Latest news with #windturbines
Yahoo
2 days ago
- Business
- Yahoo
Wind turbine parts supplier to close in threat to net zero supply chains
A major supplier to Britain's green energy industry is set to close after its Japanese owner failed to clinch a rescue deal for the company and its 250 workers. Wigan-based Electric Glass Fiber UK (EGFU), which is owned by Nippon Electric Glass (NEG), makes vital components used in wind turbines and electric cars. Its closure puts net zero supply chains under threat. Both turbines and EVs are seen by the Government as critical to its industrial strategy amid moves to decarbonise the British economy and to build up domestic supplies of critical products at a time of tariffs, wars and mounting geopolitical rivalries. The British operation was profitable as recently as 2022, but made losses of £3m in 2023, mounting to £12m in 2024, according to the Japanese owner, which first invested in the UK arm in 2016. It blamed competition from Chinese imports as well as the rising cost of raw materials, in financial statements published in last year, which could only be partially passed on to customers in the form of higher prices. The business also said rising energy prices were putting pressure on operations. Electric Glass Fiber's closure comes just a day after Energy Secretary Ed Miliband's announced £1bn of investment in offshore wind supply chains. The investment is aimed at building manufacturing capacity for turbine blades, cables and the platforms needed for floating wind farms. Britain's manufacturers typically pay far higher bills than competitors in countries including France and Germany, even though much of the Continent has been exposed to higher gas and electricity costs since Russia's invasion of Ukraine in 2022. British industry had to pay an additional £29bn for its gas and electricity over the last four years compared to the four years before the pandemic, according to new analysis by the Energy and Climate Intelligence Unit (ECIU). The UK's iron and steel industry alone spent £1.8bn extra in the four years after the crisis. Its energy bill rose 80pc to £4bn, despite steel and steel mill output falling by 25pc since 2020. The Office for National Statistics has said the UK has some of the world's highest industrial energy prices. High gas prices and green levies such as the climate change levy, renewables obligation and feed-in tariffs have added to energy bills. British and European authorities sought to protect domestic fibreglass manufacturers from perceived unfair competition from China, imposing 'anti-dumping' tariffs on imports from the world's second-largest economy in 2020. The measures are set to run until early next year. Most of the company's sales go to European customers. But the tariffs were not sufficient to preserve the Wigan plant. NEG said the closure of the site, just west of Manchester, came despite intense efforts to find an alternative. Production will cease later this month. The parent company said:'NEG has considered various options, including the possibility of selling EGFU, forming strategic partnerships, or cessation of its business activities during the approximately two and a half month strategic review period. 'In order to quickly rebuild our composites business, we have determined to cease EGFU's operation and proceed with preparations for voluntary liquidation.' The closure comes after Sir Keir Starmer stepped in to rescue British Steel, taking control of the business as the Prime Minister deemed the Scunthorpe site to be critical to the country's industrial security. In that instance, a Chinese owner's planned closure would have threatened the nation's remaining steel production capacity, with ramifications for industries from construction to defence at a time when the Government wants both of those sectors to ramp up output urgently. Last night, the industry minister Sarah Jones said: 'We know this is a concerning time for Electric Glass Fiber UK workers and their families, and we are continuing to work closely with Nippon Electric Glass to understand the challenges and provide support. 'I recently met with the company's leadership to stress the importance of the plant to the area and the UK.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
2 days ago
- Business
- Telegraph
High energy costs trigger closure of major UK wind turbine supplier
A major supplier to Britain's green energy industry is set to close after its Japanese owner failed to clinch a rescue deal for the company and its 250 workers. Wigan-based Electric Glass Fiber UK (EGFU), which is owned by Nippon Electric Glass (NEG), makes vital components used in wind turbines and electric cars. Its closure puts net zero supply chains under threat. Both are seen by the Government as critical to its industrial strategy amid moves to decarbonise the British economy and to build up domestic supplies of critical products at a time of tariffs, wars and mounting geopolitical rivalries. The British operation was profitable as recently as 2022, but made losses of £3m in 2023, mounting to £12m in 2024, according to the Japanese owner, which first invested in the UK arm in 2016. It blamed competition from Chinese imports as well as the rising cost of raw materials, in financial statements published in last year, which could only be partially passed on to customers in the form of higher prices. The business also said rising energy prices were putting pressure on operations. Britain's manufacturers typically pay far higher bills than competitors in countries including France and Germany, even though much of the Continent has been exposed to higher gas and electricity costs since Russia's invasion of Ukraine in 2022. British and European authorities sought to protect domestic fibreglass manufacturers from perceived unfair competition from China, imposing 'anti-dumping' tariffs on imports from the world's second-largest economy in 2020. The measures are set to run until early next year. Most of the company's sales go to European customers. But the tariffs were not sufficient to preserve the Wigan plant. NEG said the closure of the site, just west of Manchester, came despite intense efforts to find an alternative. Production will cease later this month. 'Voluntary liquidation' The parent company said:'NEG has considered various options, including the possibility of selling EGFU, forming strategic partnerships, or cessation of its business activities during the approximately two and a half month strategic review period. 'In order to quickly rebuild our composites business, we have determined to cease EGFU's operation and proceed with preparations for voluntary liquidation.' The closure comes after Sir Keir Starmer stepped in to rescue British Steel, taking control of the business as the Prime Minister deemed the Scunthorpe site to be critical to the country's industrial security. In that instance, a Chinese owner's planned closure would have threatened the nation's remaining steel production capacity, with ramifications for industries from construction to defence at a time when the Government wants both of those sectors to ramp up output urgently.
CTV News
10-06-2025
- Business
- CTV News
Renewable cleanup rules making Alberta less competitive for investment: report
Power transmission lines and wind turbines as seen with the Rocky Mountains in the background near Pincher Creek, Alta., Thursday, June 6, 2024. THE CANADIAN PRESS/Jeff McIntosh CALGARY — A report says new cleanup rules for renewable energy sites are hurting the competitiveness of Alberta's industry. Business Renewables Centre-Canada analyzed the reclamation security requirements for renewables in 27 jurisdictions and found Alberta's are now the most costly. Under a code of practice for solar and wind projects published last week, the Alberta government says operators must provide an estimate for the cost of dismantling turbines and panels, removing underground concrete infrastructure, hauling waste away, replanting vegetation and other items. A 30-per-cent security is required upfront, rising to 60 per cent after 15 years to ensure there is enough money for proper cleanup at the sites' end of life. BRC-Canada says Alberta's upfront security requirement is unusually high and the rules don't take into account the salvage value of the concrete and metals that could be sold to recoup cleanup expenses. The Alberta government issued the new rules in February 2024, just as a seven-month moratorium on new renewable project approvals expired, but it had yet to lay out the details around how they'd be implemented. Jorden Dye, BRC-Canada's director, said many renewable projects are being built by multinational companies that can move their capital around easily. 'And it'll just be really disappointing if we see Alberta lose out and lose our ground as the biggest developer of renewable energy in the last few years in Canada because we've continued to place onerous rules on the industry,' he said. In addition to the reclamation security requirements, the province has placed buffer zones around wind turbines so as not to impede 'pristine viewpoints' and is taking an 'agriculture first' approach to deciding what can be built on farmland. The province is also working through consultations on the structure of its energy market as well as transmission regulations. 'If you take one by itself, it's OK — we might be able to live with it, or we can work around it,' said Dye. 'It's kind of getting to the totality of the decisions that's really driving some of the concerns.' The BRC-Canada study noted some jurisdictions — such Illinois and Tennessee — require a 100-per-cent reclamation security, but only 10 per cent of that must be paid upfront. 'Renewable energy projects are really sensitive to the upfront capital cost,' Dye said. 'Having that as an operating annual cost is a lot different to whether a project will go forward than if it's an upfront cost.' Three-quarters of the jurisdictions the group compared accounted for the salvage value of materials once projects are dismantled. While that amount may not reflect the real-world value of the metal and concrete decades into the future, it does go a long way toward offsetting the reclamation costs, Dye said. Dye said wind and solar projects generally have a lifespan of 20 to 50 years, but components are often refurbished along the way. And when they're done operating, there is decades' worth of real-world data to make pursuing another development easier. While an oil or gas well will eventually become depleted, 'the sun and the wind will still be there in those exact spots,' Dye said. The cost of cleaning up old oil and gas wells has been a major issue in the oil and gas sector. The Alberta Energy Regulator estimates that as of June 2024, there were $36 billion in environmental liabilities. In announcing the renewables policy in February 2024, Alberta Premier Danielle Smith said the province was looking for a different and better way to approach solar and wind cleanup than what had been done for oil and gas. 'It is critical that we do not repeat errors of the past, and that we have reclamation rules and costs accounted for at the beginning of any development,' she said. The reclamation bond or security can be paid to the Alberta government, or be negotiated between the renewable developer and a landowner. Janetta McKenzie, oil and gas program director at the Pembina Institute think-tank, said the rules for wind and solar are fundamentally different than 'generous and flexible' ones for oil and gas. In that sector, companies are required to pay about one per cent of cleanup costs in upfront securities, with no firm timelines, she said. The industry-funded Orphan Well Association looks after closure costs when an energy company has gone bankrupt or otherwise cannot meet its obligations. But that organization 'is also buttressed by some interest-free loans from the provincial and federal government and is pretty persistently underfunded,' McKenzie said. 'This is a province that wants to unleash its energy sector, but there is an energy sector that's waiting for a stable regulatory environment and then one that is being given a lot of options to not reclaim and not clean up itself in a timely manner.' This report by The Canadian Press was first published June 10, 2025. Lauren Krugel, The Canadian Press
CTV News
10-06-2025
- Business
- CTV News
Renewable cleanup rules making Alberta less competitive for investment: report
Power transmission lines and wind turbines as seen with the Rocky Mountains in the background near Pincher Creek, Alta., Thursday, June 6, 2024. THE CANADIAN PRESS/Jeff McIntosh CALGARY — A report says new cleanup rules for renewable energy sites are hurting the competitiveness of Alberta's industry. Business Renewables Centre-Canada analyzed the reclamation security requirements for renewables in 27 jurisdictions and found Alberta's are now the most costly. Under a code of practice for solar and wind projects published last week, the Alberta government says operators must provide an estimate for the cost of dismantling turbines and panels, removing underground concrete infrastructure, hauling waste away, replanting vegetation and other items. A 30-per-cent security is required upfront, rising to 60 per cent after 15 years to ensure there is enough money for proper cleanup at the sites' end of life. BRC-Canada says Alberta's upfront security requirement is unusually high and the rules don't take into account the salvage value of the concrete and metals that could be sold to recoup cleanup expenses. The Alberta government issued the new rules in February 2024, just as a seven-month moratorium on new renewable project approvals expired, but it had yet to lay out the details around how they'd be implemented. Jorden Dye, BRC-Canada's director, said many renewable projects are being built by multinational companies that can move their capital around easily. 'And it'll just be really disappointing if we see Alberta lose out and lose our ground as the biggest developer of renewable energy in the last few years in Canada because we've continued to place onerous rules on the industry,' he said. In addition to the reclamation security requirements, the province has placed buffer zones around wind turbines so as not to impede 'pristine viewpoints' and is taking an 'agriculture first' approach to deciding what can be built on farmland. The province is also working through consultations on the structure of its energy market as well as transmission regulations. 'If you take one by itself, it's OK — we might be able to live with it, or we can work around it,' said Dye. 'It's kind of getting to the totality of the decisions that's really driving some of the concerns.' The BRC-Canada study noted some jurisdictions — such Illinois and Tennessee — require a 100-per-cent reclamation security, but only 10 per cent of that must be paid upfront. 'Renewable energy projects are really sensitive to the upfront capital cost,' Dye said. 'Having that as an operating annual cost is a lot different to whether a project will go forward than if it's an upfront cost.' Three-quarters of the jurisdictions the group compared accounted for the salvage value of materials once projects are dismantled. While that amount may not reflect the real-world value of the metal and concrete decades into the future, it does go a long way toward offsetting the reclamation costs, Dye said. Dye said wind and solar projects generally have a lifespan of 20 to 50 years, but components are often refurbished along the way. And when they're done operating, there is decades' worth of real-world data to make pursuing another development easier. While an oil or gas well will eventually become depleted, 'the sun and the wind will still be there in those exact spots,' Dye said. The cost of cleaning up old oil and gas wells has been a major issue in the oil and gas sector. The Alberta Energy Regulator estimates that as of June 2024, there were $36 billion in environmental liabilities. In announcing the renewables policy in February 2024, Alberta Premier Danielle Smith said the province was looking for a different and better way to approach solar and wind cleanup than what had been done for oil and gas. 'It is critical that we do not repeat errors of the past, and that we have reclamation rules and costs accounted for at the beginning of any development,' she said. The reclamation bond or security can be paid to the Alberta government, or be negotiated between the renewable developer and a landowner. Janetta McKenzie, oil and gas program director at the Pembina Institute think-tank, said the rules for wind and solar are fundamentally different than 'generous and flexible' ones for oil and gas. In that sector, companies are required to pay about one per cent of cleanup costs in upfront securities, with no firm timelines, she said. The industry-funded Orphan Well Association looks after closure costs when an energy company has gone bankrupt or otherwise cannot meet its obligations. But that organization 'is also buttressed by some interest-free loans from the provincial and federal government and is pretty persistently underfunded,' McKenzie said. 'This is a province that wants to unleash its energy sector, but there is an energy sector that's waiting for a stable regulatory environment and then one that is being given a lot of options to not reclaim and not clean up itself in a timely manner.' This report by The Canadian Press was first published June 10, 2025. Lauren Krugel, The Canadian Press
Bloomberg
05-06-2025
- Business
- Bloomberg
Siemens Energy Closes Chapter on Germany's €7.5 Billion Rescue
Siemens Energy AG is on course to pay a dividend for the first time in almost four years after replacing an €11 billion ($12.6 billion) rescue package backed by the German government. The company moved to a new €9 billion bank facility earlier than planned that will help fund large projects, it said Thursday, clearing the path for the gas and wind turbine maker to resume shareholder payouts.
