Siemens wins $3.56 billion deal for U.K. wind turbines

July 20, 2102 — Dong Energy and Siemens Energy signed a framework agreement on the supply and servicing of a total of 300 offshore wind turbines of 6 MW each, giving a total capacity of 1,800 MW. The turbines will be installed at selected Dong Energy offshore wind farms in the U.K. in the period 2014-2017.

The agreement concerns Siemens Energy’s newly developed 6 MW offshore wind turbine with a 154-meter rotor based on gearless direct drive technology.

Siemens Energy’s new turbine belongs to the next generation of large offshore wind turbines of more than 5 MW and will give a higher production per position.

The agreement will support Siemens Energy to optimize production of its 6 MW offshore wind turbine and strengthen its market position as supplier of wind turbines for the offshore industry.

Under the framework agreement, Siemens Energy will design, manufacture, supply, install and service the 6 MW offshore wind turbines. Furthermore, the partners have agreed on product and performance warranties reflecting the size of the agreement.

The agreement commits Dong Energy to pay a cancellation fee in the event of the cancellation of projects comprised by the agreement.

Whether individual projects comprised by the agreement will be built and the total capacity under the framework agreement will be used depend on official approvals of the specific projects and Dong Energy reaching positive investment decisions for the projects.

Dong Energy and Siemens Energy both have a long track record in the offshore wind turbine industry. In March 2009, Dong Energy and Siemens Energy entered into an agreement on the supply of up to 500 3.6 MW offshore wind turbines with a total capacity of up to 1,800 MW. The supply agreement was the world’s largest of its kind and the parties thus took a big step towards industrialization of the offshore wind sector.

Dong Energy and Siemens Energy are currently working together on projects under construction on Lincs, London Array and West of Duddon Sands in the UK, Borkumm Riffgrund 1 in Germany and Anholt offshore wind farm in Denmark. These projects total about 2,000 MW.

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