Siemens Gamesa Bets on Green HydrogenBy Cas Biekmann | Tue, 09/01/2020 - 08:50
When profits slump and business hit a rut, it might be time to reorient and restructure. This is exactly the battleplan of Spanish-German wind turbine giant Siemens Gamesa. The company is looking to turn its fortune around by restructuring finances for 2021-2023, according to a report by Renewables Now. In addition, Bloomberg News informs that the company is moving toward green hydrogen to complement its potential.
With this new strategy, Siemens Gamesa aims to make project profitability more important than volume of sales. Liquidity, productivity, innovation and productivity are to be the pillars on which the company plans to rebuild. It seeks to develop new technologies to set them apart in the onshore segment, which had been negatively affected by the pandemic’s disruption of the global supply chain. Revenues for 2021 are estimated between US$12.1 billion and US$13.3 billion. During this period, the company hopes to capitalize on having the world’s largest turbine as part of its arsenal.
The company is betting that its offshore and services market will grow significantly within the next decade, with onshore demand remaining stable. In Mexico, Siemens Gamesa will likely focus on services and onshore; offshore projects are much less viable, says Jorge Ochoa, Country Manager Mexico of UL Renewables: “To make a project viable, you need around 9 to 10m/s wind speeds on a yearly basis. This is only achieved quite far from the shore in the Gulf of Mexico. Instead, a place like Oaxaca on the Pacific Coast, sees a lot of wind available a few meters offshore, although with the current technology available, it would make more sense to construct projects closer to the shore,” Ochoa said in an interview with MBN.
The companies’ wind turbines could also play an important role in generating green hydrogen, a form of energy generation and storage that is rapidly gaining popularity. In Europe, green hydrogen is seen as a key option to quell carbon emissions coming from industry and transport. Siemens Gamesa, therefore, is positioning itself in renewable-frontrunning country Denmark with a pilot program. The goal: finding out how the company’s turbines can be mobilized to produce the coveted hydrogen. The project is unique in that a single wind turbine will generate the hydrogen, without being interconnected to the grid. It will start testing soon and production of hydrogen is already predicted to take place in January 2021.