NKT bags EUR-235m order for Shetland link in Scotland

Danish group NKT A/S (CPH:NKT) today said it has won a EUR-235-million (USD 268m) contract to manufacture and install the cables for the 600-MW electricity transmission link between the Scottish mainland and the island of Shetland.

Just yesterday, UK energy market regulator Ofgem announced a decision to approve the project, proposed by SSE plc (LON:SSE) unit Scottish Hydro Electric Transmission. It is conditional upon the realisation of the 443-MW Viking onshore wind project in Shetland by another SSE subsidiary -- SSE Renewables.

NKT will manufacture in Karlskrona, Sweden the 320 kV high-voltage direct current (HVDC) on- and offshore power cables for the subsea link. It will install them using the cable-laying vessel NKT Victoria. Production is expected to commence in 2021, while commissioning is planned for 2024. NKT will also be responsible for the protection of the cables.

The company calculates that the contract value in standard metal prices is around EUR 230 million. The award will have no impact on its 2020 financial outlook.

NKT and SSEN Transmission have previously partnered in the Caithness-Moray Link, connecting Eastern and Northern Scotland.

(EUR 1 = USD 1.14)

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