LS Cable & System wins $100 mn submarine cable deal in Taiwan

2019.07.12 14:32:31

[Photo by LS Cable & Systems Ltd.]이미지 확대

[Photo by LS Cable & Systems Ltd.]

South Korea’s leading cable maker LS Cable & Systems Ltd. (LS C&S) has bagged an 89 million euro ($100 million) submarine cable deal from Orsted Taiwan, the local unit of Denmark’s state-run renewable energy company Orsted that is building offshore wind farms in Taiwan.

Under the contract, LS C&S will supply its submarine power cables to Orsted Taiwan’s offshore wind farm in Changhua County in western Taiwan until 2022, the company said Friday.

The achievement is the second after a similar deal in January this year, raising hopes for more wins.

The Taiwanese government is planning to invest $23 billion in total until 2025 to generate 20 percent of the country’s electricity from renewable energy sources.

[Photo by LS Cable & Systems Ltd.]이미지 확대

[Photo by LS Cable & Systems Ltd.]

Under the plan, nearly ten wind farms with a combined annual capacity of 5.5-gigawatt are now under construction to raise the ratio from current 5 percent. The grid in Changhua County would be the biggest with annual capacity of 900-megawatt, equivalent to the output of a nuclear power plant unit.

LS C&S started the submarine cable business in 2009 and has become a global name with technical prowess in just 10 years. It expects a stable revenue growth with orders for submarine power cables, in line with the steady rise in demand for offshore wind farms in Europe and Asia.

LS C&S and Orsted have maintained a close relationship on various projects including the world’s largest Hornsea Wind Farm project. Orsted, formerly DONG Energy, is the largest energy company in Denmark, 51 percent of which is held by the Danish government. With a focus on the renewable energy business recently, the company generated 13.5 trillion won ($11.47 billion) in revenue in 2018.

By Kang Gye-man and Lee Ha-yeon

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