Wind Energy Breakbulk & Project Cargo
More orders , more problems
Healthy demand comes with turbine troubles for some wind OEMs
By Autumn Cafiero Giusti multi-year commitments from wind manufacturers who need space , while the manufacturers , who typically manage their own logistics , are reluctant to guarantee cargo very far ahead .
Room to grow
Despite economic speed bumps , including increased financing and commodity costs , occasional local resistance and inadequate transmission capacity , onshore and offshore wind installations in North America are expected to grow a respective 55 % and more than 700 %, albeit from a minute base , from 2024 through 2030 , according to S & P Global Clean Energy Technology Analytics .
Onshore capacity in the US will be about 173 gigawatts ( GW ) by the end of 2024 and increase to 269 GW by 2030 . Offshore wind energy generating capacity is expected to be 1,635 MW by the end of 2024 and reach about 13 GW by 2030 , according to S & P Global .
As wind energy turbines expand in size , breakbulk ports along the Gulf of Mexico with the space and capacity to handle and store these larger pieces enjoy a distinct advantage over smaller , space-constrained ports .
Galveston ’ s rail clearances allow large wind components to move directly out of the port .
“ That ’ s why we ’ re getting a lot of play right now , because of our ability to get product out of here and not get it tied up somewhere like Houston , for instance ,” Rees said . “ Our rail goes around Houston , and it can go directly to the location of the fields .”
The Port of Corpus Christi has conducted feasibility studies in an effort to “ make sure our infrastructure can support the size , the weight and the width five to 10 years from now ,” Torres said . The port is investing in dock infrastructure , lay-down and storage space , and rail capabilities , including a yard able to accommodate the 20 to 27 blades that would make up an average “ wind train ,” she added .
email : autumn @ autumngiusti . com
Port of Corpus Christi
Along with mixed results in the latest earnings reports from the world ’ s four largest wind turbine original equipment manufacturers ( OEMs ) — GE Vernova , Siemens Gamesa , Nordex and Vestas — two of those OEMs are also suffering from turbine trouble .
Wind turbines for onshore and offshore wind farms are and will continue to be important cargoes for the breakbulk and project logistics supply chains . While manufacturers remain optimistic for the longer term thanks to hefty order backlogs and ongoing wind farm installations , they have faced recent headwinds in the form of project slowdowns , rising interest rates , higher commodity costs and other issues , including , in some cases , defective turbines .
US-based GE Vernova has been reeling from an incident involving an offshore turbine at the Vineyard Wind project off the coast of Massachusetts on July 13 , when a 351-foot-long blade broke off and fell into the Atlantic Ocean , shattering into pieces .
In an Aug . 9 joint statement with Vineyard Wind , GE Vernova said a “ manufacturing deviation ” that should have been caught at the factory caused the incident .
The incident happened two weeks before GE Vernova posted its second-quarter earnings report , which detailed a 44 % decrease in turbine orders due primarily to the cancellation of a large offshore wind equipment order in the fourth quarter of the previous fiscal year .
GE Vernova ’ s wind business revenues tumbled 21 % to $ 2.1 billion for the quarter , although a drop in onshore wind deliveries was somewhat offset by revenues from executing offshore wind backlogs .
“ Right now , wind remains [ GE ’ s ] most challenging segment ,” CEO Scott Strazik said during a July 24 earnings call . “ While we grew onshore backlog in the quarter . We remain cautious on the timing of an inflection in onshore orders as customers navigate the challenges that come with permitting new projects and higher interest rates .”
Turbine troubles have also plagued Siemens Gamesa , which remains in recovery mode after being reabsorbed by Siemen ’ s Energy , its parent company , in June 2023 . The turbine manufacturer is grappling with serious flaws that have surfaced in some 15 % to 30 % of its already-installed 4 . X and 5 . X onshore wind turbines . Sales of those turbines have been on hold since the problems were discovered in June 2023 . New orders plummeted 91 % to $ 737.1 million in the company ’ s fiscal third quarter , the company said in an Aug . 7 earning statement .
Even so , total revenues grew 25 % to $ 2.8 billion for the quarter , driven by higher offshore revenue .
12 Journal of Commerce | September 2024 www . joc . com