http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/RSS.ashxVestas Win[d] PagesWed, 11 Feb 2009 14:30:15 +0100http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=1http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=1Wind W I N D , O I L A N D G A S No. 15 Ye a r 0 6 11 Februar y 2009 Energy independence: US oil billionaire backs wind New wind turbine from Vestas U.S. turns toward green · Ready for growth in China Offshore Comeback · Drive for minimal defects A sharper customer focus · Fast service at the front line Green performance in numbers2009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=2http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=2A new agenda 20 January 2009, the date of the inauguration of Barack Obama as President of the United States of America, will be remembered as a truly historic day in many respects. Moreover, it could well mark the start of a new era in the field of modern energy. With his plan entitled “New Energy for America”, President Obama has already outlined his vision for the energy future of the United States, namely that 10 per cent of electricity demand in 2012 – and 25 per cent in 2025 – is to be covered by power from renewable sources of energy. Together with the EU’s ambition of ensuring 20 per cent renewable energy in 2020, this new plan highlights wind power’s massive potential for growth, and underpins our own goal of being capable of manufacturing, transporting and installing 10,000 MW of capacity in 2010. The arguments in favour of the American plan exactly mirror what we at Vestas consider to be the most weighty benefits of assigning wind energy a key role in the energy supply mix, on equal footing with oil and gas, i.e. that it contributes to creating local jobs, it reduces dependency on imported, fossil fuel, and it saves the environment from millions of tons of CO2 emissions. The clear political statement of intent opens up new perspectives for the development of wind power in the United States in the immediate future. At the same time, it is remarkably encouraging to witness the increase in interest in wind power that is currently apparent in all parts of the energy sector. This is Ditlev Engel President and CEO perhaps best exemplified by T. Boone Pickens, who, in this issue of the magazine, explains the background for his decision to turn his attention to wind energy – following a long career in the oil industry. The same positive tendencies from both political and commercial players are also apparent in China, the country with the secondhighest energy consumption in the world. In fact, we believe that the Chinese market has such great potential that from the beginning of this year, we have set up our Chinese organisation as a separate business unit to allow it to provide our customers in that country with even better service. The reason for this is that we at Vestas are committed to targeting our work to ensure that our customers take centre stage in all contexts. This also applies to the development of new technology, an area in which we are currently making enormous investments. In this regard, it is with great pleasure that we can now introduce the latest addition to our product range: the V112-3.0 MW turbine. In this issue, you can find out more about this turbine, which, to a greater extent than any previous Vestas product, is based firmly on our customers’ wishes and requirements for their wind power plants, and which will help reduce the price of modern energy even further. 22009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=3http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=3Content 4 A powerful performer Vestas presents the new and hard-working V112-3.0 MW turbine, an innovative and reliable model specially designed to pull more energy from medium and low wind speed sites. 24 Countdown to faultless components A whole new approach to suppliers is giving Vestas a deep insight into supplier processes and creating the basis for minimal component defects. 8 Obama ushers in new era The U.S. has a new president, and a new agenda for clean energy. A long-time proponent of renewable energy sources, Barack Obama sees green technology as a major force behind economic recovery. The prospects for wind have never looked better. 30 Offshore comeback Vestas gets big order for the UK after a rework of its V90 offshore turbine. 14 36 Man on a mission: oil billionaire backs modern energy At age 80, T. Boone Pickens has taken on another big challenge: to eliminate the dependence of the Unites States on oil from unstable regions. Staying ahead of China’s wind market growth Vestas opens independent sales unit in what is becoming the world’s most competitive market. 42 Fixing the spares Vestas Spare Parts & Repair will provide more agility and reliability to the service business at Vestas which provides a vital component to 20 Tuned in to customer value Customers worldwide have told Vestas how they see value. Their input is at the heart of three “must do” value drivers that are sharpening Vestas’ focus on customer needs. ensuring customer satisfaction. 48 Putting numbers on green performance How green is wind power? Detailed environmental audits help both Vestas and its customers. 32009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=4http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=4A new powerful performer Following 18 months of development, Vestas presents the innovative V112-3.0 MW turbine, dimensioned to harvest maximum power from medium and low wind speed sites. 42009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=5http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=5A new Vestas turbine is arriving on the market. A hard-working, reliable model with a characteristic design that will shape the skylines of wind power plants around the world for years to come. The new V112-3.0 MW turbine is designed to harvest maximum wind power from medium and low wind speed sites. “This makes it the perfect addition to our programme portfolio,” says Senior Product Manager Klaus Holm. “The market for turbines at low and medium wind speed sites constitutes a large share of the wind market potential, and we believe the V112-3.0 MW will provide customers in this segment with unparalleled output and economy.” The turbine was presented to the public on 11 February, 2009, and will be released for sale in May, 2010. Proven technologies President of Vestas Technology R&D Finn Strøm Madsen stresses the fact that while the V112-3.0 MW turbine contains several innov- 52009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=6http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=6The techniques of virtual reality, including the 3-D glasses worn by this Vestas engineer, helped visualize the V112-3.0 MW machinery long before it was manufactured and assembled. Each lens is actually a tiny screen connected to a computer into which technical drawings from every possible angle are fed. The computer consolidates these data into a three-dimensional rendering that gives the look and feel of actually moving about and working inside a turbine. “Development of the V112-3.0 MW has truly been customer-oriented,” Finn Kolind Christensen says. “Every aspect of the turbine has been optimized with an eye to the customers’ situation – not only in the immediate future but for the entire life span of the turbine, which With an extra-long blade length of 54.6 meters, the V112-3.0 MW efficiently captures the wind at medium and low wind speed sites. The characteristic fin at the back of the nacelle is part of a cooling system that uses the wind itself instead of drawing electricity from the grid. is at least 20 years.” Cross-functional cooperation within the Vestas organisation was another hallmark of the development process. Colleagues from such areas as logistics, production, service and ations, it also draws upon proven technologies from previous generations of Vestas turbines. Years of field experience and development to reduce turbine downtime, increase the mean time between inspections and facilitate operation and maintenance make the V112-3.0 MW an extremely reliable performer with the lowest possible cost of energy. “All of which contributes to the customers’ business case certainty, which is of utmost importance to us,” Finn Strøm Madsen notes. Customer-focused development The V112-3.0 MW turbine was developed by Vestas Technology R&D over a period of about 18 months. Characterising this process was a world-class integrated product development involving many stakeholders. “This is in keeping with what we call The Vestas Way to Market, in which development is divided into a series of stages to ensure controlled development and input from the right stakeholders at the right time,” explains Chief Project Manager Finn Kolind Christensen, who supervised the development of the V112-3.0 MW. Input from customers was one of the most important sources of external information. Customer needs were meticulously sought out and assessed, and detailed cost-benefit models were submitted to selected customers for ‘sanity checks’. sourcing were fully integrated into the V1123.0 MW development team to ensure that the new turbine would address such customer needs as ease of transport, assembly, maintenance and replacement of parts. A virtual ‘walk’ Finn Kolind Christensen notes that important new technologies were used in developing the V112-3.0 MW. Among other things, computer simulations using the techniques of virtual reality helped visualize the turbine’s machinery and service friendliness long before any of the components were physically assembled. Engineers wearing massive 3-D glasses were thus able to take a ‘walk’ through the turbine, checking for impracticalities that could make it difficult to assemble or service. 62009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=7http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=7An array of advantages The technical innovations of the V112-3.0 MW offer customers an array of advantages that make the turbine highly competitive. A customer-oriented functionality is incorporated into every new element of its design: • N EW BL A DE DESIG N With a rotor diameter of 112 meters and 54.6-me- ter blades, the new turbine can literally pull more power out of the air. The turbine dimensions and power rating ensure a high capacity factor, making it well-suited for sites with a limited number of turbine positions. This also makes the turbine an excellent choice for sites where limits have been placed on the amount of power that can be distributed to the grid. The components themselves are being thoroughly validated at the new Vestas testing facility in Århus, Denmark. This laboratory has previously been used to test a variety of product updates, but the V112-3.0 MW is the first new wind turbine to benefit from the facility. “We can test everything from the tiniest cogwheel to a completely-assembled turbine, which we can expose to a level of stress corresponding to a storm on a Spanish mountaintop,” Finn Kolind Christensen remarks. Shaping the future Going forward, Finn Strøm Madsen states that the experience and expertise gained from creating the V112-3.0 MW will shape the future of Vestas’ development work. As for the turbine itself, he is convinced it will set a new standard for the wind power industry: “The V112-3.0 MW is going to be a competitive model for years to come, and all of our new turbines in the foreseeable future will be based on the same principles of design. I’m convinced that this turbine and the hard work that has gone into it are going to secure and consolidate our position as the market leader in wind energy for a very long time.” • LOW A UDIBIL ITY The V112-3.0 MW is optimized to provide high power output with low audibility, particularly at low wind speeds. Moreover, the turbine can be adjusted to reduce audibility even further without significantly impacting power output. • N EW N A CEL L E DESIG N The slender and modular nacelle design enables the use of standard transport equipment, decreasing the cost of energy and increasing the availability of equipment. • N EW-G EN ER ATION user interface. • N EW COOL IN G SYSTEM SOF TWA R E The turbine’s control system is based on a new, modular software design that enhances stability and improves the The turbine is cooled by the wind rather than by the electrically-driven fans of earlier Vestas models. For customers, this means less internal energy consumption and more energy to the grid. The cooling system is part of what gives the V112-3.0 MW its characteristic shape: attached at the rear of its nacelle is a large fin that serves as an external cooling surface. • STA BL E PA R K OUTP UT As wind power plants operate on par with conventional power plants, it is important for customers to be able to control power plant output at any given time. If necessary, and if external conditions allow it, the V112-3.0 MW can be automatically adjusted to a temporarily higher nominal rating, thus increasing park stability. • N EW P OWER CON VERTER A new, flexible power conversion system en- hances the turbine’s ability to meet grid requirements for reactive power, frequency range, power recovery, etc. The system also provides improved control of speed and torque, which in turn reduces the load on mechanical components in the turbine and enables greater power output at low wind speeds. • P ER M A N EN T M AG N ET G EN ER ATOR Turbine efficiency is further enhanced – particularly at low wind speeds – by a permanent magnet generator that reduces energy loss in the power system. 72009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=8http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=8Obama Ushers in New Era With a new administration and Congress, the U.S. political environment has never appeared more favorable for wind and other renewables. In addition to long-term planning for clean energy, look for quick action on a green technology jobs program, a build-out of the U.S. transmission grid, a multi-year Production Tax Credit and a regimen to reduce carbon emissions. 82009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=9http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=9During his election campaign, Barack Obama proposed an aggressive program that called for $150 billion to develop clean energy over the next 10 years, a national minimum for electricity generation from renewable sources, and a reduction in greenhouse gas emissions to 1990 levels by 2020. The recent economic turmoil has led many observers to suspect that he may postpone his clean energy agenda, or at a minimum, tone it down. But from his first radio address as President-elect, to his inauguration on January 20, 2009, Obama has given every indication that he will follow through on his campaign pledge. “We’ll put people back to work rebuilding our crumbling roads and bridges, modernize schools that are failing our children, and building wind farms and solar panels,” he said in November 2008, announcing a public works program that would create 2.5 million jobs by 2011. And following his swearing as President, he noted that “each day brings evidence that the ways we use energy strengthen our adversaries and threaten our planet.” He added, “We will harness the sun and the winds and the soil to fuel our cars and run our factories.” Within hours, the new administration had posted on the official web site a point-by-point 92009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=10http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=10Production Tax Credit unleashes wind The PTC has been a mainstay of the wind industry. Through what is called “taxequity financing,” wind developers can sign over the tax credits to banks, which in exchange provide developers with the funding for capital costs. The effect of the PTC could be seen when Congress allowed it to expire. In the years following its lapse, U.S. wind installations fell 73-93 per cent. Production Tax Credit (PTC) Expired Production Tax Credit (PTC) reiteration of the New Energy for America plan outlined by Obama as a candidate. All of the original proposals were kept intact, including (Source: American Wind Energy Association) the promise of 1 million plug-in hybrid cars on the road by 2015 and a program to drastically reduce U.S. dependency on imported oil. President Obama has called for a 5-year extension of the PTC when it expires at the end of 2009, a move industry insiders say will provide much needed stability. 102009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=11http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=11economic issue as well, and renewable energy development is going to be major part of President Obama’s economic growth package through the creation of clean energy jobs.” Renewables Minimum Jon Chase notes that Obama has proposed an even higher renewables minimum than Congress, calling for 25 per cent renewables minimum by 2025. In contrast, the only legislation that saw any Congressional action in the past few years would have set a minimum of 15 per cent. “We can’t be sure at this point about the final percentage,” Jon Chase adds, “but I think it’s safe to say we’ll see a strong early push to increase renewable energy, perhaps as early as March or April.” In other positive signs, the President and Congress appear willing to take on a number of key obstacles to developing the renewables industry. One such challenge is Based on such consistency, as well as a number of other positive signs, industry insiders are upbeat about the future of wind power. “The Obama administration looks very good for renewables and especially wind,” says Roby Roberts, Senior Vice President, External Relations at Vestas Americas. “The right things are being said and commitments are being made, and you have to be very optimistic about what’s going to happen in the first hundred days, as well as the first year and the first term of this administration.” That view is seconded by Jon Chase, Senior Policy Advisor at Alston + Bird, LLP, and a Washington lobbyist for Vestas. “Clearly, the economy is the top agenda, but energy is an a shortage of high-voltage transmission lines to transport renewable energy from sparsely populated areas where it is abundant to major population centers. In a May 2008 report, the U.S. Department of Energy (DOE) released a study reporting that wind power could provide as much as 20 per cent of all U.S. electricity by 2030 (see Win[d] no. 13, pages 4-11). 112009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=12http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=12However, for wind to reach that goal, the U.S. would need to build more than 30,000 km of new 675 kV transmission lines, according to the DOE. Various commentators have compared such a build-out to the Interstate Highway System championed by President Eisenhower in the 1950s. The nationwide expressway system reaches nearly every major city in the U.S., and is credited with galvanizing U.S. economic expansion during the 1960s and beyond. Roby Roberts foresees a similar drive to expand the U.S. power grid. “We are increasingly hearing from policymakers at the highest level that if clean energy generation is going to meet its potential in this country, then we’re going to need a massive transmission build-out.” Production Tax Credit Another major challenge to the wind industry has to do with a tax incentive known as the Production Tax Credit (PTC). The PTC provides significant up-front equity to wind developers (see box on page 10), and it has been key to the growth in the industry since it was introduced as part of the Energy Policy Act of 1992. Unfortunately, Congress has let the PTC lapse repeatedly, 3 times in the last 8 years alone, with a significant impact on the wind market. “With this kind of off-and-on basis, there’s no market stability,” Jon Chase points out. “It’s hard for any industry to grow without any type of long-term planning.” American Wind Energy Association (AWEA) figures show that in each year following the last three expirations of the PTC, wind installations have dropped 73-93 per cent in the U.S. The PTC is due to expire again at the end of 2009. However, President Obama has called for a five-year extension of the tax credit. The President has also come out strongly for a cap-and-trade emissions program. The program would make renewables significantly more competitive in price by adding the cost of carbon emissions to fossil fuels. Under the Obama proposal, a limit (or cap) would be set for the amount of carbon a company may emit. The government would then auction off emission allowances, and if a company recorded emissions below its cap, it could sell (or trade) its excess allowances to companies that have exceeded their cap. Reducing Emissions to 1990 Levels The cap-and-trade program calls for carbon emissions in the U.S. to be reduced to 1990 levels by 2020 and an additional 80 per cent by 2050. As an added benefit to renewables, $15 billion of the receipts from the auctions would go toward the development of clean energy and energy efficiency. “President Obama has proposed a fairly robust emissions program,” says Jon Chase. “I think the actual make-up of the program is going to be the subject of intense debate in Congress. The program could be delayed because of economic issues, but I think we’ll see serious legislative activity no later than 2010.” Cap-and-trade initiatives were repeatedly defeated in the last two Congresses. However, following the November elections, the composition of the new Congress has greatly improved the chances of cap-and-trade legislation being enacted into law. Perhaps one of the most favorable signs that the new administration is pro-renewables is that the President has a long history as a supporter of clean energy. As a state senator in Illinois, Obama consistently voted for clean energy legislation, helping to make the state a major market for wind turbines. And as a U.S. senator, he supported the Energy Policy Act of 2005, which provided tax incentives and loan guarantees for clean energy. 122009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=13http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=13Barriers to Growth Renewables Portfolio Standard 27 states and the District of Columbia (Washington D.C.) already have an RPS, which stipulates that a minimal percentage or wattage of power generation must come from clean energy. The renewables industry has long pushed for a national RPS to help create a sustainable market for renewable energy. As a candidate, Obama called for a 10 per cent RPS by 2012 and 25 per cent by 2020. Huge Opportunities “The Obama presidency signals huge opportunities for wind,” says Jon Chase. “It remains to be seen what specific technologies and what areas of the economy are going to be able to participate, and how quickly Congress moves forward. But renewables are going to play a huge role in all of the key issues, from energy independence to climate change. And given that wind is positioned to contribute now in terms of putting power generation in the ground, I believe that with the proper policy initiatives in place, we will see significant industry growth in the coming years.” Roby Roberts agrees. “From all appearances, this administration is going to put together a program that will give us the opportunity to create a 300,000 MW wind market, such as the DOE report spelled out in their 20 per cent by 2030 report. The U.S. wind industry has shown it is up to the test, setting new capacity records this past year, while keeping installations on time and under budget. And now that we see the resources and the political will coming into place, I’d say our best days are before us.” Carbon Emissions American users and producers of fossil fuels generally do not pay for the cost of carbon emissions. However, Obama has come out strongly for a cap-and-trade program that would force American industry to reduce carbon emissions to 1990 levels by 2020, and another 80 per cent by 2050. Not only would the program make wind generation more competitive in price, it would also encourage U.S. industry to make greater use of renewables overall. Tax Incentives Favorable tax treatment in the form of accelerated depreciation and tax credits has been sporadic at best for renewables. The Production Tax Credit (see box on page 10) has been allowed to expire repeatedly, and Congress has been reluctant to change the tax code specifically for clean energy. That situation will most likely change under the Obama administration and new Congress. Industry insiders are hopeful that some flexibility will be built into future tax incentives so that others besides wind farm owner-operators can qualify for them. Transmission Build-Out Wind is found most abundantly in sparsely populated areas like the Southwest and the Central Plains states. For the industry to reach its full potential, these areas would have to be connected to population centers by high-powered transmission lines, which can take 10-15 years to complete. In preliminary statements, Obama has included building out the U.S. power grid as part of a public works program to improve infrastructure. Additionally, the individual states and regional power authorities that must approve such lines are working more closely together than they have in years. 132009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=14http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=14Man on a mission: Oil billionaire backs Modern Energy 142009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=15http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=15Even though T. Boone Pickens is now 80 years old and already has a long, hard working life behind him, he has taken on yet another challenge: to eliminate the dependence of the United States on oil from unstable regions of the world. Because no-one else is doing it. 15 Photo: T. Boone Pickens Photo Gallery2009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=16http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=16“Somehow I believe I’m the one who has been given a mission.” T. Boone Pickens. It is a Wednesday morning in Washington DC. Muted classical music flows from the loudspeakers in the lobby of the Hay Adams Hotel. The décor is tasteful, with classical mahogany furniture and luxurious chandeliers radiating a pleasant light across the room and up onto the gold-embossed ceiling. Busy people in suits and ties meet and talk in quiet voices before disappearing farther into the hotel or out through the front door to the accompaniment of a cheerful “Have a good day, sir” from the two doormen. Busy activity is also in evidence up on the second floor, in one of the hotel’s luxury suites, where a large breakfast table from which people are just rising bears witness of an early morning meeting. One of the people still in the suite is the man himself: T. Boone Pickens, 80 years old and an oil billionaire from Texas. And there is every reason to be busy, because T. Boone Pickens is on a mission: to eliminate the dependence of the United States on oil from unstable regions of the world. Nothing less. Today, the United States imports 70 per cent of the oil the country consumes – compared to 24 per cent in 1970 – and the figure is still rising. T. Boone Pickens began to note the increasing reliance of the United States on overseas oil around 20 years ago. Since then, he has looked on from the sidelines while waiting for someone to take responsibility for ending this dependence and instead focusing on the resources already available in the United States. But no-one did. “I took my plan to the White House in April 2008,” relates T. Boone Pickens. “I tried to get the President to get serious about it. He said he listened. We talked for an hour and a half. After that I waited for a month and all was quiet. Nothing more was said and there were no calls back. So I decided to do it myself.” Actions backed words. In July 2008, T. Boone Pickens launched a self-financed, nationwide campaign for the Pickens Plan, which, briefly put, has to do with using American natural gas as fuel for vehicles, and replacing the 22 per cent of electricity production in the United States that is powered by natural gas with wind energy. Calculations show that this would cut the United States’ dependency on foreign oil by a third. Since the plan was launched, millions of people have visited www.pickensplan.com, and of those visitors, 1.4 million have signed up for the plan, thus becoming a part of what T. Boone Pickens calls “the Pickens Army.” “It shows that we read the American people right. They are concerned about energy and they want to get off foreign oil,” he says. The driving force The motivation behind T. Boone Pickens’ drive to eliminate the United States’ dependence on foreign oil from unstable regions is founded in serious concern for the future of the country. “I think we are in a crisis situation now with the 70 per cent of the oil we use being imported,” explains T. Boone Pickens. “My greatest fear is that that there will be an interruption of Middle Eastern oil. 50 per cent of the imported oil comes from the Middle East. That is not a very 162009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=17http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=1717 Photo: T. Boone Pickens Photo Gallery2009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=18http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=18Even though energy independence is the no. 1 goal for T. Boone Pickens, he is also Photo: T. Boone Pickens Photo Gallery concerned about the environment and global warming. “Page 1 for me is to reduce the dependency on foreign oil. On page 2 I get into global warming and the environment.” Both aspects give him grounds for concern for future generations. “I had a very serious meeting with my family recently and told them that they need to get involved and get it fixed!” This may sound like a case of “easier said than done”, but according to T. Boone Pickens, it simply involves continuing to ask politicians stable area. We also import oil from Africa. That’s an unstable area too. Something can interrupt that supply and if that happened, then where are you? You’ve been brought to a halt! 70 per cent of our oil imports go to transportation so it will shut down the entire movement of goods. I don’t like the risk of something like that happening. I think it’s foolish when we have resources in America that can relieve that kind of possibility.” As mentioned, one of these resources is wind energy, which will have to play a much larger role in the United States’ energy mix. When asked what he considers to be the advantages of wind energy, T. Boone Pickens replies without hesitation: “It’s ours!”, thus stressing that he sees energy independence as the most important goal bar none. “I want to get everything I can on American resources. Wind is one of those resources. That’s my main motivation.” In order to cover the country’s energy requirements, T. Boone Pickens considers it essential to make use of all domestic sources of energy. That is why he has added wind to the existing energy portfolio – but not switched focus from oil to wind. at all levels about their plans for solving the problem. “If they don’t have a plan, that means the plan is foreign oil and that’s unacceptable. That’s not a plan we can live with,” is his unambiguous verdict. The Pickens Plan pins down responsibility Pinning down the politicians’ responsibility is one of the results that the Pickens Plan has already achieved. It has drawn a great deal of attention to the issue, attention that the general public is now using to make sure politicians keep their promises. For that very reason, T. Boone Pickens believes that with Barack Obama in the White House, an energy plan that addresses the problems is on the way 182009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=19http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=19– despite the fact that many presidents before Barack Obama have promised to end energy dependence without anything coming out of it. The president has, for example, said that American imports of oil from the Middle East will end within ten years. “Every journalist and person in the media will remember he said that and continually ask how we are progressing because he said he is going to do it,” states T. Boone Pickens. The mission An 80-year-old man with a long working life behind him – who still has the energy to change the world. Why “I felt like I understood the problem and I had the solution so I said to myself: it’s your time to step up. I was 80 years old, so I thought: what the hell, this is probably my last kick at the cat.” T. Boone Pickens. And what about this energy to keep moving all the time and run a nationwide campaign for the plan? Where does it come from when you are 80 years old? “I have pretty good energy when I’m on projects like this. Also, I feel like it has to be done for the country. Somehow I believe I’m the one who has been given a mission. It must be carried out. I looked around and wondered when somebody was going to say something. I waited for the president, but he didn’t step up. I felt like I understood the problem and I had the solution. I don’t like to hear people complain without a solution to a problem. I had it analyzed very well and I had the solution so I said to myself: it’s your time to step up. I was 80 has he not chosen simply to retire and, like so many other people, leave the work to someone else? “I see myself as being able to do something. That goes back to leadership. People will evaluate what the leader is saying and decide to join in. I consider myself in a position to take the leadership.” However, he will only be taking on the role of leader for a limited period. “I see it as a mission to take it so far but it’s really the responsibility of younger people to take it on, not an 80-year-old guy. I can make it to the finish line and have the same standard of living. Younger generations can’t if you don’t get it fixed. I try to offload it to younger generations because all of us are going to be a part of it.” years old, so I thought: what the hell, this is probably my last kick at the cat. That’s kind of where I came from.” Throughout his life, one of T. Boone Pickens’ role models has been Winston Churchill. He explains why in a calm and firm voice: “He didn’t accept defeat.” 192009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=20http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=20Tuned in to customer value More than 100 Vestas customers were asked what they expect from their wind turbine supplier. Their responses have led to the identification of three “must do” value drivers – and got Vestas refocused on customer needs. 202009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=21http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=21“We need to measure whether we have delivered a solid business case or reduced the cost of energy. Have we given the customer a good process with the communication they need? It’s about giving value for money.” Martin Jensen, Chief Project Manager. 212009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=22http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=22“Reliability and predictability is what it’s all about.” Johnny Thomsen, Senior Vice President, Performance Management & Development. What is the best way to get an overview of customer needs? And what does it take to meet them? Both questions have reverberated around Vestas over the past year, the answers shaping a new approach to customers. Today Vestas is in the process of implementing the change that will sharpen the focus on customer value. The journey started in early 2008 with the launch of a comprehensive Sales Excellence project. The background was a consistently low score in the annual customer loyalty survey, despite widespread efforts to reverse the trend. Voice of the customer From the outset, it was clear that one vital piece of the overall sales picture was missing – the customer’s perception of what value is. To fill the gap, a team from each of the sales business units went out to hear the voice of the customer. “We interviewed 105 customers all over the world to understand their needs,” says Martin Jensen, Chief Project Manager. “This resulted in some good and open discussions where we got beneath the surface.” “There were some similarities among the needs expressed by customers. These have become our value drivers.” Core drivers Three value drivers have been identified as the most important across all customer segments: Business Case Certainty, Cost of Energy and Easy to Work With. “Business Case Certainty is an umbrella term for our overall ability to secure the customer a good investment. We have to be sure that expenses and revenues build a certain business case for the customer. Unforeseen events and costs should be reduced to a minimum,” Martin Jensen explains. Johnny Thomsen, Senior Vice President of Performance Management & Development, nods in agreement. “When you buy a Vestas turbine, customers need to know exactly what they will get,” he says. “This is linked to our operational performance. If we don’t perform, the business case won’t work. Reliability and predictability is what it’s all about. They say that failure is not an option.” The two other drivers are equally important. The emphasis on Cost of Energy reflects the need for continuous technical development and new business solutions to push down cost curves and increase product output – making Vestas wind turbines increasingly competitive. Easy to Work With demands good communication, fast and effective business processes, mutual trust and a common understanding of expected outcomes. As Martin Jensen puts it, these three value drivers are “must dos.” “We have to make sure we deliver a good experience every time,” he adds. Walk the talk But how does Vestas plan to carry out the vital change to make that delivery and push customer loyalty scores higher up the scale? That’s a question Dag Hinrichs, Senior Business Consultant, has been working with. “The three “must do” value drivers are our key internal priority. We have listened to the 222009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=23http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=23Seven value drivers Feedback from interviews with 105 customers has been distilled into seven value drivers. The three core “must do” value drivers are clear priorities across all segments, while the four “differentiator” value drivers are of varying importance and attractiveness to customers globally. customers, put it on paper and now we have got to make it possible for our organisation to deliver it.” “Everybody in the organisation has to be crystal clear on their roles and responsibilities in delivering the customer experience.” The process of ensuring that Vestas-wide understanding is underway. An interactive learning programme for top managers has been rolled out, supplemented by a leadership forum on customer focus. Dag Hinrichs explains further: “The managers have to provide the clarity and guidance to help everyone else understand the world view of the customer and why it matters.” Targeted improvements Johnny Thomsen notes that the feedback from the customer interviews has already fired a new sense of direction – inspiring local improvements directly targeted at customers’ express requirements. Other improvements initiated in 2008, such as new service contracts and increased mean time between turbine inspections, also have the customer clearly in view. “It is essential that we keep an eye on why the customer buys wind. Customers have different motives. Some are driven by national legislation regarding how much green energy should be in the energy mix, others by the cost to society and nature, others purely by the return on the investment,” Johnny Thomsen says. “But, as a supplier, if you can’t deliver on the three “must do” value drivers, then you are out of the game.” This is exactly why measuring and documenting the value customers actually receive is so important, says Martin Jensen. “We need to measure whether we have delivered a solid business case or reduced the cost of energy. Have we given the customer a good process with the communication they need? It’s about giving value for money.” Vestas launched a new tool last summer for just that purpose. This means that, at the end of the sales, project and service phases, customers are now invited to evaluate their experience. Initiatives like this are key to keeping in touch with the customer. For Vestas, that is the best investment there is. Clear insight into what customers’ value and commitment to delivering it are the bare essentials for positioning Vestas as a competitive modern energy supplier – and the value leader in wind. ■ Business Case Certainty Minimized uncertainty regarding the customer’s potential return on investment. ■ Cost of Energy Minimized total cost of ownership of a wind asset, measured as $/MWh over the asset’s lifetime. ■ Easy to Work With Continuous improvement of working relationships with Vestas and Vestas’ experience across the value chain. ■ Innovation Leadership The commitment to maximising value to the customer through continuous improvement. ■ Global Approach Tailored products and services that meet the customer’s overall global needs. ■ Partnership Collaborative relationships and operations that support the customer’s long-term strategic needs. ■ Cost to Nature & Society The commitment to minimising adverse environmental impact and maximizing benefit to society.2009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=24http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=24Countdown to faultless components A new understanding of critical to quality processes is bringing Vestas closer to component suppliers and paving the way to minimal defects. Just what the customer ordered. 242009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=25http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=25252009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=26http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=26“Our suppliers are being very responsive and willing to get involved, so we can prevent any future issues.” Mark Colwell, Assistant Vice President responsible for Supplier Quality. Early generator failures with a new failure mode set alarm bells ringing in Vestas Technology R&D. Generators have always been a challenging component – but this was exceptional. Something had to be done. Mark Colwell, Assistant Vice President responsible for Supplier Quality, pulled together a team of experts to investigate. The findings were enlightening. “We found that the supplier had changed key manufacturing processes and that the impact of that change was not understood,” he says. As it turned out, the cause of the breakdown was the insulation of the generator windings, which was insufficient to withstand the conditions inside a wind turbine nacelle. Instead of the minimum 20-year lifetime, the generator was failing after just 100 days. Desire for understanding What the experience highlighted was that Vestas really needed an in-depth understanding of supplier production processes. And it has proved a turning point in Vestas’ way of working with suppliers. “We spent time with the supplier to understand the processes and found areas where we didn’t have a good understanding of how the processes were controlled,” Mark Colwell recalls. “This motivated a desire to get a full understanding of all our generator suppliers.” Today that understanding has brought Vestas closer to suppliers in a quest to eliminate the defects that cost expensive turbine downtime for Vestas customers. Vestas is already attaining a process quality to min. Four Sigma level – with a maximum of 6,200 defects per million. Critical to quality parameters Vestas specialists went out to all generator suppliers to examine their processes and analyse deviations in the components produced. The results provided the basis for defining CTQs – Critical To Quality parameters that must be met to assure the quality of the final product. CTQs are subject to ongoing revision as new opportunities for improvement emerge. By introducing CTQs for the production process as well as the products, Vestas has moved away from the conventional way of looking at supplier quality, where attention was mainly only paid to the final components. Frank Boutrup Nielsen, Senior Supplier Development Engineer from Supplier Quality 262009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=27http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=27What is Six Sigma? & Development, describes past responses to quality questions as reactive. “We didn’t do anything before we had a failure. We wrote a non-conforming note if we found a product deviation and very often returned the generators to the supplier and asked them to correct it.” “The big difference now is that we are changing from reactive to proactive work, going into detail with supplier processes so we can understand them and help suppliers determine what to improve.” A whole new approach He and colleague Michael Arbon have the primary responsibility for implementing the new approach to supplier quality. According to Michael Arbon, the sensitivity of gearboxes to the tiniest quality deviation makes them a relevant starting point. “Generators are traditionally difficult because of the environment in the nacelle, where they are subject to vibrations, changing temperatures, condensation and varying wind speeds,” he says. “The windings and bearings are typical problems.” Rapid detection of a fault-giving deviation is, naturally, essential. To sharpen that ability, the monitoring of generator suppliers has been stepped up from once a month to once a Like many other companies, Vestas has chosen the Six Sigma business management strategy, originally developed by Motorola, to manage process variations that can lead to defects in the final product. Each of the six Sigma levels denotes the degree of variation management attained. The key method used is DMAIC, which stands for Define, Measure, Analyse, Improve, Control. Simply explained, it starts with defining what needs to be improved to meet customer demands and reach strategic goals. Critical to quality (CTQ) parameters are then measured and analysed. Based on the findings, process improvements are implemented, and quality control ensures deviations are corrected before defects occur. Vestas has teams of Six Sigma Black Belts to support the integration of Six Sigma strategy in its business units. Experts in Six Sigma tools, methodology and philosophy, the Black Belts have a key role as strategic change agents, managing cross-functional projects and coaching other Six Sigma resources within Vestas. 272009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=28http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=28“The big difference now is that we are changing from reactive to proactive work, going into detail with supplier processes so we can understand them and help suppliers determine what to improve.” Frank Boutrup Nielsen, Senior Supplier Development Engineer. Global Black Belt training In October 2008, Vestas launched a global Six Sigma Black Belt training week. For the suppliers, that means submitting weekly test data based on the CTQs. A new Quality Data Analysis (QDA) system is currently being developed to process the data input. Planned to go into operation this year, the system will make key CTQ data accessible at the push of a button. Excessive quality deviations can then be identified and resolved almost as they arise, as Michael Arbon explains: “The QDA will make it possible to transform the data we receive into tools, such as control charts. In this way, we can measure the capability of processes to give us what we want.” Black Belt support While the Supplier Quality function is renewed and transformed, suppliers are unavoidably feeling the impact. For this reason, a pool of Black Belt Six Sigma specialists has been gathered to support suppliers in how and what data to collect. It is no accident that many of these specialists have previously worked within the automotive industry, where Six Sigma began. Another automotive industry tool, Production Part Approval Process (PPAP), is also planned for implementation. The purpose: to ensure efficient communication with suppliers and efficient handover of information to the right people at the right time. programme. The aim for 2009 is to train 20 new Black Belts at locations around the world. As the number of Yellow and Green Belt Six Sigma specialists grows, Vestas expects to see more employees take part in the Black Belt training in the years ahead. Ultimately, the goal is to establish more Black Belt groups with the capability to provide expert assistance at any stage of a business process. 282009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=29http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=29“Experience has told us that we need to support and encourage suppliers,” says Frank Boutrup Nielsen. “We need suppliers to develop with us as we put up more requirements in order to fulfil our promises to the customers.” “Suppliers have always regarded us as being very demanding,” Michael Arbon adds. “Now we are even more so. But they understand that this will help them improve too.” Learning by doing So far generator suppliers have been the main focus of the new Supplier Quality strategy. Eventually, the idea is to use the approach to establish closer working relations with suppliers of all other components for Vestas wind turbines. Mark Colwell comments on the many lessons already learned. “What we have been doing is learning by doing. It’s not just informational. It’s about creating understanding, challenging people on what they are going to improve and getting things done,” he says. “Our suppliers are being very responsive and willing to get involved, so we can prevent any future issues. This is giving us the understanding to reduce product variations so we can reach our Four Sigma goal.” The countdown to faultless components has begun. 292009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=30http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=30Offshore 302009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=31http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=31Vestas gets one of the biggest orders ever placed for offshore wind after a sales stop and rework of its V90 turbine. The time off brought other benefits, too. Comeback 312009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=32http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=32Blyth COUNTRY OWNER I N S TA L L AT I O N Y E A R NUMBER OF TURBINES TURBINE TYPE MW United Kingdom E.ON 2009 2 V66-2.0 MW 4 Robin Rigg COUNTRY OWNER I N S TA L L AT I O N Y E A R NUMBER OF TURBINES TURBINE TYPE MW United Kingdom E.ON UK 2009 60 V90-3.0 MW 180 North Hoyle Vattenfall Wind Power of Sweden has ordered 100 Vestas V90 turbines for the 300 MW Thanet Offshore Wind Farm in the UK. The sale brings the offshore version of the V90 fully back to market following gearbox problems that prompted a V90 sales stop in early 2007. Vestas redesigned the V90’s gearbox and put the offshore unit back on sale in May 2008. The Thanet Offshore Wind Farm will be the largest offshore wind plant with Vestas turbines – overshadowing the 180 MW Robin Rigg plant under construction in Scotland. It will also be Vestas’ thirteenth offshore wind project. Thanet will be built 11.3 km off the coast of Foreness Point in the Thames Estuary on the easternmost part of the Kent coastline, where the Thames River runs into the English Channel. The water depth on site ranges from 10 to 25 meters. COUNTRY OWNER United Kingdom Npower Renewables 2004 30 V80-2.0 MW 60 Barrow I N S TA L L AT I O N Y E A R NUMBER OF TURBINES TURBINE TYPE MW COUNTRY OWNER I N S TA L L AT I O N Y E A R NUMBER OF TURBINES TURBINE TYPE MW United Kingdom Dong Energy 2006 30 V90-3.0 MW 90 Kentish Flats COUNTRY OWNER I N S TA L L AT I O N Y E A R NUMBER OF TURBINES TURBINE TYPE MW United Kingdom Vattenfall 2005 30 V90-3.0 MW 90 Scroby Sands COUNTRY OWNER I N S TA L L AT I O N Y E A R NUMBER OF TURBINES TURBINE TYPE MW United Kingdom E.ON UK 2004 30 V80-2.0 MW 60 322009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=33http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=33Frederikshavn COUNTRY OWNER I N S TA L L AT I O N Y E A R NUMBER OF TURBINES TURBINE TYPE MW Denmark Dong Energy 2003 1 V90-3.0 MW 1 Tunø Knob COUNTRY OWNER I N S TA L L AT I O N Y E A R NUMBER OF TURBINES TURBINE TYPE MW Denmark Dong Energy 1995 10 V39-500 kW 5 Yttre Stengrund COUNTRY OWNER I N S TA L L AT I O N Y E A R NUMBER OF TURBINES TURBINE TYPE MW Sweden Vattenfall 2001 5 NM72-2,0MW 10 Horns Rev COUNTRY OWNER I N S TA L L AT I O N Y E A R NUMBER OF TURBINES TURBINE TYPE MW Denmark Vattenfall & DONG 2002 80 V80-2.0 MW 160 Egmond aan Zee COUNTRY OWNER Netherlands Shell & Nuon 2006 36 V90-3.0 MW 108 Offshore Windpark Q7 Thanet COUNTRY OWNER I N S TA L L AT I O N Y E A R NUMBER OF TURBINES TURBINE TYPE MW I N S TA L L AT I O N Y E A R NUMBER OF TURBINES TURBINE TYPE MW United Kingdom Vattenfall 2010 100 V90-3.0 MW 300 COUNTRY OWNER I N S TA L L AT I O N Y E A R NUMBER OF TURBINES TURBINE TYPE MW Netherlands WP Q7 Holding B.V. 2007 60 V80-2.0 MW 120 332009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=34http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=34A bumpy ride From Vestas’ side, the project has been two years in the running. The original developer, Warwick Energy of the UK, had started negotiations with Vestas to supply the turbines, but then Warwick sold the project to hedge fund Christofferson Robb and Co., which then sold it to Vattenfall in November this year. “It’s been a bumpy ride,” says Jens-Jørgen Kuhlmann, Senior Sales Manager Offshore Sales. “It was also the consequence of us being out of the market, so we had to stop negotiations for a period.” Offshore projects by their nature take more time to coordinate, says Jens-Jørgen Kuhlmann. “It’s important all the details are in place and we’re not just jumping over the fence where it’s lowest. There are a lot of interfaces – other suppliers you need to get in, banks you need to convince, engineers in different companies, advisory boards – all need to get in the loop. “And add to that finding a suitable installation harbour, which is quite time-consuming,” says Jan Thomsen, Project Director. “You need quite a big area with a lot of space – at least 50,000 square meters – and a strong quay site with 24/7 access and a very heavy crane.” Vestas settled on Dunkirk Harbour in France. For Thanet, Vestas will handle design, supply, construction, testing and commissioning of the 100 wind turbines as well as a five-year operation and maintenance contract. Vestas plans to begin delivering turbines in November 2009, with installation expected to start in March 2010. Vattenfall will take care of 342009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=35http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=35foundations, offshore and onshore cables with substations and offshore installation vessels. The UK’s Crown Estate – owner of most of the territorial seabed – has issued two rounds of development leases for offshore wind farms in the UK. Thanet is one of the first Round 2 offshore projects to be implemented. V90 stop Vestas pulled the V90 back from new sales in the offshore market after initial negotiations began with Warwick. After a year of engineering work and testing on a new internal component, Vestas made the V90 available for offshore again in May 2008. “On the sales side, we had applied the brakes to a full stop,” says Anders Søe-Jensen, President of Vestas Offshore. “For a new organization that was watching a market blooming around us, it was a painstaking affair.” Vestas Offshore used the time well, however, he adds. “We had been growing at tremendous speed. This gave us time to look at the way we were organized and improve that.” More importantly, he says, Vestas designed an improved, methodical way to test products before they are released at its new test centre in Denmark. “We have some of the world’s most advanced test facilities, where our turbines and components are very thoroughly tested before release. This goes for onshore as well as offshore,” says Anders Søe-Jensen. “Our new test facility helps to ensure that the Vestas product quality remains best in class.” He adds, “Offshore, the lesson is: you have to be bold, but very cautious. Never put a prototype offshore. We also learned that you need knowledgeable guys offshore. Experience is everything out there – that’s what makes a difference.” Vattenfall partnership Vestas has previously supplied turbines to Vattenfall, which has headquarters in Sweden. Vattenfall acquired a majority of the rights to the Danish 160 MW Horns Rev offshore wind farm in 2006 – a project that used V80-2.0 MW turbines. In 2005 Vestas sold 30 V90s to Vattenfall for that company’s Kentish Flats offshore wind farm in the UK. It was partly at Kentish Flats where the V90 gearbox failures surfaced. “We have had long discussions with Vestas over the problems with this machine,” says Vattenfall’s Ole Bigum Nielsen, project director. “In general, we like the V90-3.0 MW turbine. We have of course had our concerns, but Vestas has convinced us that it has solved the problems with the update of its machine.” At Vestas, Anders Søe Jensen says, “The order really shows us a sign of voter confidence that a customer like Vattenfall – one of the biggest players in wind energy – has chosen Vestas again.” The order has also helped lift the spirit in Vestas Offshore. “It’s obviously a big boost with the ups and downs and retracting from the market,” Jens-Jørgen Kuhlmann says. “We’re back in business with one of the biggest orders ever placed in offshore wind.” 352009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=36http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=36Staying ahead of China’s wind market growth Vestas makes independent Chinese sales unit in what is becoming the world’s most competitive market. 362009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=37http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=37Vestas has established an independent sales business unit in China, moving it from the Asia-Pacific regional headquarters, so that top management can have a direct link to Vestas’ activities in China. “This new sales business unit will ensure that Vestas customers in China have a direct voice in the company,” says Lars Andersen, Vestas China’s President. “China has quickly become one of the largest and most competitive markets in the global wind energy industry.” “It’s a logical next step and will make sure we can better serve our customers and stay competitive,” says Andersen. “What’s happening in China now is becoming very important to Vestas globally.” Fast and furious growth Vestas has been active in China for more than 20 years, selling its first turbines in 1986. “We are by far the company with longest experience in the Chinese wind energy market,” says Andersen. In 1996 the company opened a representative office in Beijing with a small staff, 372009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=38http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=38382009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=39http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=39providing sales and service to Chinese customers. In 2005, Vestas management decided to move into China and began building factories and increasing its presence. In 2005, Vestas delivered 77 MW out of a total of 311 MW installed wind energy capacity in China. The market boomed. By the end of 2008, the total installed capacity of wind energy was expected to pass 10 GW, putting China on track to overtake the United States in 2012 as the biggest wind power market in the world, according to Windpower Monthly magazine. The Chinese government made wind energy a priority industrial area in 2006 to help the country diversify its energy mix and create energy security, says Lars Andersen. “Wind Vestas’ factories in China Turbine blade factory in Tianjin. Production started spring 2006. Nacelles and hub factory in Tianjin. Production started March 2007. Generator factory in Tianjin. Production started July 2007. Machining and controlling factory in Tianjin. Production scheduled for April 2009. Wind turbine factory for the Chinese market in Hohhot, Inner Mongolia. Production scheduled for April 2009. Foundry in Xuzhou. Production scheduled for September 2009. 392009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=40http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=40energy was prioritized because it can secure future growth and stability, and because it can contribute significantly within a short-term time frame.” China accounts for the Vestas’s largest investments outside Denmark, with five factories and a staff of 1,800 employees, including a sales and service force of nearly 300. Vestas has concentrated on helping the domestic industry build up know-how on issues like grid integration and project management, says Lars Andersen. The company has also been working to build up a strong supply chain in China. “Every year, Vestas China improves its Chinese sourcing capabilities,” he says. “China-produced turbines currently have more than 80 per cent Chinese-made content and the goal is to achieve 100 per cent Chinese-made content.” All of Vestas’ suppliers in China are part of a partnership designed to increase product quality and performance and enable suppliers to become globally competitive. “We have already helped a small Chinese blades supplier become a globally competitive supplier,” says Lars Andersen, adding that the company, Zhenshi Group Hengshi Fibreglass Fabrics Co., Ltd., won one of Vestas’ “Supplier of the Year” awards in 2008. It was the first time a Chinese supplier won that honour. Preparing for competition Lars Andersen stresses the importance of staying ahead of the fast-changing Chinese wind market. “China is already one of the largest markets for new installations in the world, and soon China is going to be the epicentre of the global wind energy industry,” he says. “We need to make sure Vestas as a whole is ready for this.” 402009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=41http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=41Vestas in China Year 2003 2004 2005 2006 2007 60 124 222 Number of Employees Number of Turbines 77 39 91 68 405 Total MW 58,5 34,5 77,35 75,05 470,75 Wind power market in China Wind power installed capacity in China 1995-2007 1995 Installed MW Cumulative Source: BTM-Consult ApS – March 2008 1996 36 79 1997 67 146 1998 54 200 1999 25 262 2000 84 352 2001 54 406 2002 67 473 2003 98 571 2004 198 769 2005 498 1,264 2006 1,334 2,588 2007 3,287 5,875 16 42 Forecast for wind power development in China 2008-2012 Cumulative installed capacity (MW) by end of 2007 Year Capacity MW 2007 5,875 Installed capacity (MW) in 2007 2007 3,287 2008 5,500 Forecast 2008-2012 2009 6,500 2010 7,500 2011 8,000 2012 9,000 Installed capacity between 2008-2012 Sum 36,500 Cumulative installed capacity (MW) by end of 2012 Accu. 42,375 Source: BTM-Consult ApS – March 2008 412009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=42http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=42Fixing the Spares 422009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=43http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=43The new Vestas Spare Parts & Repair business unit supports optimised service work and shortens turbine downtime. 432009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=44http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=44Vestas launched a new Vestas Spare Parts & Repair business unit on January 1, 2009, and with it, a new structure to handle faster service and maintenance on Vestas turbines. The unit is responsible for the entire spare part supply chain, making it an integral part of the overall commitment to ramp up the whole service business in Vestas, one of the company’s cornerstones for the future. “Spare parts are vital to maintain a low turbine downtime. Therefore, they are an essential component to customer loyalty,” says Phil Jones, President, Vestas Spare Parts & Repair. A robust spare parts business will also enable Vestas to sell more turbines, he adds. “Given that Vestas has been so successful in growing its overall business, the timing is right to develop and strengthen the Spare Parts organization for continued growth.” Gaining better flow “It took a long walk to get where we are now,” says John Nielsen with a smile. John Nielsen is Vice President of Service Excellence and formerly overall responsible for spare parts. Whenever a turbine needed repair in the past, the regional sales business unit contacted Vestas Nacelles in Denmark. Vestas Nacelles then delivered spare parts to the sales business unit, which repaired the turbine. While 442009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=45http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=45“Spare parts are vital to maintain a low turbine downtime. Therefore, they are an essential component to customer loyalty.” Phil Jones, President, Vestas Spare Parts & Repair. this scheme worked well at first, Vestas’ rapid expansion brought the need for a more streamlined function that incorporated advanced planning and forecasting, according to John Nielsen. “With our rapid development, the process became bureaucratic, time consuming and unclear,” John Nielsen says. “Vestas needed a new structure for the Spare Parts unit. We needed a better overview of the process and a better flow of information along the pipeline to support and sustain the Vestas strategy as No. 1 in Modern Energy.” In the 2008 Customer Loyalty Survey, service and maintenance scored the lowest in the entire Vestas’ value chain. “It was obvious that something had to change,” he says. “Customers buy a turbine for producing electricity. From the moment that a turbine stands still, the customer loses money.” Even though the delivery service improved significantly the last two years – with an 85 per cent success rate by the end of 2008, the contracts between Vestas and its customers included expanded timeframes, since all components and spares were shipped from Denmark. Because 60 per cent of Vestas wind turbines operate outside of Europe, this setup became a drawback. “Customers in Asia and America often experienced long lead times,” John Nielsen Figure 1: Stopped Turbines in Spare Parts 2007-2008 Number of turbines 160 140 120 100 80 60 40 20 0 October 07 September 07 September 08 February 08 January 07 February 07 November 07 December 07 October 08 March 08 May 08 March 07 May 07 August 07 June 08 July 08 January 08 August 08 April 07 April 08 says. “This drove many overseas customers to think twice before expanding their service and maintenance contracts.” In the lead up to establishing the new unit, the Spare Parts team already turned around its business. From 2007, the Spare Parts team has experienced impressing improvements. One example is the “stopped turbine” level. In late 2006 there were 145 stopped turbines due to spare parts lead time. By late 2008 less than 20 turbines under service contracts were stopped (Figure 1). 452009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=46http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=46A network of plans to cut downtime Establishing a new Spare Parts organization is only one of the initiatives that will help minimize downtime and optimize availability. And these initiatives rely on each other. One of them is the MTBI (Mean Time Between Inspections) project. By improving the ability to predict when maintenance is needed, it’s also possible to better plan service visits to the turbine, and make the intervals between inspections longer. This will cut the time the turbine has to be stopped, and improve the chances of doing this when there is no wind. A prerequisite for making this a success is having the spare parts ready to match the planning. As a result, the MTBI project and the new Spare Parts organization are both part of a strong chain of service initiatives to help improve turbine availability. Since the MTBI project started in the autumn of 2007, the number of days between turbine inspections has more than doubled. The goal is to triple that number within a year. For more information about MTBI, see the articles “Busier turbines, better productivity” and “More loyalty takes much more forecasting” in Win[d] no. 14. Long lead times are not an option The new structure and improved service planning will allow the spare parts business to predict and plan with more accuracy than before, since it will have control of all information – from suppliers to turbines. The new setup will in this way support the optimisation processes in the service and maintenance business, where a global network of spare parts units will sustain advanced planning methodology, improving performance in the repair pipeline. “The Vestas mission statement “Failure is not an option” aims to minimize risks by analysing all the variables in every decision,” 462009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=47http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=47Experience from aerospace The new president of Vestas Spare Parts & Repair Phil Jones joins Vestas from Honsays John Nielsen. By setting high standards and improving the planning and forecasting timeframes, the Spare Parts unit will now empower the mission – and vice versa, he adds. “This is also why ambitions are high and set with confidence.” By the end of 2009, Vestas Spare Parts & Repair is set to promise customers delivery of spare parts within 24 hours and of main components in 72 hours, with a 95 per cent certainty. eywell Aerospace as Vice President, Airlines Business, EMEA region. Phil Jones has 16 years of experience working for major American aerospace companies. When he looks back in time, he visions a parallelism between the aerospace and the wind industry. “Twenty years ago, the aerospace industry started to realise the importance of spare parts,” Phil Jones says. “Nowadays, the management of spare parts is proven to be a basic cornerstone for the industry.” Attention to spare parts in both industries is critical to preserve the efficient operation of expensive assets, he says. “A utility company that suffers a loss of energy and an airline that cannot provide an operable aircraft both end up in the same position: lost revenue, cost of replacement and loss of brand confidence with their end customers,” says Phil Jones. “It is a cardinal sin to have an airplane sitting on the ground with passengers waiting for it.” Being a Six Sigma Master Black Belt, Phil Jones has the right mindset: “The Spare Parts team improved well during 2008 and they did a great job. But there is still a lot to be done. We will get better,” he promises. 472009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=48http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=48Detailed studies confirm the low environmental impact of Vestas wind turbines compared to fossil-fuel power generation green performance 48 Putting numbers on2009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=49http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=49Wind is not just a competitive and dependable source of electricity. As global warming begins to bite, it is more important than ever that wind power fulfils its promise of being kind to the environment. And wind power really is green. We can say this with confidence, thanks to specialists within Vestas, its customers and independent consultancies, whose job is to calculate reliable information on the environmental performance of wind turbines. Jette Kjaer is responsible for environmental issues in the wind energy division of Swedish power company Vattenfall, which operates wind power plants in Sweden, Finland, Denmark, the UK, Poland and Germany. “Vestas has been helpful and open in delivering environmental information,” she says. “Data from Vestas makes our own environmental product declarations more complete and specific. Without this we would have to make estimates based on generic figures, so the quality of our data would be poorer.” “We have to get these figures right,” agrees Klaus Rønde of Vestas’ safety and environmental department. “When we quote the CO2 savings from wind power, it’s essential to our credibility that the information is accurate.” To make sure of that, Vestas uses a technique known as life cycle assessment (LCA) to calculate the environmental impact of its turbines. Vestas’ LCAs conform to the ISO 1404X series of international standards, and independent consultants audit every LCA before it is published. 492009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=50http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=50“The auditors’ general conclusion is that our work is done to a high standard,” says Klaus Rønde. “There is never going to be one single answer when it comes to environmental performance, but an independent review gives us confidence that our calculations are realistic.” Calculating emissions for every part The idea of an LCA is to attach numbers to all the possible environmental consequences that occur over the lifetime of a wind turbine. This inclusive approach makes sure that every kind of pollution receives due weight, even if it happens in a distant country or at some time in the future. Raw materials, energy, and environmental emissions need to be added up for every stage in the turbine’s life: manufacturing, installation, operation, maintenance, and finally decommissioning and disposal (Figure 1). Preparing an LCA is broadly a threestage process, Klaus Rønde explains (Figure 2).First comes the scope and assumptions of the assessment: the standards to be used, the boundaries of the study, the type and number of turbines, the tower height, the average wind speed, and questions such as whether Figure 1: Life cycle assessment requires careful study of every stage in a wind turbine’s life, “from cradle to grave” Landfill/incineration Waste Renewable energy Recycling Raw materials and resources Suppliers Transport Manufacturing Transport and installation 502009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=51http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=51Figure 2: The three basic stages in preparing an LCA. to include the cables that export power to the grid. Current Vestas practice is to calculate LCAs based on a large wind power plant rated at 300 MW. In the case of the V90-3.0 MW, for instance, this represents 100 turbines, plus the necessary substations, cables and other auxiliary equipment. The second stage is to work out the raw materials and energy required, and the emissions created, to manufacture the turbines, install them, operate them, dismantle them, and recycle or dispose of the resulting materials. “This is a lot of work, because of the large number of parts in a modern turbine,” Klaus Rønde points out. For each component, the first need is to find out what it is made of – steel, copper, glass fibre, plastic – and how much it weighs. Data collection often requires some assumptions. For instance, electronic modules, of which a single turbine contains dozens, have so many tiny parts that it would be almost impossible to assess each one in detail. Luckily, most electronic modules contain similar proportions of metals, plastics and so on, so detailed calculations for one module can be transferred to others with little loss of accuracy. For complex components such as gearboxes, and raw materials such as steel, Vestas uses LCA data from its suppliers or from independent consultants. “We buy steel from many suppliers, so it is better to get international average data from organisations like the World Steel Association,” says Klaus Rønde (See “Steel: A weighty issue” on page 55). At the end of this painstaking process, the analysts have a list of all the substances, and their amounts, that will be released to the environment over the timescale selected for the LCA. The next task is to decide what the figures mean. Interpreting emissions data The third stage of the LCA process calculates the environmental impacts of the emissions. This is done by multiplying the quantity of each pollutant by a weighting factor that reflects its potential to cause a particular kind of environmental harm. A single substance may appear in more than one category. For example, the chemicals known as HCFCs, used as refrigerants and in the production of plastic foams, damage the earth’s ozone layer and also act as greenhouse gases. Besides being toxic to humans and animals, nitrogen oxides (NOx) produced when fuels are burned cause both acidification and eutrophication (nutrient enrichment) in lakes, rivers and the sea. In the case of gases that cause global warming, nitrate pollution or acidification, scientists generally agree on the specific environmental damage each one causes – though this information can change in the light of new scientific knowledge. The respected Intergovernmental Panel on Climate Change (IPCC), for instance, periodically adjusts its estimates of the global warming potentials of the most important greenhouse gases, expressed as CO2 equivalents. Scientists are less in agreement when it comes to the environmental effects of toxic substances such as heavy metals, or chemicals that affect human and animal hormones. Even when the toxic effects of, say, two heavy metals are well understood, it may be hard to rank one as better or worse than the other, so that they can be assigned relative weighting factors. And in any case, a pollutant that is very damaging in one situation, for instance a marine ecosystem, may be less harmful in another, such as on land. The best the LCA professionals can do is therefore to state their assumptions clearly and be prepared to adapt to new research. As a result, the rules – including the ISO standards – governing how to carry out an LCA are quite flexible. Within the ISO 1404X framework, Vestas uses a system known as EDIP (Envi- 512009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=52http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=52Giving customers the environmental data they need Annika Balgård is an environmental specialist in the Quality, Safety and Environment (QSE) department at Vestas Northern Europe. She joined Vestas last year after ten years’ experience in Swedish industry as an environmental researcher, auditor and consultant. “When Vestas changed its structure to create a single sales business unit for northern Europe, I was appointed to take charge of operational and strategic environmental issues,” she says. “I am now leading the effort to add value to our clients by improving environmental performance all the way along the chain, from the early sales stages, through turbine installation, to the service phase.” “My experience is that clients ask us for support and environmental information right from the planning stage for a new wind power plant. For example, the planning authorities need information on what lubricants and chemicals will be used on site, how we will handle any hazardous waste, and risk analyses for the work we will be doing.” “Then, once the turbines are up and running and we are carrying out the services requested by the customer, we can supply environmental information such as oil consumption and hazardous waste generation for their specific turbines. It’s just like the information I expect to get when I take my car in for service.” “We are working on smarter and more efficient ways to collect this data and be more proactive in passing it on to customers. We are looking forward to making good use of the information available from the new SAP system, which has been available in Vestas Northern Europe since November 2008.” System boundaries affect the result Another critical issue is where to set the boundaries of the system being studied. “This can have a big effect on the LCA results, and again, the ISO standards allow for different ronmental Design of Industrial Products), a computer-aided tool backed by the Danish Environment Ministry that has been widely used for more than a decade. 522009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=53http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=53Figure 3: Compared to fossil fuels, wind power produces virtually no CO2. Shown here are relative figures for CO2 emissions from electricity produced from V90-3.0 MW onshore wind turbines, gas and coal. CO2 emissions for 1 kWh electricity produced by: Vestas V903.0 MW onshore Gas-fired power station Coal-fired power station 100 200 300 400 500 600 700 800 900 gram CO2/kWh be fair to discount the steel plant’s gases – and the emissions created by extracting and transporting natural gas to the power plant – from the environmental cost of the steel. Another tricky question concerns time frames. “A life cycle is like a wheel rolling through time,” Caroline Setterwall says. “When you calculate your LCA you have to start somewhere on that wheel, and the starting point boundaries as long as you define them first,” says Caroline Setterwall, an environmental specialist at Vattenfall. A typical decision is whether to credit your own system with “avoided emissions” in other systems. A steelmaking plant, for example, may produce energy-rich gases that can be burned in a nearby power plant. If the steel plant were not there, the power plant would burn natural gas instead. On that basis, it might might have large impact on the result.” One reason for this is the need to avoid counting environmental credits twice when recycling. When Vestas buys steel to make a wind turbine, she explains, about one-third of this will normally have been recycled already. If the turbine LCA includes an environmental credit for this recycled content, then Vestas cannot claim a further recycling credit when the turbine is eventually scrapped. But suppose Vestas builds the turbine from virgin steel, which clearly has a higher upfront environmental cost. If the company can ensure that 95 per cent of the steel is recycled when the turbine reaches the end of its life, however, then the overall environmental cost will be much lower. Such tricky decisions are important to high-quality LCAs. Wind power is definitely greener Once the frameworks have been decided and the numbers counted, LCA confirms that wind power is a great deal greener than non-renewable generating technologies. In 20 years, a V90-3.0 MW onshore wind turbine will generate an average of 158,000 MWh, reducing CO2 emissions by approximately 129,000 tones compared to an equivalent coal-fired power plant (Figure 3). 532009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=54http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=54Figure 4: This energy balance reflects the time a wind turbine needs to be in operation before it has produced as much energy as it will consume in its entire life cycle. A V90-3.0 MW onshore wind turbine has an average energy payback time of just 6.6 months. MWh 160.000 140.000 To put these figures another way, Vestas wind turbines pay back the energy needed to 0 build and install them within six to nine months (Figure 4). 1/4 1/2 3/4 120.000 100.000 80.000 60.000 40.000 20.000 0 The assessments also show that wind is also a winner when we look at other forms of pollution such as acid rain, smog and ecotoxicity. Wind and nuclear power differ in many respects, but one thing they have in common is that most of their environmental emissions occur at the beginning and end of the life cycle. This is very different from coal and gas-fired plants, where emissions during normal operation dominate the environmental profile. For nuclear power, environmental impact 0 5 10 15 20 Years Figure 5: Energy breakdown (expressed as a percentage of total CO2 emissions) by material and task over the lifetime of a V90–3.0 MW wind turbine. By far the largest single contributor is steel. CO2 60 50 40 30 20 10 0 Transport Siteworks Steel Composites Concrete Others is largely from fuel extraction and processing, and storage of spent fuel. In the case of wind turbines, emissions are largely confined to manufacturing and disposal; the installation CO2 phase has only a small environmental impact. 542009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=55http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=55Steel: A weighty issue Figure 5 shows that the largest single user of energy is the steel used for the turbine tower and many of the drive train components. Targets for turbine designers are therefore to reduce weight without compromising on generating capacity or reliability. “That is not a surprise,” says Klaus Rønde. “Vestas has always developed its products along these lines, even before we did our formal LCA. A more efficient turbine that weighs less is also cheaper to build and install, so it’s good business sense.” What is new, he says, is a focus on recovering energy ad reducing waste by designing turbines that are more than 80 per cent recyclable at the end of their working lives. This target is a global one, and in Europe, more than 80 per cent by weight of every turbine can already be recycled. The fate of turbine blades is a case in point. Current Vestas LCAs assume that wornout blades will be landfilled, because this is still the commonest disposal route worldwide. In Europe, however, blades may be crushed and incinerated to recover their energy content. CO2 emissions from steel production are important to Vestas because steel makes up most of the weight of a wind turbine. As a result, steel accounts for nearly 50 per cent of the energy needed to build and operate a turbine over its lifetime. The steel industry is responsible for between four and five per cent of all man-made greenhouse gas emissions, according to Philippe Varin, CEO of steelmaker Corus and chair of the World Steel Association’s Climate Change Policy Group (www.worldsteel.org). World production of more than 1.3 billion tonnes per year of steel, at an average CO2 intensity of 1.9 tonnes of CO2 per tonne of steel, yields over 2 billion tonnes of CO2 each year. The industry has several strategies to control and reduce its CO2 emissions, Philippe Varin explained: • Common methodologies for CO2 benchmarking provide accurate and believable figures for steel users like Vestas to use in their LCAs. • New steelmaking methods can reduce energy consumption and CO2 emissions – an extreme example is electric smelting using wind power. • Developing countries, which already produce more than half the world’s steel, have some of the most modern steel plants. Older plants may need help to adopt best practices in energy efficiency. • Raising the proportion of steel recycled to 90 per cent or more, from its current figure of 83 per cent, will cut energy use. • High-strength steels enable components to be made lighter. A typical modern 70-metre wind turbine tower weighs 140 tonnes, or around half the weight of an older tower made from lower-strength steel. The global way in which steel is manufactured, traded and used makes it essential to get support from politicians as well as steelmakers, Philippe Varin said, if CO2 production from steelmaking is to be kept within reasonable limits as the world’s economy grows. New efficiency standards for vehicles and buildings are a low-cost way to cut steel-related CO2 emissions, he pointed out. 552009-02-11T14:30:15+01:00http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=56http://nozebra.ipapercms.dk/Vestas/VestasWind/UK/1509/?Page=56Wind W I N D , O I L A N D G A S Contacts Vestas Northern Europe +46 40 376 700 Sales and service in the UK, Ireland, Scandinavia, Poland and the Baltic area. Vestas Central Europe +49 4841 9710 Sales and service in Germany, Austria, Benelux, Russia and Eastern Europe. Vestas Mediterranean +34 932 41 98 00 Sales and service in the countries of the Mediterranean region, the Middle East, Latin America, the Caribbean, and North and West Africa. Vestas Asia Pacific +65 6303 6500 Sales and service in Australia, New Zealand, Japan, India and the rest of Asia. Vestas China +86 5923 2000 Sales and service in China. Vestas Americas +1 503 327 2000 Sales and service in North America. Vestas Offshore +45 97 30 00 00 Sales and service, offshore. EDITORS: Peter Wenzel Kruse (Editor in Chief) and Hanne Poder Sørensen. TEXT: Cath Mersh, Jack Jackson, Ralph Cohen, Manel Romeu Bellés, Anne Nielsen and Hanne Poder Sørensen. UK For more information about Vestas sales and service units, go to www.vestas.com and click on Contact. Vestas Wind Systems A/S Alsvej 21 · DK–8900 Randers · Denmark Tel. +45 97 30 00 00 · Fax +45 97 30 00 01 vestas@vestas.com · www.vestas.com2009-02-11T14:30:15+01:00