GE ties-up $750m US wind turbine supply deal with BP Wind Energy

BP announces $750M wind turbines deal for wind farm plants. BP Wind Energy has reached a $750 million deal with General Electric Co. to supply and maintain 350 wind turbines for wind power farms in Pennsylvania and Kansas.

Houston-based BP Wind Energy says GE has agreed to deliver 88 wind turbines to the Mehoopany (muh-HOOP’-uh-nee) Wind Farm, located 20 miles northwest of Scranton, Pa. The other 262 wind turbines are meant for BP’s Flat Ridge 2 Wind Farm, about 60 miles southwest of Wichita, Kan.

BP says both wind power projects are expected to be generating power by late 2012, with a combined capability of 560 megawatts. Demonstrating confidence in the U.S. wind energy sector, Houston-based BP Wind Energy is purchasing 350 GE (NYSE: GE) 1.6-megawatt (MW) wind turbines for U.S. wind farm projects being developed in 2011 and 2012. Total value of the equipment orders and a five-year services agreement is approximately $750 million.

GE’s wind turbines will generate more than 560 megawatts of electrical power for the projects. BP Wind Energy placed two wind turbine orders with GE—the first for 88 units and second for 262—for delivery in 2011 and 2012, respectively. BP Wind Energy’s Mehoopany Wind Farm, about 20 miles from Scranton, Pa., will use GE’s 1.6-82.5 technology. Flat Ridge 2 Wind Farm will be built using 262 GE 1.6-100 wind turbines and will be located 43 miles southwest of Wichita, Kan. The equipment portion of the Flat Ridge 2 contract was part of the $1.5 billion in wind turbine orders and commitments announced by GE on September 20.

“As we continue to aggressively expand our U.S. wind energy project portfolio, we are pleased to be working with our colleagues at GE, a company with whom we have a long-term strategic relationship that delivers proven wind turbine technology and competitive maintenance contracts,” said John Graham, president and CEO, BP Wind Energy. “To date, about 30 percent of our wind fleet is powered by GE wind turbines and we are delighted to once again be partnering with GE to deliver affordable, renewable electricity that enhances this nation’s energy security and independence.”

“We continue to see strong demand for our advanced wind turbine technology because of its capability to meet the economic and environmental priorities of operators like BP Wind Energy,” said Victor Abate, vice president of renewables for GE Power & Water. “We have been supporting BP Wind Energy projects since 2007 and welcome the opportunity to participate in this latest series of projects, which will help to build additional momentum for wind power in the United States.”

GE’s 1.6-100 wind turbine, selected for the BP Wind Energy’s Flat Ridge 2 project, is designed for increased performance and is the world’s most efficient wind turbine in its class. With blades and towers that extend 100 meters, equivalent to the height of a 35-story building, the 1.6-100 captures additional wind energy. GE has received more than two gigawatts in orders for the 1.6-100 wind turbine since it was commercially introduced earlier this year.

The GE wind turbines chosen for the Mehoopany site feature an 82.5 meter rotor for class III wind conditions. Both advanced technology machines build on the success and the global experience of GE’s 1.5-MW wind turbine, the industry’s most widely deployed megawatt-class machine with more than 17,000 installed worldwide.

By José Santamarta,