US wind turbine producer Broadwind Energy has signed a US$137m deal to supply wind turbine towers to a US wind turbine manufacturer over the next three years.
The three-year framework agreement is expected to keep its Manitowoc, WI and Abilene, TX factories busy as they meet the production demands, with the wind turbine towers scheduled for delivery in 2019.
Broadwind Energy did not name the customer of its supply deal, but is purported to be one of the leading wind turbine manufacturers in the US. Broadwind Energy stated in its annual report last year that both Siemens and General Electric were key customers.
The framework agreement to supply towers from Manitowoc, WI and Abilene, TX, was signed by Broadwind Towers, a subsidiary Illinois-based Broadwind Energy.
Broadwind Energy flying after wind turbine tower deal
The $137m supply deal is a significant boon for Broadwind Energy, coming off the back of the company reporting orders of $39m in its First-Quarter 2016 results, nearly double the order intake of the First Quarter of 2015.
Broadwind Energy president and CEO Stephanie Kushner said the supply deal for the as-yet unnamed US wind turbine manufacturer would extend the company’s backlog for the next three years.
“The market visibility has improved significantly given the certainty of the Production Tax Credit structure, and we are pleased to receive this long-term commitment from our customer,” she said.
“This agreement extends our backlog through 2019.”
Spokesperson for Broadwind Energy, Joni Konstantelos, said exciting times were ahead for the company in the wake of the $137m supply deal.
“This is probably the best visibility we’ve ever had in the wind industry, it’s a very exciting time” she said.
Broadwind Energy said the market visibility has improved significantly for wind farm development after Congress extended wind energy tax credits late last year.
The move by Congress extends tax credits for five years, reducing the size of the credit over time with the idea that tax credits won’t be needed when they expire again.
Konstantelos also said an Internal Revenue Service ruling effectively extends the ability to use the credits by two years.
The contract signed by Broadwind Energy with the wind turbine manufacturer doesn’t mean the company is sold out for the towers it’s capable of producing at the two factories. However, Ms Konstantelos did say the deal did represent “a significant part of our capacity for the next three years.”
Broadwind Energy specialises in the production of wind turbine towers and fabrications for oil and gas, mining and other industrial applications.
The company specialises in fabrication of heavier next generation wind towers that are larger, more technically advanced and designed for multi-megawatt (MW) and larger wind turbines.
Broadwind Energy employs more than 300 people in Manitowoc, WI, and nearly 200 in Abilene, TX.