Massive $1 billion contract propels Siemens Energy into swift operation.
In a significant development, Siemens Energy has secured a major contract worth over 1 billion euros for a power project on the Baltic Sea island of Bornholm. The project, known as the "Bornholm Energy Island" (BEI), aims to transmit offshore wind power from the Baltic Sea to Germany and Denmark.
Siemens Energy will be responsible for delivering four converter stations for the Bornholm Energy Island project. The company will handle the plant design, manufacturing, transport, installation, testing, and commissioning of these converters until around the mid-2030s. This liability guarantee is a crucial requirement for successful tendering of the wind farm areas off Bornholm and for efficient offshore interconnection between North and Baltic Sea coastal states.
The power will be transmitted from Bornholm via submarine cables with a capacity of 2 gigawatts (GW) to a future transformer station at the Greifswalder Bodden. A 1.2-GW line will also connect the interconnector to the Danish island of Zealand. The larger share of the future power produced in the wind farms off Bornholm will be exported to Germany. However, the transmission from Denmark to the German side will have a lower capacity compared to the transmission from Bornholm to Denmark.
The overall project costs around 7 billion euros. The costs have been equally distributed on both the German and Danish sides, leading to renegotiations. No new information about the project costs, timeline, or capacity of the power transmission lines was provided.
Following the announcement, Siemens Energy's share price rose by around 2.75%. Energinet, the Danish transmission system operator, will receive EU funding of approximately 645 million euros to reduce Danish investment costs for the Bornholm Energy Island project.
It's important to note that this news comes after a previous stall in the project. No new information about the submarine cables or the transformer station at the Greifswalder Bodden was mentioned. Additionally, no new information about the renegotiations between the German and Danish sides was provided.
The "Bornholm Energy Island" is an electricity hub aimed at transmitting offshore wind power from the Baltic Sea to Germany and Denmark. The project, once completed, is expected to significantly contribute to the renewable energy goals of both countries.
