Aker Solutions Secures Major Contract for BalWin 1 Offshore Wind Project in Germany

Aker Solutions Secures Major Contract for BalWin 1 Offshore Wind Project

Aker Solutions ASA, a leading player in the energy sector, has announced a significant milestone in its journey towards renewable energy. The company has finalized a contract with Dragados Offshore, a key player in the construction of offshore structures, to supply the steel substructure for the BalWin 1 offshore wind project in Germany. This project is part of the larger HVDC (High Voltage Direct Current) converter station system that aims to enhance renewable energy transmission capabilities, with a total installed capacity of 2 gigawatts (GW).

The contract encompasses not only the construction for BalWin 1 but also includes an option for the BalWin 2 steel substructure, further indicating the project's ambitious scope. Together, the BalWin 1 and 2 systems are designed to transmit a total of 4 GW of renewable electrical energy, which is anticipated to power a city with a size comparable to Berlin. This development is a significant step towards Germany's wind energy goals and represents Aker Solutions' expanding role in the renewable energy sector.

Sturla Magnus, Executive Vice President for Aker Solutions' New Build segment, expressed pride in the contract award, emphasizing the company's long-standing expertise in executing complex projects. "We are proud that Dragados Offshore has selected Aker Solutions as the contractor for the BalWin 1 steel substructure. With decades of experience, we are equipped to deliver predictable execution of demanding projects, and this contract aligns with our strategy to grow in renewables and low-carbon initiatives," Magnus noted.

The fabrication of these essential HVDC substructures will take place at Aker Solutions' Verdal yard in Norway. At peak construction, the project is expected to create employment for over 500 individuals, showcasing Aker Solutions' commitment to local job creation alongside its environmental goals. The scope of Aker Solutions' involvement includes procurement, method engineering, and the construction of these offshore platforms.

Preparation for procurement and method engineering is set to commence immediately, with construction activities slated to begin in early 2026. The deliveries of the structures are projected for 2028 and 2029. This timeline highlights the rapid pace at which Aker Solutions is moving to meet the increasing demand for renewable energy infrastructure.

The financial implications of this agreement are significant as well. Aker Solutions has indicated that it will register this award, excluding the option value, as part of its order intake for the first quarter of 2025 under the Renewables and Field Development segment. The estimated value of a 'significant' contract, as defined by Aker Solutions, ranges between NOK 1.5 billion to NOK 2.5 billion, reflecting the scale of investment and commitment involved in this project.

In summary, Aker Solutions' contract with Dragados Offshore for the BalWin 1 offshore wind project marks a pivotal moment in the evolution of renewable energy capabilities in Germany. By harnessing offshore wind energy and integrating advanced technology through HVDC systems, this initiative promises to deliver substantial environmental benefits. The project stands as an example of how industry leaders can drive the transition towards a sustainable energy future.

As the world increasingly seeks solutions to combat climate change, initiatives like the BalWin project position Aker Solutions at the forefront of the renewable energy sector, demonstrating its dedication to sustainability and innovation.