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LS Cable lands $1.13 billion deal with Germany's TenneT

Published: 07 Dec. 2023, 15:21

SARAH CHEA
[email protected]

LS Cable & System's high-voltage direct current cable plant in Gangwon [LS CABLE & SYSTEM]

LS Cable & System clinched a 1.5 trillion won ($1.13 billion) deal with Germany’s TenneT to supply high-voltage cables.

Under the deal with the Dutch state-run company, LS Cable will supply the high-voltage direct current cables (HVDC) for a grid project linking a wind farm in the North Sea with Germany.

LS Cable wins 2-trillion-won supply deal from the Netherlands

The supply will start in 2026.

The contract comes in part as four European countries — Germany, the Netherlands, Belgium and Denmark — in May agreed to jointly install a capacity of at least 65 gigawatts (GW) of offshore wind energy by 2030.

TenneT, Europe’s leading offshore transmission system operator, is participating in the project to provide around two-thirds of this volume or 40 gigawatts of grid connections.

Of them, LS Cable gained four orders from TenneT worth around 2 trillion won in a consortium with Belgian builders Jan De Nul and Denys.

HVDC is more economical for transmitting large amounts of power point-to-point over long distances. At long distances, the HVDC transmission scheme generally has lower losses than a typical transmission link.

LS Cable recently announced an additional 155.5 billion won investment in its HVDC plant in Gangwon, the largest of its kind in Asia.

"HVDC cable requires massive investment and high technological skills, so very few global firms including LS Cable dominate the market," said a spokesperson for LS Cable & System.

BY SARAH CHEA [[email protected]]