PLANNED ARKANSAS WIND PLANT IN DOUBT

Mitsubishi US turbine plant depends on legal issues; Mitsubishi Heavy Industries' (MHI) plans to open its first wind turbine factory in the US are dependent on the government renewing a critical subsidy and the outcome of legal battles there.
Dominque Patton, March 14, 2012 (Recharge)

"In 2009, the Japanese company [MHI] revealed plans for a $100m nacelle manufacturing plant in Arkansas to support demand in its main market. It was scheduled to have opened earlier this year…However, turbine sales are certain to plummet if Washington does not renew the production tax credit (PTC), which is due to expire at the end of the year…Mitsubishi Power Systems Americas’ legal dispute with GE over wind turbine designs and patents is also very important…

"MHI has a 10% share of the US market and ‘several hundred megawatts’ of orders in hand…But it needs new orders to sustain a local factory, and future growth of the American market is a big challenge…MHI is not the first to warn of the impact of the PTC expiry. Vestas has said it will cut jobs in the US if the government does not renew the subsidy…MHI has built up turbine sales in the US by leveraging its reputation in the traditional power business. Large electricity companies like to work with established suppliers such as GE, Siemens and MHI…"

An assembled nacelle being placed in its housing. (click to enlarge)

"This will also be an advantage in the group’s next target, the UK offshore sector, where…MHI’s financial resources [are expected to] give it an edge…MHI also hopes to see growing sales at home, after the introduction of a new feed-in tariff in July. But with cumbersome environmental laws set to drag out installation time for Japanese wind projects, the company may have to play a waiting game…

"MHI also wants to increase its technology transfer to China. It licensed rights to its 1MW machine to Chinese turbine maker Ningxia Yinxing Energy in 2007, and in 2010 upgraded its 2.4MW model to 2.5MW to meet the requirements of the Chinese market."