GE Vernova blames latest offshore wind blade failure on high winds, shares rise

Summary

• GE Vernova reports unrelated turbine blade failures
• Latest blade accident blamed on strong winds during storm
• Three blade accidents in 4 months raise concerns for GE Vernova

Energy equipment maker GE Vernova (GEV.N), opens new tab on Friday said recent turbine blade failures at two offshore wind farms in the United States and the United Kingdom are unrelated and blamed the latest mishap on strong winds.

The statement comes as the company has been grappling with fallout from three separate blade accidents in four months at two wind farms that are still under construction. GE Vernova shares were up 3% following the announcement.

The most recent occurred on Aug. 22 at the Dogger Bank wind farm off the coast of Yorkshire in the North Sea, a little over a month after a blade fell apart at the Vineyard Wind project off the coast of Massachusetts and sent debris onto nearby beaches. A blade at Dogger Bank was also damaged in May during installation.

The Vineyard Wind blade damage was blamed on a manufacturing flaw, raising concerns about a more widespread issue.

The failure this month occurred when the turbine rotor was locked in place and the yaw system, which orients the rotor towards the wind, was disabled, the company said, leaving it vulnerable during a large storm. The turbine was in the process of being commissioned.

GE Vernova said it was taking corrective actions to eliminate risks during such events.

"We continue to investigate the recent offshore wind events involving our blades and are taking every necessary step with customers and authorities to safely move forward with the installation of the Dogger Bank and Vineyard Wind farms," GE Vernova said in a statement. "Our current analyses indicate that the causes of the recent blade events are unrelated."

Two analysts, Chris Dendrinos of RBC Capital Markets and Graham Price of Raymond James, said the news was positive for GE Vernova because it did not point to a broader manufacturing problem.

"It is unfortunate especially given the concerns and tensions stemming from the blade failure at Vineyard, but this appears to be an isolated event and a risk the company has to deal with due to unpredictable operating conditions in the North Sea," Dendrinos said in an email.

Dogger Bank is a partnership between Britain's SSE Renewables and Norwegian companies Equinor (EQNR.OL), opens new tab and Vargronn.

Vineyard Wind is a joint venture between Avangrid (AGR.N), opens new tab, the U.S. arm of Spain's Iberdrola (IBE.MC), opens new tab, and Denmark's Copenhagen Infrastructure Partners.

GE Vernova shares were up $5.66, or 3%, at $197.02 in afternoon trading on the New York Stock Exchange.