Wind power takes off in big way

Danish firm launches $500m research centre in Fusionopolis
Tania Tan, Straits Times 4 Nov 08;

IN STILL and sheltered Singapore, one would be right to think that harnessing energy from wind would be a lot of hot air.

But that has not stopped research in wind power from taking off here, as Singapore stays on course to becoming a global clean energy centre.

Danish wind power company Vestas Wind Systems officially launched its $500 million wind research centre in Fusionopolis yesterday.

In another move, the Government has launched a $25 million fund to help fledgling green companies turn green research into marketable applications.

Vestas' centre, in the newly launched technology hub in Ayer Rajah, will employ about 300 researchers and engineers by 2012, up from about 100 currently.

A 'rich talent pool' of engineers, designers and chemists will make Singapore an ideal choice for research, said Vestas Technology R&D president Finn Strom Madsen, even if the final products would be bound for elsewhere.

Vestas makes about 23 per cent of the world's wind generation equipment, with global demand for wind power expected to grow by 30 per cent annually. With its research centre in Singapore, it is training an eye on Asian markets.

The centre is one of only three outside Europe. The others are in India and the United States.

Wind energy is harnessed by 40- storey-tall wind turbines that rotate and convert power generated by moving blades into electricity.

Singapore has neither the pressure systems nor the space for wind farms to make the technology a viable source of energy.

But an R&D centre is nonetheless good news for Singapore, said Professor Chou Siaw Kiang, the executive director of local think-tank Energy Studies Institute.

Wind power is gaining ground in Asia-Pacific countries like China, India and Australia, which are searching for non-polluting and renewable energy sources to satisfy demand, he said.

'It's going to be big business, which Singapore can tap,' Prof Chou said.

Crude oil prices peaked at US$140 per barrel in March, from spiralling demand and trading speculation.

Though it has fallen now to about US$60 per barrel, the cost of oil will continue to rise. Fossil fuels are also the biggest culprit in climate change.

'It's a global issue necessitating a global solution,' said Minister for Trade and Industry Lim Hng Kiang yesterday at the welcome dinner for the inaugural Singapore International Energy Week.

More than 2,500 delegates will be in town for the five-day event of seminars and workshops in cutting edge technology for renewable energy, such as solar, wind and fuel cells.

Minister Mentor Lee Kuan Yew will deliver the first Singapore Energy Lecture today.

'Singapore's lack of energy options means that (energy) dilemmas will be felt more acutely by us,' said Mr Lim.

More cheap and clean energy solutions are needed, he noted.

To give the industry another boost, the Government has set up a $25 million fund to help deliver clean energy research from lab to store shelf over the next five years, said Mr Lim.

The Energy Research and Development Fund will provide financial support to help companies equip themselves with the expertise and infrastructure for such studies.

The clean energy sector is a key growth area which is expected to generate 7,000 jobs by 2015.

Wind turbine firm to expand R&D team
Jamie Lee, Business Times 4 Nov 08;

VESTAS Wind Systems, the world's largest wind turbine maker, plans to hire about 300 people for its regional research centre in Singapore by 2012, a senior executive said.

The credit crunch will not reduce the $500 million that the company has committed over the next 10 years to the centre, Vestas Technology R&D president Strom Madsen told BT before its opening ceremony yesterday. 'If it goes anywhere, it can only go up,' said Mr Madsen of the figure, adding that about $230 million will be spent over the next five years to boost research.

This will include work with local institutions such as Nanyang Technological University, National University of Singapore and A*Star to look at the materials used in turbines and their design, to make them more durable and efficient.

The company, which counts BP and Shell as customers, has hired about 100 people here this year, most of them Singaporeans or permanent residents. Last year, Vestas said that it would hire 150 people in Singapore by end-2009. 'We expect to take that to 300 people by end-2012,' Mr Madsen said yesterday.

Talent is critical in wind energy research, he said. 'The biggest bottleneck we face is talent.'

According to him, some of the best minds can be found in Asia. And Vestas, listed in Copenhagen, has benefited from the global financial crisis because demand for talent is slowing, he noted.

Vestas has supplied about 36,000 turbines globally, of which about 25,000 are in Europe. The company is looking to China as the next emerging market. 'We are investing heavily there,' said Mr Madsen, adding that Vestas is building a factory in Inner Mongolia. But there is competition from local players. About 40 Chinese wind turbine makers have set up shop in the past few years.

But Chinese companies tend not to offer service contracts to customers, unlike Vestas, Mr Madsen said. 'Some of their customers and suppliers are going to have problems because it's an overnight relationship.'