Siemens Gamesa agrees with the Swedish electricity company Vattenfal to sell 3.6 GW of offshore wind power and soars on the stock market

The company will install its new wind turbine, which can reach 15 MW in capacity and with a 236-meter rotor.

Siemens Gamesa generators

Siemens Gamesa has been chosen as preferred supplier by the Swedish electricity company Vattenfall for the project Norfolk, the 3.6 GW. Located in the United Kingdom, it is a project of marine wind (offshore) of colossal dimensions. Once up and running, it will generate enough clean energy to power 4 million British homes.

According to the preliminary agreement reached with Vattenfall, Siemens Gamesa would install its new offshore wind turbine SG 14-236 DD, more powerful, and would also be responsible for the maintenance of the project. Located at a distance of between 47 and 72 kilometers on the east coast of England, the Norfolk project is made up of two wind farms, each with 1.8 GW: Norfolk Vanguard and Norfolk Boreas.

This nominee preferred supplier agreement between Siemens Gamesa and Vattenfall is subject to the outcome of the auction award by the UK government, scheduled for 2022, and the resulting final investment decision by Vattenfall.

“Siemens Gamesa and Vattenfall have a very fruitful relationship that has lasted for many years and in many markets. With this preferred supplier agreement nominated for Norfolk, we want to add another 3.6 GW to our combined portfolio”, he underlined. Marc Becker, CEO of the Siemens Gamesa Offshore Business Unit.

“The Vattenfall projects in Norfolk will make up one of the world’s largest offshore wind farms when completed, generating enough renewable electricity to power the equivalent of 4 million homes,” he said. Catrin Jung, Director of the Vattenfall Offshore Business Unit.

The new SG 14-236 DD wind turbine is equipped with a rotor of 236 meters of rotor and will use blades with technology IntegralBlade. Its impressive sweeping area of 43.500 m2 It allows increase by 30% annual energy production compared to the SG 11.0-200 DD model. In addition, the turbine can reach 15 MW of power with the Power Boost functionality.

The prototype of the SG 14-222 DD machine, the variant prior to the SG 14-236 DD, has already been installed in Denmark and its commissioning is scheduled for the coming weeks.

shoot yourself in the bag

And Siemens Gamesa’s titles soared almost 9% this morning after informing the market that it has been designated preferred supplier by Vattenfall.

Specifically, the shares of the Siemens subsidiary rose 8.5%, to 20.37 euros, at 9:44 am, once this agreement was notified to the market.

This preferred supplier agreement between Siemens Gamesa and Vattenfall is subject to the outcome of the award of the auction by the British Government, scheduled for 2022, and the consequent final investment decision by Vattenfall.

Mirabaud has raised its recommendation on Siemens Gamesa shares to ‘buy’ from ‘hold’, with a target price of 22.90 euros, after reporting last Friday quarterly results and sales below estimates.

Rising prices for raw materials and transportation, coupled with higher platform launch costs Siemens Games 5.X have had an impact on profitability and have led the company to make provisions for contracts with risk.