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| Undersea cables are being loaded onto a ship at the manufacturing plant of LS Cable & System in Donghae, Gangwon Province. Courtesy of LS Cable & System |
By Lee Kyung-min
LS Cable & System, the cable manufacturing affiliate of LS Group, has won a supply order of about 240 billion won ($167 million) in high-voltage, direct current (HVDC) cables for the Norfolk Boreas Offshore Wind Farm in the United Kingdom (U.K.), the firm said Thursday.
This is the largest contract of orders to date won by a Korean cable manufacturer for a project in Europe, defined by the advanced use and development of renewables, an indication of further expansion into North America and Asia. The U.K. plans to make renewables account for over 60 percent of its national power generation.
The firm's prospects are buoyed further by its recent acquisition of a 15.6 percent stake in KT Submarine, a marine solution provider affiliate of KT, a telecommunications service provider. The joint cooperation will help them fortify a competitive edge in the global renewable energy market.
The Boreas wind farm is to be built by the Swedish state-run electric power firm Vattenfall and it will be able to generate 1.3 gigawatts of electricity, upon beginning its operations in 2026.
LS Cable & System will supply 320 kilovolts (kV) of HVDC under the sea via underground cables. The significance of the supply deal is highlighted by the firm becoming the first supplier of HVDC cables, which use cross-linked polyethylene (XLPE) as an insulating material.
XLPE is a hydronic tubing manufactured from polyethylene plastic featuring a 3D molecular bond structure and shape memory characteristics.
"Only a handful of firms have succeeded in developing XLPE cables defined by easy installation, connection, maintenance and repair," an LS Cable & System official said. "The cables are increasingly emerging as a mainstream product in the renewable industries of Europe and North America."
IBK Securities, a local brokerage, said the LS affiliate is making a business move ahead of a surge in demand for undersea cable construction deals.
"LS Cable & System increasing its stake in KT Submarine, a firm specializing in undersea cable construction and maintenance, will fortify its preparedness for the demands of the market in the years to come," it said in a report.
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