Voith Siemens Hydro and RWE Innogy to Invest $37.7 Billion in Joint Venture for Ocean Current Technology

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Researched by Industrial Info Resources (Sugar Land, Texas)--Voith Siemens Hydro, a joint venture of Voith AG (Heidenheim, Germany) and Siemens (NYSE:SI) (Munich, Germany), has formed a joint venture called Voith Hydro Ocean Current Technologies with RWE Innogy, a subsidiary of RWE AG (OTC:RWEOY) (Essen, Germany). The joint venture will develop, manufacture and market ocean current technologies. Over the next few years, the partners will guarantee an investment of more than $37.7 billion. Voith Hydro will be the majority shareholder with 80% in the joint venture, which is subject to the approval of antitrust authorities.

Both companies have been working with the ocean current technologies in recent years. Voith Hydro developed an ocean current turbine that will be deployed and tested by the end of this year in the first 110-kilowatt prototype off of South Korea's coast. After the initial test plant is operational, other plants will be planned for Europe. The turbine is characterized by its robust design without gearbox and rotor blade adjustment. RWE Innogy plans to construct a 10.5-megawatt ocean current power station off the Welsh coast in 2012.

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