Dive Brief:
- Denmark-based wind energy giant Vestas will spend $40 million on two of its Colorado factories to prepare for production of its newest turbine for the U.S. market, the company announced last week.
- The investment will finance expansions and upgrades at the company’s Brighton Nacelles and Windsor Blades facilities, needed to bring its V163-4.5 MW turbine to market. The investments will also support local manufacturing of subcomponents.
- The Windsor Blades facility is expected to start producing the turbine this year and the Brighton Nacelle facility is slated to begin production in 2024, the company said in its announcement.
Dive Insight:
Vestas’ investment in its onshore wind manufacturing footprint will support growth in the U.S. wind industry as the country incentivizes a clean energy transition.
President of Vestas North America Laura Beane applauded the Inflation Reduction Act in a statement, noting the law’s role in kick-starting a domestic clean energy supply chain and helping to pave the way for the company’s new investment.
Other companies such as Siemens Gamesa Renewable Energy are also working to scale wind energy capabilities in the U.S. In March, the company submitted a proposal to build an offshore wind turbine parts facility in New York state.
Vestas’ new wind turbine is designed for the U.S. market to maximize annual energy production. Built off of Vestas’ 4 MW platform and using its modular technology strategy, the turbine increases performance and suitability across climates, according to the company.
The turbine uses an established supply chain and infrastructure, including transportation, operations and installation to help deploy wind energy quickly. Vestas said it spent over $465 million across Colorado’s local supply chain last year alone.
Vestas’ investment will also create jobs in the area. The wind giant expects to hire between 800 and 1,000 local employees to support its new manufacturing efforts at its Colorado blade and nacelle facilities, which both experienced staff reductions two years prior. Vestas cut 450 jobs across its Colorado factories and consolidated some production in 2021 due to lower market demand, The Denver Post reported.
“We need to do everything we can to build out America’s renewable energy infrastructure, secure our supply chains, and accelerate our transition to a clean energy economy — that’s why I fought to pass the [IRA],” U.S. Sen. Michael Bennet, a Democrat from Colorado, said in a statement. “Now, we’re seeing the results.”
