German grid firm Amprion has selected Italy's Prysmian as "preferred bidder" for three power transmission cable projects with an aggregate value of 4.5 billion euros ($4.9 billion), the Italian group said on Tuesday.
Under the agreement, the two companies will start negotiating with the aim to sign definitive contacts for the German wind projects by Jan. 15, 2024, the Italian cable maker said in a statement.
Shares in Prysmian were up 4.40% at 36.06 euros as of 0840 GMT after touching an intraday high of 36.12 euros in early trading after the company's announcement.
"This is positive news considering the value of the contracts," Italian broker Equita said.
The three projects - which are dubbed BalWin1, BalWin2 and DC34 - are part of Germany's overall plan to install 70 gigawatt (GW) of offshore wind energy by 2045.
They will support the transmission of energy generated in the North Sea to consumers in the west and south of the country.
"This agreement is a huge step towards realising these three important projects in time," said Hendrik Neumann, chief technical officer of Amprion, which is 25% owned by German energy group RWE.
The deal will allow Amprion to secure the major components needed for its offshore projects by 2030, Neumann added.
($1 = 0.9155 euros)
(Reporting by Francesca Landini and Andrea Mandala; editing by Jason Neely)