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Next Geosolutions: Pioneering UXO Mitigation in Europe's Energy Transition

Victor HaleMonday, Apr 14, 2025 6:36 am ET

16min read

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The surge in offshore energy infrastructure projects has thrust specialized services like unexploded ordnance (UXO) detection into the spotlight. Next Geosolutions’ recent €37 million contract wins with Prysmian Spa and TenneT underscore the company’s strategic positioning in this niche market, offering investors a compelling play on Europe’s energy transition. These deals not only validate its technical expertise but also signal a structural shift in demand for risk mitigation in sensitive marine environments.

The Contracts: Scope, Scale, and Strategic Value

The €10 million Prysmian Spa contract for the NeuConnect Interconnector represents a critical step in enabling cross-border renewable energy transmission. By addressing 130 magnetic anomalies in German and Dutch waters, Next Geosolutions is clearing a path for the 1.4 GW subsea cable linking the UK and Germany—a project vital to balancing the EU’s grid. Notably, the contract excludes remediation, leaving room for future revenue if detected ordnance requires removal.

The TenneT deal, however, is a gamechanger. At €27 million, it marks the company’s largest single contract to date, covering UXO surveys in the Doordewind and Nederwijk wind zones. These areas are central to the Netherlands’ 2030 target of 23 GW offshore wind capacity, positioning Next Geosolutions to benefit from Europe’s accelerating wind farm pipeline. Operations in Nederwijk begin immediately, while Doordewind’s multi-year timeline ensures sustained revenue through 2026.

Market Dynamics: UXO as a Growth Catalyst

The EU’s 2023 directive mandating UXO surveys for all offshore energy projects has created a regulatory tailwind. Historical munitions from WWII and Cold War-era conflicts remain a persistent hazard, particularly in the North Sea. A 2024 report by Wood Mackenzie estimates that UXO detection and remediation could add $2–5 billion annually to the cost of offshore wind projects by 2030, with demand concentrated in the Netherlands, Germany, and Denmark.

Next Geosolutions’ early-mover advantage is clear. Its partnership with TenneT—a cornerstone of Europe’s grid modernization—provides access to high-value projects. CEO Giovanni Ranieri’s emphasis on “end-to-end support” suggests the company may expand into remediation services, where profit margins are typically 30–50% higher than detection alone.

Investment Considerations: Risks and Opportunities

While the contracts are a strong near-term catalyst, investors must weigh execution risks. The NeuConnect project’s identification-only scope limits upside unless remediation is confirmed. Additionally, delays in offshore wind permitting or budget cuts could impact TenneT’s follow-on work.

On the upside, the Subsea Expo Award win signals industry recognition of Next Geosolutions’ technical prowess. Its fleet of specialized naval units and partnerships with energy majors like Prysmian and TenneT reduce client concentration risk. With a combined €37 million in contracted revenue (representing ~20% of 2023 annual turnover), the company is well-positioned to scale operations without over-leveraging.

Conclusion: A Strategic Play on Renewable Risk Mitigation

Next Geosolutions’ 2025 contract wins exemplify the convergence of decarbonization and industrial safety. The €37 million in new revenue positions the company to grow earnings by an estimated 15–20% in 2026, assuming stable project timelines. With Europe’s offshore wind pipeline expected to hit 45 GW by 2030, demand for UXO services will remain robust.

The company’s focus on high-margin European markets—where historical UXO density is highest—gives it a defensible niche. Investors should monitor remediation activity stemming from the NeuConnect project and TenneT’s wind zone surveys as key indicators of future growth. As governments and energy firms prioritize safety in their energy transition plans, Next Geosolutions’ expertise is proving indispensable. In a sector where hidden hazards can derail billion-dollar projects, the ability to “see what others can’t” is a valuable competitive edge.

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