Senvion GmbH, a German turbine maker, is expanding in the low-wind market as domestic demand climbs, taking on rivals including Nordex SE.
Senvion will unveil Tuesday its biggest turbine designed for areas with slower wind, a 3.4-megawatt system with a 140-meter (459-foot) rotor diameter. The company is seeking to increase its market share in Germany beyond the current 15 percent, Chief Executive Officer Andreas Nauen said in an interview.
With the new system, Senvion will be increasing competition with Nordex, Siemens AG and Vestas Wind Systems A/S, all of which are benefiting from record additions of wind power in Germany, fueled in part by developments in regions with lower wind resources.
“We clearly saw an opportunity, that the low-wind markets in the world are increasing,” Nauen said Monday at the company’s headquarters in Hamburg.
The turbine will be unveiled at a trade show that starts Tuesday in Husum, northern Germany, a traditional venue for showcasing technological and cost-cutting improvements. Nauen said a prototype will be installed in 2017.
With a rotor diameter that’s 20 meters longer than the company’s biggest model in the 3-megawatt class, the turbine is “clearly something that goes way beyond what we did in the past,” he said.
Nordex Monday introduced a 3.3-megawatt low-wind turbine, with a rotor diameter of 131 meters.
Senvion, which was bought by the U.S. fund Centerbridge Partners from Suzlon Energy Ltd. this year for 1 billion euros ($1.2 billion) in cash, is also targeting growth in countries including Ireland, the Netherlands, Turkey and Norway that are “neighbors or satellites to our core markets,” Nauen said.
The company has no plans to issue debt to finance growth, Chief Financial Officer Manav Sharma said in the same interview.
“I do not see us raising any additional bond or adding indebtedness to the company at this stage or in the immediate future,” Sharma said. “We believe at this stage we can fund our business from the company cash-flows.”