Swedish alternative power puts wind in ABB's sails

["Sandy Perle" <sandyfl@earthlink.net>]

Swedish alternative power puts wind in ABB's sails

STOCKHOLM, July 5 (Reuters) - Sweden's wind power market is set to 
boom and ABB, the Swiss-Swedish engineering group making power 
stations to trains, could be well placed to benefit. 

``The interesting thing is whether ABB's new technology can make the 
Swedish government expedite the development of Swedish wind parks,'' 
Birger Madsen, analyst and head of Danish wind power consultancy BTM 
Consult, told Reuters. 

Sweden's largest power firm Vattenfall is about to build a three-
megawatt (MW) wind plant on Sweden's south coast, based on ABB's new 
Windformer technology and financed by the Swedish energy authorities, 
Energimyndigheten. 

``In the near future we will try to enter further projects in Sweden 
and other countries -- primarily offshore, as the technology is most 
effective for 3.0-3.5 MW wind turbines,'' Per Segerstrom, president 
of ABB Distribution, told Reuters. 

The Windformer technology uses a high-voltage generator allowing 20 
percent higher power production and lower costs than conventional 
wind turbines using gearboxes and transformers. 

At present BTM Consult forecasts Sweden will install wind turbines 
generating 50 MW this year against 44 MW last year. This will rise to 
75 MW in 2001, 200 MW in each of 2002 and 2003, and double in 2004 to 
400 MW. 

``During 2002-2004 the increasing numbers reflect expectations of 
several offshore wind parks,'' Madsen said. 

WIND TO REPLACE NUCLEAR POWER 

Sweden plans to draw on wind power to compensate for the closure of 
nuclear power stations over the next few years. The last reactor at 
the first station affected, Barseback, is likely to close next year. 

``Installing wind turbines depends greatly on state subsidies. At 
present, wind energy cannot replace nuclear power. Sweden needs more 
wind power capacity,'' asid a spokesman  for the Elforsk research 
institute owned by Sweden's electricity industry. 

The Swedish government does not have a clear policy on green energy 
but Prime Minister Goran Persson wants to produce an amount of wind 
power equivalent to the two nuclear reactors at Barseback, the 
industry ministry said recently. 

Forty-seven percent of Sweden's 143 terrawatt hour electricity 
consumption was covered by nuclear power last year and another 47 
percent by hydropower, with wind power accounting for only 0.3 
percent. 

WILL ABB BECOME A WINDMILL MAKER? 

ABB could work with Swedish-Norwegian wind turbine maker ScanWind on 
further Swedish projects as a partner in manufacturing as well as a 
supplier of generators, Madsen said. 

``It is possible that ABB wants to join the wind turbine producing 
market,'' he said. 

This possibility has been reflected on the Copenhagen stockmarket, 
where the share price of the world's leading wind turbine maker, 
Vestas Wind Systems, lost 18 percent last month from its year-high of 
335 Danish crowns on May 23, mainly on speculation ABB could enter 
the market. The share has regained some ground and was trading at 295 
on Wednesday. 

The world number two wind power company, NEG Micon, another Danish 
firm, fell roughly 20 percent in the same period to 269 Danish 
crowns, but has reversed part of the loss and was trading at 283 on 
Wednesday. 

``It's not our primary target or strategy to produce the whole 
windmill, including towers and sails. We will leave that to somebody 
else along with the assembling,'' ABB's Segerstrom said. ``But we 
would indeed like to cooperate further with companies in that area.'' 


ABB will have to tread carefully, however, as it supplies generators 
to wind turbine makers and would not want to make enemies of this 
market, analysts said. 

ABB EYES $1 BILLION MARKET 

One month ago ABB said it expected its share of the world market for 
renewable energy to reach $1.0 billion in five years. 

As part of this strategy ABB unveiled its Windformer technology, but 
analysts said rivals could appear. 

``ABB's generators will be on the market in 2002 and 2003 at the 
earliest and if this technology really works some of its engineering 
rivals can make it as well, companies like Siemens, Alstom or General 
Motors,'' one analyst said. 

Germany, Spain and Denmark are currently the biggest windmill markets 
in Europe and Danish producers Vestas amd NEG Micon account for 
approximately 50 percent of the world market. 

------------------------------------------------------------------------
Sandy Perle					Tel:(714) 545-0100 / (800) 548-5100   				    	
Director, Technical				Extension 2306 				     	
ICN Worldwide Dosimetry Division		Fax:(714) 668-3149 	                   		    
ICN Biomedicals, Inc.				E-Mail: sandyfl@earthlink.net 				                           
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Costa Mesa, CA 92626                                      

Personal Website:  http://www.geocities.com/capecanaveral/1205
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