The two companies are to supply four converter stations as part of the deal, which "will enable more efficient use of renewable energy, increase stability of the power grids, and enable the close down of coal-fired power plants on the two islands to reduce CO2 emissions", Siemens Energy said.

The German company will manufacture the main components for the stations, while FATA, part of Danieli group, will be responsible for civil works, electromechanical installation, construction of ancillary facilities and pre-commissioning support.

The converter stations are scheduled to be completed by the end of 2028.

($1 = 0.9239 euros)

(Reporting by Chris Steitz, Writing by Friederike Heine, Editing by Rachel More)