The unresolved future of Adwen

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Richard Heap
April 7, 2017
This content is from our archive. Some formatting or links may be broken.
This content is from our archive. Some formatting or links may be broken.
The unresolved future of Adwen

We wrote, we called, we sent carrier pigeons. It was no use. In the end, our suggested name for the new firm formed by Siemens and Gamesa was rejected. To me, they'll always be Gamiemenesa.

Instead, the pair have opted for Siemens Gamesa Renewable Energy. And they've had long enough to think about it. We first reported a tie-up between Siemens and Gamesa in January 2016, got the announcement in June, and now the deal has completed.
At least they didn't spend 16 months arguing about the name!

There has been plenty of discussion about this deal, so here are the key points. This tie-up links the strength of Siemens offshore with Gamesa’s focus onshore and in emerging markets. The combined business will have sales of around €11bn; profits of €1.1bn; and a €21bn backlog of orders.

It also cements the combined firm’s place in the ‘big four’ global turbine makers, with Vestas, General Electric and Goldwind. This
deal rams home the idea that being a global player in turbine manufacturing means having a presence offshore.

Vestas started it when it linked up with Mitsubishi Heavy Industries to form MHI Vestas in 2014. General Electric followed by acquiring the energy assets of French firm Alstom, including its Haliade offshore turbines, in a deal that concluded in 2015. And now Siemens has done similar, though having the offshore specialist buying the onshore player is a new feature of this transaction.

That just leaves Goldwind, which is at this stage a distant fourth. The company has been working on a prototype of a 6MW offshore machine, but it has said that it is not likely to start mass production until 2019. Even so, the company could still pick up a good share of China’s nascent offshore market. The emergence of Taiwan’s offshore market is good for Chinese companies like Goldwind.

The result is that now three of the world’s four largest wind turbine makers have a significant presence in the offshore wind sector, and a fourth is making headway. It may be far smaller than the onshore wind sector, but it is impossible to ignore.

And yet, there might still be potential for a fifth player offshore. While Siemens has completed its takeover of Gamesa, we are still waiting for a satisfactory resolution to the following question: what happens to Adwen?

The future of Adwen – the business formed from a joint venture between Gamesa and Areva – was a stumbling block in the early negotiations between Siemens and Gamesa. Siemens said it didn’t want to acquire Adwen and its machines because it already has a strong offshore platform. But, after failing to sell, Gamesa bought Areva’s 50% stake for €60m at the start of 2017 to pave the way for the Siemens deal. There is still a question about whether they will seek to hold onto Adwen – or continue to pursue a sale.

Adwen could still be attractive for the right buyer. It has an 8MW prototype turbine in development; has more than 600MW of its machines installed at sea; and has over 2GW of projects in its pipeline. We’re just not sure who that buyer would be.

General Electric had an offer for Adwen rejected last August, and it could rekindle its interest. Likewise, Goldwind could see this as a chance to expand outside its home market. But we aren’t convinced that Siemens would want to sell to a direct competitor.

It could even be a potential acquisition for an onshore specialist that wants to grow offshore, though picking a likely candidate is not easy. German manufacturers such as Enercon, Nordex and Senvion are restructuring to cope with a tougher domestic market, so a major play offshore would be a distraction from that work.

India’s Suzlon has been working on an offshore wind pilot project in its home market and may see potential with Adwen, but it feels like a long shot. The earliest we would expect to see any commercial wind projects in Indian waters is 2020, and potentially far beyond that. The falling cost of onshore wind in India could also make wind farms in its waters look expensive; and Suzlon has struggled with overseas buyouts before.

It may just be that the best home for Adwen is… Siemens Gamesa Renewable Energy. Siemens has been facing stiff competition from MHI Vestas for the big offshore deals, and the €60m Gamesa paid for Areva's stake is not a lot for a 2GW pipeline of projects. Trying to integrate Adwen into the combined firm might be worth trying.

We'll be there, waiting to pitch a great new name.

We wrote, we called, we sent carrier pigeons. It was no use. In the end, our suggested name for the new firm formed by Siemens and Gamesa was rejected. To me, they'll always be Gamiemenesa.

Instead, the pair have opted for Siemens Gamesa Renewable Energy. And they've had long enough to think about it. We first reported a tie-up between Siemens and Gamesa in January 2016, got the announcement in June, and now the deal has completed.
At least they didn't spend 16 months arguing about the name!

There has been plenty of discussion about this deal, so here are the key points. This tie-up links the strength of Siemens offshore with Gamesa’s focus onshore and in emerging markets. The combined business will have sales of around €11bn; profits of €1.1bn; and a €21bn backlog of orders.

It also cements the combined firm’s place in the ‘big four’ global turbine makers, with Vestas, General Electric and Goldwind. This
deal rams home the idea that being a global player in turbine manufacturing means having a presence offshore.

Vestas started it when it linked up with Mitsubishi Heavy Industries to form MHI Vestas in 2014. General Electric followed by acquiring the energy assets of French firm Alstom, including its Haliade offshore turbines, in a deal that concluded in 2015. And now Siemens has done similar, though having the offshore specialist buying the onshore player is a new feature of this transaction.

That just leaves Goldwind, which is at this stage a distant fourth. The company has been working on a prototype of a 6MW offshore machine, but it has said that it is not likely to start mass production until 2019. Even so, the company could still pick up a good share of China’s nascent offshore market. The emergence of Taiwan’s offshore market is good for Chinese companies like Goldwind.

The result is that now three of the world’s four largest wind turbine makers have a significant presence in the offshore wind sector, and a fourth is making headway. It may be far smaller than the onshore wind sector, but it is impossible to ignore.

And yet, there might still be potential for a fifth player offshore. While Siemens has completed its takeover of Gamesa, we are still waiting for a satisfactory resolution to the following question: what happens to Adwen?

The future of Adwen – the business formed from a joint venture between Gamesa and Areva – was a stumbling block in the early negotiations between Siemens and Gamesa. Siemens said it didn’t want to acquire Adwen and its machines because it already has a strong offshore platform. But, after failing to sell, Gamesa bought Areva’s 50% stake for €60m at the start of 2017 to pave the way for the Siemens deal. There is still a question about whether they will seek to hold onto Adwen – or continue to pursue a sale.

Adwen could still be attractive for the right buyer. It has an 8MW prototype turbine in development; has more than 600MW of its machines installed at sea; and has over 2GW of projects in its pipeline. We’re just not sure who that buyer would be.

General Electric had an offer for Adwen rejected last August, and it could rekindle its interest. Likewise, Goldwind could see this as a chance to expand outside its home market. But we aren’t convinced that Siemens would want to sell to a direct competitor.

It could even be a potential acquisition for an onshore specialist that wants to grow offshore, though picking a likely candidate is not easy. German manufacturers such as Enercon, Nordex and Senvion are restructuring to cope with a tougher domestic market, so a major play offshore would be a distraction from that work.

India’s Suzlon has been working on an offshore wind pilot project in its home market and may see potential with Adwen, but it feels like a long shot. The earliest we would expect to see any commercial wind projects in Indian waters is 2020, and potentially far beyond that. The falling cost of onshore wind in India could also make wind farms in its waters look expensive; and Suzlon has struggled with overseas buyouts before.

It may just be that the best home for Adwen is… Siemens Gamesa Renewable Energy. Siemens has been facing stiff competition from MHI Vestas for the big offshore deals, and the €60m Gamesa paid for Areva's stake is not a lot for a 2GW pipeline of projects. Trying to integrate Adwen into the combined firm might be worth trying.

We'll be there, waiting to pitch a great new name.

We wrote, we called, we sent carrier pigeons. It was no use. In the end, our suggested name for the new firm formed by Siemens and Gamesa was rejected. To me, they'll always be Gamiemenesa.

Instead, the pair have opted for Siemens Gamesa Renewable Energy. And they've had long enough to think about it. We first reported a tie-up between Siemens and Gamesa in January 2016, got the announcement in June, and now the deal has completed.
At least they didn't spend 16 months arguing about the name!

There has been plenty of discussion about this deal, so here are the key points. This tie-up links the strength of Siemens offshore with Gamesa’s focus onshore and in emerging markets. The combined business will have sales of around €11bn; profits of €1.1bn; and a €21bn backlog of orders.

It also cements the combined firm’s place in the ‘big four’ global turbine makers, with Vestas, General Electric and Goldwind. This
deal rams home the idea that being a global player in turbine manufacturing means having a presence offshore.

Vestas started it when it linked up with Mitsubishi Heavy Industries to form MHI Vestas in 2014. General Electric followed by acquiring the energy assets of French firm Alstom, including its Haliade offshore turbines, in a deal that concluded in 2015. And now Siemens has done similar, though having the offshore specialist buying the onshore player is a new feature of this transaction.

That just leaves Goldwind, which is at this stage a distant fourth. The company has been working on a prototype of a 6MW offshore machine, but it has said that it is not likely to start mass production until 2019. Even so, the company could still pick up a good share of China’s nascent offshore market. The emergence of Taiwan’s offshore market is good for Chinese companies like Goldwind.

The result is that now three of the world’s four largest wind turbine makers have a significant presence in the offshore wind sector, and a fourth is making headway. It may be far smaller than the onshore wind sector, but it is impossible to ignore.

And yet, there might still be potential for a fifth player offshore. While Siemens has completed its takeover of Gamesa, we are still waiting for a satisfactory resolution to the following question: what happens to Adwen?

The future of Adwen – the business formed from a joint venture between Gamesa and Areva – was a stumbling block in the early negotiations between Siemens and Gamesa. Siemens said it didn’t want to acquire Adwen and its machines because it already has a strong offshore platform. But, after failing to sell, Gamesa bought Areva’s 50% stake for €60m at the start of 2017 to pave the way for the Siemens deal. There is still a question about whether they will seek to hold onto Adwen – or continue to pursue a sale.

Adwen could still be attractive for the right buyer. It has an 8MW prototype turbine in development; has more than 600MW of its machines installed at sea; and has over 2GW of projects in its pipeline. We’re just not sure who that buyer would be.

General Electric had an offer for Adwen rejected last August, and it could rekindle its interest. Likewise, Goldwind could see this as a chance to expand outside its home market. But we aren’t convinced that Siemens would want to sell to a direct competitor.

It could even be a potential acquisition for an onshore specialist that wants to grow offshore, though picking a likely candidate is not easy. German manufacturers such as Enercon, Nordex and Senvion are restructuring to cope with a tougher domestic market, so a major play offshore would be a distraction from that work.

India’s Suzlon has been working on an offshore wind pilot project in its home market and may see potential with Adwen, but it feels like a long shot. The earliest we would expect to see any commercial wind projects in Indian waters is 2020, and potentially far beyond that. The falling cost of onshore wind in India could also make wind farms in its waters look expensive; and Suzlon has struggled with overseas buyouts before.

It may just be that the best home for Adwen is… Siemens Gamesa Renewable Energy. Siemens has been facing stiff competition from MHI Vestas for the big offshore deals, and the €60m Gamesa paid for Areva's stake is not a lot for a 2GW pipeline of projects. Trying to integrate Adwen into the combined firm might be worth trying.

We'll be there, waiting to pitch a great new name.

We wrote, we called, we sent carrier pigeons. It was no use. In the end, our suggested name for the new firm formed by Siemens and Gamesa was rejected. To me, they'll always be Gamiemenesa.

Instead, the pair have opted for Siemens Gamesa Renewable Energy. And they've had long enough to think about it. We first reported a tie-up between Siemens and Gamesa in January 2016, got the announcement in June, and now the deal has completed.
At least they didn't spend 16 months arguing about the name!

There has been plenty of discussion about this deal, so here are the key points. This tie-up links the strength of Siemens offshore with Gamesa’s focus onshore and in emerging markets. The combined business will have sales of around €11bn; profits of €1.1bn; and a €21bn backlog of orders.

It also cements the combined firm’s place in the ‘big four’ global turbine makers, with Vestas, General Electric and Goldwind. This
deal rams home the idea that being a global player in turbine manufacturing means having a presence offshore.

Vestas started it when it linked up with Mitsubishi Heavy Industries to form MHI Vestas in 2014. General Electric followed by acquiring the energy assets of French firm Alstom, including its Haliade offshore turbines, in a deal that concluded in 2015. And now Siemens has done similar, though having the offshore specialist buying the onshore player is a new feature of this transaction.

That just leaves Goldwind, which is at this stage a distant fourth. The company has been working on a prototype of a 6MW offshore machine, but it has said that it is not likely to start mass production until 2019. Even so, the company could still pick up a good share of China’s nascent offshore market. The emergence of Taiwan’s offshore market is good for Chinese companies like Goldwind.

The result is that now three of the world’s four largest wind turbine makers have a significant presence in the offshore wind sector, and a fourth is making headway. It may be far smaller than the onshore wind sector, but it is impossible to ignore.

And yet, there might still be potential for a fifth player offshore. While Siemens has completed its takeover of Gamesa, we are still waiting for a satisfactory resolution to the following question: what happens to Adwen?

The future of Adwen – the business formed from a joint venture between Gamesa and Areva – was a stumbling block in the early negotiations between Siemens and Gamesa. Siemens said it didn’t want to acquire Adwen and its machines because it already has a strong offshore platform. But, after failing to sell, Gamesa bought Areva’s 50% stake for €60m at the start of 2017 to pave the way for the Siemens deal. There is still a question about whether they will seek to hold onto Adwen – or continue to pursue a sale.

Adwen could still be attractive for the right buyer. It has an 8MW prototype turbine in development; has more than 600MW of its machines installed at sea; and has over 2GW of projects in its pipeline. We’re just not sure who that buyer would be.

General Electric had an offer for Adwen rejected last August, and it could rekindle its interest. Likewise, Goldwind could see this as a chance to expand outside its home market. But we aren’t convinced that Siemens would want to sell to a direct competitor.

It could even be a potential acquisition for an onshore specialist that wants to grow offshore, though picking a likely candidate is not easy. German manufacturers such as Enercon, Nordex and Senvion are restructuring to cope with a tougher domestic market, so a major play offshore would be a distraction from that work.

India’s Suzlon has been working on an offshore wind pilot project in its home market and may see potential with Adwen, but it feels like a long shot. The earliest we would expect to see any commercial wind projects in Indian waters is 2020, and potentially far beyond that. The falling cost of onshore wind in India could also make wind farms in its waters look expensive; and Suzlon has struggled with overseas buyouts before.

It may just be that the best home for Adwen is… Siemens Gamesa Renewable Energy. Siemens has been facing stiff competition from MHI Vestas for the big offshore deals, and the €60m Gamesa paid for Areva's stake is not a lot for a 2GW pipeline of projects. Trying to integrate Adwen into the combined firm might be worth trying.

We'll be there, waiting to pitch a great new name.

We wrote, we called, we sent carrier pigeons. It was no use. In the end, our suggested name for the new firm formed by Siemens and Gamesa was rejected. To me, they'll always be Gamiemenesa.

Instead, the pair have opted for Siemens Gamesa Renewable Energy. And they've had long enough to think about it. We first reported a tie-up between Siemens and Gamesa in January 2016, got the announcement in June, and now the deal has completed.
At least they didn't spend 16 months arguing about the name!

There has been plenty of discussion about this deal, so here are the key points. This tie-up links the strength of Siemens offshore with Gamesa’s focus onshore and in emerging markets. The combined business will have sales of around €11bn; profits of €1.1bn; and a €21bn backlog of orders.

It also cements the combined firm’s place in the ‘big four’ global turbine makers, with Vestas, General Electric and Goldwind. This
deal rams home the idea that being a global player in turbine manufacturing means having a presence offshore.

Vestas started it when it linked up with Mitsubishi Heavy Industries to form MHI Vestas in 2014. General Electric followed by acquiring the energy assets of French firm Alstom, including its Haliade offshore turbines, in a deal that concluded in 2015. And now Siemens has done similar, though having the offshore specialist buying the onshore player is a new feature of this transaction.

That just leaves Goldwind, which is at this stage a distant fourth. The company has been working on a prototype of a 6MW offshore machine, but it has said that it is not likely to start mass production until 2019. Even so, the company could still pick up a good share of China’s nascent offshore market. The emergence of Taiwan’s offshore market is good for Chinese companies like Goldwind.

The result is that now three of the world’s four largest wind turbine makers have a significant presence in the offshore wind sector, and a fourth is making headway. It may be far smaller than the onshore wind sector, but it is impossible to ignore.

And yet, there might still be potential for a fifth player offshore. While Siemens has completed its takeover of Gamesa, we are still waiting for a satisfactory resolution to the following question: what happens to Adwen?

The future of Adwen – the business formed from a joint venture between Gamesa and Areva – was a stumbling block in the early negotiations between Siemens and Gamesa. Siemens said it didn’t want to acquire Adwen and its machines because it already has a strong offshore platform. But, after failing to sell, Gamesa bought Areva’s 50% stake for €60m at the start of 2017 to pave the way for the Siemens deal. There is still a question about whether they will seek to hold onto Adwen – or continue to pursue a sale.

Adwen could still be attractive for the right buyer. It has an 8MW prototype turbine in development; has more than 600MW of its machines installed at sea; and has over 2GW of projects in its pipeline. We’re just not sure who that buyer would be.

General Electric had an offer for Adwen rejected last August, and it could rekindle its interest. Likewise, Goldwind could see this as a chance to expand outside its home market. But we aren’t convinced that Siemens would want to sell to a direct competitor.

It could even be a potential acquisition for an onshore specialist that wants to grow offshore, though picking a likely candidate is not easy. German manufacturers such as Enercon, Nordex and Senvion are restructuring to cope with a tougher domestic market, so a major play offshore would be a distraction from that work.

India’s Suzlon has been working on an offshore wind pilot project in its home market and may see potential with Adwen, but it feels like a long shot. The earliest we would expect to see any commercial wind projects in Indian waters is 2020, and potentially far beyond that. The falling cost of onshore wind in India could also make wind farms in its waters look expensive; and Suzlon has struggled with overseas buyouts before.

It may just be that the best home for Adwen is… Siemens Gamesa Renewable Energy. Siemens has been facing stiff competition from MHI Vestas for the big offshore deals, and the €60m Gamesa paid for Areva's stake is not a lot for a 2GW pipeline of projects. Trying to integrate Adwen into the combined firm might be worth trying.

We'll be there, waiting to pitch a great new name.

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Not a member yet?

Become a member of the 6,500-strong A Word About Wind community today, and gain access to our premium content, exclusive lead generation and investment opportunities.