Vestas giant turbine the preferred choice for big UK wind project

By Teis Jensen

COPENHAGEN, May 21 (Reuters) - Vestas' largest offshore wind turbine yet has been made the preferred choice for a huge wind park in British waters as the Danish firm strives to catch rival Siemens (Xetra: SIEC.DE - news) .

So far, compatriot DONG Energy has been the only customer for the V164 8 megawatt (MW) turbine, which it had helped test.

Now (NYSE: DNOW - news) , Eneco Wind and EDF Energy said on Thursday they want it for their Navitus Bay project, one of the largest in the world.

"It is very positive that customers who do not have the same insights into the development of V164 as DONG, see it as the right choice to make their project economically viable," Sydbank analyst Jacob Pedersen said.

Most industry consultants rank Vestas as the world's largest wind turbine maker followed by Siemens Wind Power and General Electric Co., but it has fallen behind in the offshore sector which has been dominated by Siemens in recent years.

To try to catch up, Vestas formed MHI Vestas joint venture with Japan's Mitsubishi Heavy Industries (Other OTC: MHVYF - news) in 2013, developing the 8 MW and a smaller 3.3 MW turbines.

Siemens has a 7 MW turbine, and has said it would like to have a prototype for a 10 MW turbine ready by 2020.

Vestas stressed the announcement did not amount to an unconditional order for the 970 MW project, west of the Isle of Wight, which will be able to power up to 700,000 homes. Vestas makes its offshore turbines at a facility on the Isle of Wight.

"We are excited that another customer has acknowledged they want to work with this turbine. It broadens the acceptance of the turbine in the market place," Stewart Mullin, communications director at the joint venture, MHI Vestas, said.

DONG Energy, which has built more offshore wind farms than any other company, has ordered 32 units for its Burbo Bank Extension project and has said the V164 is preferred for the first half of a 660 MW Walney Extension project.

Both projects are off the coast of Britain, a frontrunner in offshore wind energy. (Editing by David Evans)