Siemens Gamesa

Siemens Gamesa cancels construction of turbine blade factory in the US

Inspenet, November 14, 2023.

Siemens Gamesa has decided to cancel its project to build its first blade factory for offshore wind turbines in the United States, with an estimated investment of around 200 million dollars.

Siemens Gamesa’s decision

Company sources explained that the suspension of the plant’s construction and operation plans was due to the inability to meet the development milestones necessary to establish the facility. This project, announced two years ago, was intended to be located at the Portsmouth maritime terminal in Virginia and was closely linked to Siemens Gamesa’s order to supply wind turbines to Dominion Energy’s Coastal Virginia macro project, with a capacity of 2.64 GW.

The installation of blades was the beginning of the transformation of the Portsmouth marine terminal into an offshore wind energy powerhouse. In addition, Siemens Gamesa was considering the possibility of evaluating future expansions of the factory in case of obtaining new projects in Virginia.

The offshore wind energy sector is experiencing considerable pressure due to rising costs, inflation and supplier setbacks, which is putting several projects in the United States in trouble.

Indeed, the Danish company Orsted recently announced the interruption of the development of two offshore wind energy projects, Ocean Wind 1 and 2, located in the waters of New Jersey. Likewise, Avangrid, Iberdrola’s subsidiary, canceled the power purchase agreement (PPA) associated with its Park City Wind offshore wind project, because it considered that the agreed conditions did not ensure its economic viability.

Previously, Iberdrola had also terminated the power purchase contract linked to its 1,200 MW Commonwealth Wind offshore wind energy project, for the same reasons of difficult economic viability under the established conditions.

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