Siemens Gamesa is to spend up to €860m over the next six years winding down the Adwen offshore wind business, according to chief financial officer Miguel Angel Lopez.
The outlay of €101m in the second half of 2017 will continue in the first quarter of this year with a provision of €49m expected.
“This is going to be a long process that will take several years (and there will be) significant cash outflows,” said Angel Lopez at today’s capital markets day in Madrid.
Spending will be significant for the next four or five years before dipping in the sixth year, he said.
The German-Spanish outfit announced last year it would discontinue development of the former Adwen’s 8MW offshore turbine platform as part of the merger between the two companies.
Chief executive Markus Tacke, meanwhile, said the new Siemens Gamesa 8-167 offshore turbine is capable of delivering a higher power output than its 8MW nameplate capacity.
He declined to say what MW-rating the next-generation offshore turbine will have, but said it is likely to be available in 2024.
The company is working on a new blade design for the turbine as well as a novel maintenance concept, according to presentation slides for the event.
Image: Adwen
Adwen closure bill to hit €860m
By EBS