MHI Vestas Offshore Wind has secured a supply contract for 114 turbines on Scotland’s largest offshore wind farm. Seagreen Wind Energy (SWE), a wholly-owned subsidiary of SSE, awarded the manufacturing and installation contract from 2021.
As per the terms of the contract, MHI Vestas will be responsible for work on V164-10MW wind turbines at the 1,140MW Seagreen site for 15 years.
MHI Vestas chief sales officer Henrik Jensen said: “We are very pleased to have secured the firm order for turbine supply at Seagreen, which is the largest project under development in Scotland.
“We have been able to reach this milestone even during Covid-19, with major decisions being taken over videoconference. It is encouraging to see that, even in these challenging times, the offshore wind industry can collaborate as a pioneering force driving the world towards a green recovery.”
The offshore wind farm project has been under development since 2010.
Upon completion, Seagreen offshore wind farm will generate nearly 5,000GWh of clean renewable energy annually; sufficient to power around one million homes while eliminating 1.6 million tonnes of carbon emissions annually.
MHI Vestas UK country manager Julian Brown said: “The Seagreen contract will further secure the presence of MHI Vestas in the UK with service operations based in Scotland serving the project and blades supplied from the Isle of Wight blades-manufacturing facility.
“The project will be supported by our technician apprenticeship programme based in Scotland and provides further opportunities for the development of the UK supply chain, delivering sustainable and high-value jobs in offshore wind.
As per the terms of the agreement, Total will make an upfront payment of $88m (£70m) at closing, with additional payments of up to $76m (£60m) earn-outs in aggregate, depending on performance conditions.
The purchase agreement also covers a potential extension opportunity of up to 360MW.