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ScottishPower Renewables and DONG Energy Sign Turbine Agreement with Siemens for West of Duddon Sands

05/07/2011

ScottishPower Renewables and DONG Energy have signed a turbine supply agreement with Siemens whereby Siemens will supply 108 machines of 3.6 MW capacity each for the 389 MW West of Duddon Sands offshore wind project, in the Irish Sea.

A separate contract has also been agreed that will see Siemens provide maintenance for the turbines over a five year period. The value of the contracts in total will be in excess of £0.5bn, with turbine delivery expected to commence in the summer of 2013. The turbine components will be delivered to the purpose-built installation facility in Belfast.

It has also been announced that the installation, preparation and load-out operations will largely be run out of Belfast Harbour, which stands to benefit from significant upgrade works, making it one of the first bespoke offshore wind installation harbours in the UK. This marks a significant investment with the potential to create a large number of jobs in Belfast, during the construction of the harbour and then its use during future windfarm installation works.

The operational base for the windfarm will be the Port of Barrow, which is also being used for the operation of several other offshore windfarms in the East Irish Sea. This will result in the creation of a number of jobs in the local area.

Keith Anderson, CEO of ScottishPower Renewables, said: “We are very pleased to have finalised this arrangement with Siemens, and are encouraged at the speed of progress on the project.

“This is a major wind power development in the UK that will help to create jobs locally and in the wider industry, as well as continuing to improve the supply chain that will help to benefit future projects in the country.”

The two companies, who have a 50-50 partnership to develop the West of Duddon Sands windfarm, last week announced the go-ahead for the project and will be awarding further contracts in relation to the project this year.

West of Duddon Sands marks the start of a major investment programme in offshore wind by ScottishPower Renewables, centred mainly in the UK, and will be one of the largest offshore farms in the world when completed as estimated in 2014.

The West of Duddon Sands project will be located 14km southwest of the Barrow-in-Furness coastline, with work commencing in early 2012, initially with construction of the required onshore connections. At full capacity, the windfarm will be able to provide power for approximately 300,000 homes.

The total cost of the project, including construction of offshore transmission assets, is put at £1.6 billion, although once the wind farm goes into operation, these transmission assets will be sold to an offshore transmission operator and the corresponding costs will be returned.

The Siemens turbines will have 120m rotors, a new Siemens development that increases turbine performance, and will stand 146 meters high to blade tip from mean sea level. They will have a five-year guarantee under a warranty agreement signed with Siemens.

The partners have commissioned two purpose built installation vessels to be used in the construction of the project, allowing work to be undertaken in all seasonal conditions. Foundations for the turbines will be laid in early summer 2013 and the project is expected to be fully completed in 2014.

Ends

Notes to editors:

The project is being developed by two major players in renewable energy.
ScottishPower Renewables is part of Iberdrola Renovables, the largest wind power company in the world.
Its global offshore wind power headquarters are based in Glasgow and it currently has a pipeline of around 10,000MW in offshore wind projects across Europe, primarily in the UK where it is currently developing the 1,800 MW Argyll Array project in Scotland. It has also been granted rights, together with Vattenfall, to develop up to 7,200 MW in the East Anglia Array, off the coast of Norfolk.
ScottishPower Renewables is the first developer in the UK to achieve one gigawatt (GW) of electricity production capacity from wind power.
Iberdrola Renovables, which operates in 23 countries, has an installed capacity of more than 12,800 MW at the end of March 2011, and a pipeline of over 60,000 MW.

DONG Energy is one of the leading energy groups in Northern Europe and is headquartered in Denmark. Its business is based on procuring, producing, distributing and trading in energy and related products in Northern Europe. DONG Energy has approximately 6,000 employees and generated 55 billion (EUR 7.3 billion) in revenue in 2010. For further information, see www.dongenergy.com  
DONG Energy is strongly involved in the production and expansion of renewable energy in the UK. The company is, in addition West of Duddon Sands, involved in building three new major UK offshore wind farms, including what will be the world's largest offshore wind farm London Array (630 MW), due to enter into operation in 2012. The other two wind farms, Walney (367 MW) and Lincs (270 MW) are scheduled for completion in 2011 and 2012, respectively. In addition, DONG Energy currently operates the offshore wind farms Gunfleet Sands (172 MW), Burbo Bank (90 MW) and Barrows (90 MW).