McDermott and its consortium partner GE have signed an agreement with TenneT for the award of two HDVC contracts in Germany with a EUR 4 billion ($4.3 billion) price tag. The contract would be awarded in April 2023.
It is part of a wider, five-year Framework Cooperation Agreement, under which GER Renewable Energy’s Grid Solutions business secured three High-Voltage Direct Current (HVDC) contracts for a total of approximately EUR 6 billion ($6.5 billion) as part of a specially formed consortium with Sembcorp Marine for TenneT’s 2GW program in the Netherlands. The agreement has an option to be extended for another three years.
The five contracts for the GE consortia are among 11 two-gigawatt (GW) contracts awarded to HVDC suppliers by the Dutch-German Transmission Systems Operator (TSO) as part of its goal to connect 40 GW of offshore wind farms to the high voltage grids in the Netherlands and Germany, GE’s statement reads.
TenneT’s large-scale project resulted from the Esbjerg Declaration in May 2022 at the North Sea Energy Summit, where Germany, the Netherlands, Denmark, and Belgium agreed to jointly install at least 65 GW of offshore wind energy by 2030 - up from 20 GW today - to accelerate Europe’s energy security following recent geopolitical developments. TenneT plans to install 20 GW each in the Dutch and German North Sea, GE reminded.
GE further said that the consortia projects cover the offshore converter platforms and the onshore converter stations for the two-way conversion between alternating and direct current. The converter stations are based on bipolar Voltage-Sourced Converter (VSC) technology – the most advanced HVDC technology – and will have double the capacity compared to previous monopole grid connection systems, resulting in fewer cables and platforms.
“TenneT has the technical know-how, scale, and geographical position to connect wind energy from the North Sea, while GE and its consortium partners have the HVDC expertise. Together, with the GE consortia and other HVDC partners we will accelerate the development of the offshore grid, thereby strengthening Europe’s energy security and putting Europe on track to become the world's first climate-neutral continent by 2050,” Tim Meyerjürgens, TenneT COO, said.
"Together with our consortium partners Sembcorp Marine and McDermott, we are honored and pleased to play a key role in this critical infrastructure project for European energy security and decarbonization. These awards confirm that GE’s Voltage-Sourced Converter HVDC technology is now recognized as one of the most advanced in the world," added Philippe Piron, CEO of GE Grid Solutions.
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