Siemens Energy to Deliver 175 Wind Turbines for London Array Offshore Project

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Researched by Industrial Info Resources (Sugar Land, Texas)--Leading global energy services and solutions provider, Siemens Energy (Berlin, Germany), a subsidiary of Siemens AG (NYSE:SI) (Munich, Germany), has been awarded a contract to supply, install and commission 175 wind turbines for the London Array offshore project. Each turbine will have a power generation capacity of 3.6 megawatts (MW). The contract also includes a five-year service and maintenance agreement. The turbines, which will be manufactured at the company's facility in Denmark, are expected to be installed in 2011-12. The turbines will be installed at a depth of 23 meters at the London Array project site, which has wind speeds of about 9.2 meters per second. Connectivity to the power grid and development of the foundation infrastructure for the wind turbines is scheduled for completion by 2011.

The London Array offshore project is in line with the United Kingdom's efforts to develop renewable energy sources and is part of the second phase of the U.K.'s wind power generation program. The project is being jointly developed by E.ON AG (OTC:EONGY) (Dusseldorf, Germany), Masdar (Abu Dhabi, United Arab Emirates), and Dong Energy (Fredricia, Denmark).

The wind farm will be located near the Outer Thames estuary, about 20 kilometers off England's southeastern coast. It will be developed in two phases. The first phase, with an investment of $3.03 billion, will consist of a power generation capacity of 630 MW set in an area of 90 square kilometers. For the first phase of installations, three potential sites have been identified.

The second phase will augment the total power generation capacity to 1,000 MW. It will include 166 turbines installed over an area of 143 square kilometers. The wind farm is expected to start generating power by 2012. The project will not only provide electricity to 750,000 homes in Greater London, but will also bring down carbon dioxide emissions by 1.9 million tons per year. The U.K. aims to fulfill 15.4% of its power requirements from renewable sources by 2015.

Wind power is one of the most important portfolios of Siemens Energy. As of September 2008, the company had generated revenues of about $26.41 billion from the renewable energy sector. Some of the other agreements signed by the company in the wind power sector in Europe include a contract with Energie Baden Wurttemberg AG (Karlsruhe, Germany) to supply and install 21 turbines for a 48.3-MW wind energy project near the Baltic Sea. The wind energy project is expected to begin operations in 2010.

Siemens Energy has also signed an agreement with StatoilHydro ASA (NYSE:STO) (Stavanger, Norway) and StatKraft AS (Oslo, Norway) to deliver, install and commission 88 small wind turbines of 3.6 MW each for the Sheringham Shoal offshore wind power project. The 315-MW wind farm, located on the east coast of England, will electrify 220,000 houses when it commences commercial operations in 2011. The contract, with an estimated investment value of more than $620 million, also includes a five-year maintenance contract.

Turkey's Enerjisa Power Generation Company (Istanbul, Turkey) has also awarded a contract to Siemens Energy to supply and install 13 turbines of 2.3 MW each for the Canakkale-Mahmudiye windfarm in the northwestern region of the country. The agreement also includes a 12-year service contract. Siemens Energy, which has installed offshore wind power generating capacity of 600 MW, currently has an order backlog of 3,300 MW.

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