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Released July 06, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Siemens AG (Munich, Germany) is struggling with the performance of Siemens Energy AG, two years after the former subsidiary was spun off from the rest of the corporation. Siemens executives said they "clearly intend" to reduce their remaining 35% stake in Siemens Energy, which manufactures the widely used Gamesa turbines for windfarms. Industrial Info is tracking nearly $10 billion worth of active projects across the U.S. that use, or are proposed to use, Gamesa technology. About $2.2 billion worth involve Siemens Energy as an owner or contractor.
Siemens was forced to book a US$2.93 billion write-down for its fiscal third quarter due to a drop in value for Siemens Energy. Still, executives believe its 2022 net earnings will see a year-over-year improvement. "For the Siemens Energy investment, we anticipate a limited improvement of our net income and equity participation over [the 2021] prior year, based on Siemens Energy's expectations," said Ralf Thomas, the chief financial officer of Siemens, in a recent quarterly earnings-related conference call. But he added: "We are not satisfied with their current performance."
Click on the image at right for a graph detailing the top 10 parent companies for U.S.-based projects using Siemens Gamesa technology, by total investment value.
Two Texas-based projects employing Gamesa wind turbines are in their final commissioning stages and are nearing startup: Enel SpA's (Rome, Italy) $750 million Azure Sky Windfarm and Electricite de France S.A.'s (Paris, France) $550 million Monarch Creek Windfarm, both in Haskell, Texas. The projects are designed to generate 348 and 275 megawatts (MW), respectively, with the Azure Sky Windfarm also using turbines from Nordex S.E. (Rostock, Germany).
Uber (NYSE:UBER) (San Francisco, California) recently signed a power purchase agreement (PPA) with the Azure Sky Windfarm. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can read detailed reports on the Azure Sky and Monarch Creek projects.
Iowa, one of the top U.S. destinations for windfarm projects, expects to see MidAmerican Energy Company's $150 million repowering of the Rolling Hills Windfarm in Massena wrap up later this summer. MidAmerican, a subsidiary of Berkshire Hathaway Incorporated (NYSE:BRK.A) (Omaha, Nebraska), is replacing 193 older Siemens turbines with 163 Gamesa models, which will maintain the facility's 444-MW output. Subscribers can learn more from Industrial Info's detailed project report.
Algonquin Power & Utilities Corporation (NYSE:AQN) (Oakville, Ontario) recently started construction on its 50-MW, $100 million third-phase addition to the Sandy Ridge Windfarm in Tyrone, Pennsylvania. The project, which will use 25 Gamesa wind turbines, will expand Sandy Ridge's capacity from 138 to 188 MW. Subscribers can learn more from Industrial Info's detailed project report.
Siemens also has a foothold in the growing U.S. market for offshore-based wind energy. Last month, the Rhode Island State Senate approved a new bill that will facilitate 600 MW of offshore wind in state waters. Siemens Gamesa is providing 100 turbines for Ørsted A/S (Gentofte, Denmark) and Eversource Energy's (NYSE:ES) (Boston, Massachusetts) $1.4 billion Revolution Offshore Windfarm project near Block Island, Rhode Island, which is designed to generate 800 MW. Siemens also could provide 38 turbines for a proposed second phase.
However, the Revolution project hit a snag earlier this year when Eversource said it was considering a sale of its 50% stake in the joint venture with Ørsted, citing high federal offshore lease prices. Eversource, New England's largest energy company and transmission builder, could sell all or part of its interest in the joint venture, which was launched in 2019. For more information, see May 9, 2022, article - Eversource Could Exit U.S. Offshore Wind Partnership with Ørsted, and Industrial Info's project reports on Revolution's Phase I and Phase II.
Subscribers to Industrial Info's GMI Project Database can click here for a list of detailed reports related to projects mentioned in this article, and click here for a list of related plants.
Subscribers can click here for a full list of detailed project reports related to projects across the U.S. that use, or are proposed to use, Gamesa technology.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
Siemens was forced to book a US$2.93 billion write-down for its fiscal third quarter due to a drop in value for Siemens Energy. Still, executives believe its 2022 net earnings will see a year-over-year improvement. "For the Siemens Energy investment, we anticipate a limited improvement of our net income and equity participation over [the 2021] prior year, based on Siemens Energy's expectations," said Ralf Thomas, the chief financial officer of Siemens, in a recent quarterly earnings-related conference call. But he added: "We are not satisfied with their current performance."
Click on the image at right for a graph detailing the top 10 parent companies for U.S.-based projects using Siemens Gamesa technology, by total investment value.Two Texas-based projects employing Gamesa wind turbines are in their final commissioning stages and are nearing startup: Enel SpA's (Rome, Italy) $750 million Azure Sky Windfarm and Electricite de France S.A.'s (Paris, France) $550 million Monarch Creek Windfarm, both in Haskell, Texas. The projects are designed to generate 348 and 275 megawatts (MW), respectively, with the Azure Sky Windfarm also using turbines from Nordex S.E. (Rostock, Germany).
Uber (NYSE:UBER) (San Francisco, California) recently signed a power purchase agreement (PPA) with the Azure Sky Windfarm. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can read detailed reports on the Azure Sky and Monarch Creek projects.
Iowa, one of the top U.S. destinations for windfarm projects, expects to see MidAmerican Energy Company's $150 million repowering of the Rolling Hills Windfarm in Massena wrap up later this summer. MidAmerican, a subsidiary of Berkshire Hathaway Incorporated (NYSE:BRK.A) (Omaha, Nebraska), is replacing 193 older Siemens turbines with 163 Gamesa models, which will maintain the facility's 444-MW output. Subscribers can learn more from Industrial Info's detailed project report.
Algonquin Power & Utilities Corporation (NYSE:AQN) (Oakville, Ontario) recently started construction on its 50-MW, $100 million third-phase addition to the Sandy Ridge Windfarm in Tyrone, Pennsylvania. The project, which will use 25 Gamesa wind turbines, will expand Sandy Ridge's capacity from 138 to 188 MW. Subscribers can learn more from Industrial Info's detailed project report.
Siemens also has a foothold in the growing U.S. market for offshore-based wind energy. Last month, the Rhode Island State Senate approved a new bill that will facilitate 600 MW of offshore wind in state waters. Siemens Gamesa is providing 100 turbines for Ørsted A/S (Gentofte, Denmark) and Eversource Energy's (NYSE:ES) (Boston, Massachusetts) $1.4 billion Revolution Offshore Windfarm project near Block Island, Rhode Island, which is designed to generate 800 MW. Siemens also could provide 38 turbines for a proposed second phase.
However, the Revolution project hit a snag earlier this year when Eversource said it was considering a sale of its 50% stake in the joint venture with Ørsted, citing high federal offshore lease prices. Eversource, New England's largest energy company and transmission builder, could sell all or part of its interest in the joint venture, which was launched in 2019. For more information, see May 9, 2022, article - Eversource Could Exit U.S. Offshore Wind Partnership with Ørsted, and Industrial Info's project reports on Revolution's Phase I and Phase II.
Subscribers to Industrial Info's GMI Project Database can click here for a list of detailed reports related to projects mentioned in this article, and click here for a list of related plants.
Subscribers can click here for a full list of detailed project reports related to projects across the U.S. that use, or are proposed to use, Gamesa technology.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
