Professional talents and technologies are the lifeblood that sustains the growth of an industry. As Taiwan gradually forms a domestic supply chain for offshore wind energy, Tian Li Offshore Wind Technology Co. Ltd. is sending 53 technicians to Denmark to receive training in the manufacturing of the blades of offshore wind turbines. The three-month program is designed to fill a major gap in the supply chain. Established in 2009, Tian Li specializes in the production and maintenance of turbine blades.
The first 11 of the 53 Tian Li technicians already flew to Denmark on January 8. According to the chairman of the company Wu Kun-da, his technicians will learn about new technologies for the manufacturing of turbine blades and acquire an advanced management system for turbine production lines. These technicians will become pioneers in the domestic production of offshore wind turbines. The expertise obtained from the Danish offshore wind industry will also provide Tian Li with the capability to establish itself as the first manufacturer of offshore wind turbine blades outside Mainland China in the wider Asia-Pacific region.
As a key component, the blades account for around 30% of the total value of a whole offshore wind turbine. Wu said that Tian Li has achieved the status of being one of the first manufacturers in the global offshore wind industry to produce the blades of some of the world’s largest offshore wind turbines. The largest carbon fiber blade that the company has been contracted to manufacture reaches 85m.
Tian Li has also earned the position of being the first turbine blade manufacturer contracted by Denmark’s MHI Vestas Offshore Wind A/S (MVOW) in the wider Asia-Pacific region. The government now points to Tian Li as a model in its strategy for promoting localization of manufacturing since the company is helping to establish a totally new industry on the island. Once this industry takes off, it will generate additional growth momentum in other domestic supply chains, such as those for resin, carbon fiber, and other composite materials.
The team of technicians will be led by Xiao Wei-cheng, CEO of the company. Xiao said that domestic suppliers of carbon fiber products have mostly been providing parts for golf clubs, badminton rackets, fishing rods, and other sporting goods. They can also manufacture more advanced products such as aircraft components. However, carbon fiber suppliers will now tackle the complex challenge of building an enormous wind turbine blade with a length of 85m. Xiao is hopeful that with contributions from his company and partners in other sectors, the domestic offshore wind industry will truly take off this year.
Tian Li has invested more than NT$3 billion in building a manufacturing facility at Taichung Port. It is currently the only production site for offshore wind turbine blades outside Mainland China in the wider Asia-Pacific region. Once up and running, the facility will initially focus on the production of the blades for the MVOW V174 offshore wind turbine. The setup of hardware and software, along with the delivery of the turbine molds, will begin this March. By this April, the entire facility should be completed and ready to enter operation. The simulation of the production flow is scheduled for this June, and the first batch of the first-ever domestically made offshore wind turbine blades is expected to roll out of the facility this July.
Each of the three blades of the V174 has a height that is equivalent to a 26-story building (or as mentioned earlier, 85m in length). Its weight is 35 metric tons. The power output of the turbine can reach up to 9.5MW.
Wu said that the annual production capacity of the facility for turbine blades will be around 180 pieces or 60 sets. To reach that level, the facility will be operating ceaselessly 24/7. He also noted that the facility will be able to to immediately process orders for blades with lengths of 110m or less. These blades are for turbines that are 12.5MW or lower in power output. Manufacturing blades in different sizes will only require switching molds. The production line does not need to undergo an extensive modification.
Marina Hsu, director of Copenhagen Infrastructure Partners K/S (CIP) for Taiwan-based projects, pointed out that her firm has ordered a substantial amount of domestically made turbine blades in the development of new offshore wind farms that are located along the western coast of the island. This procurement will not only provide sufficient economies of scale for Tian Li but also meet the local content requirement set by the government of Taiwan. Hsu also believes that the facility at Taichung Port will succeed in becoming the first production site for offshore wind turbine blades outside Mainland China in the wider Asia-Pacific region. Nevertheless, based on the timetable envisioned by the government, domestic production of turbine blades will not be formally realized until 2024.
CIP is currently participating in the development of Zhongneng and Xidao Wind Farms that are situated off the coast of Changhua County. Based on their scales and turbine installation plans, the amount of turbine blades that each of these two project needs is around 100 pieces. However, CIP has placed an order of 300 pieces in order to jumpstart local manufacturing. The extra quantity allows CIP to meet the local content requirement so that it can proceed further with project development.
Some advice for proceeding with Phase 3 of offshore wind development
A public meeting will soon be held to explain the next stage in the development of the island’s offshore wind market. Also known as Phase 3 or the Zonal Development Phase, this stage involves the allocation of generation capacity among the demarcated zones in the areas where new offshore wind farms will be constructed.
Regarding the upcoming public meeting, Wu advised that the government should remain committed to the local content requirement and raise the share of domestic participants in the supply chain. Wu also urged the government to expand and upgrade the island’s power grid system ahead of time so that Taiwan will receive more attention from investors and renewable project developers in other regions. The base of domestic offshore wind market will grow as it accommodates more entrants.
Although the amount of generation capacity assigned to each zone or wind farm is set according to the score given by the government for that particular bid or project application. Wu suggested that the allotted generation capacity should be more or less evenly distributed among project developers. Domestic manufacturers that are involved in the offshore wind industry worry that they will be at a disadvantage in future price negotiations if the majority of the allotted generation capacity is divided among a few project developers.
Wu’s final recommendation pertains to the promotion of domestic project developers. Various incentives could be implemented to encourage private-sector entities in Taiwan to invest, build, and operate offshore wind farms.
(Photo credit: TechNews.)
