DECC dishes out first grant from £5m offshore wind supply chain pot


David Brown Gear Systems will today become the first business to benefit from a £5m fund designed to boost the emerging offshore wind supply chain, as the government published research revealing offshore wind has “tremendous potential” to cut the UK’s reliance on imported fossil fuels and help meet renewable energy and carbon reduction targets.

The Department of Energy and Climate Change (DECC) will today confirm it has awarded a £1.2m grant to Yorkshire-based David Brown to help develop a lightweight and compact gearbox for a next generation wind turbine model designed by Samsung.

David Brown won a major contract to develop the gearbox for Samsung Heavy Industries’ 7MW offshore wind turbine, which is expected to be installed in harsh conditions far offshore. David Brown has also recently been granted planning permission to build a wind turbine gearbox research and innovation centre in Mirfield, Yorkshire.

Ian Farquhar, managing director of wind energy at David Brown, said its new gearbox could help cut the cost of offshore wind power by up to five per cent.

“At David Brown we strive to be leaders in the gearing technologies of tomorrow and this grant will allow us to reduce the financial risk of bringing a beneficial product to market,” he said.

“This is a major boost to both David Brown and the UK supply chain, not only in terms of immediate supply partners but additionally, the wider opportunities that will develop as a result.”

Energy and climate change minister Greg Barker said the award underlined the government’s commitment to making the transition to a low carbon economy.

“The coalition is determined to drive ambitious green growth and this is putting our money where our mouth is,” he said. “This cash shows we are really shifting gear when it comes to supporting innovation and offshore wind.”

A DECC spokeswoman said David Brown will be the first of up to eight firms to secure funding from the £5m Offshore Wind Component Technologies Innovation fund, which was launched in November in collaboration with the Technology Strategy Board. A second call for funding proposals is expected to be launched in spring this year.

DECC ministers are seeking to highlight their commitment to wind power, in the wake of a report by the Guardian yesterday revealing that billions of pounds’ worth of investment in Britain’s energy infrastructure is on hold or uncertain because of concerns over the government’s commitment to wind energy.

A spokesman for RenewableUK told BusinessGreen David Brown’s grant was a tangible example of how the government is playing a key role in the development of the next generation of offshore wind turbines.

“As the global leader in offshore wind, the eyes of the world are on the UK,” he said. “The government’s firm commitment to supporting innovation through schemes like this shows that those at the heart of the coalition are determined to work with the industry to build the low carbon economy that Britain needs and deserves.”

The news comes as the government launches a cross-departmental report revealing offshore wind has “tremendous potential” to replace aging power plants, boost energy security, and help meet greenhouse gas and renewable energy targets.

It predicts innovations could help drive down the currently high cost of offshore wind energy by 25 per cent by 2020 reducing the cost to about £100/MWh, making it broadly competitive with other forms of energy, particularly if fossil fuel prices continue to rise.

The report, written by DECC and the Department for Business Innovation and Skills, also found offshore wind could contribute an estimated £7-35bn to gross domestic product to 2050, but only if significant private sector investment in innovative new technologies is backed by public sector support.

“To unlock this opportunity there is a strong case for targeted public sector intervention to catalyse private sector investment - there are significant market failures to innovation and the UK cannot exclusively rely on other countries to develop the technologies within the required timescales,” it said.

You can return to the main Market News page, or press the Back button on your browser.