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US Order Lifts Shares in Wind Turbine Maker Vestas
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DENMARK: March 16, 2005


COPENHAGEN - Denmark's Vestas won its third large order from the United States this year, sending shares in the world's biggest wind turbine maker up as much as 6 percent on Tuesday.


The order for 83 units of its 1.8-megawatt V80 turbines for a plant in Columbia County, Washington, added 150 megawatts to Vestas' order book.

Earlier in March, Vestas won a similar order for the expansion of a plant in Oklahoma and in February it said it would supply 67 turbines for a 120 megawatt project in Texas.

By 1005 GMT, Vestas shares were 5.5 percent higher at 86.50 crowns, outperforming the Copenhagen bourse's top-20 KFX-index, which was 1.1 percent up.

Vestas did not divulge the value of its three US orders, but an industry rule of thumb says that one megawatt of capacity sells for roughly 1 million euros ($1.34 million).

In Tuesday's order, Vestas will supply and commission the turbines, as well as provide warranty, maintenance and service support for the customer, Puget Energy. Commissioning is set for December.

A US federal energy tax credit, which is considered crucial for financing wind power projects, was extended in September and runs through 2005.

The scheme expired at the beginning of 2004 and uncertainty whether it would be renewed stunted industry growth in the United States for most of 2004.

"There is no doubt that the production tax credit is driving the market at the moment and these projects are some of the plants that have passed because of the legislation," said Vestas Chief Executive Svend Sigaard.

The American Wind Energy Association expects 2,000 megawatts of capacity to be added this year. In 2004, US wind generation capacity rose 6 percent, or 389 megawatts, to a total of 6,740 megawatts, or enough power to serve 1.6 million households.


REUTERS NEWS SERVICE

Reuters



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