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"Abstract Most baby-boomers have some familiarity with the classical stigma surrounding aluminum conductors in residential and commercial applications: fire hazard. Mention aluminum wiring in a building or residence and, not surprisingly, a lot of folks will react as if the structure in question should be condemned. How did aluminum get this reputation? Was it deserved? Is it still a valid assumption with today's modern aluminum alloys? Many of the historical stigmas associated with aluminum can be attributed to technical design problems of the older alloys that have now been overcome by higher quality materials and/or addressed by aluminum specific design considerations. This paper addresses the aforementioned issues and investigates the current status of aluminum conductor technology as applied to subsea power cables with a specific emphasis on the following: The Element Aluminum; Early History of Aluminum; Historical Stigmas; Technical Advances; Aluminum (Al) versus Copper (Cu); Aluminum Subsea Cable Experience"

Figure 8.2.2.1 illustrates the lengths of subsea cable that may be required year by year. It is based on expected device spacings, farm layouts and likely distances from offshore substaons to shore. The final lengths required will depend on exact site layouts and separaon distances between devices as well as the method of connecon between devices, which could have dedicated connecons to the transformer or be chained together. The chart has the same profile as that of the number of devices installed, but offset as cables are purchased in advance of installaon. Export cables installed as part of a project's inial phase may be specified with sufficient capacity to accommodate later phases as well.

Nexans says it has been awarded one of two contracts to lay a high voltage power cable between Italy and Montenegro. The contract, worth approximately EUR300Mn (US$388Mn), will involve laying 415km of cable of which 393km is subsea cable and 22km of underground cable. When releasing the news, Nexans said that the contract reinforces their position as a leader in the global power interconnections sector.

Wood Mackenzie, a commodities consultancy, said that amongst weak copper consumption in Europe a bright spot is in the demand for wind turbines and the associated subsea cable. The consultancy believes that this sector uses 3.6 tonnes of copper per megawatt of generation capacity and estimates that 22,000t of copper will be consumed in wind turbines in Western Europe in 2012. A European directive for all countries to produce 20% of their energy from renewable sources by 2020 is said to be accelerating growth in green power. Germany are the largest producer of wind turbine sourced electricity, as renewable account for 25% of energy production and wind power is the largest component. Great Britain, the Nordic region and Spain are also expanding their wind power capacity, mainly through offshore wind parks.

It is believed that a cash crunch is reducing orders in the Chinese power sector, which accounts for 60% of the country's copper demand. Analysts predicted strong copper demand in H1 as the country was eager to repair the damages to power networks caused by the heavy snow in the early part of the year. However, repairs have so far mainly been made to aluminium and fibre-optic cables. Cash flow problems at copper rod and wire plants have occurred following the government's tight credit policy and high copper prices. Some 30% of copper wirerod production capacity is being reported idle. The cash shortages have also delayed copper buying from active copper fabricators, further dampening consumption of the metal. China, a net importer of copper, exported 31,000 tonnes of refined copper in April, up 227% year-on-year, with the possibility that the country might have been re-exporting the metal since late February. China's General Administration of Customs reported that 14,000 tonnes were exported to South Korea, six times that from the same period last year. This perhaps confirms that traders were re-exporting copper it has imported to LME-approved warehouses to take advantage of the discount between Shanghai and LME copper prices.

Neans focuses on "priority markets"

In the past few days world leading cablemaker Nexans has announced one acquisition, one new joint venture and one asset disposal. On the 30th May, Nexans acquired Intercond a leading Italian manufacturer of special cables for industrial equipment and subsea applications. The company had sales of €90m and employs 150. "This [€90m] acquisition fits totally in the Group's strategy by increasing the proportion of its business in high value-added special cables", said Gerard Hauser, Chairman and CEO of Nexans. On the 2nd June, Nexans released a press report confirming that it has formed a joint venture to create a wire and cable plant in Qatar, the country's first manufacturing facility. Qatar International Cable Company (QICC) is owned 29% by Nexans with the balance being owned by Special Projects Company and Al Neama Industrial Co. The new plant in the industrial city of Mesaleed, 40km from Doha, and will employ 210 people. By the end of 2009 it will begin manufacturing low and medium voltage cables for buildings and energy infrastructure as well as special cables for the oil and gas industry. This JV will generate sales of $150m per year by 2010 at current copper prices. Finally, Nexans confirmed that it has completed the pre-announced sale of its copper telecom cable plant at Santander in Spain to the British company B3 Cable Solutions for €17m. These three actions continue to refocus the group's strategy on priority market segments.

US speciality brass mill Ansonia Copper and Brass Inc. has announced that it will lay off 85 of the 102 employees at its Liberty Street, Ansonia, factory in Connecticut. The plant manufactures copper alloy rod and wires. Company President Raymond McGee said "it's a very, very difficult situation". He blamed the redundancies, on top of 76 employees laid off in April 2007, on the company's struggle with escalating costs. Since 2002 electricity costs have soared 239%, natural gas 200%, fuel oil 125%, and copper and nickel 500% apiece. Ansonia's other facility in Waterbury, CT, which manufacturers copper alloy tube is unaffected by the announcement.

Further evidence of the impact of the North American economic slowdown on copper demand has recently been published by the ABMS and government statistical bodies. North American copper wirerod production plummeted 9.6% year-on-year to 174,000 tonnes in April. Output had been on a downward trend but the magnitude of the deterioration in April has still come as something of a surprise. A year-on-year increase of 2.0% in North American output January had been followed a 1.0% fall in February and a 2.7% drop in March. In April Canadian output was flat year-on-year due to improving export sales to the US, while US production fell 9.8% year-on-year and Mexican shipments slumped by 17.5%. On a year-to-date basis North American wirerod production was 2.9% lower in the four months to April 2008. Weakening demand from the automotive industry, coupled with a resurgance in copper prices and the return of Russian wirerod imports has clearly led to a deteriorating market situation for domestic mills.

Mueller Industries second quarter results highlight the tough times that the US brass mill industry is facing, but that companies can still operate profitably in a challenging market environment. The company's plumbing and refrigeration segment saw sales fall 11% to US$404m, while its operating profits dropped 32% to US$35m. The company blamed lower shipment volumes and lower spreads for the weaker performance. Sales at the company's OEM division, which includes its brass rod activities, rose 10% year-on-year to US$354m, while its operating profits rose 5% to US$19m. The improvement here is due to acquisition of Extruded Metals. Commenting on the results Harvey Karp, Chairman of Mueller Industries said "Mueller's earnings for the first half of 2008 were achieved despite the continuing decline in the housing industry, the sub-prime mortgage meltdown, the turbulence in the financial markets, rising metal costs, sky-high energy prices and a slowing national economy. Considering these adverse circumstances, we are pleased with the results."

Prysmian announced that it has been awarded a project worth more than €250ml by the Dutch-German grid operator TenneT in order to link the offshore wind park DanTysk in the North Sea to the German Grid. Prysmian said that the interconnection comprises of HVDC subsea and land cable types at a voltage of 320 kV DC along a 159 km sea route and then a 45 km land route. The cables and accessories will be manufactured from 2012 onwards at Prysmian's HV factories in Europe.

A joint venture between Statnett and National Grid, the Norwegian and U.K. grid operators respectively, plans to lay 800km of 1,400MW cable between Norway and the U.K. between 2017 and 2020. This follows last year's announcement, outlining Statnett's intention to build four new cable connections to continental Europe with a total capacity of 4,200MW. The company expects to invest between US$2.2b and US$2.4b on cable projects until 2020.

At this year's BHGE annual event, Energy Forward: What The Future Demands, in Florence, Italy, BHGE vice president and CTO John Kerr sat down with us to explain how the company's approach works, and why this is important for a changing industry.