DONG Energy, MHI Vestas Sign First Commercial Deal for 8MW Turbine

DONG Energy and MHI Vestas Offshore Wind have reached a conditional agreement for the purchase of 32 units of MHI Vestas Offshore Wind’s V164-8.0MW offshore wind turbine for installation at the Burbo Bank Extension project in Liverpool Bay off the north-western coast of England.

DONG Energy, MHI Vestas Sign First Commercial Deal for 8MW Turbine

The agreement will become the first commercial order for this powerful offshore wind turbine, once the final investment decision has been taken.

Samuel Leupold, Executive Vice President in DONG Energy, said: “I’m very pleased that we’ve been able to reach an agreement with MHI Vestas Offshore Wind on the supply of the most powerful offshore wind turbine in the market. Larger and more cost efficient wind turbines are key elements in the realisation of DONG Energy’s strategy towards reducing the cost of electricity from offshore wind.”

“With the V164-8.0MW offshore wind turbine in commercial use, the competition among the offshore wind turbine manufactures will increase for the benefit of both the industry and the electricity consumers. I also welcome MHI Vestas Offshore Wind’s commitment to set up a supply chain in the United Kingdom for future projects.”

After a competitive tender where MHI Vestas Offshore Wind was selected as the preferred supplier for the delivery of the V164-8.0MW turbine for the Burbo Bank Extension Offshore Wind Farm back in February 2014, the conditional agreement marks a significant milestone for the wind turbine’s development – the first major commercial project. The agreement is conditional upon DONG Energy’s final investment decision for the project. The Burbo Bank Extension Offshore Wind Farm has been awarded an FID-enabling Contract for Difference.

The Burbo Bank Extension Offshore Wind Farm is located in Liverpool Bay 7 kilometres off the north-western coast of England. Based on the formal permits and the timetable, offshore construction is expected to start in 2016. When completed, the wind farm will be able to power more than 230,000 British households.

The agreement further expands the MHI Vestas Offshore Wind and DONG Energy partnership. In December 2012, the two companies entered into an agreement covering the cooperation in connection with a number of test activities for the prototype of the V164-8.0MW at the Test Centre in Østerild, Denmark, to accelerate the development of the turbine.

Press release, August 21, 2014; Image: DONG Energy