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UK gets offshore wind boost through Dong, Siemens deal

Dong Energy and Siemens Energy have signed an agreement that will see 300 offshore wind turbines of 6MW each installed at Dong offshore wind farms between 2014 and 2017.

Dong said the Siemens Energy’s new turbine belongs to the next generation of large offshore wind turbines of more than 5 megawatt and will give “a significantly higher production per position”.

Dong Energy acting chief executive Carsten Krogsgaard Thomse said: “The agreement will enable Dong Energy to install a significantly larger turbine from 2014 compared to the turbines, we know today. The agreement is a key element of Dong Energy’s strategy to significantly expand offshore wind and will strengthen our position as market leader in the offshore area.”

Under the framework agreement, Siemens Energy will design, manufacture, supply, install and service the 6 megawatt offshore wind turbines.

Crucially, the agreement commits Dong Energy to pay a cancellation fee in the event of the cancellation of projects comprised by the agreement, which will indicate a major boost for Siemens plans to build a £100m offshore wind turbine manufacturing and export facility in Hull as well as a new £80m wind turbine plant.

However Dong stated: “Whether individual projects comprised by the agreement will be built and the total capacity under the framework agreement will be utilised depend on official approvals of the specific projects and Dong Energy reaching positive investment decisions for the projects.

Dong Energy and Siemens Energy are currently working together on projects under construction on Lincs, London Array and West of Duddon Sands in the UK, Borkum Riffgrund 1 in Germany and Anholt offshore wind farm in Denmark.

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