Vestas JV gets large offshore order, shares soars to 7-yr high

(Adds details of deal, share information, background)

COPENHAGEN, Dec 16 (Reuters) - MHI Vestas, a joint venture between Vestas and Mitsubishi Heavy Industries (Other OTC: MHVYF - news) , received its biggest order to date for its 8 megawatt turbine, the most powerful currently deployed around the world.

News (Other OTC: NWSAL - news) of the deal pushed Vestas' shares to seven-year highs, helped also by industry media reports that a bipartisan deal on extending U.S (Other OTC: UBGXF - news) . tax breaks for windpower was in the cards.

The order placed by Danish compatriot DONG Energy (IPO-DONG.CO) for 40 of the V164-8.0 MW turbines in the 330 MW project is the largest and only the third unconditional order for these turbines in the venture's short history.

MHI Vestas had received a 400 MW order before but that was for its smaller 3.45 MW turbines, bringing in total four unconditional orders for the join venture.

Its first commercial order came last December, also from DONG Energy, for the 258 MW Burbo Bank Extension project in Britain.

Vestas, ranked the largest turbine maker in the world by most industry consultants, had fallen behind in the lucrative offshore sector which has been dominated by Siemens (BSE: SIEMENS4.BO - news) ' Siemens Wind Power unit in recent years.

To try to catch up, Vestas formed the MHI Vestas venture in 2013 to speed up the development of the 8 MW turbine.

In the latest deal, 40 turbines, with a span wider than the London Eye ferris wheel, will spread their wings outside the Isle of Man (Swiss: MAN.SW - news) in the Walney Extension offshore project in Britain.

No price tag came with the order. Smaller wind turbine orders yield Vestas a revenue of around 0.86 million euros ($939,378) per megawatt on average.

Vestas said it disclosed the MHI Vestas order because it is a 50 percent owner of the venture and must inform the market of any deals with a value above 1 billion Danish crowns ($146 million).

By 1055 GMT, Vestas' shares were up 6.15 percent at 483.5 crowns each. ($1 = 0.9155 euros) ($1 = 6.8312 Danish crowns) (Reporting by Alexander Tange; editing by Sabina Zawadzki)