The Siemens Energy and Dragados Offshore consortium snagged a nearly $7.7 billion contract for a trio of projects to transport 6 gigawatts (GW) of wind power in the German North Sea to shore.
The agreement with TenneT, a German-Dutch transmission system operator, was announced this week as the energy industry continues efforts to green up grids globally.
The projects involve supplying high-voltage, direct-current transmission technology for three grid connections—BalWin3, LanWin2 and LanWin4—to transport electricity from offshore wind farms to grid connection points north of Germany.
“In the global race against climate change, grid expansion must be able to keep pace with the accelerated expansion targets for renewable energies,” Tim Holt, member of Siemens’ executive board, said in a news release. “Shorter contracting processes, large-scale tenders and standardization of solutions show how grid operators and manufacturers are already pulling together to get green energy to consumers faster.”
Getting electricity from offshore wind turbines involves converting the energy from alternating current (AC) into direct current (DC) for transport to shore.
While Dragados will construct and install platforms needed for the projects, Siemens will manufacture the main electrical components, including switchgears, transformers and converter technologies.
Here’s a look at some of this week’s other renewable energy news.
Linde, Evonik Ink Green Hydrogen Deal
Hydrogen producer Linde plans to build, own and operate a 9-megawatt (MW) alkaline electrolyzer plant on Singapore’s Jurong Island, having signed a long-term hydrogen supply agreement with chemicals specialist Evonik.
Linde said green hydrogen produced at the plant will be used by Evonik to manufacture methionine, an animal feed component, and others in the local market.
The project comes as Evonik grows its manufacturing capacity.
“In addition to increasing our production capacity, we will implement innovative new processes in close cooperation with Linde to improve process efficiency and reduce our carbon footprint,” said Jan-Olaf Barth, head of Evonik’s Essential Nutrition product line.
The plant is scheduled to go onstream in 2024.
TC Energy, Chemours Partner for Clean Hydrogen Facilities
Energy infrastructure provider TC Energy partnered with chemicals specialist The Chemours Co. to potentially develop hydrogen production facilities and associated infrastructure in West Virginia, the companies said April 19, having signed an agreement.
Located around Chemours’ Washington Works and Belle manufacturing sites, the proposed production facilities will be electrolysis-based and use the company’s Nafion ion exchange and proton-exchange membranes made in the U.S.
News of the agreement comes as companies and groups in West Virginia aim to establish the Appalachian Regional Clean Hydrogen Hub. Known as ARCH2, the hub—led by natural gas producer EQT Corp., science and tech not-for-profit Batelle, GTI Energy and energy tech firm Allegheny Science & Technology—is among the proposed hubs vying for some of the $7 billion in federal funding available to establish between six and 10 hubs across the U.S.
Both TC Energy and Chemours count among the companies participating in ARCH2.
As part of the agreement between TC Energy and Chemours, a non-binding offtake agreement for hydrogen produced by the project would be executed in support of Chemours’ facility demand, according to a news release. The excess hydrogen would be stored and made available to nearby merchant users.
The agreement covers the companies’ interest in developing, constructing and operating clean hydrogen production facilities and associated infrastructure.
Keppel, Exxon Mobil to Explore Low-carbon Ammonia Solutions for Singapore
(Reuters) Keppel Infrastructure and U.S. oil producer Exxon Mobil Corp. signed a memorandum of understanding (MOU) to develop low-carbon hydrogen and ammonia solutions for use in Singapore, the companies said in a joint statement on April 20.
The MOU comes as low-carbon energy demand surges in Singapore—and globally—and follows the city-state government’s hydrogen strategy launched in October last year.
Singapore’s National Hydrogen Strategy targets hydrogen to meet up to half of its power needs by 2050.
The deal announced April 20 has been signed through units of both the companies and aims to use low-carbon hydrogen for a 600-MW Keppel Sakra Cogen plant in Jurong Island.
Currently under construction, the plant is expected to operate with at least 30% hydrogen and would have the capability of shifting to run entirely on hydrogen.
The plant is expected to be completed in the first half of 2026.
Siemens, Lightsource BP Sign 1 GW Solar Inverter Deal
Lightsource BP has tapped Siemens to provide solar inverter stations for projects in the U.S. Midwest and Southeast as the Inflation Reduction Act spurs more solar sector growth.
As part of the volume frame agreement announced April 21, Siemens will supply more than 850 MW of inverters with an option to add 200 MW over the next two years, Siemens said in a news release.
Most of the projects will use 4.3 MW- to 4.7 MW-rated central inverter stations, which convert the DC electricity generated by solar panels into the AC electricity that powers electrical grids.
“The U.S. solar industry is poised for historical growth, with the Inflation Reduction Act offering tailwinds toward delivering 30% of our country’s electricity by 2030,” said Kevin Smith, CEO of the Americas for Lightsource BP. “Executing significant long-term procurement agreements with bankable, world-class suppliers like Siemens enables us to meet this urgent demand for sustainable, affordable energy and deliver on Lightsource BP’s industry-leading growth plans.”
Summit Ridge Begins Work on Rooftop Solar Projects in Maryland
Commercial solar company Summit Ridge Energy and partner Black Bear Energy have started construction on 17 MW total capacity of rooftop solar projects in Maryland.
Part of the Maryland Community Solar program, the four projects combined are expected to generate more than 30 GW hours of electricity annually—enough to power more than 2,000 homes, Summit said in a news release.
The projects are located in Belcamp and Rosedale, Maryland. Real estate investment firm LBA Logistics owns the industrial assets.
Siemens Gamesa Unveils Sustainable Wind Turbine Tower
Siemens Gamesa said April 21 it launched a wind turbine tower, called GreenerTower, which is manufactured with sustainable steel that reduces carbon emissions by at least 63% compared to conventional steel.
“With more than 600 GW of new capacity to be installed worldwide in the next five years, it is important for the wind industry to reduce its carbon footprint,” Maximilian Schnippering, head of sustainability for Siemens Gamesa, said in a statement. “Our project to address emissions with greener steel is one such solution.”
The company is using a qualification process to verify that no more than 0.7 tons of CO2-equivalent emissions are permitted per ton of steel. The first qualifying supplier is German steel manufacturing company Salzgitter AG.
“The process to produce greener steel entails increased use of scrap steel, less energy-intensive steel manufacturing processes and an increased use of renewable energy sources,” Siemens Gamesa said in a news release. “As one of the measures to decarbonize steel production, for example, the electric arc furnace will be fed with green electricity from offshore wind projects.”
RWE and Siemens Gamesa plan to introduce 36 GreenerTowers at the Thor wind power project offshore Denmark, where 36 of the sustainable towers will be installed, Siemens Gamesa said.
Siemens Gamesa said the CO2-reduced tower will be available for onshore and offshore wind projects in 2024.
Acciona, Ørsted Form Floating Wind Partnership
Ørsted has partnered with Acciona, an engineering and construction firm, to develop new floating offshore wind turbine foundations that lower costs and shrink environmental footprints.
The companies said April 19 they have entered a strategic partnership, having signed an MOU to explore options for floating offshore wind foundations. Focus areas also will include industrializing the fabrication of concrete foundations and establishing a European supply chain to support Ørsted’s floating wind projects in Europe, according to a news release.
The partners will explore the use of carbon-neutral bio-cement, bio-concrete and other materials and solutions to reduce carbon emissions.
“The goal of our collaboration with Acciona is to take floating wind from the innovation to the industrialization stage,” Rasmus Errboe, executive vice president and CEO of Ørsted’s European region, said in a news release. “Ørsted intends to further grow our European floating pipeline, with Spain being a key market of interest for us.”
Ørsted forecasts that more than 20% of new offshore wind farms will be floating by the mid-2030s.
Transocean, Eneti to Form Offshore Wind Foundation Installation JV
Transocean is bringing its offshore drilling rig expertise to the offshore wind foundation installation sector, saying it plans to form a joint venture (JV) company with offshore wind vessel provider Eneti.
The companies said April 19 they executed a non-binding MOU to form the JV company.
If the two companies reach definitive agreements on the move, at least two Transocean vessels would be converted into floating offshore wind foundation installation platforms. The vessels could carry and install up to six 3,500-ton, 12-meter diameter monopile foundations, according to a news release.
Both companies would provide expertise and operational personnel for the JV and have the right to bring in additional partners.
The announcement comes as the U.S. offshore wind industry takes steps to grow capacity amid the transition to cleaner forms of energy. The Biden administration is targeting 30 GW of offshore wind capacity by 2030.
PE Firm SCF Partners Invests in Tekmar Group for Offshore Wind
Houston private equity firm SCF Partners said April 20 it is investing in the U.K.-based Tekmar Group to accelerate the deployment of offshore wind projects worldwide.
The amount of the investment was not disclosed, but Tekmar focuses on engineering services and technologies dedicated to protecting offshore wind farms, and other offshore energy and marine infrastructure.
Tekmar will remain publicly traded on the London Stock Exchange as SCF continues the trend of private equity firms investing in publicly traded energy companies.
“Importantly, this transaction emphasizes continuity and confidence to Tekmar’s key stakeholders with Tekmar remaining an independent publicly traded company, now with enhanced investment capacity to develop new technology, expand our product offerings and enter new markets,” Tekmar CEO Alasdair MacDonald said in a prepared statement. “The strategic investment by SCF therefore very successfully concludes the strategic review process.”
SCF received two seats on Tekmar’s board as a result of the investment.
Havfram Grows Wind Turbine Installation Vessel Fleet
Norway-based Havfram Wind is adding a second jackup vessel to its wind turbine installation vessel fleet as it gears up to install wind turbines for several projects.
The company said the vessel order is the first optional vessel in its existing shipbuilding contract with CIMC Raffles. With a lifting capacity of 3,250 tons, the latest vessel will be capable of installing wind turbines with 300 m-plus rotor diameters and monopiles weighing up to 3,000 tons in water depths of up to 70 m, Havfram said in a news release.
“The decision to order a second NG20000X jackup vessel with CIMC Raffles is based on the good established cooperation with the shipyard and several commitments with major offshore wind developers. As previously announced, we have signed a contract with Ørsted to install wind turbines at their Hornsea 3 project, starting in autumn of 2026,” said Havfram Wind CEO Even Larsen. “Vattenfall has appointed us as preferred supplier for their Norfolk projects, starting in the spring of 2027. Last week, we signed a preferred supplier agreement with RWE for turbine installation support for their Nordseecluster project, commencing in the summer of 2026.”
All three projects are located in the North Sea.
Hart Energy staff and Reuters contributed to this article.
2023-07-13 - The final investment decision comes as NextDecade executed and closed a joint venture agreement for Phase 1 which included approximately $5.9 billion of financial commitments.
2023-09-07 - All LNG output from the Woodfibre LNG export facility is now committed for sale to BP.
2023-07-13 - Energy Transfer has entered three non-binding Heads of Agreements deals totaling 3.6 million tones per annum of LNG.
2023-07-06 - Baker Hughes will supply gas turbines paired with centrifugal compressors to NextDecade’s Rio Grande LNG project under a contract with Bechtel Energy.
2023-07-18 - Fluor Corp. has completed the module fabrication program on its LNG Canada JV project, a significant milestone that allows the project to continue on its course toward its planned initial LNG shipment mid-decade.