Siemens Gamesa confirms deal for Dominion's 2.6-GW Coastal Virginia

Siemens Gamesa Renewable Energy SA (BME:SGRE) on Monday announced a deal to deliver 14-MW turbines for the 2.6-GW Coastal Virginia Offshore Wind (CVOW) project in US waters.

The order was awarded by project owner Dominion Energy Virginia, which is part of US utility Dominion Energy Inc (NYSE:D). It will see Siemens Gamesa supply 176 units of its SG 14-222 Direct Drive machines, currently the largest offshore wind turbines globally, while their operation will be overseen under a 10-year service agreement, the manufacturer said.

The contract is subject to customary conditions, among which is governmental clearance. Siemens Gamesa expects that turbine installation will begin in 2024, with the complex set to become fully operational by the end of 2026.

CVOW will be located about 27 miles (43 km) off the coast of Virginia Beach and is expected to be capable of producing electricity for about 660,000 local homes per year. The project will be realised at a cost of roughly USD 9.8 billion (EUR 8.69bn).

Siemens Gamesa noted that it has over 12 GW of firm orders for the SG 14-222 DD machines. The wind turbine maker intends to start producing the hardware at a new factory in Virginia, where it has in place a long-term lease agreement at the Portsmouth Marine Terminal. The project’s development is tied to the execution of a firm order for CVOW.

“This agreement is historic for many reasons, most notably as the next step towards the planned deployment of our flagship SG 14-222 Direct Drive turbine. It also brings our planned offshore wind turbine blade finishing facility in Portsmouth, Virginia, one step closer to reality [..],” said Marc Becker, CEO of the Siemens Gamesa Offshore Business Unit.

(USD 1.0 = EUR 0.887)

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