Siemens to deliver wind turbines and grid connection for offshore wind farm
Lincs in the UK.
Siemens and DONG Energy have further expanded their cooperation in offshore
windpower. In March 2009, DONG Energy and the Siemens Energy Sector entered
into an agreement for the supply of up to 500 offshore wind turbines with a
total capacity of up to 1,800 megawatts. The supply agreement was the world's
largest agreement of its kind and the parties took a big step towards the
industrialization of the offshore wind segment.
The implementation of the supply agreement is well on track. Approximately
1,000 MW under the agreement has been utilized for the 367 MW offshore wind
project Walney 1 and 2 and for the 630 MW offshore wind project London Array.
Today, DONG Energy and Siemens have agreed to further utilize and expand the
off take under the supply agreement signed in March 2009 as Siemens will
deliver 75 3.6 MW turbines to the 270 MW offshore project Lincs, located in the
UK in the North Sea. DONG Energy has [earlier today] announced its
participation in the Lincs project together with Siemens Project Ventures.
Additionally, Siemens has been chosen as the design-build contractor for grid
connection including offshore substation, onshore substation and the laying of
the cables onshore.
The turbines for the Lincs project will, as for the Walney 2 and London Array
projects, be delivered with the newest version of Siemens offshore wind turbine
with a large 120 meter rotor. The two first versions of the new 120 meter rotor
have recently been erected close to DONG Energy's power plant, Avedøreværket,
DONG Energy and Siemens have furthermore expanded their collaboration and the
scope set out in the supply agreement entered into earlier this year with a
view to utilize the parties' experience and take offshore wind power one step
Thus, the supply agreement has been expanded to include further potential
volumes of turbine deliveries to be used for DONG Energy's Northern European
project pipeline. Specific project conditions, including applicable approvals
and consents, as well as project economics will determine whether the
individual projects will be built.
Furthermore, the parties have agreed on a number of adjustments to the supply
agreement which is expected to have a positive impact on the project economics
going forward for both ongoing and coming projects.
Anders Eldrup, CEO of DONG Energy, says “With these potential further supplies
from Siemens, DONG Energy is well positioned to maintain our leading position
within offshore wind. The agreement is an important step for DONG Energy in
progressing and realizing the projects in our pipeline. This will secure the
growth within the offshore wind business area and support the transformation of
our business towards a greener profile.”
“The expanded supply agreement with DONG Energy is the world's largest
agreement of its kind and will further strengthen our position as the clear
market leader in offshore business,” says Wolfgang Dehen, CEO of the Siemens
Energy Sector. “It also supports our goal to grow faster than the market in
order to become one of the top 3 suppliers worldwide in the wind power market
DONG Energy and Siemens are leading players in the offshore wind industry and
have a history of working together on innovative projects. In 1991 the two
companies constructed the world's first offshore wind farm at Vindeby in
Denmark and have since then worked together on many offshore projects
including, for example, Middelgrunden near Copenhagen (Denmark), Nysted in
Southern Denmark, Burbo Bank in Liverpool Bay (UK), Horns Rev 2 (Denmark) and
the soon t o be commissioned Gunfleet Sands I+II (UK).
The content of this announcement does not alter the previously announced
expectations for DONG Energy's financial result for 2009 or the announced
expected level of investments.
For further information, please contact:
+45 9955 9560
+45 9955 9750
+49 9131 18 7034
is one of the leading energy groups in Northern Europe. We are headquartered in
Denmark. Our business is based on procuring, producing, distributing and
trading in energy and related products in Northern Europe. We have
approximately 6,000 employees and generated more than DKK 60 billion (EUR 8.2
billion) in revenue in 2008. For further information, see www.dongenergy.com.
Siemens Energy Sector
The Siemens Energy Sector is the world's leading supplier of a complete
spectrum of products, services and solutions for the generation, transmission
and distribution of power and for the extraction, conversion and transport of
oil and gas. In fiscal 2009 (ended September 30), the Energy Sector had
revenues of approximately EUR25.8 billion and received new orders totaling
approximately EUR30 billion and posted a profit of EUR3.3 billion. On September
30, 2009, the Energy Sector had a work force of more than 85,100. Further
information is available at: www.siemens.com/energy.