Leading power and automation technologies supplier ABB Ltd. (ABB - Analyst Report) recently received a $55 million contract from Dudgeon Offshore Wind Limited to supply an underwater power cable system for a wind farm in Norfolk.
The scope of the contract requires ABB to design and provide the wind farm with a couple of 132-kilovolt (kV) three-core submarine AC (alternating current) power cables, each being 42 kilometer (km) long. The cables will connect the offshore substation to the onshore facilities via the village of Weybourne Hope. These cables will transfer 400-megawatt of electricity from the farm to the UK national grid.
These cables, manufactured at ABB’s high-voltage production facility in Karlskrona, Sweden, will be supplied from 2016 onward.
A key component of any renewable energy is its uninterrupted and efficient transportation to consumers. ABB’s technical expertise in this regard along with its extensive portfolio is likely to benefit the project.
The Dudgeon Offshore Wind Farm is expected to offer renewable energy to about 400,000 households in the UK once it gets functional. It is owned by a couple of Norwegian power and energy companies, namely, Statoil ASA (STO - Analyst Report) and Statkraft, holding 70% and 30% stakes, respectively.
Moreover, as the demand for renewable energy sources are on a rise, because of their environmental benefits, ABB is well placed to receive more such opportunities going forward. Europe, alone, is contributing as much as 70% of the total wind energy produced across the globe.
ABB currently carries a Zacks Rank #3 (Hold). However, other better-ranked stocks which are worth considering at the moment are Quanta Services, Inc. (PWR - Analyst Report) and Fluor Corp. (FLR - Analyst Report) , each carrying a Zacks Rank #2 (Buy).