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LS Cable & System installs submarine cables at an offshore wind farm off the coast of Rhode Island. (LS Cable & System) |
LS Cable & System said Tuesday that it has signed a deal worth 100 billion won ($72 million) with LS Power Grid California, a transmission network operator in the US.
LS Power Grid California, a subsidy of LS Power -- a New York-based energy and power infrastructure operation and investment company -- will be a key partner in the venture.
With the contract, LS Cable & System will be the first supplier of submarine cables to the western region of the US.
The newly secured deal involves the installation of submarine cables in Northern California’s Sacramento River, and the power transmitted through these cables will flow from Oregon and other upper western regions to California. This is part of a project to stabilize the power grid in the western US, as energy demand grows within the region.
The US submarine cable market is on the cusp of significant growth, driven by the need to replace aging infrastructure, the development of renewable energy and the rising power demand that comes with artificial intelligence and electric vehicles.
The state of California, in particular, plans to invest approximately $61 billion by 2035 to build 26 new transmission networks and over 85 gigawatts of renewable energy.
“We will strengthen our cooperation with our clients in line with California’s large-scale renewable energy transmission network construction plans, expanding our market presence,” an LS Cable & System official said.
In recent years, LS Cable & System has actively expanded its overseas local production capabilities in the US, UK and Vietnam, with its subsidiaries, LS Green Link and LS Eco Energy.
