Denmark Strengthens Air Defence: Diehl Defence Secures €177 Million Contract for IRIS-T SLM Missile System
21 Oct 2025
The Danish Ministry of Defence Acquisition and Logistics Organisation (DALO) has granted Diehl Defence GmbH & Co. KG a €177 million contract for the IRIS-T SLM Surface Based Air and Missile Defence (SBAMD) system, marking a significant step in strengthening the country's air and missile defence capabilities. Under its larger national defence modernisation agenda, the contract, which was signed on July 30, 2025, is a component of Denmark's interim air and missile defence procurement. On August 6, 2025, the prize was formally announced in the European Union's Official Journal (OJ S 149/2025).Improving Denmark's Preparedness for Air and Missile DefenceBy 2026, the DALO-led procurement hopes to bridge the gap until the installation of a permanent SBAMD system by offering an intermediate air and missile defence capability. The German company Diehl Defence's new IRIS-T SLM system will greatly improve Denmark's capacity to protect its forces, territory, and NATO partners from contemporary airborne threats, such as tactical ballistic and cruise missiles.Radar units, command and control centres, and numerous fire units are all part of the system, which is a comprehensive, mobile, modular, surface-based air defence solution. It ensures operational flexibility and quick deployment capabilities throughout Danish and allied military missions by offering medium-range interception and multi-layered threat protection.Strategic Purchasing in Light of National Security ClausesIn order to protect vital security interests, Denmark was able to circumvent established EU procurement regulations by conducting this acquisition in accordance with Article 346(1)(b) of the Treaty on the Functioning of the European Union (TFEU). The negotiated procedure without prior call for competition was justified by urgent operational needs and the sensitive nature of the equipment. Ten bids from government-to-government partners and commercial providers were assessed by DALO. Taking cost, performance, and readiness into account, the final selection gave priority to systems that would have the greatest operational impact in the shortest amount of time.Diehl Defence was chosen for Lot 2 after the Norwegian Defence Materiel Agency was awarded the contract for NASAMS leasing (Lot 3) and MBDA France SAS was awarded the contract for VL MICA systems (Lot 1), which together constitute the basis of Denmark's multi-tiered air defence framework.Diehl Defence: A Reliable European Defence PioneerDiehl military GmbH & Co. KG is a well-known leader in cutting-edge military technology, such as electronic warfare, radar integration, and missile systems, with its headquarters located in Überlingen, Germany. The company's IRIS-T SLM has become well-known in NATO and EU countries due to its performance in warfare and flexibility to adapt to multi-domain operations.Diehl's modular architecture strengthens Denmark's interoperability with ally troops by enabling smooth integration with NATO's Integrated Air and Missile Defence (IAMD) network. In order to increase detection and tracking capabilities, the contract also offers the option of a multi-sensor tracker.Strategic and Economic ImportanceThis contract, which is worth €177,046,881, is among Denmark's biggest recent defence expenditures. It emphasises the government's resolve to quickly improve capabilities in the face of escalating geopolitical difficulties in Northern Europe. Despite not being funded by EU funds, the project complies with the competitiveness and transparency requirements of the Government Procurement Agreement (GPA). By the end of 2026, deliveries and operational readiness are anticipated, and provisions for an indefinite period of time guarantee ongoing maintenance, training, and support services.Conclusion: Fortifying the Northern Shield of NATOA significant step towards updating its air and missile defence infrastructure has been taken by Denmark with the purchase of the IRIS-T SLM system. The system will improve collective NATO defence readiness in the Baltic and Arctic operational theatres as well as national deterrence, with Diehl defence as the reliable provider.This contract reinforces Denmark's position as a leading contributor to Europe's integrated air defence network and strengthens national security as part of the country's defence modernisation strategy.Tags:# Denmark, # Denmark defence contracts, # Diehl Defence, #IRIS-T SLM, #air and missile defence, # Contact Award # Danish Ministry of Defence Acquisition # Danish Ministry of Defence Acquisition and Logistics Organisation, # DALO tenders, #awarded tenders Denmark, #procurement news, # NATO defence modernization, # military procurement, # government contracts, #denmark tenders # Defence Industry Europe, # missile systems, #tactical air defence, #EU procurement, #public procurement
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Siemens Energy wins €2.31 billion Bornholm Energy Island HVDC substations contract
10 Oct 2025
Fredericia (Denmark) / Berlin (Germany) - In a landmark development for Europe’s clean energy transition, Siemens Energy Global GmbH & Co. KG, together with Siemens Energy A/S, has been awarded a €2.31 billion contract for the supply and construction of high-voltage direct current (HVDC) converter substations as part of the Bornholm Energy Island (BEI) project.The award, announced in the Official Journal of the European Union (OJ S 180/2025) under Contract Notice No. 614463-2025, was issued jointly by Danish grid operator Energinet Eltransmission A/S and German transmission system operator 50Hertz Transmission GmbH.Driving Europe’s offshore power integrationThe Bornholm Energy Island project is a cornerstone of Denmark and Germany’s efforts to integrate offshore wind power and strengthen cross-border electricity transmission in Northern Europe. Under the agreement, Siemens Energy will deliver and commission three major converter facilities - HVDC/HVAC Substation Zealand, HVDC/HVAC Substation Bornholm, and HVDC Substation Stilow - alongside a Master Controller System that will manage and optimise power flows between the two national grids.The scope also includes several Service Level Agreements (SLAs) to ensure long-term maintenance and reliability. One SLA will cover the commissioning period, followed by two separate post-commissioning agreements - one managed by Energinet in Denmark and the other by 50Hertz in Germany - aligning with each operator’s maintenance obligations.Strategic and financial contextValued at €2,312,253,400, the contract is among Europe’s most significant power transmission infrastructure awards to date. It is partially financed by European Union funds and falls within the framework of the Government Procurement Agreement (GPA).The project will serve as the electrical backbone of the Bornholm Energy Island, a central hub for offshore wind integration capable of connecting several gigawatts of renewable capacity to the continental grid. It aims to enhance grid resilience, optimise renewable power distribution, and enable future energy sharing across European borders.The award follows a previous competitive dialogue procedure under reference SQS 344674, which did not yield suitable bids. As a result, the buyers proceeded with a negotiated procedure without prior call for competition, in line with Article 50a of the EU Utilities Directive (Directive 2014/25/EU). The selection of Siemens Energy was based on its proven technological expertise in HVDC systems and its successful track record on interconnectors such as Viking Link and Cobra Cable.The contract is contingent upon Denmark’s Final Investment Decision (FID) on the Bornholm Energy Island project, currently under governmental review. Once approved, Siemens Energy will proceed with design, manufacturing, installation, and long-term service support from its facilities in Erlangen (Germany) and Ballerup (Denmark).Powering the green transitionThe Bornholm Energy Island represents a bold step toward achieving Europe’s climate and energy objectives under the European Green Deal and Fit for 55 initiatives. By linking Denmark and Germany through advanced HVDC infrastructure, the project will enable efficient, high-capacity renewable energy transmission while strengthening the regional electricity market’s flexibility and security.With Siemens Energy at the helm, supported by Energinet and 50Hertz, the Bornholm Energy Island is poised to become a benchmark for future offshore energy hubs, marking a decisive move toward a fully interconnected, carbon-neutral European power system.Tags: Denmark tenders, Siemens Energy, Energinet, 50Hertz, Bornholm Energy Island, HVDC substations, offshore wind, renewable energy, green transition, infrastructure projects, electricity transmission, procurement news, contract award, awarded tenders, energy sector, European Green Deal, Fit for 55, power grid interconnection, HVDC technology, EU-funded projects
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