GE Vernova Announces 2.4 GW Order for Pattern Energy's SunZia Wind Project

Rhea-AI Summary

GE Vernova's Onshore Wind business (GE) announced a record order for 674 3.6-154 wind turbines, providing 2.4 GW of power at the SunZia Wind project in New Mexico, reinforcing GE Vernova's commitment to American manufacturing. The project is expected to be the largest wind project in US history and the Western Hemisphere at over 3.5 GW total project size, bringing GE Vernova's installed base with Pattern Energy to 4.3 GW. The deal signifies a monumental investment in the U.S. wind power market and demonstrates GE Vernova's ability to deliver on its workhorse strategy in Onshore Wind. GE Vernova's 3.6-154 turbine, designed specifically for the U.S., is expected to bring the latest in innovation of turbine and blade design, reinforcing GE Vernova's focus on taking full advantage of the Inflation Reduction Act to revitalize and enhance American manufacturing. The project will be supplied through GE Vernova's nacelle facility in Pensacola, Florida, as well as tower manufacturing facilities in Belen, New Mexico, Pueblo, Colorado, and Amarillo, Texas. GE Vernova has been the number one provider of onshore wind turbine installs in the U.S. for the last five years and currently has a fleet of more than 55,000 wind turbines installed around the world.

Insights

Energy Sector Analyst

The announcement of GE Vernova's SunZia Wind project in collaboration with Pattern Energy marks a significant milestone in the U.S. renewable energy sector. The scale of the project, being the largest wind project in the Western Hemisphere and the record order of 674 turbines for a single project, indicate a substantial increase in capacity for renewable energy generation.

This venture is a direct reflection of the growing demand for clean energy in the Western U.S. and underlines the strategic moves by companies to leverage federal incentives such as the Inflation Reduction Act (IRA). The IRA's policy certainty is evidently catalyzing investment and development in the renewable energy space, which could lead to increased market competitiveness and potentially lower energy costs for consumers in the long run.

GE Vernova's commitment to American manufacturing, coupled with the creation of thousands of new jobs, aligns with broader economic goals of boosting domestic production and employment. The localization of the supply chain could enhance the resilience of the U.S. energy sector against global supply disruptions and trade volatility.

Environmental Economist

The SunZia Wind project has important implications for the U.S. economy and environment. By generating over 2.4 GW of power, this project is poised to significantly contribute to the decarbonization of the U.S. energy grid. The environmental benefits include reducing reliance on fossil fuels and lowering greenhouse gas emissions, which are critical steps towards meeting climate change goals.

Furthermore, the investment in domestic wind turbine production and the emphasis on quality and reliability of the 3.6-154 turbine model suggest a push towards sustainable energy practices. The economic multipliers from this project, such as job creation in manufacturing and construction, are likely to have ripple effects throughout the economy, stimulating growth in related industries and local economies.

However, the long-term success of such projects will depend on continued technological advancements, cost efficiencies and the ability to integrate large-scale renewable energy sources into the existing grid infrastructure without compromising reliability.

Industrial Manufacturing Analyst

The significance of GE Vernova's investment in its onshore wind business is twofold: it showcases the company's confidence in the wind energy market and its commitment to innovation in turbine technology. The 3.6-154 turbine represents a strategic focus on producing high-efficiency, reliable turbines optimized for the U.S. market.

GE's approach of producing fewer variants in large quantities—referred to as the 'workhorse strategy'—aims to achieve economies of scale, driving down costs and improving product quality. This could enhance the company's competitive edge in the global wind turbine market, which is characterized by rapid technological advancements and intense competition.

The integration of digital technologies such as the AI-trained blade manufacturing process signifies an industry-leading move towards smart manufacturing and could set new standards for product quality and performance in the wind energy sector.

• Expected to be the largest wind project in US history, powered by GE's next generation workhorse turbine 3.6-154 
• Record order for GE wind with 674 turbines, providing 2.4 GW of power generation, bringing GE Vernova installed base with Pattern Energy to 4.3 GW
• Reinforces GE Vernova's commitment to revitalize and enhance American manufacturing – with growth fueled by the IRA
• GE Vernova bringing expertise across energy transition to project, from turbine technology & services to grid technology/modelling and financial services

SCHENECTADY, N.Y., Jan. 9, 2024 /PRNewswire/ -- GE Vernova's Onshore Wind business (NYSE: GE) today announced a new equipment and long-term services deal with Pattern Energy to supply 674 3.6-154¹ wind turbines that will provide more than 2.4 gigawatts (GW) of power at the SunZia Wind project in New Mexico.

SunZia Wind, which is expected to be the largest wind project in the Western Hemisphere at over 3.5 GW total project size, will bring GE Vernova's installed base with Pattern Energy in North America to approximately 4.3 GW upon completion. The order, which was received in the fourth quarter of 2023, is the largest single onshore wind turbine order ever received by GE Vernova, both in terms of quantity of turbines and gigawatts of power generation, upon completion.

Scott Strazik, CEO of GE Vernova, said, "We are pleased to support Pattern Energy on this monumental project that reinforces the key role wind power has in delivering renewable energy to meet the growing demand for power in the Western U.S. and in accelerating the energy transition. The project is a great example of how the policy certainty created by the IRA is helping to drive significant investments in the U.S. wind power market. I want to congratulate our teams across GE Vernova for all the work that has and will go into bringing a project of this scale and magnitude to life."

Vic Abate, Chief Technology Officer, GE and CEO, GE Vernova's Wind business, said, "This project demonstrates GE Vernova's ability to deliver on our workhorse strategy in Onshore Wind – producing fewer variants in large quantities at scale to drive quality and reliability across the fleet for our customers. We are proud to partner with our customer, Pattern Energy, on this historic project that will deliver the critical renewable energy required to meet the growing demand for power in the Western U.S."

The 3.6-154 turbine is one of GE's next generation workhorse products. Designed specifically for the U.S., the 3.6-154 delivers the highest efficiency in the market, with an optimized size for ease of logistics and installation. The 3.6-154 is built on the back of the 2.8-127 – the #1 turbine in the world over the last two years, according to the Woodmack 2022 OEM report, with more than 200 million operating hours of experience. The result of three years of research & development, this product is expected to bring the latest in innovation of turbine and blade design, including the digital blade certificate, an AI-trained blade manufacturing process designed to produce industry leading quality. The 3.6-154 launches as the most tested and validated turbine in GE's history – a robust turbine to power the domestic energy transition.

GE Vernova and Pattern Energy's collaboration on SunZia spans the last 18 months and includes collaborative development and supply chain work to optimize site layouts and performance while minimizing unnecessary variants – following GE Vernova's workhorse philosophy.

"We are proud to expand on our mutual installed base with GE in North America to more than 4 GW," said Hunter Armistead, CEO of Pattern Energy. "From the beginning this was a truly collaborative approach with GE to design an optimal site that maximizes turbine performance and optimizes fleet consistency. Nacelles and towers for the GE turbine are being domestically produced right here in the United States, helping SunZia create thousands of new jobs in manufacturing and construction. We're proud to be building this milestone project together with GE that will bring clean energy to 3 million Americans."

The project will be supplied through GE Vernova's nacelle facility in Pensacola, Florida, as well as tower manufacturing facilities in Belen, New Mexico, Pueblo, Colorado, and Amarillo, Texas, reinforcing GE Vernova's focus on taking full advantage of the Inflation Reduction Act to revitalize and enhance American manufacturing. GE Vernova announced in May of 2023 that it plans to invest $50 million and add 200 additional union jobs as part of creating a new manufacturing assembly line for its Onshore Wind business in Schenectady, New York, and announced that the first turbine was produced by that facility in November of 2023.

Abate said, "Mega projects like SunZia, coupled with the IRA, are enabling our continued investments in wind technology, domestic manufacturing, and product quality. These investments are aiding the country's efforts to decarbonize the electric grid in support of climate change goals."

In support of this wind turbine mega deal, GE Vernova was able to provide Pattern Energy with both high tech consulting services (Consulting Services), and financial services (Financial Services) that contributed to the project's launch.

GE Vernova's 3.6-154 turbine is one of several workhorse products that bring together focused design, efficient supply, reduced complexity, improved reliability, and bankability to offer best-in-class products. GE Vernova's Onshore Wind business has been the number one provider of onshore wind turbine installs in the U.S. for the last five years according to the American Clean Power Association, and currently has a fleet of more than 55,000 wind turbines installed around the world.

¹ GEs 3.6 MW turbine with a 154-meter rotor is what we refer to as the 3.6-154.

About GE Vernova

GE Vernova is a planned, purpose-built global energy company that includes Power, Wind, and Electrification businesses and is supported by its accelerator businesses of Advanced Research, Consulting Services, and Financial Services. Building on over 130 years of experience tackling the world's challenges, GE Vernova is uniquely positioned to help lead the energy transition by continuing to electrify the world while simultaneously working to decarbonize it. GE Vernova helps customers power economies and deliver electricity that is vital to health, safety, security, and improved quality of life. GE Vernova is headquartered in Cambridge, Massachusetts, U.S., with more than 80,000 employees across 100+ countries around the world. GE Vernova's Onshore Wind business is a world leader in onshore wind technology. With an installed base of approximately 55,000 turbines around the world, it offers a high-tech product portfolio of turbines for a broad range of site conditions.

GE Vernova's mission is embedded in its name – it retains its legacy, "GE," as an enduring and hard-earned badge of quality and ingenuity. "Ver" / "verde" signal Earth's verdant and lush ecosystems. "Nova," from the Latin "novus," nods to a new, innovative era of lower carbon energy. Supported by the Company Purpose, The Energy to Change the World, GE Vernova will help deliver a more affordable, reliable, sustainable, and secure energy future. Learn more: GE Vernova and LinkedIn.

Media Contact

Tim Brown
Tim.brown@ge.com
+1-302-509-9352

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SOURCE GE Vernova

FAQ

What is the record order announced by GE Vernova's Onshore Wind business (GE)?

GE Vernova announced a record order for 674 3.6-154 wind turbines, providing 2.4 GW of power at the SunZia Wind project in New Mexico.

How does the deal reinforce GE Vernova's commitment to American manufacturing?

The deal reinforces GE Vernova's commitment to American manufacturing by bringing its installed base with Pattern Energy to 4.3 GW, signifying a monumental investment in the U.S. wind power market.

What is the significance of GE Vernova's 3.6-154 turbine?

GE Vernova's 3.6-154 turbine is designed specifically for the U.S. and is expected to bring the latest in innovation of turbine and blade design, reinforcing GE Vernova's focus on revitalizing and enhancing American manufacturing.

How is the project expected to be supplied?

The project will be supplied through GE Vernova's nacelle facility in Pensacola, Florida, as well as tower manufacturing facilities in Belen, New Mexico, Pueblo, Colorado, and Amarillo, Texas.

What is GE Vernova's track record in the wind turbine industry?

GE Vernova has been the number one provider of onshore wind turbine installs in the U.S. for the last five years and currently has a fleet of more than 55,000 wind turbines installed around the world.