Prysmian & E.ON Partner to Advance Supply Chain Efficiency
Prysmian and E.ON, two major players in the European green energy transition, are actively collaborating to enhance power grid efficiency and sustainability.
This dynamic collaboration focuses on integrating low and medium voltage cables into the German grid, significantly boosting logistics and supply chain operations.
As a part of their strategic framework agreement, the new initiative supports the expansion of wind and solar energy, facilitates the rollout of electric vehicles and heat pumps, and connects battery storage systems and data centres.
Lisbeth Buschkühl, Senior Vice President Supply Chain and Chief Procurement Officer at E.ON, emphasises the critical importance of cables in the supply chain: "Cables are traditionally, and will continue to be, one of the most important technology requirements in the grid. As the playmaker of the energy transition, we set impulses for the sustainable expansion of the infrastructure for the necessary transformation without losing sight of affordability.
"We look forward to developing innovative cable solutions with Prysmian and putting them into practice. This strengthens value creation in Europe and supports the business location."
Impact on supply chain investment
This agreement is a milestone in terms of technological advancement, but also a pivotal shift in procurement and supply chain strategy. With an investment exceeding €6bn (approximately US$6.9bn), the initiative aims to overhaul Germany's power grid infrastructure, aligning with the country's extensive energy transition goals.
Cinzia Farisè, EVP Power Grid Prysmian, says: "We are honoured to be chosen as partners by E.ON in their accelerated efforts towards the upgrade and expansion of their power distribution grid."
The need for over 500,000 km of cables by 2045 represents a significant demand in materials like aluminium, copper and polyethene, driving innovation in logistics and supply chain capabilities.
Technological and material innovation
Such an ambitious plan emphasises the sustainable sourcing and production of materials.
The supply chain will witness an influx of cables stretching around the earth 12.5 times, requiring a renewed commitment to sustainable practices. Advanced production techniques will harness climate-friendly materials, aiming for efficiency within Prysmian’s facilities in Germany, Hungary and Romania.
Prysmian's methodology involves incorporating up to 50% premium recycled polyethene in cable sheaths, significantly cutting carbon emissions. Moreover, it sources 80% of its aluminium from low-carbon production facilities and relies on local renewable energy for manufacturing processes.
Marcello Del Brenna, CEO at Prysmian Europe, highlights the integration of intelligent supply chain infrastructure to accommodate the seamless integration of renewable sources and secure energy supplies: "Power grids are critical for the energy transition and Prysmian is ready to help Europe meet the urgent need to develop intelligent power grid infrastructure in order to accommodate integration of renewable energy sources, installation of heat pumps, residential electricity storage systems and charging stations and grant sustainable secure and affordable energy supplies."
Sustainability and European production advancements
By collectively driving sustainability, Prysmian and E.ON focus on aligning their supply chain logistics with climate-conscious goals.
Their sustainability efforts are powered by European-based production, leveraging Prysmian’s plants for manufacturing efficiencies.
This localisation of production not only fosters a strong European supply chain but also significantly reduces carbon footprints associated with logistics.
The integration of recycled materials and reliance on renewable power sources reflects a long-term commitment to regional and global environmental goals.
Benjamin Ferlay, Europe R&D SVP at Prysmian, says: "This initiative underlines our commitment to a circular economy and drives the transformation towards sustainable infrastructure. Together with E.ON, we are setting standards for environmentally conscious energy solutions."
