Siemens Energy has secured a contract worth over €1 billion to deliver four converter stations for the Bornholm Energy Island (BEI) project in the Baltic Sea, as announced by grid operators Energinet and 50Hertz Transmission.

A key component of the €7 billion initiative is the construction of a new transformer substation in northern Germany, which will receive and distribute up to 2 gigawatts of offshore wind power via a high-voltage cable from Bornholm Island. A second cable, rated at 1.2 GW, will connect the hub to Denmark's Zealand island.

The transformer station will play a critical role in stepping down and routing high-voltage electricity to the German grid, forming the onshore anchor point for the transnational transmission system. Combined with Siemens' high-voltage direct current (HVDC) converters, this infrastructure enables efficient long-distance power transfer and grid stability across borders.

The BEI project had faced delays due to disputes over cost-sharing between Denmark and Germany, particularly since the majority of generated power will flow to Germany. The issue was partly resolved through a €645 million subsidy from the European Union to Energinet, and a German government guarantee covering potential outages.

50Hertz CEO Stefan Kapferer emphasized that the transformer and HVDC infrastructure are "critical to launching offshore wind tenders and ensuring cross-border energy reliability."

Siemens Energy's scope includes design, production, transport, installation, and commissioning of the converters, with project completion expected by the mid-2030s.