DONG Energy has signed an agreement to purchase 500 offshore wind turbines from Siemens (NYSE: SI) for use in offshore wind farms in Northern Europe.
The turbines under aggreement have a combined power-generating capacity of 1,800 megawatts (MW).
“With this agreement the parties are jointly taking a quantum leap towards further streamlining the construction of projects of this kind,” Anders Eldrup, CEO of DONG Energy, said. “Entering into the largest single offshore wind turbine supply agreement ever further strengthens DONG Energy’s leading position in this field and provides us with an important tool for implementing our strategy of significantly expanding DONG Energy’s position within sustainable energy.”
The wind turbines which Siemens will deliver under the supply
agreement have a capacity of 3.6 megawatts similar to the turbines in
operation at DONG Energy’s Burbo Banks offshore wind farm and those
being installed at DONG Energy’s Gunfleet Sands I+II project.
DONG Energy said in a release that permitting procedures and country specific economics will determine where and when new projects
will be built.
“The agreement with DONG Energy is one of the biggest orders in the history of Siemens,” said René Umlauft, CEO of the Renewable Energy Division of Siemens Energy. “With this agreement the cooperation between DONG Energy and Siemens is taken to the next level. Together we have taken a big step towards “industrialization” of the offshore wind business which is one of the fastest growing renewable energy technologies.“
Eldrup told Reuters the supply agreement was worth more than 15 billion crowns (US$2.55 billion).
In 1991 the two companies constructed the world’s first offshore wind farm at Vindeby in Denmark.
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