Gamesa and Areva have signed binding agreements for the creation of a joint venture aimed at obtaining a leading role in the European offshore wind sector.
The new company is targeting the benefits of entry into the European sector which include 2.8GW project pipeline and a 20 percent market share by 2020. The closure of the transaction is expected by the fourth quarter of this year, subject to approval by the French government and the relevant competition authorities in Europe.
The 50/50 JV will combine both group’s offshore businesses including technological and manufacturing expertise and extensive track records in the wind industry. Areva will reach a 630MW offshore installed base by the end of 2014 utilising its successful dedicated offshore wind turbine which it developed in 2004. Gamesa offers technological expertise underpinned by a 20-year track record in the value chain. The company will also contribute a package of assets valued at 195 million euros which include its 5MW offshore platform, offshore R&D knowledge transfer and licensing of onshore technology that can be applied offshore and extensive operations and maintenance prowess. The company will also become a preferred supplier of components to the JV.
The European offshore market is expected to exceed 25GW in 2020 and the JV will be able to boast numerous committed customers from the outset. These include Iberdrola and the GDF Suez-EDPR-Neon Marine consortium. It will also be able to take advantage of the high potential Asian market, thanks to both partners’ extensive track records in that sector.
The JV will also have two 5MW platforms, enabling greater flexibility and it will also work on the optimization of Areva’s M5000 and Gamesa’s 5.0MW offshore turbines. An upcoming 8MW platform will help to lower the levelized cost of offshore wind energy.
The new company will have registered headquarters in Zamudio in Spain, while its Executive Committee will be based in Paris.