Vineyard Wind has taken legal action against GE Vernova, asserting that the company is attempting to withdraw from its contractual obligations to supply and maintain wind turbines for a $4.5bn offshore wind project in Massachusetts, US.
The lawsuit, filed in Boston state court, requests that GE Vernova be barred from ending its agreements, an action Vineyard Wind claims would jeopardise the operation of the 806MW wind farm off the coast of Martha’s Vineyard.
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GE Vernova’s renewable energy division notified Vineyard Wind in February of its intention to terminate the turbine supply contract, citing unpaid invoices exceeding $300m, reported the Nantucket Current.
Vineyard Wind, a joint venture (JV) between Spain-based Iberdrola and Danish company Copenhagen Infrastructure Partners, responded by withholding payment, arguing that GE Vernova owed it more than $545m due to issues related to defective blades produced at a manufacturing plant in Gaspe, Canada.
The dispute escalated following the collapse of a turbine blade in July 2024, which led to a government-mandated shutdown and extensive replacement work for more than 60 blades already installed.
Officials from both companies have held talks as recently as 6 April in an effort to resolve the disagreement, but both parties failed to reach an agreement.
GE Vernova maintains that payment for supplied turbines remains outstanding despite completing the installation of all 62 turbines.
Meanwhile, Vineyard Wind has stated in court filings that the project’s future relies on the continuation of GE Vernova’s support, as operations and maintenance are dependent on proprietary technology and software supplied by GE Vernova.
The uncertain outcome of the dispute has raised concerns about Vineyard Wind’s ability to repay loans obtained for the project, with the company warning that the wind farm could become non-operational if an agreement is not reached. A foreclosure could result if default occurs.
Additionally, federal regulations previously allowed Vineyard Wind to defer payment of a $191m decommissioning bond until the 15th year of the wind farm’s operation, leaving no immediate guarantee for removal expenses should the project cease prematurely.
The Vineyard Wind project faced legal and regulatory challenges in the past, including orders to halt construction under the Trump administration pending national security reviews.
After court challenges, the project resumed in February and became the first large offshore wind installation to begin operating in the US.
A hearing on Vineyard Wind’s request for a preliminary injunction against GE Vernova is set for 16 April.
GE Vernova has stated that it intends to defend its legal position as the case proceeds.
