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Sep
03

American Wind Energy Powering Up

Posted by: Jeff Smith | Comments (1)

Move over Henry Ford.  Atlantic Wind & Solar is planning to create an automotive-style assembly line for wind turbines. It’s a move that could dramatically boost the wind energy industry in the United States.  And it’s one more sign that companies with ties to the American wind industry – especially component manufacturers – should be gearing up for a big boost in demand.

According to the U.S. Energy Department, our country’s share of the wind turbine market has already grown from less than 30% in 2005 to about 50% in 2008, adding roughly 8,400 jobs in 2008 alone. But more is coming. Twenty-eight states have passed laws mandating that utilities get a percentage of their power from renewable sources like wind. Nordex USA – a U.S. subsidiary of a German wind turbine manufacturer – has broken ground on a new plant in Arkansas that will produce 300 turbines a year by 2012. And now Atlantic Wind and Solar is hoping to create an automated fabrication line that would pump out a completed 1.5 Mw wind turbine every hour. That’s 2,080 windmills each year.

Where will Nordex, Atlantic and companies like them get their components?  Right here in the U.S.A.

How do I know? Because experts agree that a local supply chain is more important in wind turbine manufacturing and assembly than in many other industries. Over 8,000 components go into a completed wind turbine. Unlike, say, the electronics industry, those parts are not tiny, easy-to-ship microchips. Many are big and heavy, which means transporting them internationally costs big bucks. That makes now the time for component suppliers to lay the groundwork for growth in this expanding market, building up an infrastructure that will get all those windmills turning.

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Wind energy is hot right now, and getting hotter. And, as the wind energy industry heats up, so is the discussion about standards for wind turbine components. Who will set standards for all the anchor bolts, lock nuts, rigging, blades, concrete, etc., and what will they be? Fastener manufacturers, for example, are all abuzz over whether the millions of fasteners needed for proposed wind farms across the country will use the American inch standard or the metric standard favored by Europeans in the industry. Will the fasteners be stainless steel or hot dipped galvanized metal? And who will decide? Will each of the nearly 100 different companies manufacturing the turbines set their own standards or will there be an International Building Code?

Questions like these were flying around the floor at the Windpower 2009 Conference in Chicago last May. And on November 3-5, the American Wind Energy Association is hosting a conference in Detroit where industry leaders, project developers, wind manufacturers and component suppliers will all gather for – among other attractions – a supply chain workshop. Topics up for discussion include things like major component sourcing, value chain services and re-tooling for the wind industry. Expected to attend are manufacturers and suppliers of a wide range of mechanical and electrical components, including generators, hydraulics, sensors, hardware, drives, power distribution, composites, cabling, big steel, castings, forgings, bearings and gearboxes. They’re all going to want to talk standards.

I, for one, am fascinated by these debates, which are going to shape the growth of the wind industry over the next decade and beyond. I’ll be keeping an eye on new standards as they appear, and hope you will comment below about any developments you’ve heard about in the Wind Energy Industry.

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