Siemens Signs 1,800-Megawatt Wind Turbine Contract with Dong Energy

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Global engineering major Siemens AG (NYSE:SI) (Munich, Germany) recently signed an agreement with Dong Energy (Copenhagen, Denmark), a leading Danish energy provider, to supply turbines for developing windfarms in northern Europe.

According to the contract, Siemens will erect 500 offshore wind turbines designed to have a combined capacity of 1,800 megawatts (MW). Factors such as local wind power regulations and economics of operating a windfarm will determine where the individual turbines will be deployed.

Each turbine will have a capacity to produce 3.6 MW of wind power. The turbines will be similar to the ones provided by Siemens for the Burbo Bank offshore windfarm in Liverpool Bay and those that are being set up in the Gunfleet Sands offshore project at the Thames Estuary in England. Both of those windfarms are owned and operated by Dong Energy.

Although Dong Energy and Siemens have not disclosed financial details of the agreement, the order is reported to be worth between $2.5 billion and $3.3 billion. Dong Energy achieved a turnover of nearly $9.6 billion last year. This contract is the single largest order ever awarded by Dong Energy and one of the biggest ever won by Siemens. Dong Energy is reported to have negotiated the bulk supply order with Siemens before awarding the contract. Siemens has been the only provider of offshore wind turbines for the past two to three years.

Dong Energy, a 73% state-owned company, is a global leader in the renewable wind energy market. The latest contract with Siemens will further strengthen its position in the global wind energy market. Dong Energy has deployed nearly 50% of all the offshore windfarms currently operational in various parts of the world.

Dong Energy has been associated with Siemens for nearly 20 years. In 1991, the firms partnered to build the world's first offshore windfarm park in Vindeby in the Baltic Sea off the coast of Denmark. Dong Energy, in partnership with Siemens, is currently implementing the Horns Rev 2 offshore windfarm in the North Sea. This will be one of the world's largest windfarms, consisting of 91 wind turbines supplied by Siemens capable of producing 209 MW of power. The project is slated for completion by the end of this year. The two companies also collaborated to develop the Burbo Bank offshore windfarm in Liverpool Bay. The farm, which was commissioned in 2007, comprises 25 wind turbines and has a total power generation capacity of 90 MW.

Siemens has also supplied 30 wind turbines for Dong Energy's Gunfleet Sands offshore wind project, which is currently under implementation. The project, with a total capacity of 108 MW, is scheduled for commissioning in August 2009.

View Project Report - 78000428

Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services.