DONG Energy has signed a contract for the supply of foundations for the Burbo Bank Extension offshore wind farm under which a significant amount of the production will be undertaken in the UK.
The agreement signed today with EEW SPC covers the supply of 32 monopile foundations and the associated transition pieces for the 258MW wind farm project to be built in Liverpool Bay.
Under the contract a high proportion of the transition pieces will be manufactured at the Teesside plant by Offshore Structures (Britain) Ltd. The joint venture business was set up by EEW SPC and Bladt Industries A/S, who acquired the manufacturing site of offshore foundations business TAG Energy Solutions in Billingham, near Middlesbrough, which went into administration last October.
Monopile foundations for the wind farm will be fabricated at EEW SPC's facility in Rostock, Germany, while the transition pieces will be produced partly at the Teesside plant on the British east coast and partly in Aalborg, Denmark at Bladt Industries' facility.
Brent Cheshire, UK Country Chairman for DONG Energy, said: "We are delighted to have awarded this important contract which will bring substantial fabrication work to Teesside.
"With the UK leading the world in the deployment of offshore wind technology, DONG Energy believes it is important that investments feed through to the local supply chain."
Karl Klös-Hein, Managing Director EEW SPC said: "We are delighted to have been awarded this contract for the manufacture of foundations for the Burbo Bank Extension offshore wind farm. This will be the first project to be manufactured at Offshore Structures (Britain) Ltd at Teesside, a joint company of EEW SPC and Bladt Industries.
"We are very happy to get a kick-start for our new UK operation, as manufacturing of the foundations for the Burbo Bank Extension project will start as early as August 2015. With the UK being the biggest European market in offshore wind, we feel it's about time to boost local manufacturing and we are glad to deploy our experience and technology in the UK steel fabrication world."
He added: "Provided that we get awarded future projects, Offshore Structures (Britain) Ltd will employ up to 350 people and invest close to £30 million."
DONG Energy gave the Burbo Bank Extension project go ahead in December 2014 when a Final Investment Decision to proceed was taken. This followed the award of development consent by the Secretary of State for Energy & Climate Change in September.
The Burbo Bank Extension wind farm will feature 32 MHI Vestas Offshore Wind 8 MW turbines and
will be capable of supplying the electricity needs of around 180,000 UK homes when it is completed.