MHI Vestas Offshore Supply Contract May Be $2.5 Billion

(Bloomberg) — MHI Vestas Offshore Wind A/S was picked as
the preferred supplier for a wind project off the U.K. for as
much as 970 megawatts of turbines with a contract that may be
worth up to an estimated 1.6 billion pounds ($2.5 billion).

MHI Vestas will disclose further details “as soon as the
project translates into a firm and unconditional order,” the
venture by Aarhus, Denmark-based Vestas Wind Systems A/S and
Mitsubishi Heavy Industries Ltd. in Tokyo said on its website.

The order would mean as many as 121 of the company’s 8-megawatt turbines, according to MHI Vestas. The proposed Navitus
Bay project is off Dorset and Hampshire and west of the Isle of
Wight, where MHI Vestas has a blade-production facility,
according to the website.

The offshore project is being developed by a venture
between Eneco Wind UK Ltd. and EDF Energy Renewables, according
to the website for the development. The application for the
project being considered by authorities could power as many as
700,000 homes when completed by 2021.

Earlier this week, MHI Vestas said it received an order for
400 megawatts of turbines for the Rampion project off Sussex.

Based on the pound per megawatt figures disclosed for
Rampion this week, the Navitus Bay project could cost about 3
billion pounds for the full 970 megawatts or 2 billion pounds
for the 630-megawatt option, according to “very rough
estimates” from Bloomberg New Energy Finance analysis.

That means the turbine contract itself may be worth about
1.6 billion pounds for 970 megawatts or 1.1 billion pounds for
630 megawatts, BNEF estimated.

The MHI Vestas Offshore Wind venture began in April 2014.
It received the first order for its V164-8 MW turbine from Dong
Energy’s Burbo Bank Extension project in Liverpool Bay in the
U.K. in December.

The Navitus Bay project office cannot comment on the total
cost or the turbine cost at this stage, according to a press
office official who declined to be named.

To contact the reporter on this story:
Chisaki Watanabe in Tokyo at
cwatanabe5@bloomberg.net

To contact the editors responsible for this story:
Reed Landberg at
landberg@bloomberg.net
Randall Hackley

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