Siemens to supply 1.8 GW of offshore wind turbines to Dong Energy

Jul 19, 2012 - German Siemens (ETR:SIE) will supply 300 units of its newly developed 6-MW offshore wind turbine, representing a capacity of 1.8 GW, to Danish state-owned utility Dong Energy under a framework agreement unveiled by the companies today.

The turbines will be installed between 2014 and 2017 at selected Dong projects in the UK, a country that is targeting 18 GW of offshore wind capacity by 2020.

The Danish company has already said it would test two of the 6-MW next-generation turbines at the Gunfleet Sands wind farm off the UK coast, with installation planned for later this year.

"The agreement is a key element of Dong Energy's strategy to significantly expand offshore wind and will strengthen our position as market leader in the offshore area," said Dong acting chief executive Carsten Krogsgaard Thomsen, adding that it would help make offshore wind more competitive. Dong said that the deal would help Siemens optimise production of the 6-MW turbine and bolster its position in the offshore wind turbine market.

The deal builds on a long-standing partnership between the companies. In 2009 they struck a supply agreement for up to 500 3.6-MW of offshore wind turbines, totalling up to 1.8 GW. At the moment, the two are cooperating on offshore wind projects with a combined capacity of about 2 GW. These include the Lincs, London Array and West of Duddon Sands projects in the UK, the Anholt wind farm in Denmark and the Borkum Riffgrund 1 project in Germany.

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