Denmark’s Vestas to form offshore wind energy JV withy Japan’s Mitsubishi

Danish wind turbine manufacturer Vestas Wind Systems A/S yesterday said that it was forming a joint venture with Japan's Mitsubishi Heavy Industry to develop offshore wind energy.

The JV, to be initially owned equally by each company, with Mitsubishi having the option to expand its stake to 51 per cent in April 2016, will design, procure, build and sell offshore wind power plants, Mitsubishi said in a statement.

Under the terms of the JV, which is expected to commence in March 2014, Mitsubishi will invest an initial €100 millions ($135 million), and a further €200 million if certain milestones are met.

Aarhus, Denmark-based Vestas, the world's largest wind turbine maker, will transfer the development of its large V164 8 MW offshore wind turbine along with the order book for its V112 offshore turbine, existing offshore service contracts and about 300 employees to the JV.

The head office of the JV will be located in Aarhus and will handle design, further development, procurement and manufacturing related to the V164-8.0 MW turbine as well as all marketing, sales and after-sales service related to offshore wind.

It has been agreed between both companies that Vestas will be contracted by the JV to finalise the planned development of the V164-8.0 MW. In addition, Vestas and Mitsubishi will provide various services to the JV.

The JV will start its business with the current V112 offshore and the V164-8.0 MW turbines. At a later stage, the JV will explore the possibilities of integrating Mitsubishi's hydraulic DDT technology into the 8 MW platform which would make the JV positioned to offer a product line-up variety for customers.

The main markets for offshore wind turbines are the North Sea coastal countries, particularly the UK and Germany.

Main competitors in the offshore wind turbine market are General Electric of the US and Siemens of Germany.