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  • Company to provide New Spherical Valve for FirstLight’s Northfield Mountain Station - Repairs will support New England’s largest pumped storage hydro facility in responding to challenges of bringing more renewable energy online
  • GE’s Hydropower Services will also supply equipment for PG&E’s Caribou One Unit in Northern California -Company to Replace Runner and Shaft on first of three units of the 81MW hydropower plant

Paris, July 23, 2019 – GE Renewable Energy announced today that it has signed two hydropower contracts in the United States, one for FirstLight’s Northfield Mountain project and one for PG&E’s Caribou One hydropower station.

FirstLight has chosen GE Renewable Energy to design, supply, install and commission a new spherical valve at the 4 x 292 MW Northfield Mountain pumped hydro storage station, New England’s largest energy storage facility. The powerhouse can generate more than 8,700 megawatt-hours of electricity every day, the equivalent of 87,000 fully charged electric cars.

The new valve, which has a 114” internal diameter and weighs approximately 90 tons, will be designed to improve the station’s flexibility by allowing the unit to cycle approximately 10 times per day more often than it currently does. This flexibility is important given the increasing amount of intermittent wind and solar power being used in the region. The project, which is being supported by GE Renewable Energy’s Hydro teams in Denver is scheduled to be completed in 2021.

FirstLight Vice President of Operations Justin Trudell said “We’re excited to partner with GE Renewable Energy to help Northfield Mountain continue to provide critical flexibility to the New England electric grid. The states are investing huge resources in intermittent renewable energy development and large-scale energy storage facilities like Northfield are crucial to the success of the region.”

In addition, GE Renewable Energy announced that it had been selected by PG&E to replace a runner and shaft of the first of three 27 MW units. The runners, which are 12 feet in diameter and weigh approximately 25 tons, use a Pelton design. They feature stainless steel material for improved reliability and longevity. The equipment will be delivered in the first quarter of 2021.

The Caribou hydroelectric station, which was first commissioned in 1921, is one of several projects on the North Fork Feather River and its tributaries that is part of a system that provide hydroelectricity and water storage for irrigation in the Sacramento Valley.

“These contracts illustrate how GE Renewable Energy’s services teams can support US utilities in modernizing their existing hydropower assets and adapting them to the new operating modes required by the increasing penetration of renewables on the grid. The upgrades will enable both customers to continue to operate these valuable assets with in a more flexible and efficient manner consistent with the demands of today’s market”, said Pierre Marx, General Manager for GE’s Hydro solutions in North America.

###

About GE Renewable Energy
GE Renewable Energy is a $15 billion business which combines one of the broadest portfolios in the renewable energy industry to provide end-to-end solutions for our customers demanding reliable and affordable green power. Combining onshore and offshore wind, blades, hydro, storage, utility-scale solar, and grid solutions as well as hybrid renewables and digital services offerings, GE Renewable Energy has installed more than 400+ gigawatts of clean renewable energy and equipped more than 90 percent of utilities worldwide with its grid solutions. With nearly 40,000 employees present in more than 80 countries, GE Renewable Energy creates value for customers seeking to power the world with affordable, reliable and sustainable green electrons.
Follow us at www.ge.com/renewableenergy, on www.linkedin.com/company/gerenewableenergy, or on www.twitter.com/GErenewables

PITTSBURGH--(BUSINESS WIRE)--Allegheny Technologies Incorporated (NYSE: ATI) reported second quarter 2019 results, with sales of $1.08 billion and net income attributable to ATI of $75.1 million, or $0.54 per share. Second quarter 2019 results include $21.6 million in net pretax gains on previously-announced sales of non-core assets comprised of a $29.3 million gain on the first of two transactions to monetize oil & gas rights and a $7.7 million loss on sale of the industrial forgings business. Excluding these non-core items net-of-tax, second quarter 2019 net income attributable to ATI was $55.0 million, or $0.40 per share. This compares to ATI’s second quarter 2018 sales of $1.01 billion and net income attributable to ATI of $72.8 million, or $0.52 per share.

“In the second quarter, we demonstrated our ability to successfully manage near-term headwinds, as well as make progress on strengthening our balance sheet,” said Robert S. Wetherbee, ATI President and Chief Executive Officer. “Both of our business segments made important strides in the quarter to resume our trajectory of profitable growth. Non-core asset sales, including divesting a smaller business that did not align with our strategic priorities, sharpens our focus on differentiated products requiring our materials science capabilities and advanced process technologies.”

HPMC sales increased 9% in the second quarter 2019 compared to the prior year primarily due to a 17% increase in sales to the aerospace & defense markets. Next-generation jet engine products sales increased by 26% and represented 59% of total second quarter 2019 HPMC jet engine product sales. Sales to the commercial airframe market were 40% higher driven by increasing emergent demand from a large OEM customer, and government aerospace & defense sales were 32% higher across a broad range of programs. HPMC operating profit slightly increased compared to the prior year to $98.9 million and represented 15.4% of sales. “HPMC segment results showed strong topline growth as we continued to meet our aerospace ramp commitments. Segment operating profit improved as our sales on major commercial aerospace programs continue to grow,” said Mr. Wetherbee.

FRP sales were 5% higher in the second quarter 2019 compared to the prior year, primarily due to project-based demand for high-value products in the oil & gas market, as well as marine scrubber products within the energy market and demand growth from the aerospace & defense market. “Our U.S. Flat Rolled business returned to profitability in the second quarter as we achieved a better balance of raw material costs and indexed-based selling prices. Sales of high-value nickel-based and specialty alloys were more than 30% higher than both the first quarter 2019 and the second quarter 2018 as we continue to focus on differentiated products,” said Wetherbee. FRP segment results in the second quarter 2019 also include a $4 million loss for ATI’s share of the A&T Stainless joint venture as a direct result of the Section 232 import tariffs.

As of June 30, 2019, cash on hand was $281 million and available additional liquidity under the Company’s asset-based lending (ABL) credit facility was approximately $360 million, with no borrowings under the revolving credit portion of the ABL. Cash provided by operations for the second quarter of 2019 was $26 million, as increased profitability more than offset $38 million in higher managed working capital from increased business activity and a $28 million contribution to a U.S. defined benefit pension plan. Capital expenditures for the second quarter 2019 were $28 million, bringing the year-to-date total to $51 million and in line with expectations. Cash also increased $63 million in the second quarter 2019 from net proceeds from non-core asset sales.

Strategy and Outlook

“We continue to work proactively with our customers to meet our supply requirements for the ongoing aerospace production ramp, and as previously announced, we expect to maintain our current production and delivery schedules related to the 737 MAX aircraft,” said Wetherbee. “We have confidence in Boeing’s ability to address current narrow-body model issues.”

HPMC segment operating margins in the second half of 2019 are expected to improve significantly year-over-year. While demand remains strong for single-aisle platforms, uneven order patterns and inventory management actions by a major aero-engine customer are expected to negatively impact second half shipments, partially lowering the benefit from increased share of high value commercial jet engine materials and components. The Company believes these issues are temporary and the benefits from our increased share will meaningfully benefit 2020 and future periods. “We are dedicated to strong operational execution and to meeting our aerospace production ramp requirements,” said Mr. Wetherbee.

In the FRP segment, the Company expects continued profitability in the second half of 2019 due to improved customer demand for high-value products – both in the U.S. and for the STAL joint venture, favorable raw material surcharge values, and increased carbon conversion volumes. “Our focus for the FRP segment remains on achieving sustainable profitability by improving the product mix and increasing asset utilization of our Hot-Rolling and Processing Facility.

“During the second quarter, we generated cash both from operating activities and from non-core asset sales, and we intend to accelerate our efforts to improve our balance sheet,” said Wetherbee. Additional non-core asset sales will generate approximately $189 million in cash proceeds in the third quarter, including $127 million for the sale of our titanium casting operations and $62 million for the sale of oil and gas rights in New Mexico. We intend to make significant progress on both pension funding and debt reduction in the next 12 months,” Wetherbee concluded.

Second Quarter 2019 Financial Results

  • Sales for the second quarter 2019 were $1.08 billion, a 7% increase compared to the second quarter 2018. HPMC sales increased 9%, with aerospace & defense sales 17% higher, reflecting stronger demand for titanium products and nickel-based alloys and specialty alloy products, partially offset by declines in forged components. FRP sales increased 5% on stronger demand for nickel-based alloys and specialty alloys from the oil & gas market, and from the energy market driven largely by marine scrubber applications. Aerospace & defense markets sales in the FRP segment were up 38% year-over-year.
  • Gross profit in the second quarter 2019 was $177.7 million, or 16.4% of sales, compared to $173.7 million, or 17.2% of sales, in the second quarter of 2018.
  • Other income (expense), net for the second quarter 2019 includes $21.6 million in net gains on asset sales that are excluded from segment operating profit, comprised of the $29.3 million gain on sale of oil & gas rights and the $7.7 million loss on sale of the industrial forgings business. Results in 2019 also include $3.5 million of net losses from joint ventures accounted for under the equity method, compared to net gains of $2.3 million in the prior year’s second quarter.
  • Net income attributable to ATI for the second quarter 2019 was $75.1 million, or $0.54 per share. Excluding non-core asset sales, second quarter 2019 net income was $55.0 million, or $0.40 per share. For the second quarter 2018, net income attributable to ATI was $72.8 million, or $0.52 per share. Results in both periods include impacts from income taxes that differ from applicable standard tax rates, primarily related to the effects of income tax valuation allowances.
  • Cash on hand at June 30, 2019 was $281.2 million. For the first half 2019, cash used in operating activities was $104.4 million, including $158.8 million invested in managed working capital for increased business activity and $53.0 million in contributions to a U.S. defined benefit pension plan. Cash provided by investing activities was $11.4 million, as $62.8 million in proceeds from the sale of the industrial forgings business and other non-core assets more than offset capital expenditures of $51.3 million. Cash used in financing activities was $7.8 million.

High Performance Materials & Components Segment

Market Conditions

  • Aerospace & defense sales in the second quarter 2019 were $512.3 million, 10% higher than the first quarter 2019, and represented 80% of total segment sales. Compared to the first quarter 2019, commercial airframe sales were up 16%, commercial jet engine sales were up 10%, and government aero/defense sales were 3% higher. Total HPMC second quarter 2019 sales increased 7% over the first quarter 2019. Sales to the energy market were up 25%, and sales to the oil & gas market were 11% higher. Direct international sales represented 44% of total segment sales for the second quarter 2019.

Second quarter 2019 compared to second quarter 2018

  • Sales were $642.4 million, a $50.5 million, or 9%, increase compared to the second quarter 2018, led by increased demand for titanium-based products. Sales to the aerospace and defense markets were 17% higher than the prior year, including a 40% increase in commercial airframe sales. Total jet engine product sales increased 5% compared to prior year, with a 26% increase in sales of next-generation jet engine products.
  • Segment operating profit increased to $98.9 million, or 15.4% of sales, compared to $97.9 million, or 16.5% of sales for the second quarter 2018. Results in 2019 continued to reflect negative impacts from the recent rapid drop in raw material prices, which compressed profit margins due to the length of the manufacturing cycle compared to index-based selling price changes, which offset benefits from higher productivity. While sales of next-generation jet engine products increased, the profitability mix of these products was weaker compared to the prior year period, in part due to the continued shortage of nickel powder billet at our iso-thermal forging operations.

Flat Rolled Products Segment

Market Conditions

  • Second quarter 2019 sales to the oil & gas market were $117.6 million, a 22% increase compared to the first quarter 2019, on higher project-based demand for nickel-based flat rolled products. Sales to the energy market increased over 50% due to stronger international demand for marine scrubber applications, and sales to the consumer electronics market were 12% higher as demand improved at our STAL joint venture in China. Demand from other major end markets was generally in-line with the first quarter 2019. Sales increased 10% for high-value products and 4% for standard products, compared to the first quarter 2019. Direct international sales were 35% of second quarter 2019 segment sales.

Second quarter 2019 compared to second quarter 2018

  • Sales were $438.0 million, a $20.4 million, or 5%, increase compared to the prior year period, as sales of high-value products, driven by nickel-based alloys, were 11% higher. This increase more than offset 12% lower sales of standard products, primarily commodity stainless steel sheet, compared to the second quarter 2018.
  • Segment operating profit was $15.6 million, or 3.6% of sales, compared to $26.1 million, or 6.3% of sales for the second quarter 2018. FRP segment results for the second quarter 2019 reflect higher retirement benefit expense of $6 million and a $4 million loss for ATI’s share of the A&T Stainless joint venture due to Section 232 tariffs, compared to a $1 million profit in the prior year. Stronger 2019 results from our STAL joint venture in China reflect growing benefits from the recent capacity expansion. While project-based demand for nickel-based alloys in the U.S. business remained solid, weaker demand for commodity stainless steel resulted in lower segment operating profit compared to the second quarter 2018.

Corporate Expenses/ Closed Operations and Other Expenses

  • Corporate expenses in the second quarter 2019 were $18.0 million, or $5.1 million higher than the second quarter 2018, primarily due to higher expense for company-owned life insurance policies, and costs related to non-core asset transactions.
  • Closed operations and other expenses in the second quarter 2019 were $7.9 million, or $2.8 million higher than the second quarter 2018, primarily due to foreign currency remeasurement losses in 2019 compared to gains in 2018.

Income Taxes

  • ATI continues to maintain income tax valuation allowances on its U.S. federal and state deferred tax assets, and the Company does not expect to pay any significant U.S federal or state income taxes for the next few years due to net operating loss carryforwards. The 6.9% tax rate for the second quarter 2019 primarily relates to the combination of the low tax rate caused by the valuation allowances mentioned above and the inclusion of income taxes on non-U.S. operations, resulting in a rate substantially lower than the U.S. statutory rate of 21%.

Allegheny Technologies will conduct a conference call with investors and analysts on Tuesday, July 23, 2019, at 8:30 a.m. ET to discuss the financial results. The conference call will be broadcast, and accompanying presentation slides will be available, at ATImetals.com. To access the broadcast, click on “Conference Call”. Replay of the conference call will be available on the Allegheny Technologies website.

This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Certain statements in this news release relate to future events and expectations and, as such, constitute forward-looking statements. Forward-looking statements, which may contain such words as “anticipates,” “believes,” “estimates,” “expects,” “would,” “should,” “will,” “will likely result,” “forecast,” “outlook,” “projects,” and similar expressions, are based on management’s current expectations and include known and unknown risks, uncertainties and other factors, many of which we are unable to predict or control. Our performance or achievements may differ materially from those expressed or implied in any forward-looking statements due to the following factors, among others: (a) material adverse changes in economic or industry conditions generally, including global supply and demand conditions and prices for our specialty metals; (b) material adverse changes in the markets we serve; (c) our inability to achieve the level of cost savings, productivity improvements, synergies, growth or other benefits anticipated by management from strategic investments and the integration of acquired businesses; (d) volatility in the price and availability of the raw materials that are critical to the manufacture of our products; (e) declines in the value of our defined benefit pension plan assets or unfavorable changes in laws or regulations that govern pension plan funding; (f) labor disputes or work stoppages; (g) equipment outages and (h) other risk factors summarized in our Annual Report on Form 10-K for the year ended December 31, 2018, and in other reports filed with the Securities and Exchange Commission. We assume no duty to update our forward-looking statements.

Creating Value Thru Relentless Innovation™

ATI is a global manufacturer of technically advanced specialty materials and complex components. ATI revenue was $4.1 billion for the twelve month period ended June 30, 2019. Our largest markets are aerospace & defense, particularly jet engines. We also have a strong presence in the oil & gas, energy, medical, automotive, and other industrial markets. ATI is a market leader in manufacturing differentiated specialty alloys and forgings that require our unique manufacturing and precision machining capabilities and our innovative new product development competence. We are a leader in producing powders for use in next-generation jet engine forgings and 3D-printed aerospace products. See more at our website ATIMetals.com.

Allegheny Technologies Incorporated and Subsidiaries
Consolidated Statements of Income
(Unaudited, dollars in millions, except per share amounts)
 

Three Months Ended

 

 

Six Months Ended

June 30

 

March 31

 

June 30

 

 

June 30

 

June 30

2019

 

2019

 

2018

 

 

2019

 

2018

 
Sales

$

1,080.4

 

$

1,004.8

 

$

1,009.5

 

$

2,085.2

 

$

1,988.5

 

 
Cost of sales

 

902.7

 

 

873.7

 

 

835.8

 

 

1,776.4

 

 

1,666.2

 

Gross profit

 

177.7

 

 

131.1

 

 

173.7

 

 

308.8

 

 

322.3

 

 
Selling and administrative expenses

 

67.7

 

 

68.0

 

 

62.7

 

 

135.7

 

 

129.8

 

Operating income

 

110.0

 

 

63.1

 

 

111.0

 

 

173.1

 

 

192.5

 

Nonoperating retirement benefit expense

 

(18.4

)

 

(18.3

)

 

(8.8

)

 

(36.7

)

 

(17.1

)

Interest expense, net

 

(25.9

)

 

(24.8

)

 

(25.5

)

 

(50.7

)

 

(51.0

)

Other (expense) income, net

 

18.6

 

 

(2.9

)

 

3.8

 

 

15.7

 

 

21.6

 

Income before income taxes

 

84.3

 

 

17.1

 

 

80.5

 

 

101.4

 

 

146.0

 

Income tax provision

 

5.8

 

 

0.8

 

 

4.9

 

 

6.6

 

 

9.9

 

Net income

$

78.5

 

$

16.3

 

$

75.6

 

$

94.8

 

$

136.1

 

Less: Net income attributable to noncontrolling interests

 

3.4

 

 

1.3

 

 

2.8

 

 

4.7

 

 

5.3

 

Net income attributable to ATI

$

75.1

 

$

15.0

 

$

72.8

 

$

90.1

 

$

130.8

 

 
Basic net income attributable to ATI per common share

$

0.60

 

$

0.12

 

$

0.58

 

$

0.72

 

$

1.05

 

 
Diluted net income attributable to ATI per common share

$

0.54

 

$

0.12

 

$

0.52

 

$

0.66

 

$

0.94

 

Allegheny Technologies Incorporated and Subsidiaries
Sales and Operating Profit (Loss) by Business Segment
(Unaudited, dollars in millions)
 

Three Months Ended

 

Six Months Ended

June 30

 

March 31

 

June 30

 

June 30

 

June 30

2019

 

2019

 

2018

 

2019

 

2018

Sales:
High Performance Materials & Components

$

642.4

 

$

601.2

 

$

591.9

 

$

1,243.6

 

$

1,152.6

 

Flat Rolled Products

 

438.0

 

 

403.6

 

 

417.6

 

 

841.6

 

 

835.9

 

 
Total external sales

$

1,080.4

 

$

1,004.8

 

$

1,009.5

 

$

2,085.2

 

$

1,988.5

 

 
Operating profit (loss):
 
High Performance Materials & Components

$

98.9

 

$

72.6

 

$

97.9

 

$

171.5

 

$

183.4

 

% of Sales

 

15.4

%

 

12.1

%

 

16.5

%

 

13.8

%

 

15.9

%

 
Flat Rolled Products

 

15.6

 

 

(10.9

)

 

26.1

 

 

4.7

 

 

37.0

 

% of Sales

 

3.6

%

 

-2.7

%

 

6.3

%

 

0.6

%

 

4.4

%

 
Total operating profit

 

114.5

 

 

61.7

 

 

124.0

 

 

176.2

 

 

220.4

 

% of Sales

 

10.6

%

 

6.1

%

 

12.3

%

 

8.5

%

 

11.1

%

 
 
LIFO and net realizable value reserves

 

-

 

 

(0.1

)

 

-

 

 

(0.1

)

 

-

 

 
Corporate expenses

 

(18.0

)

 

(16.6

)

 

(12.9

)

 

(34.6

)

 

(26.1

)

 
Closed operations and other expense

 

(7.9

)

 

(3.1

)

 

(5.1

)

 

(11.0

)

 

(13.2

)

 
Gain on joint venture deconsolidation

 

-

 

 

-

 

 

-

 

 

-

 

 

15.9

 

 
Gains on asset sales, net

 

21.6

 

 

-

 

 

-

 

 

21.6

 

 

-

 

 
Interest expense, net

 

(25.9

)

 

(24.8

)

 

(25.5

)

 

(50.7

)

 

(51.0

)

 
 
Income before income taxes

$

84.3

 

$

17.1

 

$

80.5

 

$

101.4

 

$

146.0

 

Allegheny Technologies Incorporated and Subsidiaries
Condensed Consolidated Balance Sheets
(Current period unaudited, dollars in millions)
 

June 30,

 

December 31,

2019

 

2018

ASSETS
 
Current Assets:
Cash and cash equivalents

$

281.2

$

382.0

Accounts receivable, net of allowances for
doubtful accounts

 

581.4

 

527.8

Short-term contract assets

 

40.9

 

51.2

Inventories, net

 

1,217.5

 

1,211.1

Prepaid expenses and other current assets

 

140.4

 

74.6

Total Current Assets

 

2,261.4

 

2,246.7

 
Property, plant and equipment, net

 

2,404.9

 

2,475.0

Goodwill

 

524.8

 

534.7

Other assets

 

358.2

 

245.4

 
Total Assets

$

5,549.3

$

5,501.8

 
LIABILITIES AND EQUITY
 
Current Liabilities:
Accounts payable

$

420.6

$

498.8

Short-term contract liabilities

 

69.3

 

71.4

Short-term debt and current portion of long-term debt

 

11.5

 

6.6

Other current liabilities

 

257.8

 

260.1

Total Current Liabilities

 

759.2

 

836.9

 
Long-term debt

 

1,537.1

 

1,535.5

Accrued postretirement benefits

 

305.4

 

318.4

Pension liabilities

 

669.6

 

730.0

Deferred income taxes

 

15.1

 

12.9

Other long-term liabilities

 

124.3

 

76.5

Total Liabilities

 

3,410.7

 

3,510.2

 
Total ATI stockholders' equity

 

2,026.4

 

1,885.7

Noncontrolling interests

 

112.2

 

105.9

Total Equity

 

2,138.6

 

1,991.6

 
Total Liabilities and Equity

$

5,549.3

$

5,501.8

Allegheny Technologies Incorporated and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited, dollars in millions)

Six Months Ended

June 30

2019

 

2018

 
Operating Activities:
 
Net income

$

94.8

 

$

136.1

 

 
Depreciation and amortization

 

77.6

 

 

78.7

 

Deferred taxes

 

2.7

 

 

0.1

 

Gains from disposal of property, plant and equipment, net

 

(28.3

)

 

(0.4

)

Loss from sale of businesses

 

7.7

 

 

-

 

Change in managed working capital

 

(158.8

)

 

(127.8

)

Change in retirement benefits

 

(34.2

)

 

2.9

 

Accrued liabilities and other

 

(65.9

)

 

(54.6

)

Cash (used in) provided by operating activities

 

(104.4

)

 

35.0

 

Investing Activities:
Purchases of property, plant and equipment

 

(51.3

)

 

(70.6

)

Proceeds from sale of businesses, net of transaction costs

 

33.4

 

 

-

 

Proceeds from disposal of property, plant and equipment

 

29.4

 

 

1.0

 

Other

 

(0.1

)

 

(0.2

)

Cash provided by (used in) investing activities

 

11.4

 

 

(69.8

)

Financing Activities:
Borrowings on long-term debt

 

-

 

 

7.1

 

Payments on long-term debt and finance leases

 

(3.3

)

 

(2.8

)

Net borrowings under credit facilities

 

5.4

 

 

3.4

 

Sale to noncontrolling interests

 

-

 

 

14.4

 

Taxes on share-based compensation and other

 

(9.9

)

 

(6.5

)

Cash (used in) provided by financing activities

 

(7.8

)

 

15.6

 

Decrease in cash and cash equivalents

 

(100.8

)

 

(19.2

)

Cash and cash equivalents at beginning of period

 

382.0

 

 

141.6

 

Cash and cash equivalents at end of period

$

281.2

 

$

122.4

 

Allegheny Technologies Incorporated and Subsidiaries
Revenue by Market
(Unaudited, dollars in millions)

Three Months Ended

 

Six Months Ended

June 30

 

June 30

 

June 30

 

June 30

2019

 

2018

 

2019

 

2018

Market
Aerospace & Defense:
Jet Engines

$

308.3

28

%

$

287.0

28

%

$

588.3

28

%

$

563.7

28

%

Airframes

 

171.3

16

%

 

128.5

13

%

 

323.6

16

%

 

248.9

13

%

Government Aerospace & Defense

 

92.6

9

%

 

66.4

7

%

 

185.9

9

%

 

131.8

7

%

Total Aerospace & Defense

$

572.2

53

%

$

481.9

48

%

$

1,097.8

53

%

$

944.4

48

%

Oil & Gas

 

136.0

13

%

 

132.7

13

%

 

248.8

12

%

 

285.3

14

%

Energy

 

77.4

7

%

 

68.2

7

%

 

133.1

6

%

 

120.4

6

%

Automotive

 

73.6

7

%

 

80.4

8

%

 

150.5

7

%

 

159.5

8

%

Construction/Mining

 

52.6

5

%

 

55.9

6

%

 

110.5

5

%

 

111.5

6

%

Food Equipment & Appliances

 

49.6

5

%

 

63.6

6

%

 

102.8

5

%

 

122.5

6

%

Medical

 

42.4

4

%

 

50.0

5

%

 

88.5

4

%

 

94.9

5

%

Electronics/Computers/Communications

 

38.1

3

%

 

35.5

3

%

 

72.2

4

%

 

68.4

3

%

Other

 

38.5

3

%

 

41.3

4

%

 

81.0

4

%

 

81.6

4

%

Total

$

1,080.4

100

%

$

1,009.5

100

%

$

2,085.2

100

%

$

1,988.5

100

%

Allegheny Technologies Incorporated and Subsidiaries
Selected Financial Data
(Unaudited)
 

Three Months Ended

 

Six Months Ended

June 30

 

March 31

 

June 30

 

June 30

 

June 30

2019

 

2019

 

2018

 

2019

 

2018

Percentage of Total ATI Sales
High-Value Products
Nickel-based alloys and specialty alloys

 

33

%

 

30

%

 

30

%

 

31

%

 

30

%

Precision forgings, castings and components

 

19

%

 

19

%

 

20

%

 

19

%

 

21

%

Titanium and titanium-based alloys

 

18

%

 

19

%

 

16

%

 

18

%

 

16

%

Precision and engineered strip

 

12

%

 

13

%

 

13

%

 

13

%

 

13

%

Zirconium and related alloys

 

6

%

 

6

%

 

6

%

 

6

%

 

5

%

Total High-Value Products

 

88

%

 

87

%

 

85

%

 

87

%

 

85

%

Standard Products
Standard stainless products

 

12

%

 

13

%

 

15

%

 

13

%

 

15

%

Grand Total

 

100

%

 

100

%

 

100

%

 

100

%

 

100

%

 
Note: FRP conversion services are excluded from this presentation.
 

Three Months Ended

 

Six Months Ended

June 30

 

March 31

 

June 30

 

June 30

 

June 30

Shipment Volume:

2019

 

2019

 

2018

 

2019

 

2018

 
Flat Rolled Products (000's lbs.)
High value

 

89,865

 

 

82,178

 

 

84,564

 

 

172,043

 

 

168,607

 

Standard

 

92,850

 

 

92,638

 

 

105,006

 

 

185,488

 

 

214,255

 

Flat Rolled Products total

 

182,715

 

 

174,816

 

 

189,570

 

 

357,531

 

 

382,862

 

 
Average Selling Prices:
 
Flat Rolled Products (per lb.)
High value

$

3.30

 

$

3.27

 

$

3.13

 

$

3.29

 

$

3.21

 

Standard

$

1.41

 

$

1.37

 

$

1.42

 

$

1.39

 

$

1.34

 

Flat Rolled Products combined average

$

2.34

 

$

2.26

 

$

2.19

 

$

2.30

 

$

2.17

 

Allegheny Technologies Incorporated and Subsidiaries
Computation of Basic and Diluted Earnings Per Share Attributable to ATI
(Unaudited, in millions, except per share amounts)
 

Three Months Ended

 

Six Months Ended

June 30

 

March 31

 

June 30

 

June 30

 

June 30

2019

 

2019

 

2018

 

2019

 

2018

 
Numerator for Basic net income per common share -
Net income attributable to ATI

$

75.1

$

15.0

$

72.8

$

90.1

$

130.8

Effect of dilutive securities:
4.75% Convertible Senior Notes due 2022

 

3.2

 

-

 

3.2

 

6.5

 

6.4

Numerator for Diluted net income per common share -
Net income attributable to ATI after assumed conversions

$

78.3

$

15.0

$

76.0

$

96.6

$

137.2

 
Denominator for Basic net income per common share -
Weighted average shares outstanding

 

125.9

 

125.4

 

125.2

 

125.7

 

125.1

Effect of dilutive securities:
Share-based compensation

 

0.6

 

0.7

 

0.7

 

0.6

 

0.6

4.75% Convertible Senior Notes due 2022

 

19.9

 

-

 

19.9

 

19.9

 

19.9

Denominator for Diluted net income per common share -
Adjusted weighted average shares assuming conversions

 

146.4

 

126.1

 

145.8

 

146.2

 

145.6

 
Basic net income attributable to ATI per common share

$

0.60

$

0.12

$

0.58

$

0.72

$

1.05

 
Diluted net income attributable to ATI per common share

$

0.54

$

0.12

$

0.52

$

0.66

$

0.94

Allegheny Technologies Incorporated and Subsidiaries
Other Financial Information
Managed Working Capital
(Unaudited, dollars in millions)
 

June 30

 

December 31

2019

 

2018

 
Accounts receivable

$

581.4

 

$

527.8

 

Short-term contract assets

 

40.9

 

 

51.2

 

Inventory

 

1,217.5

 

 

1,211.1

 

Accounts payable

 

(420.6

)

 

(498.8

)

Short-term contract liabilities

 

(69.3

)

 

(71.4

)

Subtotal

 

1,349.9

 

 

1,219.9

 

 
Allowance for doubtful accounts

 

5.0

 

 

6.0

 

LIFO reserve

 

(13.9

)

 

(2.9

)

Inventory reserves

 

91.0

 

 

88.5

 

Net managed working capital held for sale

 

38.3

 

 

-

 

Managed working capital

$

1,470.3

 

$

1,311.5

 

 
Annualized prior 3 months sales

$

4,321.9

 

$

4,151.3

 

 
Managed working capital as a % of annualized sales

 

34.0

%

 

31.6

%

 
June 30, 2019 change in managed working capital

$

158.8

 

As part of managing the liquidity in our business, we focus on controlling managed working capital, which is defined as gross accounts receivable, short-term contract assets and gross inventories, less accounts payable and short-term contract liabilities. In measuring performance in controlling this managed working capital, we exclude the effects of LIFO and other inventory valuation reserves and reserves for uncollectible accounts receivable which, due to their nature, are managed separately. The June 30, 2019 amounts include managed working capital balances held for sale for ATI Cast Products.
Allegheny Technologies Incorporated and Subsidiaries
Other Financial Information
Debt to Capital
(Unaudited, dollars in millions)
 

June 30

 

December 31

2019

 

2018

 
Total debt (a)

$

1,557.6

 

$

1,552.5

 

Less: Cash

 

(281.2

)

 

(382.0

)

Net debt

$

1,276.4

 

$

1,170.5

 

 
Net debt

$

1,276.4

 

$

1,170.5

 

Total ATI stockholders' equity

 

2,026.4

 

 

1,885.7

 

Net ATI capital

$

3,302.8

 

$

3,056.2

 

 
Net debt to ATI capital

 

38.6

%

 

38.3

%

 
Total debt (a)

$

1,557.6

 

$

1,552.5

 

Total ATI stockholders' equity

 

2,026.4

 

 

1,885.7

 

Total ATI capital

$

3,584.0

 

$

3,438.2

 

 
Total debt to total ATI capital

 

43.5

%

 

45.2

%

 
(a) Excludes debt issuance costs.
In managing the overall capital structure of the Company, some of the measures that we focus on are net debt to net capitalization, which is the percentage of debt, net of cash that may be available to reduce borrowings, to the total invested and borrowed capital of ATI (excluding noncontrolling interest), and total debt to total ATI capitalization, which excludes cash balances.
Allegheny Technologies Incorporated and Subsidiaries

Non-GAAP Financial Measures

(Unaudited, dollars in millions, except per share amounts)

The Company reports its financial results in accordance with accounting principles generally accepted in the United States of America ("GAAP"). However, management believes that certain non-GAAP financial measures, used in managing the business, may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. The following table provides the calculation of the non-GAAP financial measures discussed in the Company's press release dated July 23, 2019:

Three Months Ended

June 30

2019

 
Net income attributable to ATI

$

75.1

 

Adjust for special items:
Gain on sale of oil & gas rights (a)

$

(27.3

)

Loss on sale of industrial forgings business (b)

 

7.2

 

Net income attributable to ATI excluding special items

$

55.0

 

 
Per Diluted Share *
Net income attributable to ATI

$

0.54

 

Adjust for special items:
Gain on sale of oil & gas rights

$

(0.19

)

Loss on sale of industrial forgings business

 

0.05

 

Net income attributable to ATI excluding special items

$

0.40

 

* Presentation of adjusted results per diluted share includes the effects of convertible debt, if dilutive.

(a) Second quarter 2019 results include a $29.3 million pre-tax gain on the sale of oil & gas rights in New Mexico.
(b) Second quarter 2019 results include a $7.7 million pre-tax loss on the sale of the industrial forgings business, including $10.4 million of allocated goodwill.

Free cash flow as defined by ATI includes the total of cash provided by (used in) operating activities and investing activities as presented on the consolidated statements of cash flows, adjusted to exclude cash contributions to the Company's U.S. qualified defined benefit pension plans.

SALT LAKE CITY--(BUSINESS WIRE)--sPower, a national leader in development, construction and operation of solar power facilities, and PSEG Long Island, a major electric utility provider, are proud to announce the completion of sPower’s solar plant in Riverhead, NY. The project is 20 MWac and will provide power for approximately 2,870 homes annually. As New York moves to completely decarbonize its electricity system by 2040, the Riverhead project will help the state move towards that goal as it will remove 23,970 metric tons of CO2 each year.

The solar industry is one of the fastest growing economic sectors in the nation. During the eight months of construction, the Riverhead project employed approximately 220 workers who logged nearly 71,000 hours of paid labor. While construction is time limited, this project added over $8 million in local wages to Long Island’s economy. An additional economic impact was the tens of thousands of dollars spent at local hotels and dining establishments during the construction process.

sPower will remain the operator of the Riverhead project and looks forward to continued work in the region. sPower CEO, Ryan Creamer, said, “We are honored to be long-term neighbors with Long Island communities. Bringing solar power to this state sets an example of civic responsibility to the rest of the country.” He continued, “Working hard with PSEG Long Island and numerous other teams was critical in making this vision a reality. I am proud of this milestone we’ve achieved and the teamwork that was demonstrated throughout the entire process.”

PSEG Long Island has a long history of addressing climate change and producing low carbon energy. As one of the first electrical utilities to participate in climate change goals – the Riverhead Project continues PSEG Long Island’s legacy in providing a clean electric future.

“PSEG Long Island is a proud supporter of a clean renewable energy future on Long Island,” said Paul Napoli, vice president of power markets, PSEG Long Island. “We commend sPower for its innovation and working with us to provide clean energy to our customers and helping to reduce the dependency on fossil fuels in our region.”

The Riverhead Solar project ribbon cutting is July 23, 2019 at 1:30 p.m. at 4131 Middle Country Road (AKA Route 25) Calverton, NY 11933. Riverhead Solar will begin commercial operations in July 2019.

About sPower:

sPower, an AES and AIMCo company, is the largest private owner of operating solar assets in the United States. sPower owns and operates a portfolio of solar and wind assets greater than 1,500 MW and has a development pipeline of more than 10,000 MW. sPower is owned by a joint venture partnership between The AES Corporation (NYSE: AES), a worldwide energy company headquartered in Arlington, Virginia, and the Alberta Investment Management Corporation, one of Canada’s largest and most diversified institutional investment fund managers. For more information, visit www.sPower.com.

About PSEG Long Island:

PSEG Long Island operates the Long Island Power Authority’s transmission and distribution system under a long-term contract. PSEG Long Island is a subsidiary of Public Service Enterprise Group Inc. (PSEG) (NYSE:PEG), a publicly traded diversified energy company.

Saint-Nazaire, 22 July 2019 – Today, GE Renewable Energy revealed the first manufactured components of the Haliade-X 12 MW offshore wind turbine at its production site in Saint-Nazaire, France. The new offshore wind turbine boasts unparalleled dimensions and the use of advanced technologies.

GE has taken a new step towards launching the Haliade-X 12 MW to the market, as planned for 2021
The first nacelle revealed today will be shipped from Saint-Nazaire to Rotterdam-Maasvlakte in the Netherlands over the coming weeks, where its components will be assembled into the Haliade-X 12 MW prototype to be tested there. The prototype will be installed on land to simplify access for testing. This initial phase is designed to allow GE Renewable Energy to obtain the data required to receive its type certification—a key component prior to commercializing the product in 2021.

In parallel, a second Haliade-X 12 MW nacelle is currently being assembled at Saint-Nazaire, prior to dispatch to the ORE Catapult test centre at Blyth, in the United Kingdom, in the coming months. The nacelle will be testing in actual operational conditions to reduce the time required to confirm its performance levels and reliability.

GE continues to develop the offshore wind turbine segment
The Saint-Nazaire production site is dedicated to manufacturing offshore wind turbine generators and nacelles and has already assembled over 80 Haliade 150-6MW wind turbines since opening in December 2014. Significant projects include the development of turbines for Block Island, the first ever offshore wind farm in the U.S., the Xinghua Gulf project in China, and the Merkur offshore wind farm in Germany.

GE continues to innovate with the development of Haliade-X, supporting its customers in an increasingly competitive and rapidly growing market
The Haliade-X 12 MW’s market-leading nacelle and 107-m long blades will allow GE Renewable Energy customers to generate more power more effectively, in an environment in which they face increased competition. The turbine can generate 67 GWh in gross annual energy, providing enough clean energy to power 16,000* European households and save up to 42 million metric tons of CO2, which is the equivalent of the emissions generated by 9,000 vehicles** in one year alone.

Jérôme Pécresse, GE Renewable Energy CEO, declared "Today's presentation of the first ever Haliade-X 12 MW nacelle at Saint-Nazaire is the start of a key new phase in our ongoing commitment to structuring the offshore wind turbine segment. This project clearly reflects our ability to invest and innovate, supporting our customers on an ultra-competitive market in exponential growth. Thanks to the Haliade-X 12 MW, we are proud to prepare for the future of the offshore wind industry from Saint-Nazaire, a benchmark production site for offshore wind international projects."

According to John Lavelle, GE Renewable Energy Offshore Wind CEO, "We are on track to start commercializing this new product very shortly. Once we have received the type certificate (2020), we will be ready to start mass production and send out the first commercial units by mid-2021. Haliade-X 12MW is an outstanding and strategic project for GE. We aim to meet the requirements of our customers by providing a more affordable and competitive energy source."

* Based on wind conditions at a reference site in the German North Sea.

** According to the EPA Greenhouse gas equivalence calculator.

A few figures for the Haliade-X 12 MW

  • 12 MW capacity
  • 220m rotor
  • Height: 260m
  • Blade length: 107m
  • Gross annual energy: 67 GWh
  • Wind exposure: 38,000 m2
  • One Haliade-X 12 MW can generate enough clean energy to power 16,000 households*

###

About GE Renewable Energy
GE Renewable Energy is a $15 billion business which combines one of the broadest portfolios in the renewable energy industry to provide end-to-end solutions for our customers demanding reliable and affordable green power. Combining onshore and offshore wind, blades, hydro, storage, utility-scale solar, and grid solutions as well as hybrid renewables and digital services offerings, GE Renewable Energy has installed more than 400+ gigawatts of clean renewable energy and equipped more than 90 percent of utilities worldwide with its grid solutions. With nearly 40,000 employees present in more than 80 countries, GE Renewable Energy creates value for customers seeking to power the world with affordable, reliable and sustainable green electrons.
Follow us at www.ge.com/renewableenergy, on www.linkedin.com/company/gerenewableenergy, or on www.twitter.com/GErenewables.

Notice to proceed issued to commence construction

SAN DIEGO and FERGUS FALLS, Minn., July 18, 2019:  EDF Renewables North America and Otter Tail Power Company, a subsidiary of Otter Tail Corporation (Nasdaq Global Select Market: OTTR), announced on July 16 the closing of the Asset Purchase Agreement first announced in November 2016.  Pursuant to a turnkey Engineering, Procurement, and Construction (EPC) Agreement, also entered into in November 2016, EDF Renewables will proceed to construct the 150-megawatt (MW) Merricourt Wind Project with completion anticipated in 2020.

Located near Merricourt, approximately 15 miles south of Edgeley, North Dakota, in McIntosh and Dickey Counties, the Project is expected to create 150+ construction jobs and 10 long-term, full-time positions as well as inject millions of dollars in economic benefits to the local area. Upon commercial operation in 2020, the Project will generate enough energy to power approximately 65,000 homes.1

“EDF Renewables is pleased to partner with Otter Tail Power Company to deliver competitively-priced, clean energy to its customers through the Merricourt Wind Project,” said Sohinaz Sotoudeh, Director, Power Marketing at EDF Renewables.  “North Dakota’s abundant wind resource and supportive regulatory environment combine to create an opportunity for an economic boost to the local economy through new construction and operations jobs, expanded tax base, and recurring, long-term income for participating landowners.”

“We project that by 2021 our customers will receive approximately 30 percent of their energy from renewable resources we own or secure through power purchase agreements,” said Otter Tail Power Company President Tim Rogelstad. “The Merricourt Wind Farm will be the largest capital project in our company’s history.”

EDF Renewables is one of the largest renewable energy developers in North America with 16 gigawatts of wind, solar, and storage projects developed throughout the U.S., Canada, and Mexico.

1 According to U.S. Energy Information Administration (EIA) 2017 Residential Electricity Sales and U.S. Census Data

Contact

CHARLOTTESVILLE, Va.--(BUSINESS WIRE)--Apex Clean Energy today announced that its proposed sale of the Isabella Wind I and II projects to DTE Energy, Michigan’s leading producer of renewable energy, has been conditionally* approved by the Michigan Public Service Commission (MPSC). The two projects, totaling 385 MW and located in mid-Michigan’s Isabella County, will be the largest clean energy projects in the state as well as the largest renewable energy projects in DTE’s portfolio when they begin commercial operations in 2020. Apex will start construction on the projects later this year, and DTE will assume ownership and operation upon substantial completion, which is slated for the fourth quarter of 2020.

“The commitment and support of local residents and the leadership of Isabella County are the key drivers in making the Isabella Wind projects a reality,” said Mark Goodwin, Apex Clean Energy president and CEO. “In turn, these projects will support and strengthen the region while accelerating Michigan’s transition to a clean energy economy. Apex is proud to partner with DTE to deliver the many benefits of clean energy to its customers in the Great Lakes State.”

DTE will use the Isabella Wind projects to meet the renewable energy needs of large commercial and industrial customers who have enrolled in MIGreenPower, the company’s voluntary renewable energy program. Ford, General Motors, and the University of Michigan were the first large customers to join the program after it was approved by the MPSC in January 2019.

“Adding Isabella I and Isabella II to DTE’s generation portfolio will help us accelerate Michigan’s transition to cleaner energy and reduce carbon emissions at least 80% by 2040,” said Irene Dimitry, vice president of business planning and development for DTE Energy. “We are excited to now have MPSC approval to move forward with this purchase and look forward to bringing these projects online late next year.”

The Isabella Wind projects will be powered by 136 wind turbines supplied by GE Renewable Energy, a leading global wind turbine manufacturer.

“We are proud to be part of the Isabella Wind projects,” said Vikas Anand, CEO for GE Renewable Energy’s Onshore Wind Americas. “GE is excited to work with Apex and DTE on this exciting endeavor and bring its GE 2.82-127 wind turbine to Michigan for the first time with these projects.”

The Isabella Wind projects will generate approximately $30 million in tax revenue for the local community, $100 million in landowner payments over the lifetime of the project, more than 300 jobs during construction, up to 20 long-term operations and maintenance positions, and enough clean energy to power the equivalent of 86,000 average U.S. homes. The projects will also displace nearly 700,000 tons of carbon dioxide annually, according to the EPA’s AVERT tool.

* From the Commission: “Since the Commission made changes to DTE’s renewable energy plan, the company has 14 days to indicate whether it supports the changes. If the company does not agree, the Commission’s approval of parts of the plan are voided and DTE must file a revised renewable energy plan by Nov. 1.”

About Apex Clean Energy

Apex Clean Energy develops, constructs, and operates utility-scale wind and solar power facilities across North America. Our mission-driven team of more than 200 renewable energy experts uses a data-focused approach and an unrivaled portfolio of projects to create solutions for the world’s most innovative and forward-thinking customers. For more information on how Apex is leading the transition to a clean energy future, visit apexcleanenergy.com or follow us on Facebook, Twitter, and LinkedIn.

About DTE Energy

DTE Energy (NYSE: DTE) is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include an electric company serving 2.2 million customers in Southeast Michigan and a natural gas company serving 1.3 million customers in Michigan. The DTE portfolio includes energy businesses focused on power and industrial projects, renewable natural gas, natural gas pipelines, gathering and storage, and energy marketing and trading. As an environmental leader, DTE will reduce carbon dioxide and methane emissions by more than 80% by 2040 to produce cleaner energy while keeping it safe, reliable and affordable. DTE is committed to serving with its energy through volunteerism, education and employment initiatives, philanthropy and economic progress. Information about DTE is available at dteenergy.com, empoweringmichigan.com, twitter.com/dte_energy and facebook.com.

About GE Renewable Energy

GE Renewable Energy is a $15 billion business which combines one of the broadest portfolios in the renewable energy industry to provide end-to-end solutions for our customers demanding reliable and affordable green power. Combining onshore and offshore wind, blades, hydro, storage, utility-scale solar, and grid solutions as well as hybrid renewables and digital services offerings, GE Renewable Energy has installed more than 400+ gigawatts of clean renewable energy and equipped more than 90 percent of utilities worldwide with its grid solutions. With nearly 40,000 employees present in more than 80 countries, GE Renewable Energy creates value for customers seeking to power the world with affordable, reliable and sustainable green electrons. Follow us at www.ge.com/renewableenergy, on www.linkedin.com/company/gerenewableenergy, or on www.twitter.com/GErenewables.

  • Company to provide New Spherical Valve for FirstLight’s Northfield Mountain Station - Repairs will support New England’s largest pumped storage hydro facility in responding to challenges of bringing more renewable energy online
  • GE’s Hydropower Services will also supply equipment for PG&E’s Caribou One Unit in Northern California -Company to Replace Runner and Shaft on first of three units of the 81MW hydropower plant

Paris, July 23, 2019 – GE Renewable Energy announced today that it has signed two hydropower contracts in the United States, one for FirstLight’s Northfield Mountain project and one for PG&E’s Caribou One hydropower station.

FirstLight has chosen GE Renewable Energy to design, supply, install and commission a new spherical valve at the 4 x 292 MW Northfield Mountain pumped hydro storage station, New England’s largest energy storage facility. The powerhouse can generate more than 8,700 megawatt-hours of electricity every day, the equivalent of 87,000 fully charged electric cars.

The new valve, which has a 114” internal diameter and weighs approximately 90 tons, will be designed to improve the station’s flexibility by allowing the unit to cycle approximately 10 times per day more often than it currently does. This flexibility is important given the increasing amount of intermittent wind and solar power being used in the region. The project, which is being supported by GE Renewable Energy’s Hydro teams in Denver is scheduled to be completed in 2021.

FirstLight Vice President of Operations Justin Trudell said “We’re excited to partner with GE Renewable Energy to help Northfield Mountain continue to provide critical flexibility to the New England electric grid. The states are investing huge resources in intermittent renewable energy development and large-scale energy storage facilities like Northfield are crucial to the success of the region.”

In addition, GE Renewable Energy announced that it had been selected by PG&E to replace a runner and shaft of the first of three 27 MW units. The runners, which are 12 feet in diameter and weigh approximately 25 tons, use a Pelton design. They feature stainless steel material for improved reliability and longevity. The equipment will be delivered in the first quarter of 2021.

The Caribou hydroelectric station, which was first commissioned in 1921, is one of several projects on the North Fork Feather River and its tributaries that is part of a system that provide hydroelectricity and water storage for irrigation in the Sacramento Valley.

“These contracts illustrate how GE Renewable Energy’s services teams can support US utilities in modernizing their existing hydropower assets and adapting them to the new operating modes required by the increasing penetration of renewables on the grid. The upgrades will enable both customers to continue to operate these valuable assets with in a more flexible and efficient manner consistent with the demands of today’s market”, said Pierre Marx, General Manager for GE’s Hydro solutions in North America.

###

About GE Renewable Energy
GE Renewable Energy is a $15 billion business which combines one of the broadest portfolios in the renewable energy industry to provide end-to-end solutions for our customers demanding reliable and affordable green power. Combining onshore and offshore wind, blades, hydro, storage, utility-scale solar, and grid solutions as well as hybrid renewables and digital services offerings, GE Renewable Energy has installed more than 400+ gigawatts of clean renewable energy and equipped more than 90 percent of utilities worldwide with its grid solutions. With nearly 40,000 employees present in more than 80 countries, GE Renewable Energy creates value for customers seeking to power the world with affordable, reliable and sustainable green electrons.
Follow us at www.ge.com/renewableenergy, on www.linkedin.com/company/gerenewableenergy, or on www.twitter.com/GErenewables

Saint-Nazaire, 22 July 2019 – Today, GE Renewable Energy revealed the first manufactured components of the Haliade-X 12 MW offshore wind turbine at its production site in Saint-Nazaire, France. The new offshore wind turbine boasts unparalleled dimensions and the use of advanced technologies.

GE has taken a new step towards launching the Haliade-X 12 MW to the market, as planned for 2021
The first nacelle revealed today will be shipped from Saint-Nazaire to Rotterdam-Maasvlakte in the Netherlands over the coming weeks, where its components will be assembled into the Haliade-X 12 MW prototype to be tested there. The prototype will be installed on land to simplify access for testing. This initial phase is designed to allow GE Renewable Energy to obtain the data required to receive its type certification—a key component prior to commercializing the product in 2021.

In parallel, a second Haliade-X 12 MW nacelle is currently being assembled at Saint-Nazaire, prior to dispatch to the ORE Catapult test centre at Blyth, in the United Kingdom, in the coming months. The nacelle will be testing in actual operational conditions to reduce the time required to confirm its performance levels and reliability.

GE continues to develop the offshore wind turbine segment
The Saint-Nazaire production site is dedicated to manufacturing offshore wind turbine generators and nacelles and has already assembled over 80 Haliade 150-6MW wind turbines since opening in December 2014. Significant projects include the development of turbines for Block Island, the first ever offshore wind farm in the U.S., the Xinghua Gulf project in China, and the Merkur offshore wind farm in Germany.

GE continues to innovate with the development of Haliade-X, supporting its customers in an increasingly competitive and rapidly growing market
The Haliade-X 12 MW’s market-leading nacelle and 107-m long blades will allow GE Renewable Energy customers to generate more power more effectively, in an environment in which they face increased competition. The turbine can generate 67 GWh in gross annual energy, providing enough clean energy to power 16,000* European households and save up to 42 million metric tons of CO2, which is the equivalent of the emissions generated by 9,000 vehicles** in one year alone.

Jérôme Pécresse, GE Renewable Energy CEO, declared "Today's presentation of the first ever Haliade-X 12 MW nacelle at Saint-Nazaire is the start of a key new phase in our ongoing commitment to structuring the offshore wind turbine segment. This project clearly reflects our ability to invest and innovate, supporting our customers on an ultra-competitive market in exponential growth. Thanks to the Haliade-X 12 MW, we are proud to prepare for the future of the offshore wind industry from Saint-Nazaire, a benchmark production site for offshore wind international projects."

According to John Lavelle, GE Renewable Energy Offshore Wind CEO, "We are on track to start commercializing this new product very shortly. Once we have received the type certificate (2020), we will be ready to start mass production and send out the first commercial units by mid-2021. Haliade-X 12MW is an outstanding and strategic project for GE. We aim to meet the requirements of our customers by providing a more affordable and competitive energy source."

* Based on wind conditions at a reference site in the German North Sea.

** According to the EPA Greenhouse gas equivalence calculator.

A few figures for the Haliade-X 12 MW

  • 12 MW capacity
  • 220m rotor
  • Height: 260m
  • Blade length: 107m
  • Gross annual energy: 67 GWh
  • Wind exposure: 38,000 m2
  • One Haliade-X 12 MW can generate enough clean energy to power 16,000 households*

###

About GE Renewable Energy
GE Renewable Energy is a $15 billion business which combines one of the broadest portfolios in the renewable energy industry to provide end-to-end solutions for our customers demanding reliable and affordable green power. Combining onshore and offshore wind, blades, hydro, storage, utility-scale solar, and grid solutions as well as hybrid renewables and digital services offerings, GE Renewable Energy has installed more than 400+ gigawatts of clean renewable energy and equipped more than 90 percent of utilities worldwide with its grid solutions. With nearly 40,000 employees present in more than 80 countries, GE Renewable Energy creates value for customers seeking to power the world with affordable, reliable and sustainable green electrons.
Follow us at www.ge.com/renewableenergy, on www.linkedin.com/company/gerenewableenergy, or on www.twitter.com/GErenewables.

Notice to proceed issued to commence construction

SAN DIEGO and FERGUS FALLS, Minn., July 18, 2019:  EDF Renewables North America and Otter Tail Power Company, a subsidiary of Otter Tail Corporation (Nasdaq Global Select Market: OTTR), announced on July 16 the closing of the Asset Purchase Agreement first announced in November 2016.  Pursuant to a turnkey Engineering, Procurement, and Construction (EPC) Agreement, also entered into in November 2016, EDF Renewables will proceed to construct the 150-megawatt (MW) Merricourt Wind Project with completion anticipated in 2020.

Located near Merricourt, approximately 15 miles south of Edgeley, North Dakota, in McIntosh and Dickey Counties, the Project is expected to create 150+ construction jobs and 10 long-term, full-time positions as well as inject millions of dollars in economic benefits to the local area. Upon commercial operation in 2020, the Project will generate enough energy to power approximately 65,000 homes.1

“EDF Renewables is pleased to partner with Otter Tail Power Company to deliver competitively-priced, clean energy to its customers through the Merricourt Wind Project,” said Sohinaz Sotoudeh, Director, Power Marketing at EDF Renewables.  “North Dakota’s abundant wind resource and supportive regulatory environment combine to create an opportunity for an economic boost to the local economy through new construction and operations jobs, expanded tax base, and recurring, long-term income for participating landowners.”

“We project that by 2021 our customers will receive approximately 30 percent of their energy from renewable resources we own or secure through power purchase agreements,” said Otter Tail Power Company President Tim Rogelstad. “The Merricourt Wind Farm will be the largest capital project in our company’s history.”

EDF Renewables is one of the largest renewable energy developers in North America with 16 gigawatts of wind, solar, and storage projects developed throughout the U.S., Canada, and Mexico.

1 According to U.S. Energy Information Administration (EIA) 2017 Residential Electricity Sales and U.S. Census Data

Contact

  • GE Renewable Energy has been selected to supply 49 of its 3 MW platform onshore wind turbines for five wind farms in Turkey
  • With a total capacity of 158 MW, the project will provide renewable energy to the region, powering the equivalent of 183,000 homes
  • The 147 blades will be manufactured at GE’s LM Wind Power factory in Bergama, Izmir, Turkey

Istanbul, Turkey, July 17th, 2019 - GE Renewable Energy announces today that it has been selected by Türkeler and RT Enerji to supply equipment for the five Kirazli, Meryem, Sile, Pamukova and Mahmut Sevket onshore wind farms. Forty-nine of GE’s 3 MW onshore wind turbines will be installed in Izmir, Bilecik, Sakarya and Istanbul Turkey. With a total capacity of 158 MW, the project will provide renewable energy to the region, powering the equivalent of 183,000 homes. The scope also includes a 10-year servicing agreement.

RT Enerji and Türkerler said: “GE, RT Enerji and Türkerler have built a strong relationship, and we are very happy to be working together again. We have been heavily engaged in helping Turkey work toward its sustainable energy targets, and this wind farms are yet another step in the right direction. Turkey is ranked among the richest countries in the world in terms of the renewable energy resources -- also called the clean energy. As GE, RT Enerji and Türkerler, we invest in clean energy, meaning nature. We are pleased and proud of this investment in order to meet the energy needs of future generations and to minimize the damage to the environment”.

As a part of the agreement, LM Wind Power will produce the 147 blades for the wind turbines at the Bergama site, Izmir, Turkey, where GE has more than 450 employees. The site, which began operations in July 2017, became the fifteenth LM Wind Power factory and the first opened after the company became a GE Renewable Energy business. The site aims to help meet the requirements of the rapidly-growing Turkish wind industry. Towers and generators will also be produced in the country.

Manar al-Moneef, GE Renewable Energy’s Onshore Wind regional leader for MENAT, says: “GE has been one of the early investors in Turkey and continue commitment to create jobs and contribute to the development of high technology in the energy industry. We are delighted to be partnering with Türkerler and RT Enerji again and working on this exciting project. GE’s high-tech 3 MW platform turbines are well suited to Turkey’s wind speeds and landscape. And, with a more than 1.200 MW installed base in the country, GE is proud to be bringing additional renewable, sustainable energy to the region. We look forward to additional opportunities to work with Türkerler and RT Enerji in the future.”

###

About GE Renewable Energy
GE Renewable Energy is a $15 billion business which combines one of the broadest portfolios in the renewable energy industry to provide end-to-end solutions for our customers demanding reliable and affordable green power. Combining onshore and offshore wind, blades, hydro, storage, utility-scale solar, and grid solutions as well as hybrid renewables and digital services offerings, GE Renewable Energy has installed more than 400+ gigawatts of clean renewable energy and equipped more than 90 percent of utilities worldwide with its grid solutions. With nearly 40,000 employees present in more than 80 countries, GE Renewable Energy creates value for customers seeking to power the world with affordable, reliable and sustainable green electrons.
Follow us at www.ge.com/renewableenergy, on www.linkedin.com/company/gerenewableenergy, or on www.twitter.com/GErenewables

  • GE Renewable Energy will open a new offshore wind factory and operation and development center in Guangdong province
  • The new factory will help GE Renewable Energy to serve the rapidly growing offshore wind demand in the region and China
  • The new operation and development center will perform R&D activities and become GE’s regional Offshore Wind Sales and Project Management main office

Beijing, July 12th 2019 – GE Renewable Energy has announced that it will open a new offshore wind factory at Jieyang’s Offshore Wind cluster in the Chinese province of Guangdong and will establish a new Operation and Development Center in the city of Guangzhou.

The new GE offshore wind factory in Jieyang will help to meet Chinese growing demand for offshore wind energy and will serve domestic and regional projects. Site construction is expected to begin at the end of this year, completed in 2021 and will start assembly production in the second half of 2021. GE’s offshore wind factory will be part of a dedicated offshore wind industrial park in Jieyang, which aims to develop an offshore wind cluster with a marshaling harbor and industry-related suppliers, to serve local and regional projects.

GE’s new Operation and Development Center in Guangzhou will perform research and development activities focused on regional needs. The site will also support customers throughout optimizing project costs, training, data management and operation and maintenance services. This new Center will be the regional Sales and Project Management office for GE Renewable Energy’s Offshore Wind business.

John Lavelle, CEO of Offshore Wind at GE Renewable Energy, said “China is poised to become one of the largest offshore wind markets in the world, and according to Guangdong’s Offshore Development Master Plan, 66 GW will come from the Guangdong region alone towards 2030. The cutting-edge technology of our Haliade-X 12 MW, the world’s most powerful offshore wind turbine, will bring value to our customers in the region. Our new factory in Jieyang and the Operation & Development Center in Guangzhou will put us in a better position to meet our customer’s demands in this fast-growing industry, while contributing to meet China’s growing offshore wind ambitions.”

Rachel Duan, president & CEO, Global Growth Markets, said at this signing: “As one of China’s strategic offshore wind development centers and a key growth region for GE in China, Guangdong is an ideal place to develop our offshore wind business. The agreements we signed today represent not only GE’s continued investment in China but also a significant milestone as we accelerate GE’s growth strategies in the market through the three pillars of “localization, partnership and digital”. GE’s investments in Guangdong will bring together advanced manufacturing, operations and development, services and digital applications, together with relevant suppliers, to form an offshore wind business ecosystem that closely and effectively serves the needs of customers in China and the rest of Asia, while pushing forward China’s clean energy ambitions.”

GE’s new offshore wind factory in China will serve regional projects, while the Saint-Nazaire assembly site in France, currently manufacturing the Haliade-X 12 MW prototype, will continue to serve all other international projects. Together, they will help GE Renewable Energy meet the growing demand for global offshore wind energy, by supplying Haliade-X 12 MW. Nantes offices in France will continue to operate as GE’s global offshore wind headquarter.

The Haliade-X 12 MW is a multi-million-dollar investment that will contribute to reducing the cost of offshore wind energy by making it more competitive. One Haliade-X 12 MW turbine can generate up to 67 GWh* of gross annual energy production, providing enough clean energy to power 16,000* European households and save up to 42 million metric tons of CO2, which is the equivalent of the emissions generated by 9,000 vehicles** in one year.

* Based on wind conditions on a typical German North Sea site.

** According to EPA Greenhouse gas equivalencies calculator

###

About GE Renewable Energy
GE Renewable Energy is a $15 billion business which combines one of the broadest portfolios in the renewable energy industry to provide end-to-end solutions for our customers demanding reliable and affordable green power. Combining onshore and offshore wind, blades, hydro, storage, utility-scale solar, and grid solutions as well as hybrid renewables and digital services offerings, GE Renewable Energy has installed more than 400+ gigawatts of clean renewable energy and equipped more than 90 percent of utilities worldwide with its grid solutions. With nearly 40,000 employees present in more than 80 countries, GE Renewable Energy creates value for customers seeking to power the world with affordable, reliable and sustainable green electrons.

Follow us at www.ge.com/renewableenergy, on www.linkedin.com/company/gerenewableenergy, or on www.twitter.com/GErenewables

Paris, July 11, 2019 – GE Renewable Energy announced today that it will provide 81 onshore wind turbines to power the 220 MW Potegowo Wind Project in Slupsk County, Northern Poland. This is the first project between GE Renewable Energy and Potegowo Mashav Sp Z OO. With a current installed base of 580 MW in Poland, GE Renewable Energy will increase its installed base to 800 MW in the country, once the project is commissioned.

81 of GE's 2MW onshore wind turbines will power the wind farm, which is divided in four sub-projects: Biecino, with five units already in the process of being installed; Karzcino and Wrzescie, with 13 units; Gluszynko, with 20 unit; and Malechowo, with 43 units.

All turbines will be manufactured at GE Renewable Energy's site in Salzbergen, Germany. GE will also provide a five-year Full Service Agreement (FSA) offering data-driven insights, expert recommendations, and advanced field services.

Peter Wells, Onshore Wind CEO for Europe and SSA at GE Renewable Energy said, "we are proud to announce our first project with Potegowo Mashav Sp Z OO and reiterate our commitment to bring sustainable green electrons to the Polish grid. Poland's wind industry is vibrant and will continue to thrive, as the upcoming auctions offer promising opportunities to continue supporting the country's National Energy and Climate Plan (NECP) on its path towards decarbonization."

Tomer Eizenberg, CEO of Mashav Energia said, "we are thrilled to have the opportunity to build one of the largest wind farms in Poland, which would not have been possible without our partners at GE Renewable Energy. This is a significant milestone in our wind farm investment program, having won the Polish government tender in November 2018 for the supply of 220 MW of wind generated energy to the Polish electricity network".

The project is backed by the European Bank of Reconstruction and Development (EBRD) and is the first renewables investment in Poland in the past three years. The Potegowo wind farm is expected to help save 480,000 tons of carbon dioxide (CO2) emissions per year.

###

About GE Renewable Energy
GE Renewable Energy is a $15 billion business which combines one of the broadest portfolios in the renewable energy industry to provide end-to-end solutions for our customers demanding reliable and affordable green power. Combining onshore and offshore wind, blades, hydro, storage, utility-scale solar, and grid solutions as well as hybrid renewables and digital services offerings, GE Renewable Energy has installed more than 400+ gigawatts of clean renewable energy and equipped more than 90 percent of utilities worldwide with its grid solutions. With nearly 40,000 employees present in more than 80 countries, GE Renewable Energy creates value for customers seeking to power the world with affordable, reliable and sustainable green electrons.
Follow us at www.ge.com/renewableenergy, on www.linkedin.com/company/gerenewableenergy, or on www.twitter.com/GErenewables

About Mashav Energia
Mashav Energia is a joint venture between CERAC- a group of highly experienced, dedicated local energy professionals, Israel Infrastructure Fund II (IIF II) - international project finance and debt structure specialists, CME and Helios Fund (Helios III) - renewable energy investment specialists, pooling their knowledge base, extensive experience in project financing, last mile preparation and project management to build a top tier independent wind energy company in Poland mashavenergia.com

July 22, 2019

Siemens Gamesa Renewable Energy Limited (SGRE) offers great opportunities to highly motivated people.

The Field Service Heavy Lifts group is currently seeking a qualified person to join the major component change-out team.  Individual should be located in Ontario.

Responsibilities:

  • This position does not have a home site and will require up to 100% travel to support various Siemens Gamesa wind farm sites in North America, as required. 
  • Provide excellent service to our customers, analyze and react to people in stressful hazardous situations
  • Participate in the development of new improved field procedures and best practices
  • The working environment entails working inside and out of the wind turbine enclosure at an elevated height of 360 feet
  • Ability to think clearly and maintain composure during stressful and or hazardous situations is a critical ability to working in confined spaces
  • Extensive training and testing will be provided covering safety and technical job requirements
  • Prepare and present safety talks and tailboard discussions to large groups
  • Interpret drawings, schematics, and work instructions to successful complete complex tasks
  • Physical requirements of the job include but not limited to: Ladder climbing minimum 267 steps, up stair climbing, standing for long periods, walking, lifting, bending, twisting, work above shoulders, pushing, pulling, exposure to vibration, chemicals, confined spaces and extreme weather conditions
  • Able to expand technical ability in areas of mechanical, electrical, and hydraulic tasks
  • Capable of efficiently taking on additional roles and responsibilities at an operating wind farm
  • Ability to work extended hours when required to meet customer demands. This includes working and traveling many weekends
  • Able to work efficiently within a team environment

Qualifications:

  • College Diploma or equivalent competency in a field related to the work of a wind farm technician ie: electrical / mechanical systems
  • Candidate should have 3 yrs + in new unit turbine erections or large turbine maintenance
  • Candidate must demonstrate strong initiative and motivation to learn new technology and translate learning into personal success
  • Excellent customer service and communication skills are required
  • Demonstrated ability to work safely and effectively in a team environment
  • Strong ability to organize and plan daily/weekly work with a high level of quality orientation, ability to analyze and resolve problems independently with a high level of results orientation
  • Good computer skills- competent in the use of Microsoft platforms like Outlook and Excel
  • Extensive travel to customer sites within Canada and the US is a requirement of the job, often with short notice
  • Must be eligible to hold a valid Passport, US Work Visa and Driver’s License

While we appreciate all applications received, we advise that only candidates under consideration will be contacted.

SGRE is committed to creating a diverse environment and is proud to be an equal opportunity employer.  Upon request, SGRE will provide reasonable accommodation for disabilities to support participation of candidates in all aspects of the recruitment process.  All qualified applicants will receive consideration for employment.

How to apply: If you are interested in this opportunity, kindly submit your resume by August 6, 2019 to; This email address is being protected from spambots. You need JavaScript enabled to view it. with “Heavy Lift Technician” as the subject line

Women in Wind Statement to UNFCCC Adaptation Committee on Gender Mainstreaming 

 

In July 2019, GWEC and GWNET submitted a statement to the United Nations Framework Convention on Climate Change (UNFCCC) on behalf of the Women in Wind Global Leadership Program. The submission will feed into the UNFCCC’s Adaptation Committee’s work on implementation of climate change adaptation actions, informing Convention Parties on how gender should be a cross-cutting consideration of their respective activities.

GWEC was invited to submit a statement as a non-Party stakeholder to the UNFCCC.

Parties and stakeholders were invited to answer four key questions on how to mainstream gender considerations into national adaptation frameworks:

  1. What are good examples of lessons learned and best practices in prioritizing/incorporating gender in the process to formulate and implement national adaptation plans in your country or constituency?
  2. How can gender best be incorporated into adaptation action?
  3. In your experience, what are remaining gaps related to incorporating gender considerations into adaptation planning and implementation?
  4. What are useful sources relevant to this topic?

Women in Wind Perspective

Our view is that the needs and contributions of women must be integrated into the planning, implementation and execution cycles of climate change policies and National Adaptation Plans (NAPs). By mainstreaming gender considerations into these areas, this will deliver greater progress towards SDG 5 (gender equality and the empowerment of women), SDG 7 (access to affordable, reliable, sustainable and modern energy for all) and SDG 13 (urgent action to combat climate change and its impacts).

Women in Wind Q&A: Sarah Barber (Switzerland) 

 

The Women in Wind Global Leadership Program sat down with Sarah, one of this year’s Mentors, to chat about her pathway into renewable energy and the key issues facing women in the wind sector.

Sarah currently leads the Wind Energy Research Programme at the University of Applied Sciences Rapperswil in Switzerland, where she is responsible for projects on high-fidelity wind modelling, smart measurement systems, wind farm acceptance, microgrids, environmentally-friendly blade materials and eLearning. She has been active in the research and development of wind turbines in Switzerland and Germany for more than 12 years, including as a researcher at ETH Zurich, a wind energy expert at BKW Energie AG, CTO at Agile Wind Power AG and Group Manager of the Center for Load Measurements at Fraunhofer Institute for Wind Energy. She holds a M.Eng. degree in Aerospace Engineering from Cambridge University (UK) and MIT (USA) as well as a PhD in Aerodynamics from the University of Sheffield (UK). Sarah has participated actively in a range of mentoring programmes, including SwissTec Ladies, FeelScience (University of Stuttgart) and TALENTA (Fraunhofer). She is also a qualified Business Coach (Trigon).

How did you first become interested in renewable energy and joining the clean energy transition?

I studied engineering because I wanted to apply technology to help people. I did my PhD on the aerodynamics of soccer balls, which was really interesting and great fun, but something was missing. I didn’t feel like I was really helping people or contributing to making the world a better place.

At this time, a friend was working for a wind energy company and became very passionate about the topic. I realized that wind energy would be a perfect way to combine my relevant skills in fluid dynamics with my desire to help improve the world.

Tell us about your expertise and passion in the sector. For you, what is the next “space to watch” in renewable energy?

I have been working passionately in applied R&D and teaching in the area of wind energy in Switzerland and Germany since my post-doctorate position at ETH Zurich 12 years ago. The business area has professionalized immensely over this time period, and the main focus now lies on reducing electricity costs through innovations such as advanced wind farm control strategies, Internet of Things (IoT) solutions and high-fidelity flow simulations in complex terrain.

The next “space to watch” is the integration of renewable energies with storage technologies for grid stability, as well as sector coupling solutions such as power-to-gas.

What sort of challenges  did you encounter in entering the sector? Can you tell us about an achievement wherein you overcame such a challenge?

The main challenge for me so far has been the lack of acceptance of wind energy in Switzerland, and the resulting lack of companies, jobs, teaching, motivation, innovation and R&D.

I am currently attempting to overcome this challenge by setting up a new wind energy research program at the university at which I work and by founding the Swiss Wind Energy R&D Network, which aims to bring universities and companies together and bundle resources to improve innovation.

 

 GWEC, in partnership with the World Bank Group, held the first intergovernmental forum for emerging markets with strong offshore wind potential in London this week. The forum brought together governments, commercial developers, development partners and wind energy experts from developing countries in order to realise the offshore wind potential in emerging markets.

The delegation included representatives from 12 governments, including: Algeria, Argentina,  Brazil, Costa Rica, India, Indonesia, Morocco, Poland, Sri Lanka, South Africa, Turkey and Vietnam. These countries already represent nearly a fifth of forecasted onshore installation capacity up to 2023 and the activity in the UK was focused on sharing the commercial, regulatory and planning learnings that will encourage the development of their offshore wind pipelines too.

The arrival of the delegation during Renewable UK’s Global Offshore Wind Summit in London is testament to the success story of offshore wind industry in the UK, whose experience can help other countries with potential to attract investment, create jobs and ensure their communities are benefitting from cost-effective clean energy.

 

The delegation started off the week with a seminar supported by the Department for Business, Energy and Industrial Strategy in the UK. GWEC brought in experts from both the industry and UK’s government to discuss a wide-range of topics such as regulatory frameworks the UK used to boost their offshore industry, innovative technology developments, case studies of auctions and tenders, as well as how to plan to develop offshore wind farms.

During Day 2 of the tour, the delegation attended RenewableUK’s Global Offshore Wind 2019, one of the largest offshore wind events in Europe. Here, they had the opportunity to put the learnings from the first day in practice with a workshop to better understand the opportunities and challenges for offshore wind in each of these high potential markets. The delegates then had the opportunity to network with leaders in the offshore wind industry during an exclusive networking session at the event.

The last half of the week consisted of a study tour to North East England to experience first-hand the benefits that a thriving offshore wind industry can bring in terms of supply chain investment, jobs and of course, clean energy.

North East England has been at the forefront of the offshore wind industry since its inception and is recognised as a key strategic location to service the European and Global market. In addition to being home to the UK’s first offshore wind farm, off the coast of Blyth, Northumberland, it has developed an extremely innovative and successful integrated supply chain, which is technologically driven and experienced in delivering large scale projects across the sector, supporting several thousand jobs in the region.

During the visit, the delegation visited key locations and companies including the Port of Blyth where they will tour facilities operated by DeepOcean, Global Marine, Royal IHC and Port Training Services. 

They also were shown the innovation taking place at the Offshore Renewable Energy (ORE) Catapult, which is located at the port, which is developing next generation technologies for the sector in partnership with supply chain companies.

In the south of the region the delegation visited JDR, Offshore Structures Britain, RelyOnNutec and Van Oord / MPI Offshore as well as attending Hartlepool College where they will hear presentations from PD Ports and the Tees Valley Combined Authority.

 

This week marked an important step forward in our partnership with the World Bank Group to help support the development of the next-generation of leading countries in offshore wind. Markets like the UK, Europe and China have already made significant strides in building offshore capacity but the real potential for offshore remains untapped. Offshore wind provides scalable, zero-emissions power in relatively short time frames and costs continue to come down, making it a highly attractive source of generation for an increasing amount of countries.”

GWEC’s landmark partnership with the World Bank Group’s Energy Sector Management Assistance Program (ESMAP) and the International Finance Corporation (IFC) on efforts to accelerate the uptake of offshore wind in emerging markets was announced earlier this year. The program is taking place in cooperation with the GWEC and its Global Offshore Wind Task Force, which brings together leading offshore wind developers, equipment manufacturers and service providers to support emerging markets in creating a regulatory and business environment conducive to offshore wind market growth.

About GWEC’s Global Offshore Wind Task Force

The GWEC Global Offshore Wind Task Force was established in September 2018 and is chaired by Alastair Dutton, who previously worked for the UK Crown Estate, BEIS and BP. Its  purpose is to advise governments on regulatory frameworks and tendering systems for offshore wind; measure and highlight the economic and social benefits of offshore wind and the deployment of local supply chains; foster technological innovation and the testing of new turbines, installation techniques and operations and maintenance (O&M) strategies, including promoting the benefits of digitalisation; spread best practices and transfer knowledge from Europe and other established markets to new and developing markets; and, create appropriate forums to promote the growth of the global offshore wind industry, from seminars and technical workshops to conferences and exhibitions. Henrik Stiesdal, the former Siemens Windpower CTO and the “father” of the offshore wind energy industry, acts as GWEC Ambassador for the Global Offshore Wind Task Force.

About GWEC

GWEC is a member-based organisation that represents the entire wind sector. The members of GWEC represent over 1,500 companies, organizations and institutions in more than 80 countries, including manufacturers, developers, component suppliers, research institutes, national and regional wind and renewables associations, electricity providers, finance and insurance companies.

For more information visit: https://gwec.net

Keep up to date with GWEC and receive the latest data and insights on the global wind industry on Twitter, LinkedIn and by subscribing to the Newsletter

About the World Bank Group

The World Bank Group is one of the world’s largest sources of funding and knowledge for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), which together form the World Bank; the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org.

For more information, contact:

Alyssa Pek, GWEC

This email address is being protected from spambots. You need JavaScript enabled to view it.

Phone +32 490 56 89 31

GWEC brings key stakeholders in Japan’s offshore wind market to the UK as part of Global Offshore Summit 2019

 From the 24-28 June, GWEC hosted a large delegation of more than 40 members of the Japan Wind Power Association (JWPA) and the Ports & Harbors Association of Japan (PHAJ). JWPA members own and operate about 85% of wind farms in Japan; following the Japanese offshore promotion law that came into effect in April 2019, they are now looking ahead to both fixed and floating offshore wind projects. With more than 29,750 km of coastline – the seventh longest coastline in the world – Japan is an increasingly promising market for offshore wind in the Asia-Pacific.

The Japanese delegation was one of three major trade delegations at GOW, in addition to groups from China and Taiwan. JWPA members were invited to present at the Global Markets Theatre, including Shigeru Yasu, Chairman of Japan Renewable Energy Corporation, on offshore wind power in Japan, as well as Naoaki Eguchi, Partner at Baker McKenzie in Tokyo, on the new offshore wind promotion law in Japan. PHAJ senior researcher Eiji Nishizaki also participated in a panel session on promising global markets for offshore wind, moderated by GWEC CEO Ben Backwell.

 

A panel session, jointly organised by GWEC and the UK Department for International Trade (DIT), gave prominent sector leaders the opportunity to share their insights on upscaling Japan’s offshore wind sector to the delegation. Chaired by GWEC Global Offshore Wind Ambassador Henrik Stiesdal, the panel included Chris Willow, Floating Wind Growth Manager at Innogy, Rhodri James, Leading Business Developer at Equinor UK, Cian Conroy, Senior Manager at Principle Power, Samuel Leupold, Chairman of Wind Energy at Green Investment Group, and Bruce Valpy, Managing Director at consultancy BVG Associates.

GWEC also organised a programme of tours and local supply chain visits relevant to the UK offshore wind sector. The delegation took a fleet of boats out to view Burbo Bank offshore wind farm, developed by Orsted. The group was fortunate to have calm waters, which allowed them to view the first commercially deployed offshore 8MW turbines at close range. Afterwards, the Liverpool City Region Combined Authority hosted the delegation for presentations by Mark Knowles, Head of Low Carbon Economy at the Liverpool Local Enterprise Partnership, Emma Toulson, Lead Stakeholder Adviser at Orsted, Stephen Bolton, CEO of Bibby Marine Services, and Chris Almond, Business Development Manager at Bibby HydroMap.

 

The delegation also travelled by coach and ferry to the Isle of Wight, where they toured the MHI Vestas blade manufacturing facility and enjoyed a presentation on the evolution of offshore turbine blades. They also spent a half-day at HR Wallingford near Oxford, with the opportunity to tour a modelling hall and a ship simulator demonstration centre, and to hear presentations on fixed bottom offshore wind services, metocean modelling and floating structure modelling. Finally, the delegation heard presentations on cost reduction solutions and joint industry programmes from Steve Wyatt, Research and Innovation Director at ORE Catapult, and from a number of Carbon Trust principals including David Aitken, Associate Director of Innovation, Faizi Freemantle, Associate of Offshore Wind, Dan Kyle Spearman, Manager of Offshore Wind Accelerator, and Liam Leahy, Offshore Manager.

Over the course of a week, the Japanese delegation travelled more than 1,300 km around the UK by coach, ferry and fishing boat, seeing first-hand the technological breakthroughs and transformations brought to the UK by offshore wind. The lessons learned – in collaboration, competition, scale and ambition – may serve to accelerate the growth of Japan’s offshore wind sector in years to come.

GWEC launches newest Policy Pulse on Argentina on its Market Intelligence Platform

The Global Wind Energy Council (GWEC) has launched a Policy Pulse report on Argentina, which provides qualitative analysis of the political and macroeconomic headwinds steering the wind sector and the measures needed to unlock greater wind power potential.

Argentina is a promising market with some of the best wind resources in the world. Wind energy has enjoyed a strong three years, establishing itself as one of the country’s main energy sources despite macroeconomic challenges. This report discusses:

  • The current grid bottlenecks and future pipeline of renewable energy;
  • The upcoming RenovAr 4 auction and usage of the MATER framework for corporate PPAs and self-supply; and,
  • Risk perceptions vis-à-vis Argentina’s macroeconomic volatility and the upcoming elections in October 2019.

Our forecasting sets out the latest polling data regarding presidential candidates, and the various scenarios for renewable energy under an incumbent or new administration. GWEC believes that even if a new administration is elected, it is likely to be pro-renewables and pro-wind, given the capacity of renewables to attract international investment.

Access this Policy Pulse along with other global data and insights on the wind industry exclusively on GWEC’s Market Intelligence Platform

If you are interested in learning more about Argentina’s emerging wind market, join us the 4-5 September in Buenos Aires for Argentina Wind Power. Organized by GWEC, Camara Eolica Argentina and Grup La Nacion, this official industry event will feature two days of high-level conference, exhibition, and networking opportunities to take Argentina’s wind energy market to the next level. Find out more about the event here. [link]

About the Policy Pulse series

The report on Argentina follows a Q2 2019 Policy Pulse on Taiwan, which focused on renewable energy policy and the upcoming Taiwanese elections in January 2020. Policy Pulse reports take a deep dive into the political and macroeconomic context of the wind sector, providing vital insights into energy policy direction and regulatory pressure points. Each report provides a must-read overview of the wind sector over the course of 15-20 pages, featuring up-to-date infographics, market forecasts and bullet-point summaries. Upcoming reports in 2019 will cover the markets in Brazil and Vietnam.

Policy Pulse and other reports are available in the Members Area, which provides in-depth market intelligence to GWEC’s members and their employees. Other available materials in the Members Area include statistics and market data, growth forecasts and market outlooks, country profiles and insights from GWEC’s Task Forces and Committees.

These Market Intelligence products are available exclusively for GWEC Members or subscribers to our Market Intelligence. If you are not yet a GWEC Member but are interested in learning more about our Market Intelligence services and other membership benefits, contact Deny Tenenblat at This email address is being protected from spambots. You need JavaScript enabled to view it.

Together with the entire Product Development team, the Senvion Patent Department is constantly looking for innovative approaches that will make Senvion and the wind industry better, cheaper or more adaptable in the future. In this case, the Senvion colleagues have jointly managed to find a patent solution for sound emissions from the turbines in the truest sense of the word. The “Hamburger Wirtschaft” magazine has taken a close look at the innovation:

Senvion has developed an innovative procedure for reducing the operating noise of wind turbines. The innovation and patent center has selected it as ‘Patent of the Month.’

Wherever wind turbines are installed, one topic generally arises sooner or later: are the turbines too loud?

It is a fact that roughly one third of German gross electricity consumption is currently covered by renewable energy sources. In 2016, wind energy usage in particular was further expanded in Germany. According to the register of installations of the German Bundesnetzagentur for Electricity, Gas, Telecommunications, Post and Railway, new onshore wind turbines with a total power of 4,402 megawatts were commissioned. This represents a 10 percent increase on the previous year. One of the manufacturers of wind turbines is Senvion GmbH (up to 2014: REpower Systems), which has its German headquarters in Hamburg.

Less and less space is available for wind farms. To achieve more power, old turbines are being replaced with new ones and increasingly wind farms are being built closer to residential areas or nature reserves. “The importance of noise protection has increased,” says Ulrike Keltsch, head of the patent department at Senvion. In addition to residents, animals can also be disturbed by the operating noises.

In summer 2015, Senvion's Development department applied for a patent for a procedure that can reduce the sound volume of the wind turbines in operation. The noise emissions of wind turbine generators include broadband noises that form a masking noise. However, narrowband noises may also be audible under certain circumstances; for example they can be caused by a generator or a gearbox of the wind turbine. The invention consists of a noise emission control device for a wind turbine that reduces any noises that may arise by surrounding them with the broadband noises that are more pleasant for humans and animals. This is achieved by means of an active noise source that emits a masking noise in at least one spatial direction in a frequency band around the individual sound frequency.

“This control device is not yet available,” says Keltsch. “Our turbines are quiet enough for the existing wind farm sites.” Senvion's engineers frequently develop their inventions preventatively, looking to the future. However, since the requirements regarding generating volume are in-creasing, the turbines themselves will also increase in size , and Keltsch believes that it is perfectly possible that the invention will come into use. If a customer wants a noise reduction measure, for a new construction or a retrofit, prototypes of the control device would then be in-stalled and tested in an existing wind farm, Keltsch states. “We would probably have to perform two to three correction cycles before the invention is implemented perfectly,” says Keltsch. Then Senvion would talk to the suppliers, clarify the supply chain, order the necessary individual parts, and finally manufacture the product in a small production run. The invention could then be tested in practice, and be ready for operation within four to twelve weeks.

Courtesy Senvion

There is a growing trend in the international wind industry: The technological evolution of wind turbines is moving towards machines with larger rotors to better capture wind at low wind sites. France is fully participating in this movement. At the Lussac-Les-Églises wind farm Senvion completed the installation of six 3.0M122 wind turbines with rotor diameters of 122 meters, as large as the diameter of the famous Ferris wheel “London Eye”.

The wind farm, developed by Quadran Groupe Direct Energie, is located in the French department of Haute Vienne. Guirec Dufour, Construction Director at Quadran states: "Lussac-Les-Églises is a low wind site and the wind turbine 3.0M122, capturing the most energy, allows us to optimize the yield of our project. However the challenge was the transportation of the blades to the site. The Blade Lifter solution, proposed by Senvion, made this project possible.”

Each blade is measured at 60 meters and weighs 15 tons. The blades were transported over a distance of 200 kilometers, from the port of La Rochelle to Poitiers, where a transshipment area was used to equip the Blade Lifter. From there the transport went on the challenging route to Lussac-Les-Églises.

Florian Dufresne, Senvion Europe South West Logistics Coordinator explains: "The only possible route for the convoy was to cross the village of Lussac-Les-Églises. However, the total length of the semi-trailer carrying the blade, is 66 meters. With such a ground length, it is impossible to turn in the many tight corners of the village. Facing this challenge, we opted for an innovative solution: The Blade Lifter. By lifting the blade to a 30 degrees angle, the ground length could be reduced to 17 meters, which allowed the safe passage of the convoy."

Technically, the Blade Lifter can lift the blade to 50 degree angles for the passage of even longer blades. The residents of the town were impressed by the technical prowess of this equipment. Guirec Dufour adds: “Thanks to a close collaboration between the Quadran and Senvion teams, the particularities related to the use of the Blade Lifter - transshipment location, moving telecommunications and power lines, pruning - were efficiently managed. This good collaboration limited the impact of the oversized transportation on the village residents and made the commissioning of the wind farm possible without any delay.”

Installing a 122-meter rotor at 89 meters height was also a challenge. The excellent coordination of the teams, a precise planning, while integrating the environment constraints and the uncertainties of the weather conditions, were essential to successfully install the six wind turbines with such a large dimension. Samson Lecluyse, Senvion Europe South-West Project Manager states: "The construction of the Lussac-Les-Eglises wind farm was an exciting project. The complexity for this wind farm lies in the environment with high wooded obstacles, which is close to the lifting zones. Due to the very large dimension of the components, the Senvion team had to prepare the ground with a maximum of rigor and precision so that the project is realized within the deadlines defined in the planning."

The Senvion team is proud to have met all the delivery and installation challenges of this project. The Lussac-Les-Églises wind farm, with a total capacity of 15 megawatts (MW) was commissioned beginning of November 2017. It will produce enough electricity to power nearly 15,000 people (including heating) in France.

Senvion is now ready to meet other challenges, including the transport of wind turbines with even longer blades: the newly announced Senvion turbine 3.7M144 EBC has blades over 70 meters long!

Courtesy Senvion

At the Ria Blades production plant, rotor blades with a length of 74 meters are now manufactured. A completely new production process was designed for this purpose. In line with the continuous improvement approach of the production processes, an efficient robot was developed in cross-functional collaboration.

One of the most photographed monuments in Portugal is located in Lisbon at the mouth of the river Tejo in the Atlantic. The "Padrão dos Descobrimentos", a 56 meter high sailing vessel made of stone and concrete, is dedicated to sailors and explorers. The monumental mosaic of a compass is adorned on the ground in front of the monument. Wind has always been a mainstay of development in the coastal state at the south-west corner of Europe. The wind, which the Portuguese explorers capitalized on more than half a thousand years ago, is now also used by Senvion.

250 kilometers north of Padrão dos Descobrimentos, in the industrial region of Aveiro, Senvion can be found in the town of Vagos. Here, Ria Blades is located on an area of 83,000 square meters where currently 1300 colleagues are employed.

Francisco Mira, Process Engineer at Ria Blades, stands in the plant's largest manufacturing facility: "To make rotor blades of this enormous size, we had to greatly expand the site and completely redesign the manufacturing process. The concept then arose with the cooperation of different departments - production, maintenance and HSE (Health, Safety & Environment). But the close collaboration with our suppliers and partners was also essential. This was a real team effort and I am proud that we have worked hand in hand to find the best solution in the end."

At the center of the manufacturing process are two semi-automated processes. On the one hand, the stacking of the fiberglass layers of some rotor blade components. So far this process has been carried out manually in a time-consuming manner, since the positioning of the different layers required the highest precision. In Portugal, RodPack technology is used which has much better material properties than conventional glass fibers and opens up new production possibilities. Thus, in the new process, each fiberglass layer is precisely set in the right place effortlessly by the equipment. Francisco Mira explains, "RodPack was the reason why we completely changed this process." The result is that there are considerably fewer shifts and working hours needed to complete the rotor blade.

The second process is now almost completely taken over by an equipment that sands the rotor blades before painting. While the rotor blades were previously sanded with a 35 kilogram sanding machine, which had to be operated by two people, 90 percent of this work is now done by robots, which are monitored by a colleague.

"Both processes, the semi-automatic fiberglass lay-up and the sanding process are thus much faster, more efficient and physically less strenuous. What is clear with Mira, however, is that "humans are responsible for decisions and will remain indispensable. A machine remains a machine.


Originally, Francisco Mira comes from the automotive industry. Since 2015 he has been with Ria Blades. "A lot of things in the organization and the way of thinking reminds me of my previous work: precision, flexibility, lean production concepts or high quality requirements. But we are trying to absorb the experience from very different branches of industry and make it usable for us. In particular, it is decisive for us to have the ability to think 'out of the box'. This is the only way to revolutionize the manufacturing process."

Courtesy Senvion

AMSTERDAM, November 28, 2017 -- The World Bank and the Technical University of Denmark (DTU) today launched new Global Wind Atlas, a free web-based tool to help policymakers and investors identify promising areas for wind power generation, virtually anywhere in the world. 

The Global Wind Atlas is expected to help governments save millions of dollars by avoiding the need for early-stage, national-level wind mapping. It will also provide commercial developers with an easily accessible platform to compare resource potential between areas in one region or across countries.

The new tool is based on the latest modeling technologies, which combine wind climate data with high-resolution terrain information—factors that can influence the wind, such as hills or valleys—and provides wind climate data at a 1km scale. This yields more reliable information on wind potential. The tool also provides access to high-resolution global and regional maps and geographic information system (GIS) data, enabling users to print poster maps and utilize the data in other applications.

The Global Wind Atlas was unveiled at an event at the Wind Europe Conference in Amsterdam, following the successful launch of the Global Solar Atlas earlier in the year.

Solar and wind are proving to be the cleanest, least-cost options for power generation in many countries. These tools will help governments assess their resource potential and understand how solar and wind can fit into their energy mix. An example of how good data can help boost renewable energy is Vietnam where solar maps from the Global Solar Atlas laid the groundwork for the installation of five solar measurement stations across the country.

“There is great scope in many countries for the clean, low-cost power that wind provides, but they have been hampered by a lack of good data,” said Riccardo Puliti, Senior Director and Head of the World Bank’s Energy & Extractives Global Practice. “By providing high quality resource data at such a detailed level for free, we hope to mobilize more private investment for accelerating the scale-up of technologies like wind to meet urgent energy needs.”

The work was funded by the Energy Sector Management Assistance Program(ESMAP), a multi-donor trust fund administered by the World Bank, in close partnership with DTU Wind Energy.

“The partnership between DTU Wind Energy and the World Bank allows us to reach a broader audience, especially in developing countries while remaining at the forefront of wind energy research. We are excited by the scientific advances that the new Global Wind Atlas incorporates, and look forward to seeing how this data can enable countries to advance wind projects,” said Peter Hauge Madsen, Head of DTU Wind Energy.

While the data powering the Global Wind Atlas is the most recent and most accurate currently available, it is not fully validated in many developing countries due to the lack of ground-based measurement data from high precision meteorology masts and LiDARs. ESMAP has funded a series of World Bank projects over the last four years to help fill this gap, with wind measurement campaigns under implementation in Bangladesh, Ethiopia, Nepal, Malawi, Maldives, Pakistan, Papua New Guinea, and Zambia. All measurement data is published via https://energydata.info, a World Bank Group data sharing platform.

Courtesy The World Bank

WIND POWER CONTINUES TO SET RECORDS

On May 16, 2017, the state of California set a new record—that day, it generated 42% of its electricity from wind and solar, and peaked at 72% that afternoon. In addition to this wind power record, wind farms by themselves accounted for 18% of the state’s needs. But renewable energy’s popularity doesn’t just extend to California. According to the Global Wind Energy Council, the total generating capacity of wind farms around the world is now greater than all of the world’s nuclear power plants combined.

So what’s driving this growth? One answer is innovation. The “levelized cost of electricity” (LCOE)—a key number that measures electricity’s costs—has fallen 58% over the past six years. Additionally, the use of  wind turbine management software—like GE’s Predix—has let operators run their wind farms more efficiently, lowering maintenance costs and saving money. In fact, GE estimates that by deploying its Digital Wind Farm solutions and wind turbine software, the wind industry could save as much as $10 billion a year. One thing’s for sure: with 30,000 GE wind turbines deployed across the globe and capable of generating more than 57 GW of electricity, wind energy isn’t going anywhere.

Learn more about GE’s wind power software and Digital Wind Farms by contacting us today.

Read the full story at https://www.ge.com/reports/wind-blows-innovation-dropping-costs-drive-renewables-growth/

Courtesy GE Renewable Energy

ENERCON is developing two new types of converter for its 3 megawatt platform (EP3). E-126 EP3 and E-138 EP3 are designed for sites with moderate and low winds respectively, and are scheduled to go into production in late 2018 and late 2019. As well as promising much improved performance and efficiency, the two new converters will benefit from optimised processes for production, transport and logistics, and installation. ENERCON will be introducing the two converter types for the first time at the Brazil Windpower event in Rio de Janeiro (29 to 31 August).

The machines are ENERCON’s response to new challenges facing converter technology in the important 3 MW segment. “We are increasing overall performance significantly”, says Arno Hildebrand, Director of System Engineering at ENERCON’s research and development arm, WRD. The greater efficiency will come mainly from an increase in swept area and in nominal power. The E-126 EP3 will have a rotor diameter of 127 metres and a nominal power of 3.5 MW, and is being designed for sites with moderate wind conditions in Class IIA (IEC). The E-138 EP3 will also have a nominal power of 3.5 MW, but with a rotor diameter of 138 metres it is intended for use at low-wind sites in Class IIIA (IEC).

“At sites with moderate wind speeds of 8.0 m/s at hub height, the yield of the new E-126 EP3 will therefore be more than 13 percent higher than that of our existing E-115 model”, says Hildebrand. Annual energy yields of more than 14.5 million kilowatt hours (kWh) are forecast for a typical Wind Class IIA site with speeds of 8.0 m/s at a hub height of 135 metres. As for the E-138 EP3 – a completely new type of converter, and the first low-wind turbine to feature in ENERCON’s EP3 portfolio – the developers calculate that, at a typical low-wind site with average speeds of 7.0 m/s at a hub height of 131 metres, annual energy yields in excess of 13.2 million kWh can be achieved.

Not only that, but the two converter types will be consistently streamlined for efficiency. Every single process – from production to transport and logistics, installation and commissioning – will be optimised. The E-126 EP3 and E-138 EP3 will be available with a choice of hybrid or tubular steel towers with hub heights of between 81 and 160 metres. Installation of the E-126 EP3 prototype is scheduled for as early as the third quarter of 2018; it will enter series production later that year. ENERCON plans to erect the E-138 EP3 prototype in the fourth quarter of 2018, then introduce a few pre-series machines in 2019 before full production begins towards the end of 2019.

Courtesy ENERCON

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The World Bank and the Technical University of Denmark today launched new Global Wind Atlas, a free web-based tool to help policymakers and investors identify promising areas for wind power generation, virtually anywhere in the world.

The Global Wind Atlas is expected to help governments save millions of dollars by avoiding the need for early-stage, national-level wind mapping. It will also provide commercial developers with an easily accessible platform to compare resource potential between areas in one region or across countries.