Apr 22 | 2020
(Americas) US$100 Million in EPC Work
Global engineering group Wood has secured onshore wind contracts in the U.S. worth a combined $100 million.
The new agreements cover three major wind farm projects with a total capacity of 230 megawatts. The largest of the contracts is for development of American Electric Power Renewables' windfarm in south-central Kansas, where Wood will deliver engineering, procurement and construction services.
“We are committed to playing a forward role in achieving a balanced and secure energy supply in the U.S. As the renewables market continues to grow through rising demand, further investment and shifts in technology, our ambitious, versatile and established EPC offering positions Wood as a partner of choice for existing and new developments.” said Stephanie Cox, CEO of Wood’s Asset Solutions Americas business.
Wyoming and Oregon
Alongside the AEP project, Wood will also provide EPC services for the Corriedale Wind Energy Project in Cheyenne, Wyoming, on behalf of Black Hills Energy.
A final contract will see Wood deliver four new wind farms for Orchard Windfarms, across Morrow and Umatilla Counties in Oregon. The group will provide breakbulk transportation and installation of multiple wind turbines.
“From the Pacific Northwest state of Oregon and the western state of Wyoming, to the midwestern states of South Dakota and Kansas, these awards show the positive momentum Wood is generating across the United States in the renewables market,” Cox added.
Despite this positive momentum in the U.S., the outlook for the global wind sector is likely to remain bleak, according to consultancy Wood Mackenzie. The firm estimates that some 150 gigawatts of capacity could be wiped out in the Asia-Pacific region by delays or cancellationto planned renewables investment.
“The extent of the coronavirus impact on Asia-Pacific markets is key to the future growth of the renewables sector. Key indicators to monitor include power demand growth, credit terms for renewables projects, cost competition between renewables and fossil fuels and government support including stimulus for renewables markets,” said Alex Whitworth, Wood Mackenzie research director.
The firm cautions that China and other key governments that have strongly supported renewables with subsidies and preferential dispatch policies will need to continue investment to avoid a crash in project outlay.