Siemens Gamesa Lands Turbine Deal for World's Largest Offshore Windfarm

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Siemens Gamesa (Madrid, Spain) has secured a contract to supply all of the turbines for the world's largest planned offshore windfarm, Hornsea Project Two in the U.K.

Located 89 kilometres (km) off the east coast of England, Hornsea Project Two will have a generating capacity of 1,386 megawatts (MW), using more than 170 SG 8.0-167 DD turbines, rated at 8 MW each. When commissioned in 2022, it will be the world's largest offshore windfarm, surpassing Hornsea One (1,218 MW), which is currently under construction. It will be capable of supplying enough power for 1.3 million homes. Both windfarms are being developed by Danish energy major Ørsted (Fredericia, Denmark), formerly DONG Energy.

Hornsea Project Two will cover an area of 462 square kilometres. The new SG 8.0-167 DD is equipped with a rotor 167 metres in diameter with blades measuring 81.5 metres long that can deliver 20% more annual output than its predecessor, the 7-MW SWT-7.0-154 turbine. The nacelles will be produced at Siemens Gamesa's new factory in Cuxhaven, Germany, while the majority of blades will be made at the factory in Hull, U.K., where the pre-assembly work also will be carried out.

"We are very pleased that Ørsted has placed its trust in Siemens Gamesa once again," said Andreas Nauen, offshore chief executive officer at Siemens Gamesa. "Hornsea Project Two will be a benchmark in Europe, not only on account of its size, but also its technology. Siemens Gamesa will install the newest model from its offshore platform at this facility. The SG 8.0-167 boosts annual output by 20% and offers higher returns."

Siemens Gamesa and Ørsted have a long history working together on several offshore projects, notably: Hornsea One, London Array, Race Bank, West of Duddon Sands, Walney Extension East and Westermost Rough in the U.K.; Anholt in Denmark; and Borkum Riffgrund 1 and Gode Wind 1 and 2, located in German waters.

The contract comes at an important time for Siemens-Gamesa, which is struggling to cuts costs and improve profitability. This week, the company announced plans to cut two billion euros ($2.5 billion) in costs by 2020 in an effort to combat cut-throat price competition in the sector.

Siemens Gamesa's Chief Executive Officer Markus Tacke said: "The measures rolled out in recent months, coupled with the strategic plan we are presenting today, set Siemens Gamesa on track for strong profitable growth that will enable us to create more value for our shareholders and customers, fully bearing out the merger rationale and positioning us as leaders in an increasingly competitive environment".

Last year, Industrial Info reported that the company was planning to cut 6,000 jobs worldwide--20% of its workforce--in a effort to become more competitive. For additional information, see November 20, 2017, article - Siemens Gamesa Axing 6,000 Jobs as Wind Sales Dip.

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