridor B project, a 260-kilometer-long direct current connection between Wilhelmshaven (Lower Saxony) and Hamm (NRW), with completion expected in 2031.
4. Amprion's selection of a German production facility for the high-voltage direct current cables is in line with the German government's stance, as State Secretary Michael Kellner stated, "Power highways are vital for the German energy transition and the transformation of our economy."
5. The Rhine-Main Link, a 500-kilometer-long earth cable direct current line scheduled for operation in 2033, will also see Sumitomo Electric as a supplier, with contracts for the final cable supply to be finalized in the next two years.
6. In addition to its partnership with Amprion, Sumitomo Electric plans to acquire 90% of SüdKabel's shares from Wilms, investing 90 million euros in expanding the company's production capabilities.
7. Amprion is one of the four transmission network operators in Germany, responsible for the high-voltage transmission lines that transport electricity over significant distances, with 866 distribution network operators in Germany handling lower voltage levels, according to the Federal Network Agency.

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