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09 Apr 2025

NKT’s Power Cable Factory Expansion Named EU’s First Net-Zero Strategic Project

09 Apr 2025  by offshore energy   
NKT, a Danish company specializing in power cables and installation, has achieved a milestone with its factory expansion in Karlskrona, Sweden. The project has been designated as the first European net-zero strategic initiative under the EU Net-Zero Industry Act. This status grants it national priority in Sweden, ensuring faster administrative processes and permits. The recognition highlights the project’s importance for energy security, grid stability, and the competitiveness of Europe’s sustainable energy sector.

In May 2023, NKT announced plans to invest in the Karlskrona site, driven by a record order backlog and a promising market outlook. The expansion includes a new high-voltage factory and a cable-laying vessel (CLV), both slated to begin operations in 2027. The upgraded facility will operate on 100% renewable electricity, supported by two new distribution stations, aligning with the company’s commitment to sustainability. Construction progress has been steady, with the third cable extrusion tower reaching its full height of 200 meters in November 2024, making it the second-tallest structure in the Nordic region. Just five days ago, reports confirmed the roof was installed on the tower.

The expanded factory is set to strengthen Europe’s energy infrastructure by producing high-voltage submarine power cables, essential for offshore wind projects and grid enhancements. NKT views this development as a key contributor to regional energy goals. Claes Westerlind, CEO of NKT, expressed pride in the achievement: “We are very proud to achieve this status as the first in Europe for our high-voltage factory in Karlskrona. This is a testimony of our investments and innovations to meet the high demand for power cables and a recognition of the strong ecosystem of offshore and power grid technology in Blekinge and Sweden. We look forward to the cooperation with the Swedish government in realizing the net-zero strategic project.”

This initiative reflects NKT’s response to growing demand for renewable energy solutions. The Karlskrona expansion, combined with the new vessel, positions the company to play a leading role in Europe’s transition to cleaner energy systems. By 2027, when the new assets are operational, they are expected to bolster the region’s capacity to deliver sustainable power, supporting both local and European objectives for a resilient and eco-friendly energy future.

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