Top Deal: Nordex And RWE Agree Major Multi-year Order

Essen, Germany - The Essen-based energy group RWE and the wind turbine manufacturer Nordex have signed a major contract on the fringes of the Wind Europe conference in Bilbao. Under the terms of the agreement, Nordex will be supplying RWE with wind turbines with a capacity of 800 MW over the next 2.5 years. The Nordex share price rises.

RWE had announced that it would further increase the pace of expansion in renewable energy projects. The Group intends to deploy around 120 wind turbines in projects in European markets. The two companies have already been working together for several years and RWE says it currently operates 53 wind farms with Nordex wind turbines in seven countries

Under the agreement, RWE will mainly use the N163 turbine type with a flexible rated output of up to 6.8 MW. Nordex turbines of type N175 (up to 6.8 MW) and N149 (up to 5.9 MW) are also included in the scope of supply and can be deployed in RWE's core markets in Europe if required. In addition, both companies have signed a multi-year service agreement covering the maintenance and repair of the onshore wind farms. The two companies have agreed not to disclose the financial details of the deal.

"By 2030, we want to increase our installed capacity in the onshore wind sector from the current 8.6 gigawatts to 14 gigawatts. To strengthen our supply chain, we are planning for the long term and relying on strong partners. This supply agreement with Nordex optimally complements existing contracts and secures additional capacity for us to achieve our ambitious growth targets," said Katja Wünschel, CEO RWE Renewables Europe & Australia, welcoming the agreement.

"We look forward to further expanding our cooperation with RWE. Not only have we shared many successful projects with RWE in the past, but we also share the vision of intensively driving forward the energy transition and thus making a joint contribution to Europe’s energy security," comments Nordex CEO José Luis Blanco on the agreement with RWE.

Nordex shares are up today in a generally friendly stock market environment and are currently up 3.98 percent at EUR 11.9 (4:00 p.m., Stuttgart Stock Exchange).

Source: IWR Online, 21 Mar 2024