Strategic Infrastructure Contracts in the Offshore Wind Sector: Deme's Role in RWE's German JV

The global transition to renewable energy has positioned offshore wind as a cornerstone of decarbonization strategies, particularly in Europe. For investors, the interplay between long-term infrastructure contracts and policy-driven market expansion offers compelling opportunities. One such case is DEME Group's recent €50–150 million contract to install inter-array cables for RWE's Nordseecluster B offshore wind farm in Germany. This project, part of a joint venture between RWE (51%) and Norges Bank Investment Management (49%), underscores DEME's strategic positioning in a sector poised for sustained growth.

Project Scope and Strategic Value

Nordseecluster B, the second phase of a larger 1.6 GW project, will connect 60 turbine foundations to an offshore substation via 124 kilometers of inter-array cables, with work scheduled to begin in late 2027. DEME's involvement leverages its expertise in subsea power infrastructure, a market where the company has established leadership in Europe. The contract's value range reflects the complexity of offshore wind projects, which often involve engineering, logistics, and environmental considerations. By deploying its Living Stone vessel-a specialized cable installation ship-DEME demonstrates operational readiness for large-scale deployments.

This project is not an isolated win. RWE, a key player in Germany's offshore wind sector, has also secured long-term maintenance agreements for its existing wind farms, extending through 2027. Such continuity highlights the sector's shift from construction to operations, a trend that could stabilize revenue streams for contractors like DEME.

Germany's Policy Framework and Market Dynamics

Germany's offshore wind ambitions are anchored in its goal to expand installed capacity to 30 GW by 2030, 40 GW by 2035, and 70 GW by 2045, according to a KPMG report. Recent reforms to the Offshore Wind Energy Act (WindSeeG) have streamlined permitting and grid connection processes, addressing historical bottlenecks, the report notes. These reforms, coupled with international investments-such as RWE's 2 GW offshore wind park plan and Google's 50 MW agreement with Ørsted-signal robust demand for infrastructure services.

Market projections reinforce this optimism. Germany's offshore wind sector is expected to grow at a compound annual rate of 4% from 2025 to 2030, and by 2035 renewable energy is projected to account for 82.9% of the country's power mix, with offshore wind playing a pivotal role (as the KPMG analysis indicates). For DEME, this translates to a pipeline of opportunities beyond Nordseecluster B, including potential follow-on projects in the Nordseecluster's first phase or other German offshore developments.

DEME's Financial Resilience and Global Expansion

As the Baird Maritime report highlights, DEME's Offshore Energy segment has shown remarkable financial performance, with 2024 turnover exceeding €2 billion-a 37% increase year-over-year-and an EBITDA margin of 21.0%. This growth is driven by disciplined project execution and a diversified order book. In 2025 alone, the company secured contracts for the Formosa 4 project in Taiwan (€150–300 million) and the Coastal Virginia Offshore Wind project in the U.S. (over $1.1 billion in its share), details that were confirmed in a DEME press release.

The acquisition of Havfram, a Norwegian offshore wind contractor, in April 2025 further strengthens DEME's capabilities in turbine and foundation installation (the Baird Maritime coverage also discusses this acquisition). Such strategic moves position the company to capitalize on global offshore wind growth, particularly in the U.S. and Asia-Pacific regions.

Investment Implications and Risks

For investors, DEME's Nordseecluster B contract and broader portfolio highlight two key themes: long-term contract visibility and alignment with decarbonization trends. The project's 1.6 GW capacity will supply power to 1.6 million homes, a contribution first noted in the PortNews coverage of the contract, directly contributing to Germany's energy security goals. Meanwhile, DEME's financial metrics-strong EBITDA margins and a growing order book-suggest resilience against sector-specific risks, such as supply chain disruptions or regulatory shifts.

However, challenges remain. Offshore wind projects are capital-intensive and subject to environmental permitting delays, though Germany's streamlined policies mitigate this risk (as KPMG outlines). Additionally, the €50–150 million contract value range for Nordseecluster B reflects the inherent uncertainty in large infrastructure projects, where scope changes or inflation could impact profitability.

Conclusion

DEME's role in RWE's Nordseecluster B project exemplifies the intersection of strategic infrastructure contracting and renewable energy investment. With Germany's offshore wind sector on a clear growth trajectory and DEME's financial and operational strengths, the company is well-positioned to deliver long-term value. For investors, the combination of policy tailwinds, market expansion, and DEME's global project diversification makes this a compelling case study in the evolving energy transition.