Siemens is to supply up to 500 wind turbines to DONG Energy’s prospective offshore wind farms in Northern Europe. The machines to be delivered under the newly signed supply agreement have a combined capacity of 1800 MW. Permitting procedures and country specific wind regime economics will determine where and when the individual projects will be built.

Anders Eldrup, CEO of DONG Energy, said, “DONG Energy has built approximately half of all offshore wind farms in operation in the world today. Entering into the largest single offshore wind turbine supply agreement strengthens the company’s leading position in this field and provides us with an important tool for implementing our strategy of significantly expanding DONG Energy’s position within sustainable energy.”

The wind turbines to be delivered are 3.6 MW machines similar to the turbines in operation at the Burbo Bank offshore wind farm and those being installed at DONG Energy’s Gunfleet Sands I and II projects.

“The agreement with DONG Energy is one of the biggest orders in the history of Siemens,” said René Umlauft, CEO of Siemens Renewable Energy Division. “With this agreement the co-operation between DONG Energy and Siemens is taken to the next level. Together we have taken a big step towards ‘industrialisation’ of the offshore wind business which is one of the fastest growing renewable energy technologies.“

DONG Energy and Siemens have worked together before on similar projects. In 1991 the two companies constructed the world’s first offshore wind farm at Vindeby in Denmark and have since then constructed many others including Middelgrunden near Copenhagen (Denmark), Nysted in southern Denmark, Burbo Bank in Liverpool Bay (UK) and the soon to be installed Gunfleet Sands I+II (UK) and Horns Rev 2 (Denmark).

This latest deal comes just weeks after REpower and RWE signed the then largest ever contract in the industry’s history. In February the two companies announced a framework agreement for the delivery of up to 250 wind turbines for RWE projects in Europe. This deal was hailed as one of the largest contracts ever to be signed in the history of the wind industry. Potentially it is worth EUR2 billion to REpower.