{"id":299150,"date":"2024-01-31T11:06:12","date_gmt":"2024-01-31T10:06:12","guid":{"rendered":"https:\/\/climatescience.press\/?p=299150"},"modified":"2024-01-31T11:06:15","modified_gmt":"2024-01-31T10:06:15","slug":"floating-wrecks-perpetually-failing-siemens-offshore-wind-turbines-practically-uninsurable","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=299150","title":{"rendered":"Floating Wrecks: Perpetually Failing Siemens Offshore Wind Turbines Practically\u00a0Uninsurable"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n\n

STOP THESE THINGS<\/a><\/p>\n\n\n\n

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Hywind Statoil. Stord, Norway.<\/figcaption><\/figure>\n\n\n\n

The wind industry\u2019s sudden implosion saw Siemens suffer a \u20ac5.8 billion ($6.3 billion) market value write-down<\/a> in a single day in June, followed by another 40% write-down in October<\/a> \u2013 slashing a further \u20ac3 billion ($3.16 billion) off its market value, following revelations by Siemens that it was demanding billions in government-backed guarantees from the German government.<\/p>\n\n\n\n

At the heart of their woes is a machine that wears out much faster than promised, is naturally costly to maintain and, in marine environments, suffering catastrophic and often fatal mechanical failures, which requires the turbine to be removed and dragged back to shore for a complete overhaul. Needless to say the cost of all that is astronomical.<\/p>\n\n\n\n

Because the failures are occurring so suddenly, ordinarily it\u2019s the manufacturer who suffers the cost of repairs under the (exceedingly ambitious) warranties given by the likes of Siemens, and others. If the manufacturer\u2019s warranty doesn\u2019t cover those costs, the operators then call on their insurers to foot the bill.<\/p>\n\n\n\n

However, as detailed in this piece from wind industry propagandist, Gareth Chetwynd, insurers are seeking to limit their exposure by carving out claims based on manufacturer\u2019s defects using \u201cserial defect clauses\u201d. Those clauses mean that offshore turbine operators will have to carry the can, in the highly likely event that the salt-encrusted machines grind to a sudden and early halt. Precisely as happened with a fleet of 6MW Siemens monsters floating off the Scottish coastline.<\/p>\n\n\n\n

World\u2019s first floating wind farm Hywind Scotland faces shutdown for \u2018heavy maintenance\u2019<\/strong>
Recharg News
Gareth Chetwynd
12 January 2024<\/p>\n\n\n\n

Norwegian energy giant Equinor will temporarily remove all five floating wind turbines from the Hywind Scotland array later this year after discovering a need for \u201cheavy maintenance\u201d on the Siemens Gamesa machines deployed there, Recharge has learned.<\/p>\n\n\n\n

The 6MW turbines will be towed back to Wergeland on the west coast of Norway as part of a maintenance programme that is likely to take around four months. All units will be reconnected back on the Hywind Scotland site when the maintenance is complete, a spokesman for the Norwegian company confirmed.<\/p>\n\n\n\n

The work will involve changing some components on the turbines, as well as more routine maintenance. \u201cWhat we see from operational data is that there is a need for\u2026 heavy maintenance on the turbines,\u201d he told Recharge.<\/p>\n\n\n\n

Equinor declined to specify exactly which components would need replacing, but industry insiders consulted by Recharge suggested that the issues must be significant to require intervention on such a scale.<\/p>\n\n\n\n

While acknowledging that towing all the turbines to shore for maintenance after seven years of operation was not planned at the outset, the Equinor spokesman claimed such actions are not entirely unexpected.<\/p>\n\n\n\n

\u201cWe will conduct a combination of exchanging some components, maintaining others and using the opportunity to do regular service as well. All of this is something we regularly do at our other offshore wind farms. What\u2019s different here is that we will tow the turbines to shore,\u201d he said.<\/p>\n\n\n\n

He added that the need for heavy maintenance became apparent through \u201cordinary monitoring and inspections, in close collaboration with the manufacturer.\u201d<\/p>\n\n\n\n

Siemens Gamesa was asked to provide clarification of the nature of the problems on Hywind Scotland\u2019s turbines, but a spokesperson said the company would not expand on the information provided by Equinor.<\/p>\n\n\n\n

The 30MW Hywind Scotland array was f\u00eated as the world\u2019s first commercial floating wind farm when it became operational in 2017, moving ahead of a number of demonstration projects.<\/p>\n\n\n\n

Equinor and 25% project partner Masdar invested the equivalent of $194m in the project and celebrated achieving a 60-70% cost reduction, compared with the Hywind Demo project in Norway.<\/p>\n\n\n\n

\u201cMost offshore wind farms require heavy maintenance of turbines from time to time so this was always something that could happen. Towing the turbines to shore is currently the most safe, efficient and proven method to carry out such heavy maintenance of floating turbines,\u201d the spokesman stated.<\/p>\n\n\n\n

Insurability concerns
<\/strong>Floating wind ambitions have indeed mushroomed since Hywind Scotland came online, including a potential 19GW of capacity in the pipeline as a result of the UK\u2019s Scotwind tender.<\/p>\n\n\n\n

But the problems apparently surfacing on Hywind Scotland go to the heart of challenges facing the floating sector.<\/p>\n\n\n\n

Although any issues with the 6MW direct drive turbines are unwelcome for Siemens Gamesa, which has faced high-profile quality problems with its onshore platforms, many in the industry warn that the worry is more about a broader perception of risk that is posing a threat to the fledgling sector\u2019s burgeoning plans.<\/p>\n\n\n\n

This is felt particularly when it comes to underwriting costs in the insurance sector.<\/p>\n\n\n\n

Michael Bullock, director of consultancy firm Renewable Risk Advisers, underlined this point during a recent industry conference in Lisbon where participants discussed the knock-on risks from equipment failure in relation to issues such as the availability of vessels, access to ports and reconnection challenges.<\/p>\n\n\n\n

In addition to policy deductibles, insurers usually limit their exposure through serial defect clauses in policy wordings and in renewal negotiations, posing a risk of residual exposure to the project itself, to the extent that protection is not provided by OEM warranties and despite existing cover provided by insurers, Bullock noted.<\/p>\n\n\n\n

\u201cSerial defects happen in the offshore wind sector as elsewhere, even with the proper due diligence and certification in place (but) the risk is potentially aggravated by the frequency of new larger turbine designs with different loadings and fatigue rates, and other characteristics,\u201d he told Recharge in a recent interview.<\/p>\n\n\n\n

\u201cThe costs of an unscheduled maintenance campaign across multiple offshore units will invariably be considerable, in addition to the substantial loss of revenue arising from turbine downtime.\u201d<\/p>\n\n\n\n

Bullock added that project developers can mitigate the risks through scenario analysis and contingency planning, feeding into operation, maintenance and spare parts strategies, including pre-negotiated call-off agreements for suitable vessels.<\/p>\n\n\n\n

Anchor handlers
<\/strong>As one of the world\u2019s leading companies in the offshore production of oil and gas, Equinor is better positioned than many to get its hands on anchor handling tug supply (AHTS) vessels.<\/p>\n\n\n\n

The Norwegian offshore giant currently has two AHTS vessels under fixed-term charter, namely the Vega and Ferking but the operator has apparently been arranging extra cover for anchor handlers ahead of the Hywind Scotland operation, according to shipbrokers active in this segment of the market.<\/p>\n\n\n\n

\u201c[Equinor] came out with a term charter for an AHTS late last year. They haven\u2019t concluded it yet, but essentially they have two AHTS on charter right now. Ferking goes offhire around October and Vega continues. So from April to October they will have three term-charter AHTS vessels,\u201d a Norwegian shipbroker told Recharge.<\/p>\n\n\n\n

Equinor is no stranger to risks emerging in the offshore wind sector, and is among those developers that have stepped back from deals struck for US projects made uneconomic by a surge in supply chain and capital costs.<\/p>\n\n\n\n

But recent moves, such as the cancellation of the deal for New York\u2019s fixed bottom 1.2GW Empire Wind 2 project were presaged by the decision, back in May 2023, to suspend the subsidy-free 1GW Trollvind floating wind project in Norway \u201cbased on several challenges facing the project, including technology availability, rising cost and a strained timetable to deliver on the original concept\u201d.<\/p>\n\n\n\n

A sector-wide need for operational and maintenance experience or \u201clearning opportunities\u201d was also flagged by Victoria Toft, head of data at Danish research consultancy Aegir Insights. She noted that concerns about operational requirements and the implication of repairs of large components raise serious questions for floating wind.<\/p>\n\n\n\n

Some technology providers, such as Aker Solutions and Encomara, have come out with new products and solutions aiming, among other things, to facilitate the efficient connecting and re-connecting process with floating turbines.<\/p>\n\n\n\n

But a silver bullet solution to the problem of serial defects or failures in large components has not yet emerged, Toft reckons.<\/p>\n\n\n\n

\u201cUnits in need of larger repairs or major component exchange often need to go far to find suitable ports, due to dimensions of the foundations,\u201d she added.<\/p>\n\n\n\n

In the case of Hywind Scotland, Wergeland was identified as the closest yard that was suitable for heavy maintenance purposes, the Equinor spokesperson said.
Recharge News<\/strong><\/em><\/a><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Norwegian energy giant Equinor will temporarily remove all five floating wind turbines from the Hywind Scotland array later this year after discovering a need for \u201cheavy maintenance\u201d on the Siemens Gamesa machines deployed there, Recharge has learned.<\/p>\n","protected":false},"author":121246920,"featured_media":299156,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691823624,691826629,691820487,691820620,691826628],"class_list":{"0":"post-299150","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-equinor","9":"tag-hywind-scotland","10":"tag-siemens","11":"tag-siemens-gamesa","12":"tag-wind-industrys-implosion","14":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/01\/0hywind-tampen-wind-farm.jpg?fit=1500%2C844&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1fP0","jetpack-related-posts":[{"id":333274,"url":"https:\/\/climatescience.press\/?p=333274","url_meta":{"origin":299150,"position":0},"title":"Siemens Sinks: Germany\u2019s Top Wind Turbine Maker Sacks 4,100 Workers\u00a0Overnight","author":"uwe.roland.gross","date":"19\/06\/2024","format":false,"excerpt":"Remember how the wind and solar industries would create hundreds of thousands of highly-paid groovy \u2018green\u2019 jobs? 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Siemens-Gamesa-to-Double-Hull-Blade-Facility BY\u00a0KATE ANDREWS\u00a0\/\u00a0ROBYN SIDERSKY Amid failing turbine components and financial challenges, Siemens Gamesa Renewable Energy said Friday it has \u201cdiscontinued\u201d its plans to build\u00a0the nation\u2019s first offshore wind-turbine blade manufacturing facility\u00a0at the Port of Virginia\u2019s Portsmouth Marine Terminal. \u201cSiemens Gamesa will continue\u2026","rel":"","context":"In \"$200 million project\"","block_context":{"text":"$200 million project","link":"https:\/\/climatescience.press\/?tag=200-million-project"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/OIG-2023-11-13T120832.243.jpeg?fit=1024%2C1024&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/OIG-2023-11-13T120832.243.jpeg?fit=1024%2C1024&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/OIG-2023-11-13T120832.243.jpeg?fit=1024%2C1024&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/OIG-2023-11-13T120832.243.jpeg?fit=1024%2C1024&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":272313,"url":"https:\/\/climatescience.press\/?p=272313","url_meta":{"origin":299150,"position":2},"title":"How faulty wind turbines threaten to bring down a German industrial\u00a0powerhouse","author":"uwe.roland.gross","date":"09\/08\/2023","format":false,"excerpt":"Siemens warned on Monday that it was facing a \u20ac4.5bn (\u00a33.9bn) loss this year as a result of issues within its wind turbine division.","rel":"","context":"In \"Germany\"","block_context":{"text":"Germany","link":"https:\/\/climatescience.press\/?tag=germany"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/08\/0e8ce098bf480c0d0ca9ca9cbd4af017d.jpg?fit=1200%2C600&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/08\/0e8ce098bf480c0d0ca9ca9cbd4af017d.jpg?fit=1200%2C600&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/08\/0e8ce098bf480c0d0ca9ca9cbd4af017d.jpg?fit=1200%2C600&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/08\/0e8ce098bf480c0d0ca9ca9cbd4af017d.jpg?fit=1200%2C600&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/08\/0e8ce098bf480c0d0ca9ca9cbd4af017d.jpg?fit=1200%2C600&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":202386,"url":"https:\/\/climatescience.press\/?p=202386","url_meta":{"origin":299150,"position":3},"title":"Subsidy Cuts Mean Wind Turbine Makers Face Miserable & Uncertain Future","author":"uwe.roland.gross","date":"01\/06\/2022","format":false,"excerpt":"The wind industry was built on lies and runs on subsidies; cut the subsidies and the whole thing collapses in a heartbeat. Wind turbine makers like Germany\u2019s Siemens are having a rather miserable time of it, of late. Subsidies were already being wound back across Europe (and with it demand\u2026","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/06\/0img_20210721_070833.jpg?fit=1024%2C682&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/06\/0img_20210721_070833.jpg?fit=1024%2C682&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/06\/0img_20210721_070833.jpg?fit=1024%2C682&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/06\/0img_20210721_070833.jpg?fit=1024%2C682&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":275641,"url":"https:\/\/climatescience.press\/?p=275641","url_meta":{"origin":299150,"position":4},"title":"Siemens Energy\u2019s wind turbine problems could cost 4.5 bln\u00a0euros","author":"uwe.roland.gross","date":"26\/08\/2023","format":false,"excerpt":"So much for \u201ccheap wind power\u201d!","rel":"","context":"In \"Siemens Energy\"","block_context":{"text":"Siemens Energy","link":"https:\/\/climatescience.press\/?tag=siemens-energy"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/08\/0Siemens-Gamesa-will-supply-36-units-of-its-SG-3.4-132-wind-turbine-for-the-Voltalia-wind-project-in-Brazil.jpg?fit=1200%2C600&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/08\/0Siemens-Gamesa-will-supply-36-units-of-its-SG-3.4-132-wind-turbine-for-the-Voltalia-wind-project-in-Brazil.jpg?fit=1200%2C600&ssl=1&resize=350%2C200 1x, 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