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Siemens Gamesa Scores with Major Order for Dutch Offshore Project

Zamudio, Spain - The expansion of offshore wind energy in the Netherlands is developing dynamically. German-Spanish wind turbine manufacturer Siemens Gamesa is benefiting from this with another order. The share price is rising.

Siemens to supply 11 MW turbines for 760 MW offshore wind project

Siemens Gamesa Renewable Energy (SGRE) and offshore project developer Crosswind, a joint venture between Shell (79.9 percent) and Eneco (20.1 percent), have signed a contract to supply turbines for the 760 MW Hollandse Kust Noord offshore wind farm. The order calls for the delivery of 69 SGRE SG 11.0-200 DD offshore wind turbines and a 15-year service and maintenance contract. According the wind turbine manufacturer, a number of conditions still need to be met before the order can be converted into a final firm order for Siemens Gamesa. This is expected to take place in the coming months.

Construction work on Hollandse Kust Noord is expected to start in 2023, with turbines scheduled to be commissioned in the same year. The expected amount of electricity will be equivalent to the electricity needs of about 1 million Dutch households. Hollandse Kust Noord is the third project under the Dutch offshore wind roadmap to be based on competitive bidding, in which companies receive no government support.

"As our first project with Shell and our second offshore project with Eneco, we’re extremely excited to grow our partnership with both companies through Hollandse Kust Noord," said Marc Becker, CEO of Siemens Gamesa Offshore Business Unit. "With contracts in place, final investment decision taken, and turbines instated with the latest technologies, we will be able to deliver clean energy by 2023," added Crosswind CEO Tjalling de Bruin.

About the status of offshore expansion in the Netherlands

In 2013, the Netherlands initially decided to expand offshore capacity to 4,500 MW by 2023. The roadmap to 2030 includes additional offshore wind farms of 7,000 MW, resulting in a total offshore capacity of about 11,500 MW in the various offshore zones in the Netherlands. The projects in the Borssele offshore wind farm zone were already awarded in 2016 to 2018. In this context, the contract for the subprojects Borssele I and II (approx. 752 MW) was awarded to Orsted, for Borssele III and IV (approx. 730 MW) to the Blauwind consortium, and for the 19 MW test site Borssele V to the Two Powers consortium. Vattenfall won the Hollandse Kust Zuid I and II (approx. 740 MW) and III and IV (approx. 700 MW) projects. At the end of July 2020, the contract for the Hollandse Kust Noord zone (approx. 759 MW) was awarded to the Shell-Eneco joint venture Crosswind. Open or not yet awarded are the wind farm zone Hollandse Kust West (approx. 1,400 MW), the zone Ten Noorden van de Waddeneilanden (700 MW) and IJmuiden Ver (approx. 4000 MW).

Last year 2020, with 1,493 MW the Netherlands accounted for more than half (51.1 percent) of the new offshore wind capacity commissioned in Europe, according to the European wind energy association Windeurope. This also completes the installation of all turbines in the Borssele wind farm zone. In total, turbines with a total capacity of approximately 2,600 MW were connected to the grid in nine offshore wind farms in the Netherlands at the end of 2020.

Siemens Gamesa with high success rate in Dutch offshore projects

So far, Siemens has been successful in all offshore auctions that have already been awarded. According to Siemens Gamesa, the Hollandse Kust Zuid and Hollandse Kust Noord projects will be realized exclusively with Siemens turbines. Siemens Gamesa is also involved in the Borssele projects, although here there is another turbine supplier in the form of Vestas.

With an increase of 6 percent to a price of 34.35 euros (Feb. 11, 2021, Stuttgart Stock Exchange), the Siemens Gamesa share was yesterday's daily winner in the worldwide stock index for the renewable energy industry RENIXX World.



Source: IWR Online, 12 Feb 2021