United Kingdom's 504-Megawatt Offshore Windfarm Contracts Fluor and Siemens

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Researched by Industrial Info Resources (Sugar Land, Texas)--When the Greater Gabbard offshore windfarm is completed in 2011, it will be the largest of its type in the world and the first United Kingdom windfarm to be built outside of the country's territorial waters. The 504-megawatt (MW) wind-power project has been developed by Fluor Corporation (NYSE:FLR) (Irving, Texas) and Airtricity (acquired by Scottish & Southern Energy (SSE) in February 2008). Fluor has agreed to sell its 50% stake in the joint venture to SSE for about $80 million. SSE has awarded Fluor the $1.8 billion engineering, procurement and construction contract for the project.

In the development phase, Fluor managed the environmental studies, site surveys and engineering leading up to the submission of the environmental impact statement. The company also arranged for the project's connection to the UK's National Grid and the supply chain for heavy steel structures and other critical construction elements. It also worked with Airtricity on the selection of Siemens (NYSE:SI) (Munich, Germany) for the supply of wind turbines under a $1.25 billion contract with SSE's Greater Gabbard Offshore Winds Limited.

Siemens will supply 140 3.6 MW SWT - 3.6-107 wind turbines to be sited 25 kilometers off Suffolk on the east coast of the country. Fluor will install the turbines, which will be mounted on steel monopiles and will assemble the components in water depths of between 24 and 34 meters. The windfarm will have the maximum capacity equivalent to the power required for 415,000 UK homes. A new electricity substation will be built near Sizewell, Suffolk.

John Hutton, UK Secretary of State for business, enterprise and regulatory reform, said that the massive potential of the UK shoreline coupled with the right market conditions means that the UK is one of the most attractive places in the world to invest in offshore technology. He added that the government was providing more support for offshore projects through the Energy Bill.

SSE claims to be the country's leading generator of electrical power from renewable sources and is targeting about 4,000 MW of renewable energy capacity in the UK and Ireland, including Greater Gabbard, by 2013.

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