Global wind turbine manufacturer sees green in Canada
As Canada increasingly signals its support of green initiatives that benefit the environment and create jobs, ENERCON, one of the world's leading manufacturers of wind energy converters, is expanding its operations in Canada.
ENERCON is a privately owned company with headquarters in Aurich and Magdeburg, Germany. An international leader in state-of-the-art wind energy technology, it manufactures gearless wind turbines that come with a unique and long-term service and maintenance contract.
ENERCON is a world leader in wind energy
ENERCON has a 14 percent share of the world wind power market. There are over 14,000 ENERCON wind turbines around the world. The company exclusively manufactures its turbines in six countries: Germany, Turkey, India, Brazil, Portugal and Sweden. It has a total production area worldwide of 425,000 square metres - which is about the same size as 47 football fields.
Last May, ENERCON GmbH of Germany and its Canadian subsidiary ENERCON Canada Inc., won a tender in Quebec to supply wind-energy converters to projects approved by the provincial utility Hydro-Québec. The agreement calls for the installation of approximately 500 wind turbines throughout southeastern Quebec over a period of five years beginning in 2011. "This is a huge contract," says Marcus Scheele, Service Manager Canada for ENERCON Services Nova Scotia Inc.
Wind power is now a highly competitive form of energy. The initiative puts the province on the leading edge of wind power development in North America. To diversify its energy sources, Hydro-Québec hopes to add 10 percent wind power to its energy mix by the year 2015. ENERCON will supply wind energy converters for an aggregate of 1,050 MW (enough to power a small city). Hydro-Québec calculates that the cost of electricity produced by any one of the 15 huge wind farms that are planned will be highly competitive.
While ENERCON doesn't make wind turbines in Canada because the demand is not high enough yet, the Quebec initiative is bringing an aspect of manufacturing to the province. Under the agreement, ENERCON will manufacture concrete towers for its turbines in the province. ENERCON is establishing facilities for concrete tower production in the city of Matane.
Green initiatives support ENERCON's investment
"The Quebec project is a great initiative and shows a real commitment to wind energy initiatives - and these are the reasons why ENERCON is investing in Canada," says Scheele. "While there is a good feeling about going green from the people of Canada, we also need these types of strong political incentives and signals."
ENERCON Services Nova Scotia Inc., in Halifax, provides servicing support to approximately 100 ENERCON wind turbines across Canada. There are 14 wind turbines in Nova Scotia, 40 in Ontario and 28 in Alberta. Most of the company's employees are technicians who service the turbines, while the Halifax office handles accounting, payroll and technical coordination.
Scheele says Halifax was selected as the location for the office for several reasons. The city offers convenient access to air and water transportation routes as well. In addition, Halifax is a reasonable labour market the education level is high and wages are a bit lower compared to western Canada.
As the Quebec project gears up, Scheele says the number of employees will double to about 40 to 50 by the end of 2009.
Technology in wind turbines continues to improve
Aloys Wobben, the owner and founder of ENERCON, designed his first wind turbine 25 years ago in his garage. Today, Wobben, who is a respected electrical engineer and entrepreneur in this industry, still heads the organization.
Improvements to the technology used in ENERCON wind turbines is on-going. Currently, ENERCON wind turbines in Ontario and Alberta produce 2 megawatts each. In Germany, some wind turbines are producing 6 megawatts each. In general, one megawatt of wind power generates enough electricity for 225 to 200 households.
ENERCON's gearless wind turbines are key to the company's success. The gearless drive system features few rotating components - a design that helps reduce mechanical stress, operating costs and maintenance costs. Thanks to other technical characteristics, the turbines are readily integrated into electrical grids.
ENERCON backs its product with a longterm service contract
ENERCON stands behind its product's reliability and operation with long-term service contract, an important competitive advantage.
"Each and every client needs excellent service. So if something goes wrong with one of our turbines, we are accountable," says Scheele. "When a client buys turbine, they also get a 'full comfort' service contract for a minimum of 12 years. During this period ENERCON covers all repair and maintenance required free of charge. "This is a unique partner concept and something competitors don't offer," says Scheele. ENERCON manufactures almost all of the components used in its turbines, eliminating potential issues with the availability of parts.
Wind power is an important, sustainable and renewable climate-friendly source of energy expected to grow significantly in the future.
To learn more about investment opportunities in Canada, consult: www.investincanada.com
Prepared by the Invest in Canada Bureau, Spring 2009
