An estimated 11.2 billion tonnes of solid waste is collected every year, posing a serious risk to resource depletion, air pollution and water and soil contamination. With the global wind energy market set to grow by an average of 3 per cent per year in the coming decade, Vestas is mitigating its environmental impact by committing to eliminate waste across its value chain. Today, Vestas wind turbines are on average 85 per cent recyclable, however, wind turbine blades are currently comprised of non-recyclable composite materials.

Wind energy will continue to grow rapidly, therefore the time for a conservative approach is behind us. I am proud to be part of an organisation that is making sustainability an integral component in all business operations Vestas interim Chief Operations Officer, Tommy Rahbek Nielsen

The company will consider all aspects of the turbine lifecycle, aimed at improving the recyclability rate of blades and nacelles. As a first step, Vestas will be focusing on improving the recyclability of all wind turbine blades. Incremental targets will be introduced to increase the recyclability rate of blades from 44 per cent today, to 50 per cent by 2025, and to 55 per cent by 2030.

Several initiatives designed to address the handling of existing blades after decommissioning will be set in motion. These will cover new recycling technologies that are optimal for composite waste, such as glass fibre recycling and plastic parts recovery. Vestas will also be implementing a new process around blade decommissioning, providing support to customers on how to decrease the amount of waste material being sent to landfill.

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Danish Vestas Aircoil and the Department of Engineering at Aarhus University have joined forces to create an alternative to heavy heat exchanger constructions, which for decades have been a central component in huge, turbocharged marine engines.

The aim of the project is to reduce the weight of endplates on the heat exchangers which, on the largest engines, can be several metres high and weigh hundreds of kilos.

We’re going into unexplored territory. Of course, today there are many alternatives to cast iron, but these are very expensive metal alloys. This is the first time anyone has tried to find a cheaper or corresponding composite solution, but it’s not easy, because the conditions are so harsh. Simon Heide-Jørgensen, industrial postdoc on the project

The materials will need to withstand, water, saltwater, vibrations, high pressure and high temperatures for many years whilst being comparable in price to the existing materials used.

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There is plenty of financial incentive to find an alternative to cast iron. Today, a leak in the system means the engine has to be stopped and the plates have to be opened to find the fault. But the plates are so heavy that they require specialised personnel and tools. Which can be time-consuming and costly. At the same time, the ship is still costing thousands of dollars every day in downtime. Furthermore, cast iron does not work very well with saltwater, so today, to avoid rusting, the entire system is treated with expensive chemicals.

From here, the plan is to take the material forward, and hopefully, in the long run, create a lighter and stronger construction that doesn’t need the chemical treatment. The ComMEC project is being headed by Associate Professor Michal Budzik from the Department of Engineering, Aarhus University and R&D Manager Claus Hessler Ibsen from Vestas Aircoil.

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Denmark’s Aarhus University will collaborate with partners including Vestas and the Danish Technological Institute to develop new composite materials for wind turbine blades.

Associate Professor Mogens Hinge of Aarhus University’s department of engineering said;

Components made of fibreglass have to go through a difficult procedure before they can be reused, this entails separating the glass from the plastic, and you can only do this if you heat the material for a long time at 600 degrees Celsius, which is far from profitable from both an energy and an economic point of view.

Because it’s almost virtually impossible to recycle the composite materials used, old wind turbine blades are taken to enormous graveyards where the components are crushed and buried in landfill

According to researchers, the acute problem in the wind turbine industry inspired them to develop a solvent with the opposite properties, so that instead of binding materials to each other, it can separate them chemically with limited or no heating at all.

The idea is that the glass should be reused when it has been cleaned – for new fibreglass components for structures such as wind turbines, aircraft or cars. The researchers are initially focusing on designing an agent for fibreglass, and they say the first laboratory results are promising.

Innovation Fund Denmark has invested a total of 17.6 million Danish Krones (approximately $2.67 million) in the project, which, in the long run, can influence the recycling of composite materials outside the wind turbine industry. The parties expect to be ready with a chemical compound for separating fibreglass within four years.

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CEO Jens Tommerup said the creation of over 200 skilled jobs underlines MHI Vestas Offshore Wind’s commitment to the UK offshore market

We are extremely pleased to be able to announce the commencement of hiring over 200 full time jobs at our manufacturing facility on the Isle of Wight. These new jobs are skilled and form a critical aspect of our manufacturing capability. When serial production begins in May, MHI Vestas Offshore Wind will be the only manufacturer producing blades for offshore wind projects in the UK.

The decision to manufacture blades on the Isle of Wight was announced in November last year and is the first part of a wider industrial strategy in the UK which is expected to result in up to £200m worth of investment and safeguarding or creating up to 800 jobs.

The Vestas R&D facility on the Isle of Wight was opened in 2011 and was specifically created to develop large blades for the latest wind turbines. The facility consists of two halls 170m long and 50m wide, one for testing and verification, and one for blade production, which will be leased by MHI Vestas Offshore Wind.

Serial production of the new blades will commence in May 2015.

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TPI has been making wind blades in China since 2008 at the company’s 35,000 square metre plant located in Dafeng, 250 km north of Shanghai in the Jiangsu Provence.

Vestas introduced its V110 wind turbine into the Chinese market back in October 2014, these new turbines are designed specifically for low wind sites with cut-in speeds starting at 3m/s, ideal for wind conditions in China.

Steve Lockard, president and CEO of TPI Composites said;

We are thrilled that Vestas has selected TPI to be its first outsource partner of Vestas designed blades. from Dafeng, China we will supply V110 blades to China and export markets in a reliable and cost-effective manner.

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The Danish firm will invest up to €32 million in meeting local requirements, prioritising initiatives that enable them to compete more effectively in the local wind industry.

Vestas will localise 70 per cent of hub and nacelle manufacturing for 2MW turbines at their facility near Fortaleza in the north-eastern state of Ceará, allowing for production levels in excess of 400 MW per year, with the possibility of reaching up to 800 MW. Blade and tower production will also be sourced locally in order to comply with the requirements.

Jean-Marc Lechêne, Vestas Executive Vice President of Manufacturing and Global Sourcing said;

We are delighted to announce our plan to ramp up operations in Brazil to comply with local requirements, Brazil is one of the most competitive and fastest-growing markets in the world. We are confident these investments will meet local content requirements and position Vestas as a key player in the Brazilian market.

Vestas has a long track record in Brazil having sold almost 1,000 MW and the company aims to participate in the upcoming auctions for projects throughout 2014. Given the planned increase in manufacturing output, they expect to create up to 300 direct jobs in Brazil and an estimated 1,500 indirect jobs in the coming months, with the possibility of producing turbines for export to the rest of Latin America.

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Vestas will retrain 30 nacelles employees for work in the blade factory and hire an additional 8 people to work in the Italia sales, installation and services unit. Depending on market conditions an additional 60 employees could be recruited to work at the blades factory. Up to 30 nacelles employees could be hired in Vestas facilities in the UK, Spain, Denmark, or Germany, depending on the individuals’ professional qualifications and personnel requirements at these facilities.

Jean-Marc Lechêne, Vestas Chief Operating Officer said;

We are pleased to announce the launch of the V112-3.0 MW blade production line in Taranto and a related EUR 10 million investment. This will allow Vestas to bring our latest technology to the Taranto plant, which will benefit our customers, the entire supply chain and the local community through employment possibilities for the nacelles plant personnel.

The Ministry for Economic Development (MISE) via an official press release comments that the blades factory will be able to absorb part of the nacelles factory employees, and the company has expressed the will to offer an opportunity to the employees, through professional requalification. All in all, the agreement combines employee safeguards and strengthens Vestas’ production and market outlook.

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These negotiations have now been finalised with the signing of a binding sales and supply agreement after which the German industrial group VTC Partners GmbH will acquire Vestas’ two machining units and four casting units, including approx. 1,000 employees in Norway, Sweden, Germany, China and Denmark. The agreement is subject to customary closing conditions, including approvals from relevant authorities in China. VTC is the owner of the Silbitz Group a leading German-based casting group with an existing and proven supplier relationship with Vestas.

Vestas’ main priority in the divestment of its machining and casting units is to increase the flexibility of Vestas’ supply chain and to secure a buyer that will ensure supply at the required quality and offer reduced and competitive prices for casted components going forward. Finally, the divestment confirms Vestas’ strategy to further concentrate on the core competences of its business.

Jean-Marc Lechêne, Executive Vice President and COO of Vestas Wind Systems A/S said;

The divestment of our machining and casting units is part of the plan to improve our capacity utilisation and to become a more asset-light and scalable company, in outsourcing our machining and casting units, it was important to take the time to find the right partner in order for both parties to benefit from the industrial synergies. VTC will continue to operate with the same high Vestas standards in relation to quality, reliability and safety and I am pleased to say that we consider VTC to be the right partner in all these aspects.

The transaction has been agreed at a sales price of EUR 1 plus an earn-out element for Vestas of up to EUR 25m. The divestment price implies a further write-down of approx EUR 50m consisting of approx EUR 20m in assets held for sale and approx EUR 30m in net current assets, which will be included in special items in the third quarter of 2013.

It is expected that the divestment will lower Vestas’ costs for casted components by around EUR 30m over the next two years. Due to the additional utilisation that can be brought to the factories under VTC ownership, further cost benefits can be expected in the longer term. The flexible nature of the supply agreement that has been signed as part of the transaction further adds to Vestas’ cost structure becoming more scalable.

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Currently, the main markets for offshore wind turbines are the North Sea coastal countries, particularly the UK and Germany. In these and all other markets, today, measures are being taken to support the introduction of wind power generation equipment to supersede outdated coal-fired and nuclear plants, and solid growth in this area is expected to continue going forward. The establishment of the agreement between Mitsubishi and Vestas is the two partners’ joint response to this market’s growth potential.

The JV will combine Vestas’ and Mitsubishi’s current capabilities within offshore wind turbines, Vestas will transfer the development of the V164-8.0 MW, the V112 offshore order book, existing offshore service contracts and approx 300 employees to the JV. Mitsubishi will inject EUR 100m in cash into the venture and will inject another EUR 200m based on certain milestone achievements reflecting the natural early product life cycle of the V164 turbine.

As part of the JV, it has been agreed between the parties that Vestas is contracted to finalise the planned development of the V164-8.0 MW on behalf of the JV. In addition, Vestas and Mitsubishi will provide various services to the partnership. The Venture will start its business with the current V112 offshore and the V164-8.0 MW turbines. At a later stage, they will explore the possibilities of integrating the MHI hydraulic DDT technology into the 8 MW platform which would make the JV positioned to offer a product line-up variety that best suits customer demands.

The two companies are confident that this new collaboration will be well-positioned to win an expanding share of the offshore wind turbine market and become a global leader in this attractive and high-growth market.

The head office of the new venture will be located in Aarhus, Denmark, from where the company will handle all aspects from design, further development, procurement and manufacturing related to the V164-8.0 MW turbine as well as all marketing, sales and after-sales service related to offshore wind. Vestas will continue to manufacture and supply the V112 turbines which the JV will offer for offshore projects.

Masafumi Wani will become Chairman of the Board of Directors (Executive Senior Vice President and Head of Power Systems of MHI), Anders Runevad Vice Chairman (Group President & CEO of Vestas) and Jens Tommerup CEO of the JV (currently President of Vestas Asia-Pacific & China). Equity ownership ratios will be 50 per cent for each of MHI and Vestas with an option for MHI to change the ownership ratio to 51 per cent for MHI and 49 per cent for Vestas in April 2016.

The transaction is subject to customary closing conditions including approval from relevant competition authorities in Europe and Asia and closing are expected to take place around the end of March 2014.

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The blade which was constructed at their R&D centre on the Isle of Wight will now undergo an extensive testing regime to ensure total reliability. The 80-metre blade is the longest ever produced by Vestas and uses the structural shell design, a proven concept in which loads of the blade are carried in the shell, rather than using a spar at the centre of the blade.

The length of the blade is the equivalent of nine double-decker London buses and the swept area of the rotor will be 21,124m2, larger than the London Eye. In order to validate the strength and reliability of the blade, it will be tested to its limits for six months, reproducing the challenging wind conditions of the North Sea over a simulated 25 year lifetime.

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