Company’s decision aims to take advantage of the U.S. green package, which guarantees investments in the climate agenda
05/07/2024
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João Gualberto — Foto: Rogerio Vieira/Valor
WEG has announced it will produce wind turbines for onshore generation to serve the American market at its motor and high-voltage generator factory in Minneapolis.
João Paulo Gualberto da Silva, managing director at WEG Energia, says that the decision approved by the board took into account the benefits offered by the Inflation Reduction Act (IRA), Joe Biden’s green package that guarantees investments in the climate agenda aimed at attracting resources for clean energy.
“The IRA provides for around $370 billion in incentives for the energy transition over 10 years and credits for those who manufacture components locally, such as the hub [the part where the blades fit] and the nacelle [the structure that houses the wind turbine’s components], with a federal income tax rebate,” said Mr. Gualberto.
The executive says that the companies do not receive any incentives to manufacture the equipment, but customers who buy from companies that manufacture nacelles and hubs in the United States receive an additional $2.5 for every megawatt-hour produced.
“So we’re going to produce the nacelle and hub in Minneapolis, but we don’t yet have suppliers for the blades and towers,” he said. “We’re going to start developing the supply chain this month.”
The idea is to offer a 7 MW model, the largest ever produced in the Americas and developed in partnership with Petrobras. WEG’s intention is to remove the dependency of Brazil’s wind energy business, which has experienced several bumps in the road over the last 12 years, and to develop a more stable market that is growing by an average of 14 GW per year. The company also manufactures in India. The company’s plan is to obtain around 1 GW of market share, following its strategic plan to install around 3 GW worldwide.
Exploring new geographies is one of the manufacturer’s strategies, since the Brazilian market is currently stagnating and is experiencing a process of deindustrialization of the supply chain. For this reason, the company opted for a temporary shutdown of its wind turbine line in Jaraguá do Sul (state of Santa Catarina).
The situation is different around the world. The global wind industry grew by 50% in 2023 and reached 117 GW in new capacity, according to data from the Global Wind Energy Council (GWEC).
The plant in Minneapolis has the modular capacity and operational flexibility to handle the new product. According to WEG, the plant will be able to start supplying the first equipment from 2026. In the meantime, the company is starting to develop its local supply chain.
*Por Robson Rodrigues — São Paulo
Source: Valor International