Global engineering giant GE has announced plans to invest approximately €340 million to develop or expand its wind turbine manufacturing, engineering and service facilities in four European countries — the United Kingdom, Norway, Sweden and Germany.
“Offshore wind will play a vital role in meeting the growing global demand for cleaner, renewable energy and has a bright future here in Europe,” said Ferdinando (Nani) Beccalli-Falco, president and CEO of GE International. “These investments will position us to help develop Europe’s vast, untapped offshore wind resources, while also creating new jobs for both GE and our suppliers.”
At the core of GE’s European expansion plans is the development of GE’s next generation wind turbine, a 4-megawatt machine designed specifically for offshore deployment. As the largest wind turbine in GE’s fleet, it will incorporate advanced drive train and control technologies gained through GE’s acquisition of ScanWind. The 4-megawatt wind turbine will feature GE’s innovative technology that eliminates the need for gearboxes. This technology is already being demonstrated at a test site in Hundhammerfjellet, Norway, where the first ScanWind direct drive unit has been operating for more than five years.
“GE’s proven reliability on more than 13,500 land units coupled with ScanWind’s proven offshore, gearless design enables us to provide our customers the reliable solutions necessary for the offshore wind industry,” said Victor Abate, vice president—renewable energy for GE Power & Water. “These announcements lay the foundation for us to begin scaling our offshore business, technology and supply chain locally in Europe where we see the greatest growth opportunity.”
The European Wind Energy Association expects that Europe’s offshore wind sector will grow more than 70% in 2010, with continued growth forecast over the next several years. If all of the offshore wind projects currently in development are completed, they could produce 10% of the European Union’s total electricity while avoiding 200 million tons of CO2 emissions each year.
Overall, offshore wind is expected to make a major contribution in helping the European Union reach its goal to have 20% of its energy produced from renewable resources by the year 2020.
Key elements of GE’s European expansion announcement include:
Norway
GE will add to its existing presence in Norway with plans to create a new Offshore Technology Development Center in Oslo and will expand its advanced demonstration unit production and service facilities in Verdal. GE also has joined the Nowitech Research Center in Norway to participate in joint research projects on offshore wind topics. Norway is the planned site for the testing and demonstration of the first 4-megawatt wind turbines offshore. This will result in approximately 100 jobs and a €75 million investment related to GE’s offshore wind business in Norway by 2016.
Sweden
In Sweden, GE also will expand its current offshore wind facilities by developing a Conceptual and Systems Design Center in Karlstad, Sweden. A technology demonstration unit is planned to be installed in Gothenburg harbor, and GE also will join the Chalmers Wind Energy Center in Gothenburg. This will result in approximately 50 jobs and a €50 million investment related to GE’s offshore wind business in Sweden by 2016.
Germany
A new engineering centre in Hamburg will feature product development, application engineering and advanced technology. GE also plans to expand its resources at its existing wind turbine manufacturing facility in Salzbergen, as well as the GE Global Research Center in Munich. This will result in approximately 100 jobs and a €105 million investment related to GE’s offshore wind business in Germany by 2016.
United Kingdom
GE plans to establish its offshore wind turbine manufacturing in the United Kingdom. In addition, GE will locate application and service engineering resources in the country and will bring partners and suppliers of towers, blades, nacelles and other offshore wind components to the manufacturing facility. The plan will result in up to €110 million investment related to GE’s offshore wind business in the United Kingdom and could ultimately deliver nearly 2,000 jobs by 2020. This investment will follow the successful outcome of the UK government’s infrastructure competition, aimed at supporting the development of renewable energy in the United Kingdom.
Following the announcement, the UK's Energy and Climate Change Secretary Ed Miliband said: "We're creating the right conditions and incentives to maximise the potential of our wind resource Now we have another leading player entering the offshore wind market as a result. GE's investment will create new jobs and help the supply chain flourish, reinforcing the UK as the destination for offshore wind investment."
And Cabinet colleague, Business Secretary Lord Mandelson, added: "This is great news from GE, a vote of confidence in UK low carbon manufacturing which should create a huge number of jobs. This industry has enormous potential for further growth, with significant knock-on benefits for jobs throughout the supply chain."
And RenewableUK, the country’s leading renewable energy trade association, also welcomed the investment, which is expected to create 1,900 jobs, and comes on the back of the Government’s £60 million Budget pledge for ports servicing the burgeoning UK offshore sector.
Dr Gordon Edge, RenewableUK Director of Economics and Markets, said: “Towards the end of 2009 we have started seeing the first signs of a manufacturing rebirth around the UK’s offshore wind energy sector. Now that all Round 3 sites have been taken up and the potential scale of offshore developments stands at over 40 gigawatts, there is a palpable sense of opportunity.
Renewable UK has long maintained that strong and co-ordinated Government support for the UK to become the leading global centre of expertise for offshore wind energy can result in thriving manufacturing clusters and 57,000 jobs by 2020.
“The fact that some of the world’s best known companies such as Mitsubishi and General Electric have now decided to invest in the UK and base their offshore operations here shows that such support pays dividends.”
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