Siemens Gamesa, the wind turbine subsidiary of Siemens Energy AG, has decided to scrap its USD 200 million blade factory project at the Port of Virginia in the U.S., according to a report by the Associated Press (AP).
Allegedly, the decision is attributed to factors such as high inflation rates, increased interest rates, and complications in the supply chain. In a statement to AP, Siemens Gamesa mentioned that the cancellation was prompted by the inability to meet specific development milestones, offering no further details on the matter.
Initially proposed for construction across an expansive 80-acre site at the Portsmouth Marine Terminal in Portsmouth, the abandoned blade factory was anticipated to generate over 300 jobs. Siemens Gamesa had unveiled its plans for the facility in October 2021, shortly after securing a turbine supply order for Dominion Energy's ambitious 2.6-Gigawatt Coastal Virginia Offshore Wind (CVOW) project.
The CVOW project, valued at USD 10 billion, is slated to be developed in a commercial lease area off the coast of Virginia Beach, with an expected operational date in late 2026. Notably, the 176 turbines required for the project will now be manufactured at Siemens Gamesa's facilities in Europe, following the cancellation of the blade factory in Virginia.