This week’s WindEnergyUpdate News round-up includes: Parsons Brinckerhoff report on energy costs; Clipper Windpower CEO resigns; Nordex launches 3G turbines and posts contracted consolidated profits; Finavera signs PPAs with BC Hydro; Nordnes Vessel to begin prelinary work at Sheringham Shoal; First Wind awarded DoE loan guarantee; A-Power; and Daewoo Shipbuilding and Canadian Province sign contract for manufacturing facility.

Study: Offshore wind energy is twice the cost of nuclear

A new report by UK-based engineering consultant Parsons Brinckerhoff, reveals that electricity generated by offshore wind farms is likely to be at least twice as expensive as nuclear power.

The report found nuclear generation costs to be 6-8 pence per kilowatt hour (p/KWh), including decommissioning and waste disposal, compared to 15-21 p/KWh for offshore wind.

For onshore wind, the cost is between 8 and 11 p/kWh, which is competitive with gas at 6-11 p/KWh.

At this stage, tidal power generation is the most expensive source of electricity for Britain, with costs likely to be in a 16-38 p/KWh range.

The report covers a range of generating technologies including tidal, offshore and onshore wind, combined and open cycle gas turbines, conventional and clean coal, biomass and nuclear.

However, it does not take account of the costs of transmission on the national grid, which reflects current uncertainty relating to the treatment of costs by the transmission system operators for offshore wind and other geographically distributed generation types.

Parsons Brinckerhoff used a sophisticated analysis model, which takes account of multiple factors for each generation type, including predicted costs for fuel, carbon, operation and maintenance.

It also includes factors reflecting optimum plant life and construction scheduling. The cost breakdown of generation technologies emphasises the large variations in capital and fuel price contributions.

The UK now has more offshore wind energy capacity than any other nation, having taken over from Denmark as the world leader in 2008. Total capacity by the end of 2009 was forecast to be just under 1GW with at least 800MW more under construction, but the sector will expand even more rapidly over the next few years.

There are over 40GW worth of offshore sites currently being brought forward by developers in UK waters. The first two rounds of offshore development overseen by the Crown Estate should provide 7GW capacity and Round 3 will add another 32GW. A further 6.5GW will be built in Scottish territorial waters and up to 2GW is expected from extensions to early wind farms.

Clipper Windpower CEO resigns

Doug Pertz, Clipper Windpower’s chief executive has resigned.Clipper has appointed Mauricio Quintana as new president and CEO.

Pertz was appointed to the CEO position in September 2008, after serving five months in the role of chief operating officer for the Carpinteria, California-based wind turbine maker.

Quintana was formerly the director of corporate strategy and development for United Technologies Corp (UTC) for the past two years. He has been integrally involved in UTC’s assessment of Clipper’s technologies, markets and its operations, which resulted in their US$275 million investment in January 2010. UTC closed its subscription and partial tender offer to acquire an aggregate 49.5% stake in Clipper.

Clipper expects to post a loss in the second half partly due to order deferrals and the delayed commissioning of turbines. It expects to report a second-half loss approaching the interim level, according to Reuters.

Nordex launches 3G turbine series

German wind turbine maker Nordex plans to unveil the third generation of its 2.5 MW turbine series - the Gamma generation – next month.

Comprising the N80, N90 and N100 wind power systems, the turbines feature excellent control of reactive power capability which stabilises the frequency of the public grid, according to the company.

The wind power systems can continue to operate during transient voltage dips or surges (Fault Ride-Through). In fact, the turbines are low maintenance and have maintenance-free components to support dependable turbine operation and to speed up routine service work.

The company claims that it has redesigned the nacelle, hub and rotor blades in the new generation to be both lighter and more robust. It has further redesigned the rotor shaft besides developing a proprietary control system in the yaw system.

The turbines are modular, with a maximum component weight of 50 tonnes, which, according to Nordex, eases transportation logistics and speeds up both installation and service of the machines. 

Nordex posts €1.18b in revenues in 2009

Despite weak market conditions, German wind turbine maker Nordex, posted its preliminary full year consolidated sales for 2009, which revealed a climb to €1,183 million compared with €1,136 million the previous year.

However, earnings before interest and taxes (EBIT) declined to €40 million from €63 million last year due to higher structural costs.

The company’s consolidated net profit for fiscal year 2009 was €24.2 million, down from €49.5 in 2008.

Operating activities primarily as a result of de-stocking, led to a net cash inflow of €9.6 million.

Finavera awarded PPAs

British Columbia-based Finavera Renewables’ has been awarded power purchase agreements by BC Hydro.

BC Hydro, the third largest electric utility in Canada, has awarded Finavera long-term Electricity Purchase Agreements for four wind projects, comprising a total capacity of 293 MW.

The four projects have an estimated capital cost of CAD$800 million and have the potential to generate over CAD$100 million annually in revenue once they are fully operational.

Finavera has agreed to commercial operation dates that provide appropriate time and capacity to construct all four projects on schedule and on budget.

The 71 MW Wildmare project is expected to begin construction in 2012, the 45 MW Tumbler Ridge project is expected to begin construction 2012, the 117 MW Meikle project is expected to begin construction 2013 and the 60 MW Bullmoose project is expected to begin construction in 2014.

In total, under the mantle of its 2008 Clean Power Call RFP, BC Hydro has given the nod to 19 private-sector clean energy projects. The 19 wind and run-of-river projects will generate 2,400 gigawatt hours of electricity per annum.

Finavera Renewables is also planning to raise CAD$600,000 through a non-brokered private placement of 10,000,000 shares at a price of CAD$0.06 per share.

Proceeds of the placement and loan will be used for ongoing wind project development and general working capital. The private placement and loan are subject to TSX Venture Exchange approval.

Construction begins on Sheringham Shoal wind farm

Construction work on the Sheringham Shoal Offshore Wind Farm has begun, with the arrival of the 164m “Nordnes” vessel.

The vessel will position rocks at selected foundation locations in preparation for the start of the installation of the giant monopile structures next month.

The Sheringham Shoal Offshore Wind Farm is owned equally by Statoil and Statkraft through the joint venture company Scira Offshore Energy Limited. Statoil is the operator for the project during the development phase. Scira will be the operator of the wind farm.

The Nordnes will place 2-9” filter rocks in a ‘donut’ shape around the site of 77 of the 90 foundation locations to reduce the likelihood of scour and to protect the cables post installation.

The Nordnes will be on site at Sheringham Shoal, between 17 and 22km off the coast of North Norfolk, until March 18 when it will return to Norway to collect its second load of rock. It will arrive back in the Greater Wash on March 22, working until March 30. The final rock placement for the Filter Layer work will be completed around early June 2010.

Dutch company Van Oord has been contracted to carry out the filter layer work, which will be the first stage of a two-phase process. During the second phase, larger rocks will be placed in the same pattern to act as armour to the filter layer after all the foundations have been installed. The appointment of the contractor to undertake the armour layer works has yet to be decided.

First Wind bags DOE loan guarantee

The U.S. Department of Energy (DOE) has offered a conditional US$117 million loan guarantee to finance the construction of U.S.-based wind energy company First Wind’s proposed 30 MW Kahuku Wind project in Hawaii.

The Kahuku Wind project will create employment opportunities during design, engineering and construction, including approximately 200 construction jobs.

The project is in the final permitting stages but construction will begin after the Hawaii Public Utilities Commission approves the project and the DOE guaranteed funding is in place.

The Kahuku Wind project will include 12 2.5 MW Clipper Liberty turbines and a 15 MVA, 10 MW/hour battery energy storage system to enhance electricity load stability.

Developed by Xtreme Power, the patented battery system will enable the Kahuku Wind project to store energy and provide as much as 10 MW of power for at least an hour during periods of low wind speeds. 

A-Power to develop new US wind turbine plant

Chinese wind turbine manufacturer A-Power Energy Generation Systems plans to build a wind turbine plant in Nevada in partnership with private equity firm U.S. Renewable Energy Group and real estate company, American Nevada Group (ANC).

The plant will have an annual production capacity of 1,100 MW of wind energy turbines, enough to power 330,000 homes, A-Power said.

The facility is expected to employ approximately 1,000 Nevada workers and create even more jobs during the construction process. ANC will identify potential sites for the facility and will develop the facility for the group.

Upon having identified a suitable site, A-Power intends to self-fund the site acquisition as well as the construction and operation of the assembly facility. 

Daewoo Shipbuilding and Canadian Province sign contract

South Korean manufacturing giant Daewoo Shipbuilding and Marine Engineering (DSME) has struck a deal with the provincial government of Nova Scotia, Canada, to establish a joint venture to build wind power generators. 

DSME, one of the world's largest ship builders, will establish a wind turbine tower and blade manufacturing facility at the former TrentonWorks site in Pictou County. The facility is expected to be operational by fall 2010.

DSME and the province are signing a shareholders agreement and are committing to an equity investment. DSME plans to invest up to CAD$20 million and hold a 51% stake while the Canadian province will take up the rest of the shares and contribute around CAD$19 million.

The Province of Nova Scotia is also providing start-up financing, a loan for new equipment, working capital, and a loan to acquire land and buildings. Through the Industrial Expansion Fund, the province is also providing start-up financing - a CAD$30-million loan for new equipment, a loan of up to CAD$6 million for working capital, and a CAD$4-million forgivable loan to acquire land and buildings.

The government of Canada announced that it intends to invest CAD$10 million in the plant. The investment, through the Atlantic Canada Opportunities Agency, will be a CAD$5-million repayable loan and a $5-million contribution for adjacent land improvements.

For its part, DSME refers to this deal as a move to further expand into the North American market. DSME acquired DeWind, an American wind turbine manufacturer, in 2009.

DSME also signed a memorandum of understanding with Nova Scotia Power for a formal process for the companies to collaborate on developments that help meet renewable generation goals in Nova Scotia. The two entities will explore potential on-shore wind, tidal energy and offshore wind projects.