Horizon Wind Energy, Gamesa Eolica sub in 600 MW USA windpower deal

Partners to build 600 MegaWatts of Wind Turbine Manufacturing in the USA


Gasteiz, Spain [RenewableEnergyAccess.com] Gamesa Wind US LLC, a subsidiary of Gamesa Eolica, the world's second leading wind turbine manufacturer and a market leader in Spain in the manufacturing, sales and installation of wind turbines, has been selected by Horizon Wind Energy, a wind energy developer owned by Goldman Sachs, for the supply of up to 600 MW of wind turbines for projects located in the U.S.

The agreement between Gamesa and Horizon involves the supply of the full line of Gamesa G8X 2.0 MW products, including the Gamesa G80, G83, G87 and G90 wind turbines.

Most of the manufacturing of these wind turbines will be carried out in the plants that the Spanish company owns in the U.S. The company PR did not disclose where exactly in the U.S., but it could be centered in Pennsylvania where the company has already inked deals for manufacturing facilities.

"We are very pleased that Horizon has turned to Gamesa for their wind turbines needs. This transaction strengthens the position of Gamesa Wind in the U.S., which together with China is one of our target markets as we expand internationally," said Inaki Lopez Gandasegui, Gamesa's CEO.

The frame agreement initially calls for the supply of 400 MW with an option for an additional 200 MW. The turbines will be installed during 2006 and 2007. The estimated value of this frame agreement, depending on its final scope and the combination of the wind turbine models, could reach up to 700 million USD.

Horizon Wind Energy, formerly Zilkha Renewable Energy, is a Houston-based developer of wind energy projects. Alec Dreyer, CEO of Horizon Wind Energy, said Gamesa wind turbines would be an important part of the company's growth over the next several years

Currently Horizon is operating and developing projects in more than a dozen states. In the past two years, the company has built or announced construction of more than 800 MW of wind power. Horizon Wind Energy was recently acquired by Goldman Sachs, an investment banking firm.

In Spain, Gamesa Eolica is the leading manufacturer and supplier of wind turbines, with a market share of 56.8 percent of installed wind power in 2004. In 2004, it was ranked second worldwide in the Top 10 manufacturers ranking, with a market share of 18.1 percent (BTM Consult ApS). Countries like the USA, Germany, Italy, France, Portugal, the UK, Ireland, Greece, Mexico, Argentina, Morocco, Egypt, India, China or Japan already have wind turbines supplied by Gamesa Eolica.


Note this comment from the Windbiz Blog:

by Keith Hays, November 23, 2005

Not to start up the rumor mill (well just a little bit) but perhaps the 600 MW Gamesa-Horizon Energy contract in the US could be something much bigger. See, Horizon Energy is owned by Goldman Sachs. Goldman owns around 20% of Nordex. And - this is the new part - a Goldman Sachs fund just bought 5% of Gamesa. So the links between Nordex and Gamesa are tightening via Goldman.

After a major restructuring program, Nordex is set to break even this year operationally, making it a more stable acquisition target. Order book-wise, Nordex and Gamesa complement each other especially in the French and Portuguese markets, as well as Germany. And in terms of product portfolio, Nordex has already made solid headway in the 2 MW + segment, and it has an offshore turbine (albeit small, at 2.5 MW), which Gamesa does not.

from www.windbiz.blogs.com