Denmark

Denmark

New platform key to offshore wind leadership after MHI Vestas decoupling – Vestas CEO

Vestas aims to lead the offshore wind sector by 2025, following its acquisition of Mitsubishi Heavy Industries' stake in their joint venture, CEO Henrik Andersen said

Vestas CEO Henrik Andersen (above) explained the deal to buy out MHI's stake in the offshore wind joint venture alongside CFO Marika Fredriksson today
Vestas CEO Henrik Andersen (above) explained the deal to buy out MHI's stake in the offshore wind joint venture alongside CFO Marika Fredriksson today

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Vestas will introduce a new offshore wind turbine platform “imminently” as part of its strategy to become a global leader in the sector by 2025 following its acquisition of Mitsubishi Heavy Industries’ (MHI’s) joint venture share.

It today (29 October) announced a deal to buy out Mitsubishi Heavy Industries (MHI) from their offshore wind joint venture, MHI Vestas Offshore Wind (MVOW).

In a call with investors and journalists, Vestas’ CEO Henrik Andersen explained that having a single legal entity would make MVOW more efficient.

“The real value creation sits in a one-unit entity rather than two partners,” he said.

In a presentation for investors, Vestas stated that it aimed to “leverage scale and cost synergies” between onshore and offshore wind following the buy-out of MHI’s share.

Andersen added that it was “premature” to say exactly how much synergies can be realised between Vestas and MVOW, but added that the company did have its own internal estimates.

He said that this leaner organisational structure would help MVOW become a global leader in the offshore wind sector by 2025. MHI Vestas (1GW) trailed rival Siemens Gamesa Renewable Energy (2.6GW) for offshore wind installations last year.

Key to realising this ambition will be a new turbine – due to be announced “imminently”, the company stated – scaled up from MHI Vestas’ current V164 platform, which has power ratings up to 10.0MW.

Andersen added: “We will not have a market leadership with the current turbine.

“We know our customers, and know them well, and they will want us to have a more competitive solution available in offshore tenders.”

Earlier this month, outgoing MHI Vestas CEO Philippe Kavafyan told Danish press that the manufacturer was preparing a new geared turbine platform with a significant increase in both rotor size and capacity.

Vestas’ chief financial officer Marika Fredriksson would not be  drawn on details of capacity or rotor size, and would not be drawn on expected investment figures.

Meawhile, Andersen said the deal announced today had followed months of talks with joint venture partner MHI.

He said both partners agreed a single legal entity was a more efficient approach, and added: "For them, it is natural to want to optimise the value of their holdings around the world."

MHI will acquire a 2.5% stake in Vestas as part of the deal, and will also work with the Danish manufacturer on green hydrogen development and on onshore and offshore wind in its native Japan. 

While MHI Vestas has no "concrete plans" for power-to-X projects, Andersen said that the sector would form part of the two companies' investment plans in the future.

The Japanese industrial giant would also lead on sales and marketing of MVOW products in Japan, he added.

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