German Transmission System Operator (TSO) Amprion has awarded two significant cable projects to Sumitomo Electric, marking a strategic partnership to bolster Germany's power transmission infrastructure and advance its renewable energy objectives.
The two high-voltage direct current (HVDC) cable projects, Korridor B V49 and a segment of the Rhein-Main-Link project, hold a combined project value exceeding €3 billion, representing a substantial investment in Germany's energy transition.
Hendrik Neumann, Chief Technology Officer of Amprion, underscored the importance of the collaboration in realizing Germany's climate goals:
“The contract and the Preferred Supplier Agreement with Sumitomo Electric are crucial to enabling us to implement the Korridor B49 and Rhein-Main-Link projects on schedule and to our ability to play our part in achieving the nation's climate goals. We are delighted to have found a partner in Sumitomo Electric that is building up extensive production capacities in Germany.”
The HVDC cables for these projects will be manufactured at Sudkabel, in which Sumitomo Electric will acquire a majority shareholding, demonstrating a commitment to localizing production and supporting Germany's energy transition efforts.
Masaki Shirayama, Managing Director of Sumitomo Electric, expressed optimism about the partnership and its contribution to Germany's renewable energy goals:
“We are delighted to have been selected by Amprion as a cable partner for two major HVDC projects in addition to the A-Nord project under execution. With the acquisition of Sudkabel, we can fully localize our business in Germany to support Amprion and the country's energy transition.”
The Korridor B V49 project will span approximately 300 km between Wilhelmshaven and Hamm, while a segment of the Rhein-Main-Link project will cover around 650 km. These projects are integral to Germany's critical power transmission infrastructure, facilitating the transport of renewable energy generated in the North Sea to major consumer areas.
The acquisition of Sudkabel by Sumitomo Electric, coupled with investments to increase cable production capacity, underscores a commitment to enhancing local manufacturing capabilities and supporting Germany's renewable energy transition.
The acquisition process is slated for completion by October 1, 2024, pending regulatory approvals, marking a significant milestone in advancing Germany's renewable energy infrastructure.
