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GE Vernova claims that faulty manufacturing caused offshore wind blade failure

Posted to Maritime Reporter on July 24, 2024

Power services company GE Vernova said on Wednesday that a manufacturing defect led to a failure of a turbine blade at the Vineyard Wind project offshore off the coasts of Massachusetts in early this month.

On July 13, the blade of the turbine broke and dangerous debris was left on the beaches of Nantucket. The project was shut down by U.S. authorities, who ordered it to be stopped.

GE Vernova stated that a preliminary investigation had determined that the failure was due to insufficient bonding. It added that the quality assurance program of the company should have detected the problem.

The company announced that it would conduct a re-inspection of all offshore wind blades in order to detect any potential defects.

In an emailed message, a GE Vernova representative said: "We still have work to be done but are confident that we can implement corrective measures and move forward."

The incident is a major blow to Vineyard Wind, which was the first large-scale offshore wind farm in the United States, as well as the fledgling offshore wind industry. This sector is seen as crucial to achieving President Joe Biden’s climate change goals, but it has struggled with rising costs and delays.

Vineyard Wind's timeline for construction was unclear after the manufacturing error became public. GE Vernova stated in a regulatory filing that it had already installed 24 out of the 62 turbines planned for the project.

Vineyard Wind 1 is focused on coordinating and assisting with the Bureau of Safety and Environmental Enforcement in order to recover debris and prioritize the safety of staff, local communities and the environment.

GE Vernova stated that the manufacturing issue with Vineyard Wind's turbine blade is not the same as the installation problem which caused a blade to break at Dogger Bank earlier this year in Britain.

The Bureau of Safety and Environmental Enforcement (BSEE), the agency that ordered Vineyard Wind to cease power production and construction after the incident, did not respond to a request for comment about the GE Vernova report.

In a filing to the U.S. Securities and Exchange Commission (SEC), GE Vernova warned it might receive claims for damage related to the blade accident.

GE Vernova also reported a 1% increase in revenue for the second quarter, compared to a year ago.

According to LSEG, analysts on average expected revenue of $8.26 Billion.

Electric utilities around the world want to boost their power generation capacity and use renewable energy in order to meet emission targets, which is driving the demand for equipment providers such as GE Vernova.

The company's orders in the power segment increased by 27%, mainly due to higher orders for gas power technology. Meanwhile, its revenue from electrification rose by 19%.

The company also expects to see its revenue for the full year trending towards the upper end of its previous forecast range, which was $34 billion to 35 billion.

Its wind orders, however, declined by 44%. This was due to the cancellation of a large order for offshore wind equipment that it had placed last year.

The company reported two deaths during the quarter. (Reporting and editing by Maju Samuel in Bengaluru, Marguerita Chy, and Sourasis Bse)

Tags: North America

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