November 19 (Renewables Now) - Danish group NKT A/S (CPH:NKT) and Boskalis Subsea Cables & Flexibles have been selected to deliver the export cable system for the Inch Cape offshore wind project in the UK.
A Pre-Construction Agreement (PCA) has been signed, nominating the NKT-Boskalis consortium as the exclusive supplier and installer for the export cable system, NKT said Monday. The signing of a final order is conditional upon final contract negotiations and the issuance of a notice to proceed. All that would happen in the second half 2020 if Inch Cape is successful in the next contracts for difference (CfD) auction in the UK. The much awaited competitive allocation round is expected to take place in the second quarter of 2019.
Inch Cape Offshore Ltd (ICOL), a unit of Red Rock Power, which is in turn owned by China’s SDIC Power Holdings (SHA:600886), is to install up to 72 turbines in the North Sea, off the east coast of Scotland. For the project, NKT is to manufacture roughly 170 km of 220 kV AC offshore export cables to be installed by Boskalis. The Danish company calculates that the value of the contract would be somewhere between EUR 80 million (USD 91.3m) and EUR 120 million in market prices. Delivery is planned in 2022-2023.
“The current activity level within offshore wind supports our view that the business is picking up again on project awards and realization,” said NKT interim CEO Roland Andersen.
(EUR 1 = USD 1.14)