International Business Brief - Summary of Articles

Jessica Rush 

Bus& 101[Symbol]11:30A-12:20P 

Summary 

Siemens Rides the Offshore Winds 

Siemens the German engineering giant entered the wind energy market in 2004, since they found their wind powered niche. Siemens is no. 1 in the offshore wind market, sixth place globally. Though behind wind energy leaders Vestas and General Electric, thanks to their “nautical niche,” Siemens now accounts for 7% of the market.  

Siemens specifically focus the use of their turbines and related gear for use offshore rather than on. They have won major orders for offshore projects; one such is a $4 billion deal to supply 500 Turbines to Denmark’s Dong Energy for the North Sea. Siemens hopes to protect its sea status with new technologies such as a floating platform and a direct-drive system. The German giant is broadening its focus with a goal of becoming the No. 3 producer of wind turbine globally by 2012. 

New Offshore Wind Agreement between Dong Energy and Siemens 

Since 1991 when Siemens and Dong Energy partnered to construct the world’s first offshore wind farm at Vindeby, Denmark, their co-operation has continued to grow.  In March 2009 Dong Energy and Siemens Energy sector entered into an agreement for the supply of up to 500 offshore turbines with a total capacity of up to 1800MW. Under the agreement Siemens has supplied approximately 1000MW with two offshore wind projects in the UK. 

Dong Energy and Siemens expanded the supply agreement with the addition of the Lincs project, located in the UK in the North Sea. Siemens was chosen as the design-build contractor for grid connection, which will include an offshore substation, an onshore substation and lying of cables onshore. Siemens is set to deliver 75 3.6MW turbines to the 270MW offshore project Lincs.