Wind Turbine Giant Proposes New York Factory That Would Create 420 Jobs and $500M in Local Investments

New York state could be getting a new wind turbine component factory that would create around 420 jobs and pour around $500 million into the region.

Spanish-German wind giant Siemens Gamesa announced its intention to build the factory on Monday provided that New York chooses its turbines in its third offshore wind solicitation.

“The announcement of this proposed facility in New York is a major step forward in our desire to lead the massive U.S. offshore wind market,” CEO of Siemens Gamesa’s offshore business Marc Becker said in a press release. “We’re excited by the opportunity presented by the State of New York to further develop our manufacturing footprint.”

The proposed factory would manufacture nacelles. These are a device placed on top of a wind turbine tower that encapsulates the gearbox, low- and high-speed shafts, generator and brake, as the Department of Energy explained. They can be quite large–some exceeding the size of a house. A nacelle for a 1.5 megawatt (MW) turbine could be heavier than 4.5 tons. 

The factory would be located at the Port of Coeymans, which is a relatively new port along the Hudson River around 10 miles south of Albany, according to Electrek. 

In addition to the proposed factory, Siemens Gamesa also said that it would source other materials and production procedures nearby such as steel component manufacturing, bearings and composite components. This would create a  “sustainable local supply chain ecosystem” with the potential to multiply the jobs created by the initial factory by a factor of two. 

The plan also comes as New York is reviewing the proposals submitted to its third competitive offshore wind solicitation. The goal of the solicitation is to inspire projects that will generate at least 2,000 MW of wind energy, or enough to power 1.5 million homes. 

“New York is proud to continue leading the way in offshore wind development while establishing a blueprint for building a locally-based green economy,” Governor Kathy Hochul said when she announced the solicitation in July. 

The solicitation could generate as many as 4,7000 MW, which would combine with the state’s existing wind power to reach 9,000 MW, according to Siemens Gamesa. This will aid in the Biden administration’s nationwide goal of achieving 30 gigawatts of offshore wind power by 2030.

Proposals to New York’s solicitation were due by Jan. 26, and the state is expected to announce the awards in the second quarter of 2023. The factory will depend on the state granting an award for Siemens Gamesa’s turbines. If built, it will be used to supply all of the company’s turbines along the East Coast of the U.S.

The proposal also follows the passage of the Inflation Reduction Act (IRA) in 2022, which was intended to boost renewable energy in the U.S., Reuters noted. The U.S. is now the second largest market for renewables after China. 

“We have a solid history in delivering on our commitments across the globe, including the establishment of offshore wind-focused plants in Denmark, France, Germany, Taiwan and the United Kingdom. The numerous economic, employment, and environmental benefits that offshore wind presents are enhanced by solid policies and frameworks, which are critical for financial success,” Becker said in the press release.

If the factory goes ahead, it would be Siemens Gamesa’s fourth production facility in the U.S., according to Reuters.