MHI Vestas wins its first firm 2020 order

The offshore wind turbine maker announces a 589 MW order from CIP's projects in Taiwanese waters.
Photo: Ørsted
Photo: Ørsted

The day has finally arrived.

After having hinted at looming big news last week, and after Copenhagen Infrastructure Partners (CIP) announced its final investment decision (FID) on offshore wind projects Changfang and Xidao, MHI Vestas is now able to reveal a firm and unconditional order for two Taiwanese developments.

The offshore wind OEM will, in line with project plans, supply 62 wind turbines of the model V174-9.5 MW, MHI Vestas informs in a press statement.

"As our first firm orders in Asia Pacific, Changfang and Xidao are landmark contracts for our business and for our market position in Taiwan," writes MHI Vestas Chief Sales Officer Henrik Jensen, adding:

"We are enormously grateful for the collaboration with CIP and look forward to bringing our trusted V174-9.5 MW, an IEC T classified turbine, along with local, green energy jobs to the people of Taiwan."

The latter aspect has been an especially pivotal point for MHI Vestas – not so much concerning the first ten machines for Changfang's first phase, which is first in line for delivery with installation reportedly set for 2022, but more regarding the remaining units, which are subject to strict localization requirements.

The turbine supplier disclosed no further details about its compliance beyond stating that its commitments are now met. However, referencing an analysis the company on a prior occasion ordered from BVG Associates, 5,300 added domestic jobs are mentioned along with an economic value of TWD 9.2 billion (EUR 280 million).

Both of these figures include, though, the 300 MW attached to CIP and China Steel Corporation's Chong Neng wind project, for which MHI Vestas is nominated as preferred supplier. The FID on these megawatts has not yet been made.

Atop the turbine orders, MHI Vestas has also won a full-scale service contract with a term extending up to 2038 – in other words, a 15-year service deal pertaining to most of the contracted equipment, while the OEM will maintain the first ten turbines for a 16-year period.

English Edit: Daniel Frank Christensen

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