Siemens Gamesa has confirmed it has been named preferred bidder by Vattenfall for the 3600MW Norfolk offshore wind complex in the UK with a new larger rotor variant of its next-generation model.
The German-Spanish manufacturer said the deal – which was first revealed exclusively in yesterday’s subscriber-only reNEWS – is subject to the project securing a Contract for Difference.
The 1.8GW Norfolk Vanguard and 1.8GW Norfolk Boreas will feature a 236-metre rotor machine of up to 15MW, up from the current 222-meter configuration.
The availability of the variant unit was again first reported by subscriber-only reNEWS in September.
A final deal is also subject to a final investment decision on the massive UK project by Vattenfall.
The confirmation was contained in full-year results for the company, which showed Siemens Gamesa sank to a reported EBIT loss of €522m.
Commodity price and transport cost increases as well as higher ramp-up costs of the 5.X platform were to blame, said the company.
The impact of these issues was particularly intense during the second half of the year, added the manufacturer, and are expected to still affect operations in FY22.
The costs created the need for provisions for onerous contracts that resulted in an EBIT loss pre PPA and before integration and restructuring costs of €96m with a margin of -0.9% (vs. -2.5% in FY20).
“We are operating in a very difficult environment with challenging short-term market dynamics and low visibility on supply chain normalization, and we will continue our efforts to return the company to sustainable profitability,” said chief executive Andreas Nauen (pictured).
“However, the current difficulties should not overshadow the bright future for wind energy, driven by its role in the decarbonization of our planet. As a society, we have the responsibility to curb the climate emergency now.
“We need to push for frameworks that enable the necessary acceleration of renewable energy. Wind is an efficient technological solution to make it happen.”