GE has just purchased a major wind energy player
General Electric Co is looking to secure a larger share of the ever-growing renewable energy market — and it just proved its commitment by purchasing Denmark’s LM Wind Power for US $1.65 billion.
GE has said that the acquisition will make it easier to increase energy output by bringing the design and manufacturing of turbine blades in-house. Doughty Hanson, a private equity firm based in London, has owned LM Wind Power since 2001. The Danish company is already the single largest supplier of rotor blades to GE.
The American conglomerate has said that it will operate LM Wind Power as a standalone unit within its existing renewable energy unit. GE separated its renewable operations from its power arm last year, following the $13.6 billion purchase of Alstom SA’s power business.
”Increasingly, wind turbine innovation is driven by system design, materials science, and analytics -- all elements of the GE Store. We, along with LM Wind Power, have a deep pipeline of technical innovations that can further reduce the cost of electricity,” said Jérôme Pécresse, President and CEO of GE Renewable Energy, in a statement. With our combined global footprint, we can build flexible solutions for customers around the world. This combination will help sustain growth in the wind power industry.
Last year, GE’s renewable energy business generated $6.27 billion in revenue — roughly six percent of company’s total industrial segment revenue. The LM Wind Power deal will likely close before mid-2017, with earnings expected the year after.
Read the October 2016 issue of Energy Digital magazine
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.