“The global wind market is a $50 billion-plus market,” said Victor Abate, who runs GE’s renewable energy businesses. “Land will still be the dominant part in our view in the next decade, but offshore will begin to take off, particularly in the U.K. “
“A lot of our customers have been aggressively pursuing the stimulus money now that the guidelines are out,” Abate said, adding that the US industry has not had access to cash for about a year. For many of them, the money will start flowing in the fourth quarter.
“Morphic’s direct-drive technology works best for offshore turbines and fills a hole in GE’s portfolio,” Pearce Hammond, an energy analyst at Simmons & Company said. “Offshore wind development is still more sizzle than meat right now, but this technology sets them up for when demand takes off.”
The purchase, if completed in September 2009 as planned, would help GE compete with offshore leader Siemens AG.
The US House of Representatives has proposed that 15% of all energy produced should be from renewable resources by 2025; the Senate proposes at least 11% by 2021.
GE Energy Vice Chairman John Krenicki testified in July 2009 that those goals needed to be more aggressive to keep the country competitive. The European Union has targeted to generate 20% by 2020.
“Policy is much more stable in Europe and China,” Abate said. “Our message is jobs are going to go where the turbines land, and we need today a renewable-energy standard that says we will invest in alternative energies for the next decade, and you will see factories open.”
GE’s wind division provided $6.7 billion of the parent companys $183 billion in sales in 2008.
