DONG Energy of Denmark has made North Sea renewables history by signing a frame agreement for large turbines that could be worth billions of pounds to Siemens of Germany.
The deal covers the supply and servicing of a total of 300 6MW class turbines of 1,800MW total generating capacity.
The turbines will be installed at selected DONG Energy offshore windfarms in the UK in the period 2014-2017.
At the heart of the framework is Siemens Energy’s newly developed 6MW offshore turbine with a 154m rotor based on direct drive technology.
This new design belongs to the next generation of large machines of 5MW-plus and where the traditional gearbox will be increasingly eliminated in favour of more reliable direct-drive systems.
The agreement will enable DONG Energy to install a significantly larger turbine from 2014.
It is seen as a key element of DONG Energy’s strategy to significantly expand offshore wind and strengthen its market leader position, according to acting CEO, Carsten Krogsgaard Thomsen.
“The agreement is an important step for the growing wind industry and will help make offshore wind more competitive,” he said.
According to Siemens, offshore wind conditions are strong and stable, enabling an energy yield that can be about 40% higher than onshore.
The UK, Denmark and Germany, in particular, are counting on the future of offshore wind energy and so this is an important factor.
Under the framework agreement, Siemens Energy will design, manufacture, supply, install and service the 6MW machines.
The parties have also 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 cessation of projects covered by the agreement.
DONG and Siemens both have a long track record in the offshore wind turbine industry.
In March 2009, DONG Energy and Siemens entered into an agreement on the supply of up to 500 3.6MW offshore turbines with a total capacity of up to 1,800M.
That supply agreement was the world’s largest of its kind. The new deal continues the relationship.
DONG and Siemens are currently working together on various projects, including Lincs, London Array and West of Duddon Sands in the UK, Borkum Riffgrund 1 in Germany and Anholt offshore windfarm in Denmark. These projects total approximately 2,000MW.