Siemens to become equity partner in offshore wind power installation specialist A2SEA

The Danish energy company DONG Energy will continue to be the company’s main shareholder. A2SEA based in Fredericia, Denmark, has a work force of about 200. Siemens´ goal with its commitment in A2SEA is to advance the industrialization of offshore wind power. A2SEA will now look into the possibility of expanding its installation capacity.

Siemens is a global leader in the rapidly growing offshore wind turbines segment. “With our investment in A2SEA, we are showing our clear commitment to strengthening the future of the offshore wind energy industry,” said Wolfgang Dehen, CEO of the Siemens Energy Sector.

“It is our aim to foster the industrialization of offshore wind power. Together with Siemens, A2SEA can build optimized vessels for the installation of offshore wind turbines. The optimization of ships and processes will result in higher efficiency, shorter installation times and enhanced customer value,” Dehen added.

Niels Bergh-Hansen, Executive Vice President at DONG Energy and Chairman of the Board at A2SEA, said: "I am very delighted that Siemens is to become an equity partner in A2SEA. Siemens’ participation in A2SEA will strengthen the company and the realization of the strategy to offer superior offshore installation services to the company’s customers."

The investment agreement is subject to the approval from anti-trust authorities. Closing of the agreement is expected in Q4 2010. The subscription amount to be paid by Siemens for the new shares in A2SEA is approximately DKK 860 million (EUR 115 million.), which will be paid in two instalments in 2010 and 2011.

The potential for offshore wind farm in Europe is estimated at around 100 gigawatts which equal two thirds of the power plant capacity currently installed in Germany. At present, only approximately two percent of that potential is being utilized. Offshore wind power will play an important role in achieving Europe´s CO2 reduction goals.

Today, UK is by far the most important offshore wind market but offshore projects in Germany are also gaining momentum. Countries like France, Belgium, the Netherlands, Italy, Finland and Norway are also addressing offshore wind power. “Outside of Europe, we see good opportunities for offshore wind power – especially in China with its shallow water near the consumption centers on the coast and in the U.S., where Siemens has already entered the market, having been selected for the Cape Wind project,” said Dehen.

The information provided in this announcement will not change DONG Energy’s previous financial guidance for the financial year 2010 or the expected investment level.

The Siemens Energy Sector is the world’s leading supplier of a complete spectrum of products, services and solutions for the generation, transmission and distribution of power and for the extraction, conversion and transport of oil and gas. In fiscal 2009 (ended September 30), the Energy Sector had revenues of approximately EUR25.8 billion and received new orders totaling approximately EUR30 billion and posted a profit of EUR3.3 billion. On September 30, 2009, the Energy Sector had a work force of more than 85,100.

DONG Energy is one of the leading energy groups in Northern Europe. We are headquartered in Denmark. Our business is based on procuring, producing, distributing and trading in energy and related products in Northern Europe. We have approximately 6,000 employees and generated just under DKK 50 billion (EUR 6.6 billion) in revenue in 2009.