A 50/50 joint venture between Siemens Mobility and Costain (LON: COST) has won a contract to deliver high-voltage power supply systems for the HS2 rail project, it was revealed on Thursday.
Costain shares rose at the start of Thursday’s session following the news, currently up around 0.7%, trading around the 110p per share mark.
Costain said in a release that the contract, covering the 225km route between Birmingham and London, is valued at approximately £300 million, with options for extensions.
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The project includes the design, construction, and maintenance of the power supply systems.
The maintenance phase, which is set to last seven years, is worth an additional £32 million to the joint venture, according to Costain.
The contract win is in addition to the announcement earlier this month where Costain said it is to be awarded a contract as a sole supplier to deliver tunnel and lineside mechanical and electrical systems for HS2.
“This contract marks the start of a new partnership with Siemens Mobility and its team of experts who share our values and ambitions,” said Alex Vaughan, CEO of Costain. “Providing a safe, reliable power system will be critical to the success of HS2, with rail electrification a crucial part of the UK’s decarbonisation plans.”
The high-voltage power supply systems are an essential component of HS2, which aims to enhance rail connectivity, reduce travel times, and support the UK’s transition to net-zero emissions.
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