Siemens (NYSE: SI) announced that it will pay approximately DKK 860 million (EUR 115 million.) for a 49% stake in A2SEA A/S, a firm that specializes in the construction of offshore wind farms.
The Danish energy company DONG Energy will continue to be the company’s main shareholder. A2SEA based in Fredericia, Denmark, has a work force of about 200.
A2SEA will now look into the possibility of expanding its installation capacity, according to a press release.
Wolfgang Dehen, CEO of the Siemens Energy Sector, said “Together with Siemens, A2SEA can build optimized vessels for the installation of offshore wind turbines. The optimization of ships and processes will result in higher efficiency, shorter installation times and enhanced customer value.”
The investment agreement is subject to the approval from anti-trust authorities. Closing of the agreement is expected in Q410. Siemens will pay for the new shares in A2SEA in two instalments–one in 2010 and the other 2011.
The potential for offshore wind in Europe is estimated at around 100 gigawatts (GW) which equal two thirds of the power plant capacity currently installed in Germany. At present, only approximately 2% of that potential is being utilized.
Today, UK is by far the most important offshore wind market but offshore projects in Germany are also gaining momentum. Countries like France, Belgium, the Netherlands, Italy, Finland and Norway are also addressing offshore wind power.
“Outside of Europe, we see good opportunities for offshore wind power–especially in China with its shallow water near the consumption centers on the coast and in the U.S., where Siemens has already entered the market, having been selected for the Cape Wind project,” said Dehen.
Siemens has major supply contracts with DONG Energy for offshore wind
turbines. Last month the companies signed an agreement for the 400
megawatts (MW) Anholt Offshore Wind Farm of the coast of Denmark. And
last year DONG Energy signed an agreement to purchase
500 turbines for use in offshore wind farms across Northern Europe.
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Siemens was prosecuted under the Foreign Corrupt Practices Act and pleaded guilty in 2008 for massive worldwide bribery. They paid $800 million in fines in the US. Secretary of the Interior Ken Salazar and Massachusetts Governor Deval Patrick sure know how to cozy up to the players … er, payers.