GE Vernova Faces Challenges in Offshore Wind Business
GE Vernova, the manufacturer behind the wind turbine blade that shattered last summer, resulting in debris scattered across the picturesque beaches of Nantucket, has announced troubling news regarding additional turbines. On Wednesday, the company revealed similar issues have been identified in a limited number of other blades, raising serious concerns about its ongoing involvement in the offshore wind sector.
During a conference call with analysts to discuss the company’s financial performance, GE Vernova’s Chief Executive, Scott L. Strazik, disclosed that a “low single-digit” number of blades exhibited a “manufacturing deviation” akin to that of the blade that failed last July. Mr. Strazik expressed his disappointment, stating, “We’ve had a difficult four months and are disappointed given the impact on our customers and on our financial results.” He emphasized that the company is taking proactive measures to “strengthen” some of the affected blades, either in manufacturing facilities or in the field.
The blades in question were reportedly produced at a facility in Gaspé, Quebec, although Mr. Strazik refrained from explicitly naming that plant as the source of the issues. In a significant financial move, GE Vernova announced it would take a hefty $700 million charge due to losses incurred on offshore wind contracts primarily tied to these blade failures. This has severely impacted the timeline of Vineyard Wind, a major $4 billion project poised to become the first commercial offshore wind farm in U.S. waters.
Following the incident, federal regulators had put a pause on construction activities; however, some operations have recently been permitted to resume. In a joint statement released on Wednesday, both GE Vernova and Vineyard Wind indicated that the turbine manufacturer plans to “remove some blades from the Vineyard Wind farm while strengthening other blades.” The companies have noted that it may take several weeks before they are able to begin the installation of the new blades.
