Ørsted and Siemens Gamesa Sign First U.S. Offshore Turbine Supplier Contract
Aug. 09, 2018
VIRGINIA BEACH, Va.--(BUSINESS WIRE)--Aug 9, 2018--Demonstrating that the offshore wind industry is gaining significant momentum in the United States, Ørsted and Siemens Gamesa today announced the signing of a subcontract to supply wind turbines for the Coastal Virginia Offshore Wind project founded by Dominion Energy. Ørsted and Dominion Energy entered into a strategic initiative in 2017 to provide Virginia customers with a clean, renewable source of energy. This will be the first offshore wind project to be built in federal waters, marking a significant achievement for the offshore wind industry in the United States, and it will be the first U.S. project for all companies. Ørsted will construct the wind project using two units of Siemens Gamesa’s 6-MW SWT-6.0-154 wind turbines, totalling 12 MW of potential generated power.
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6-MW Siemens Gamesa wind turbine. The same model will be installed at Coastal Virginia. (Photo: Business Wire)
"We are delighted to be moving forward on the Coastal Virginia Offshore Wind initiative," said Thomas Brostrøm, President of Ørsted North America. "Siemens Gamesa’s record of exceptional technology, combined with our prior successful partnership experience around the world, will demonstrate how Virginia residents and businesses can experience the benefits of clean, reliable, cost competitive offshore wind energy.”
Ørsted and Siemens Gamesa have a longstanding partnership. In 2013, Ørsted developed the first pilot project for Siemens Gamesa’s 6-MW platform, Gunfleet Sands III, located off the coast of United Kingdom. Ørsted and Siemens Gamesa have contracted, manufactured, installed and commissioned a total volume of approximately 2,700 MW of offshore wind across the globe.
“We are extremely proud to provide our turbines to Ørsted’s and Dominion Energy’s offshore wind project, and it marks a major milestone in our company’s history,” says Joergen Scheel, Siemens Gamesa Renewable Energy, Vice President, Offshore, North America. “We have always believed in the future of offshore wind power in the United States, and with so much wind potential off the Virginia coast, we are excited to finally add our state-of-the-art turbine technology to the country’s energy mix.”
The Siemens Gamesa blades for this project will be produced at the company’s manufacturing facility in Aalborg, Denmark, and the nacelle assemblies will originate from the Siemens Gamesa facility in Cuxhaven, Germany. Once in Virginia, the turbine components will be installed by Ørsted on monopile foundations. Deliveries are expected to begin in mid-2020.
The Coastal Virginia Offshore Wind project is a two-turbine demonstration project owned by Dominion Energy and constructed by Ørsted. It will be built within a research lease area adjacent to the 112,700-acre lease area currently held by Dominion Energy, located approximately 27 miles off the Atlantic coast of Virginia. The lease area has a potential wind energy capacity of at least 2 GW.
"When we announced our initiative with Ørsted last year, we knew great things were on the horizon," said Mark Mitchell, Vice President of Generation Construction for Dominion Energy. "Today’s announcement welcoming Siemens Gamesa to the team is further evidence that Virginia is poised to be a leader in the offshore wind industry. It also demonstrates that our customers can be sure that Dominion is committed to a sustainable future.”
The Coastal Virginia Offshore Wind project continues what previously was called the Virginia Offshore Wind Technology Assessment Project. Dominion Energy began work on the project in 2011 as part of a Department of Energy grant to develop and test new wind technologies that could lower costs and withstand hurricanes. Key achievements were made to advance the project during that time, including BOEM’s approval of the Research Activities Plan; environmental studies, including avian and bat surveys; and assessments of ocean currents, archaeological conditions, and whale migration patterns.
About Siemens Gamesa Renewable Energy
Siemens Gamesa is a global leader in the wind power industry, with a strong presence in all facets of the wind business: offshore (#1), onshore (#2) and services (#2). In 2017, Siemens Gamesa was the number-one company in the sector, with a 17% share of new capacity installed, according to MAKE Consulting.
Through its advanced digital capabilities, the company offers one of the broadest product portfolios in the industry as well as industry-leading service solutions, helping to make clean energy more affordable and reliable. With 87 GW installed worldwide, Siemens Gamesa manufactures, installs and maintains wind turbines in the onshore and offshore segments. Its order backlog stands at €22 billion. The company is headquartered in Spain and listed on the Spanish stock exchange (traded in the Ibex-35 index).
Further information is available at: www.siemensgamesa.com
Follow us on Twitter at: twitter.com/SiemensGamesa
Ørsted (NASDAQ OMX: ORSTED) is one of Northern Europe's leading energy groups headquartered in Denmark. Around 6,200 employees develop, construct and operate offshore wind farms, generate heat and power from power stations as well as supply and trade in energy to wholesale, business and residential customers. In addition, we produce oil and gas, and a process has been initiated to divest this business unit. The continuing part of the Group has approximately 5,800 employees and generated a revenue in 2016 of DKK 61 billion (EUR 8.2 billion). For further information, see https://orsted.com/ and follow us on twitter (@OrstedNA).
About Dominion Energy
Nearly 6 million customers in 19 states energize their homes and businesses with electricity or natural gas from Dominion Energy (NYSE: D), headquartered in Richmond, Va. The company is committed to sustainable, reliable, affordable, and safe energy and is one of the nation's largest producers and transporters of energy with over $78 billion of assets providing electric generation, transmission and distribution, as well as natural gas storage, transmission, distribution, and import/export services. As one of the nation's leading solar operators, the company intends to reduce its carbon intensity 50 percent by 2030. Through its Dominion Energy Charitable Foundation, as well as EnergyShare and other programs, Dominion Energy plans to contribute more than $30 million in 2018 to community causes throughout its footprint and beyond. Please visit www.DominionEnergy.com, Facebook or Twitter to learn more.
View source version on businesswire.com:https://www.businesswire.com/news/home/20180809005125/en/
CONTACT: Ørsted North America
Lauren Burm, 617-309-8730
Kaile Gurney, 407-451-3656
KEYWORD: UNITED STATES EUROPE NORTH AMERICA DENMARK VIRGINIA
INDUSTRY KEYWORD: ENERGY ALTERNATIVE ENERGY UTILITIES MANUFACTURING ENGINEERING NATURAL RESOURCES OTHER NATURAL RESOURCES ENVIRONMENT
SOURCE: Ørsted and Siemens Gamesa
Copyright Business Wire 2018.
PUB: 08/09/2018 08:00 AM/DISC: 08/09/2018 08:01 AM