NKT is building the world’s largest factory for high-voltage offshore cables

The electrification of society continues, and the demand for electrical energy is rising in tandem with the green transition. As a result, the demand for high-voltage cables from NKT, a key component in the infrastructure needed for more people to use renewable electricity, is also increasing. “We play a key role in the green transition. What we do is not only unique in Sweden but globally. We connect countries and wind farms, making it possible to transfer renewable electricity from where it is generated to where it is most needed. The demand for our cable systems is currently very high, which is why we are expanding our operations,” says Darren Fennell, Head of NKT Karlskrona.

AT THE START of last year, NKT decided to invest in a new factory to increase its capacity, driven by the high demand for renewable energy, which is where high-voltage cables come into play. These cables are crucial for building the infrastructure to transport energy from where it’s generated to where it needs to be used, such as between countries. This decision involves an investment of approximately EUR 1 billion. By the end of Q2 2024, NKT’s order backlog for high-voltage cables amounted to EUR 11.3 billion. “The investment includes a brand-new factory and a new cable-laying vessel: NKT Eleonora. She will be capable of handling 23,000 tonnes of cable and designed to run on methanol, significantly reducing its climate footprint. We are set to become the world’s largest factory for high-voltage offshore cables, with Sweden’s second-tallest tower at 200 meters,” says Darren.

COMMERCIAL PRODUCTION is set to begin in 2027, making it NKT’s largest facility and the crown jewel in terms of the company’s capacity. The technology here is cutting-edge, and the test laboratories resemble something from NASA. “You could say we do everything from start to finish: research and development, design and project management, production, installation, and service. Right now, we are producing cables for 525,000 volts. Six sets of these cables could essentially transfer the entire energy needs of Sweden,” says Darren.

NKT’S EUR 1 BILLION INVESTMENT will make the Karlskrona factory critical in meeting the high demand and contributing to the electrification of Europe. “Another important aspect is the jobs we are creating in the region—up to 500 new positions. The investment also supports additional jobs with all the subcontractors involved during the construction phase. We are already one of the largest private employers in the region, with around 1,800 employees, and this investment will further strengthen that. It also confirms that Karlskrona is becoming a center for marine technology, not just in Sweden but in Europe and globally. Being part of the green transition and doing what we do here at NKT in Karlskrona is groundbreaking. You can work for an international company with exciting development opportunities, engaging with different cultures and diversity, while also enjoying proximity to nature and the archipelago. It is all about quality of life here,” concludes Darren, who relocated to Karlskrona from Ireland.

Source: Di Blekinge special supplement, September 2024