Orsted CEO on Chinese wind turbines: 'We reject nothing'

Comment by Mads Nipper follows Mingyang’s plan to build offshore wind turbine factory in Italy even as EU Commission probes subsidies

Orsted CEO Mads Nipper.
Orsted CEO Mads Nipper.Photo: Orsted

Orsted does not “reject” the idea of deploying Chinese wind turbines, but as well as technology, quality, price and commercial factors would carefully consider what regulatory risks it may face by doing so, the chief executive of the global offshore wind champion said.

Mads Nipper in a call on second-quarter earnings said his company has “obviously followed with interest the developments that we have seen, both in Italy and in Germany, and across all scopes of our supply chain.”
Europe’s wind manufacturers were shocked when German clean energy asset manager Luxcara earlier this year entered a preferred supplier deal with Mingyang Smart Energy to equip its planned 270MW bottom-fixed Waterkant project in the German North Sea.
Regarding the possible use of Chinese machines at the much larger (1.5GW) N-9.3 site the company just won in the latest German North Sea tender, Luxcara told Recharge: “We make individual and specific decisions for each of our projects. As before, the choice of turbines will be based on a tender, and we are already looking forward to the offers."
Mingyang for its part sent more shivers through the industry when inking a deal to set up an offshore wind turbine factory in Italy that will produce its 18.8MW floating models to supply a 2.8GW wind project off Sicily – with the backing of Italy’s ministry of economic development.

Orsted’s Nipper said his company constantly is evaluating what the right technology choices are.

“We keep an open mind to that,” the CEO said, adding: “We reject absolutely nothing in this supply chain. We evaluate on an ongoing basis what is technologically, commercially, and regulatorily, the right solution,” he said, but added that regarding regulatory issues the company is taking into consideration the “risks of suddenly something happening that could make this more troublesome”.

The comment likely was a nod to the European Commission’s recent launch of a probe into subsidies for Chinese wind turbine OEMs under EU competition rules, with a close eye on dangerous new dependencies on China in the energy sector.
Orsted is following a series of other developers such as Statkraft, Iberdrola and EnBW that have either said they will consider using Chinese wind turbines in Europe or other geographies, or at least are not excluding the possibility.

The Danish company previously had said it was unlikely that Chinese turbines would become an integrated part of Western infrastructure.

“But that doesn’t change our perspective that we have been, and are following all technologies across the world,” Nipper said, “to ensure that we are evaluating on an ongoing basis.”

The CEO, however, added that Orsted has “no Chinese turbines in our current pipeline.

“We are not politicians. We are developers, and therefore, we do follow the technological development, but take all potential risks into consideration,” he concluded.

(Copyright)
Published 15 August 2024, 10:48Updated 15 August 2024, 11:22
EuropeDenmarkOrstedMingYang Smart EnergyLuxcara