Siemens is investing more than €190 million (GBP160 million) in new offshore production facilities in the northeast of England. Production of rotor blades for offshore wind turbines of the 6-MW class is planned, with a new logistics and service centre to be built in Hull.
'Our decision to construct a production facility for offshore wind turbines in England is part of our global strategy: we invest in markets with reliable conditions that can ensure that factories can work to capacity. The British energy policy creates a favourable framework for the expansion of offshore wind energy. In particular, it recognises the potential of offshore wind energy within the overall portfolio of energy production', commented Michael Suess, member of the managing board of Siemens AG and CEO of the Energy Sector.
The offshore wind market in Great Britain has high growth rates, wind power capacity having doubled in two years to roughly 10 GW. By 2020, a capacity of 14 GW is to be constructed at sea alone and projects amounting to just over 40 GW are currently in long-term planning.:
Prime minister David Cameron declared 'Our constructive political environment enables us to provide new jobs for the wind power industry, together with a reliable and more sustainable energy mix.'
Siemens and its partner Associated British Ports (ABP) will be investing a total of €371 million in the project at several sites. These investments are expected to boost the strong offshore market in Great Britain and stimulate the country's job market: 1000 jobs will be created directly, with 550 of these in rotor blade production and 450 in Green Port Hull. Other jobs will follow in the construction industry and emerge indirectly in the supply industry.
Siemens has already installed more than 2200 turbines onshore and offshore in the UK, the world's most significant offshore wind power market, with a total capacity of more than 5000 MW, about half of the country's total wind capacity. It already has a workforce of around 14 000 in Great Britain, 1500 of them employed in the wind power business.
Green Port Hull is scheduled to take up operations at the beginning of 2016, with commencement of rotor production scheduled for the summer of 2016. Full capacity of the factory is to be reached by mid-2017.
Industry reaction
Nicola Walker, CBI Director for business environment at the Confederation of British Industry, commented:
"This investment ... shows the UK is well placed to become a world leader in the construction and development of renewable energy generation ... now we're starting to see the benefits of making the UK a more attractive place to invest."
Andrew Jamieson, chief executive of the Offshore Renewable Energy Catapult, said: "This ... will play a major part in developing the supply chain, supporting many thousands more and developing skills and capabilities that will deliver huge economic benefits to the UK for decades to come. It ... is a significant international vote of confidence in the UK's offshore renewable energy industry and ambitions".
Greenpeace UK Executive Director John Sauven said: "The announcement couldn't come at a better time. Currently ministers are arguing that the Ukraine crisis means we need to develop shale gas. This is despite not knowing whether fracking would be commercially viable in the UK, let alone how long it would take for the industry to deliver at scale. This green investment ... is a crucial reminder that security of supply will be delivered by reducing our dependence on gas, not by increasing it.
RenewableUK's chief executive Maria McCaffery said: "This is a major coup for the British wind industry - it's the green-collar jobs game-changer that we've been waiting for. This is just the start - where Siemens are leading, a cascade of others will follow. The British offshore wind industry already employs more than 12 800 people in direct and indirect jobs. Our research shows that within the next ten years, that number could rise to as many as 44 000. By 2030, the UK offshore wind sector will need dozens of factories making innovative, hi-tech blades, turbine towers, cables and offshore substations. This is a massive economic growth area for UK plc - a clean energy industry for the future.'
Photo: Siemens offshore wind manufacturing plans will help create around 1000 jobs in the UK (Credit: Siemens)
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