London, United Kingdom, March 25, 2010: GE (NYSE:GE) today announced plans to invest €110 million to develop offshore wind turbine manufacturing facilities and locate design, application and service engineering resources in the United Kingdom. This move will create as many as 1,900 new clean energy jobs in the UK by 2020 - both GE jobs and those created in the associated supply chain with manufacturers of towers, blades, nacelles and other offshore wind technology all locating to the site. This investment is tied to the successful deployment of the UK government's port development fund, as announced in yesterday's budget. The intended investment signals GE's deep commitment to the promising European offshore wind sector.
"Offshore wind will play a vital role in meeting the growing global demand for cleaner, renewable energy," said Magued Eldaief, Managing Director, GE Energy UK. "We believe offshore wind has a bright future here in the UK and are delighted that the UK government yesterday committed to further developing this important sector. These GE investments will position us to help develop Europe's vast, untapped offshore wind resources, while also creating invaluable new jobs for both GE and our suppliers in the UK."
Business Secretary Lord Mandelson commented: "This is great news from GE, a vote of confidence in UK low carbon manufacturing which should create a huge number of jobs. The industry has enormous potential for further growth, with significant knock-on benefits for jobs throughout the supply chain."
"We're creating the right conditions and incentives to maximise the potential of our wind resource," said Climate Change and Energy Secretary Ed Milliband. "Now we have another leading player entering the offshore wind market as a result. GE's investment will create new jobs and help the supply chain flourish, reinforcing the UK as the destination for offshore wind investment."
At the core of GE's European expansion plans is the development of GE's next generation wind turbine, a 4-megawatt machine designed specifically for offshore deployment. As the largest wind turbine in GE's fleet, it will incorporate advanced drive train and control technologies gained through GE's acquisition of ScanWind. The 4-megawatt wind turbine will feature GE's innovative technology that eliminates the need for gearboxes. GE's UK manufacturing facility will produce the new 4-megawatt offshore wind turbine and future generations of GE's offshore technology. This technology is already being demonstrated at a test site in Hundhammerfjellet, Norway where the first ScanWind direct drive unit has been operating for more than five years.
"GE's proven reliability on more than 13,500 land units coupled with ScanWind's proven offshore, gearless design enables us to provide our customers the reliable solutions necessary for the offshore wind industry," said Victor Abate, vice president of GE Power & Water's Renewable Energy business. "These announcements lay the foundation for us to begin scaling our offshore business, technology and supply chain locally in Europe where we see the greatest growth opportunity."
EWEA expects that Europe's offshore wind sector will grow more than 70% in 2010, with continued growth forecast over the next several years. If all of the offshore wind projects currently in development are completed, they could produce 10% of the European Union's total electricity while avoiding 200 million tons of CO2 emissions each year. Overall, offshore wind is expected to make a major contribution in helping the European Union reach its goal to have 20% of its energy produced from renewable resources by the year 2020.
In addition to the UK investment, GE today also announced development of new offshore wind turbine facilities in three other European countries:
Germany
A new engineering center in Hamburg will feature product development, application engineering and advanced technology. GE also plans to expand its resources at its existing wind turbine manufacturing facility in Salzbergen, as well as the GE Global Research Center in Munich. This will result in approximately 100 jobs and a €105 million investment related to GE's offshore wind business in Germany by 2016.
Norway
GE will add to its existing footprint in Norway with plans to create a new Offshore Technology Development Center in Oslo, and will expand its advanced demonstration unit production and service facilities in Verdal. GE also has joined the Nowitech Research Center in Norway to participate in joint research projects on offshore wind topics. Norway is the planned site for the testing and demonstration of the first 4-megawatt wind turbines offshore. This will result in approximately 100 jobs and a €75 million investment related to GE's offshore wind business in Norway by 2016.
Sweden
In Sweden, GE will also expand its current offshore wind facilitites by developing a Conceptual and Systems Design Center in Karlstad, Sweden. A technology demonstration unit is planned to be installed in Gothenburg harbor, and GE also will join the Chalmers Wind Energy Center in Gothenburg. This will result in approximately 50 jobs and a €50 million investment related to GE's offshore wind business in Sweden by 2016.
About GE UK
With operations in the UK since the 1930s, GE's businesses here have seen accelerated growth in recent years. GE continually invests in its businesses and in innovative technology that can meet the needs of its customers and society, particularly in the energy, transportation, healthcare, media and financial services' sectors. GE employs 19,000 people in the UK and is based in more than 60 major locations, from Aberdeen to Falmouth and from Cardiff to Cambridge. UK revenues for GE have grown from £900 million in 2000 to £8.5 billion in 2008.
About GE
GE is a diversified global infrastructure, finance and media company that's built to meet essential world needs. From energy, water, transportation and health to access to money and information, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide.
GE serves the energy sector by developing and deploying technology that helps make efficient use of natural resources. With 60,000 global employees and 2009 revenues of $37 billion, GE Energy www.ge.com/energy is one of the world's leading suppliers of power generation and energy delivery technologies. The businesses that comprise GE Energy - GE Power & Water, GE Energy Services and GE Oil & Gas - work together to provide integrated product and service solutions in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels.
For more information, visit the company's Web site at www.ge.com. GE is imagination at work.
Mark Maguire
Corporate Communications Director
GE UK
T: 020 7302 6068
M: 07717 517 071
[email protected]
www.ge.com
Clare Keen
Press Officer
Department of Business, Innovation & Skills
T: 020 7215 5971
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Helen MacBain
Senior press officer
UK energy supply desk
Department of Energy and Climate Change
T: 0300 068 5219
M: 07717 513051
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Mark Maguire
GE
[email protected]
+44 20 7302 6068
+44 7717 517071