12.07.2015 Views

Aarhus – Capital of Wind Energy - Aarhus.dk

Aarhus – Capital of Wind Energy - Aarhus.dk

Aarhus – Capital of Wind Energy - Aarhus.dk

SHOW MORE
SHOW LESS
  • No tags were found...

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

<strong>Wind</strong> turbines on your mobile and the internetContentsMillWatcher is a uniquetool for web-based monitoring<strong>of</strong> wind turbines.It doesn’t matter if you’rethe proud owner <strong>of</strong> asingle turbine or <strong>of</strong> ahuge wind farm, you canstill monitor your turbinesfrom your mobile or overthe internet.When the founder <strong>of</strong> MillWatcher, Ulrik NejsumMadsen, was awarded the prize as theBest Danish Entrepreneur in 2005, it was arecognition <strong>of</strong> the fact that the product he hasdeveloped is far better and more user-friendlythan most.MillWatcher <strong>of</strong>fers web-based monitoring <strong>of</strong>wind turbines. At regular intervals MillWatchercontacts the wind turbines connected to the systemto retrieve a range <strong>of</strong> data from them. Thedata is then transmitted directly to the owner bySMS text message or email, or the owner canchoose to log on to his own webpage to checkeven more details on the turbine, its status andproduction data.”I started MillWatcher because I’ve always beeninterested in renewable energy, and becauseI could see that many owners <strong>of</strong> wind turbinescould benefit from an easy and cheap way tomonitor their turbines. It doesn’t matter howOKmany turbines you’ve got or where they’re located,MillWatcher allows owners to constantlymonitor their turbines’ performance and also enablesthem to spot any errors or malfunctioningmuch sooner”, says the founder <strong>of</strong> MillWatcher,Ulrik Nejsum Madsen.Today, a large <strong>of</strong> number <strong>of</strong> wind turbine ownersin Denmark as well as abroad already use Mill-Watcher to monitor their turbines. MillWatcherworks equally well for owners <strong>of</strong> a single turbineand large-scale wind farms and it can beused with all types and makes <strong>of</strong> turbines. Mill-Watcher users have access to a webpage givingthem all relevant information about their turbineand its operational status. MillWatcher is simple,easy to use and allows owners to keep a closeeye on their wind turbines at all times.MillWatcher can <strong>of</strong>fer both standard and customisedsolutions.Introduction: Towards a Green EconomyThe transition to sustainable technologies is a multibillion dollar business. <strong>Aarhus</strong> has thepotential to play a leading role. 6#1The Danish LegacyDenmark houses the stronghold <strong>of</strong> the wind industry. It provides a solid platform in today’scompetition. 10#2The World’s Tightest <strong>Wind</strong> Cluster<strong>Aarhus</strong> and the Central Denmark Region has the world’s highest concentration <strong>of</strong> windbusiness. In no other country or region you will find the entire production chain compressedin such a small area. 16#3Vestas: The Grand Old Man <strong>of</strong> the IndustryThe road to world domination for turbine manufacturer Vestas has been long and winding.The company history illustrates how wind energy has evolved from local enterprise to globalbusiness. 26#4The Secret Ingredient: A Unique Supply ChainThe leading turbine manufacturers have spawned a strong network <strong>of</strong> local suppliers in CentralDenmark. A long tradition for close cooperation and cross-sector partnerships is a major assetin the global competition. 30#5Incubator for the Global <strong>Wind</strong> IndustryThe leading players in the global wind industry have two main concerns when they locate theiroperations: proximity to big markets, and access to cutting-edge skills. <strong>Aarhus</strong> <strong>of</strong>fers both. 36#6A Knowledge Broker in the Green EconomyCooperation across sectorial, industrial, and disciplinary boundaries is a hallmark <strong>of</strong> theDanish wind cluster. This sustains the <strong>Aarhus</strong> ambition to become a leading knowledge andinnovation hub <strong>of</strong> wind energy. 42#7<strong>Aarhus</strong> Aspiring for Green LeadershipThe second largest city in Denmark has committed itself to carbon neutrality in 2030. <strong>Wind</strong>power has been designated as a key instrument. 48MillWatcher is located in the Danish town <strong>of</strong> Skanderborg, and you can contact us by phone: +45 7027 7047 or email: info@millwatcher.<strong>dk</strong><strong>Aarhus</strong> <strong>–</strong> <strong>Capital</strong> <strong>of</strong> <strong>Wind</strong> <strong>Energy</strong> 5


IntroductionThe global transition to asustainable economy isunder way. <strong>Aarhus</strong> can playa major role.Towards a GreenEconomy• A new global green economy is emerging• The world’s largest nations are set to invest 184 billion dollars in green technologies in the coming years• <strong>Wind</strong> power is one <strong>of</strong> the principal technologies in the transition• Denmark can play a leading role with <strong>Aarhus</strong> as the global centre for developing the wind energy systems<strong>of</strong> the futureThe UN international climate summit in Copenhagen inDecember 2009 was a wake-up call to the world’s nationsto take global warming seriously. The summit itself was,ultimately, a disappointment. The global leaders did not setsufficiently ambitious or responsible climate goals. But themany economic and scientific analyses that were publishedduring the run up to the meeting have <strong>–</strong> along with theincreasing economic crisis and the unstable situation in oiland natural gas countries such as Iraq <strong>–</strong> increased awarenessthat a U-turn is needed.In particular, the so-called Stern Report from theformer chief economist <strong>of</strong> the World Bank, Sir NicholasStern, has convinced politicians, business leaders, andcitizens alike that, on economic grounds alone, a revolution<strong>of</strong> the fossil based, CO2-polluting energy infrastructureis unavoidable. “If the countries <strong>of</strong> the world do notbegin the change to sustainable, non-CO2-emitting andlocal energy sources, climate changes created by fossilbasedenergy systems will be expensive <strong>–</strong> very expensive,”warned the report.As everybody knows, money talks <strong>–</strong> in a language whichboth businesses and government leaders understand. Evenif politicians around the world have hesitated to commit toparticular, binding national CO2-reductions, they have setbillions aside for green crisis packages to reboot the economy.At the same time, a large number <strong>of</strong> business leadersare queuing up to accelerate a comprehensive turnaroundfrom the oil economy to an economy based on sustainableenergy sources. Even more are acutely aware that this is aradical change which won’t just save money, but also earnthem money.It is in the light <strong>of</strong> this change that this report on Denmark’s“wind cluster” should be read. A new, global, greeneconomy is being built. The world finds itself in the midst<strong>of</strong> an energy revolution. As the incubator for the globalwind industry and home <strong>of</strong> the world’s largest wind turbinemanufacturer, the second largest city in Denmark, <strong>Aarhus</strong>,and the surrounding region <strong>of</strong> Central Denmark will play amajor role in that revolution as a bench mark, inspirationand knowledge bank for the rest <strong>of</strong> the world.The fact that a fifth <strong>of</strong> the Danish electricity productionemanates from wind energy is a world record <strong>–</strong> which theworld’s superpowers ardently want to break. As the US president,Barack Obama, said in a April 2009 speech at a factoryin Newton, Iowa, elaborating on the greatest nationalgreen investment package in history: “Today, America producesless than 3 percent <strong>of</strong> our electricity through renewablesources like wind and solar. Meanwhile, Denmark producesalmost 20 percent <strong>of</strong> their electricity through wind.”Two months earlier, Obama had managed to pass agigantic stimulus package through Congress in order torestart the crisis-struck US economy. A record 66 billiondollars were earmarked for green investments, includingwind energy.6 Mondaymorning <strong>Aarhus</strong> <strong>–</strong> <strong>Capital</strong> <strong>of</strong> <strong>Wind</strong> <strong>Energy</strong> 7


During the financial crisis and climate summit years <strong>of</strong>2008 and 2009, the G20 countries launched extraordinarycrisis packages totalling no less than 184.1 billion dollarsfor green investments. The vast majority <strong>of</strong> these will beimplemented during 2010 and 2011, and most <strong>of</strong> thesestimulus packages have earmarked money specifically forwind energy. The total investment in green technologies,including these stimulus package billions, is expected tomount to 200 billion dollars already this year <strong>–</strong> an increase<strong>of</strong> almost 25 percent compared to the world’s combinedgreen investment in 2009. See figure 1.The Inspiration Catalogue <strong>of</strong> the <strong>Wind</strong> IndustryDespite the failed climate summit, the first crucial steps towardsa far-reaching reorganisation <strong>of</strong> the fossil economyhave already been taken. Even though it is a long way tothe goal, the world has, mentally, reached the point <strong>of</strong> noreturn from where future progress can only move towardsan increasingly green economy.Giant Leap in Green InvestmentsNational stimulus targeted at green investment, bn dollarsCanadaBrazilFranceSpainUKAustraliaGermanyJapanEUKorea Rep.Global clean-tech investments, 2004-2010, bn dollars46+56%ChinaUSTotal+57%701.02.52.73.63.74.14.28.612.727.846.966.6+43%110Figure 1: Green investments have leapfrogged since 2004. Themajority <strong>of</strong> green stimulus initiatives will be implemented in2010 and 2011.Source: Bloomberg New <strong>Energy</strong> Finance: Fact Book 2010.184.1+23%+10% -7% 2001731571622004 2005 2006 2007 2008 2009 2010The change will be driven by industries which employsustainable energy sources such as wind power; solarenergy, biomass- and waste-fuels, bi<strong>of</strong>uels; hydropower,subsoil heating, and wave energy. <strong>Wind</strong> energy is amongthe industries in which the fastest growth is predicted.From an annual market <strong>of</strong> around 5,000 megawatts in2000, the annual output <strong>of</strong> the global wind energy markethas increased eightfold to around 40,000 megawattsin 2009 and, according to the latest predictions from theinternationally renowned analysts BTM-Consult (based,incidentally, in Central Jutland), is set to increase to over70,000 megawatts over the next five years. See figure 2.In economic terms, BTM estimates that the combinedglobal market for wind turbines in the next five years willgrow to around 350 billion dollars <strong>–</strong> roughly equivalent toDenmark’s annual GDP.In this process, the Danish wind cluster <strong>–</strong> concentratedin the Central Denmark belt with <strong>Aarhus</strong> as its capital <strong>–</strong>can play an essential role as a business environment, skillscentre, experience bank, and global role model. The Danishcluster is one <strong>of</strong> the world’s oldest, most geographicallyconcentrated, and most innovative.This report further investigates the cluster’s assets andliabilities and analyses how it can fully realise its potential.• DENMARK <strong>–</strong> THE NESTING BOX OF WIND ENERGY.Denmark was the first country in the world to developand implement wind power in its energy production.Today, it is the leader in the global marketharbouring leading international manufacturers, asolid supply chain, and a strong research environment.Behind Denmark’s success lies a political vision<strong>of</strong> energy self-sufficiency. This has paved the way fora close cooperation between public authorities, researchinstitutions, the business community, NGOs,and citizens. See page 10.• AARHUS IN THE EYE OF THE HURRICANE. 87 percent<strong>of</strong> the combined turnover from wind energy inDenmark is generated by businesses in the Greater<strong>Aarhus</strong> area. Around 11,000 <strong>of</strong> the 25,000 employeesin the Danish wind industry work less than onehour’s drive from <strong>Aarhus</strong>. Many <strong>of</strong> the world’s largestand most globally important wind companies, suchas Vestas, Siemens, Gamesa and Suzlon, are basedhere. See page 16.• LEARNING FROM THE WIND GIANT. Over the last thirtyyears, the wind giant Vestas has slowly moved awayfrom its home town, Lem, on the North Sea coast,through Ringkøbing and Randers towards <strong>Aarhus</strong>,where the new corporate headquarters <strong>of</strong> Vestas willopen in 2011. During the 114 kilometer journey, Vestashas undergone an extraordinary transformation,from a small forge to a global market leader witharound 22,000 employees worldwide; a market share<strong>of</strong> 12.5 percent; and a turnover <strong>of</strong> 49.4 billion kronerin 2009. See page 26.The Long BoomGlobal wind power capacity, 1990-2009 (actual) and2010-2014 (forecast), Megawatt80,00060,00040,00020,00001990ActualForecast, EuropeForecast, USForecast, AsiaForecast, rest <strong>of</strong> worldFigure 2: The annual global output <strong>of</strong> wind energy hasincreased eightfold between 2000 and 2009.Source: BTM Consult, March 2010.1995 2000 2009 2014• THE WORLD’S STRONGEST SUPPLY CHAIN. One <strong>of</strong>the strongest assets <strong>of</strong> the Danish wind clusters is theextensive bedrock <strong>of</strong> suppliers to the wind turbineindustry that has gathered in Central Denmark. Noother place in the world has such a high concentration<strong>of</strong> businesses. It comprises the entire supply chain <strong>of</strong>design, development and production <strong>of</strong> wind turbineparks. Around 80 businesses have grown up aroundthe major manufacturers, and many have contributedsignificantly to the industry’s impressive technologicaldevelopment since its inception. See page 30.• INCUBATOR FOR THE GLOBAL WIND INDUSTRY. In thefuture, access to a qualified workforce, core technologicalskills and lucrative markets will be crucial for theincreasingly global wind industry. The most significantglobal powerhouses are currently in Denmark, Germany,Spain, Great Britain, the US, India, and China. Dueto unique system knowledge and globalisation experience,the <strong>Aarhus</strong> wind cluster is an especially importantdestination for new global wind industry players.See page 36.• GLOBAL CENTRE FOR FUTURE ENERGY THINKING. Tokeep the rise in global temperatures below two degreesCelsius, the energy systems <strong>of</strong> the future will have tobe based on 100 percent sustainable energy. This posestremendously high demands on the design, dimensioningand integration <strong>of</strong> sustainable energy systems.Along with a number <strong>of</strong> industry leaders, training andresearch institutes in <strong>Aarhus</strong> have set out to developroadmaps for this development. Among the initiativesis the establishment <strong>of</strong> a 35,000 square metre energy researchcentre, Navitas, on <strong>Aarhus</strong> Harbour. By 2014, itwill house 2,000 students and more than 300 businesspeople, researchers, and teachers. See page 42.• A FRONTRUNNER OF SUSTAINABILITY. <strong>Aarhus</strong> wasthe first city council in Denmark to map its CO2emissions, gaining invaluable insights into the potentials<strong>of</strong> reduction. The council has a clearly stated goalto be CO2-neutral by 2030, and wind energy plays acrucial part in achieving this. The strategy includes anumber <strong>of</strong> initiatives: erecting more wind turbines;establishing research and business partnerships; andinvesting further in better exploitation <strong>of</strong> wind power.One goal is to optimise framework conditions forthe development <strong>of</strong> the region’s already remarkablewind turbine industry. See page 48.This report is produced by Mandag Morgen in associationwith the City <strong>of</strong> <strong>Aarhus</strong>.8 Mondaymorning <strong>Aarhus</strong> <strong>–</strong> <strong>Capital</strong> <strong>of</strong> <strong>Wind</strong> <strong>Energy</strong> 9


#1Denmark was a first mover inthe field <strong>of</strong> wind energy. This isa strong asset today.The Danish Legacy• Denmark was a pioneer <strong>of</strong> wind energy• The combined effort <strong>of</strong> grass roots movements, political visionaries, and enterprising manufacturerscreated the world’s first green superpower• Even today, this legacy provides a strong platform for global competitionIn the wake <strong>of</strong> the 2009 climate summit in Copenhagen,Denmark has won international acclaim for its early commitmentto wind energy. Denmark is recognised as thefirst country in the world to utilise wind turbines considerablyin its energy production. And in less than threedecades, the wind industry has become a heavyweight incorporate Denmark. Today, the Danish wind turbine industryis a global leader. It comprises top internationalmanufacturers, a solid supply chain, and a strong researchcommunity. Despite the financial crisis and global recession,manufacturers and suppliers achieved a combinedturnover <strong>of</strong> 91.4 billion kroner in 2009 <strong>–</strong> underlining theirposition as a strong and expanding industry. See figure 1.”Denmark has developed new green solutions whilegenerating economic growth. This has made Denmarka benchmark and the center <strong>of</strong> the world’s attention. Formany agents in the market, ‘Do what Denmark does’ isthe strategic starting point,” says Christian Kjær, managingdirector <strong>of</strong> the Brussels-based European <strong>Wind</strong> <strong>Energy</strong> Association(EWEA).<strong>Wind</strong> energy is a large market, and it requires substantialtechnological, scientific, and financial muscle to playit. Unlikely as it seems, a small country like Denmark hasbeen able to take and defend a leading position in the racefor growth.To a great extent, the secret behind the success <strong>of</strong> theDanish wind industry can be found in its early days.The popular view, at least in Denmark, is that the industryemerged as hippies in the 1970s began to build windmillsto ‘live in harmony with nature’. This is not entirelyuntrue, but hardly covers the full story. The fact is that it coincidedwith a strong political wish to obtain self-sufficiencyin terms <strong>of</strong> energy. Denmark’s big windpower push owesto close collaboration between public authorities, researchinstitutions, the business world, and the general public.Four factors in particular provided the conditions forDenmark’s exploit:• A BOLD VISION: From the beginning, the wind turbineindustry’s development has been driven by a clear visionto make Denmark self-sufficient with energy. Thetwo oil crises in the 1970s made future energy supplies,Steady GrowthTurnover in the Danish wind industry, billion Danish kroner10080604020020062007 2008 2009Figure 1: The turnover <strong>of</strong> the Danish wind industry is increasingevery year.Source: Danish <strong>Wind</strong> Industry Association: Danish <strong>Wind</strong> Industry AnnualStatistics 2010.10 Mondaymorning <strong>Aarhus</strong> <strong>–</strong> <strong>Capital</strong> <strong>of</strong> <strong>Wind</strong> <strong>Energy</strong> 11


including the potentials <strong>of</strong> renewable energy, subjectto unprecedented social and political awareness. Thetopic rose to the top <strong>of</strong> the agenda among researchers,the media, and the political establishment. <strong>Energy</strong> supplybecame a concern <strong>of</strong> the entire society. This openedthe door for a bold political vision: Releasing Denmarkfrom its dependence on imported fuel. Utilising windas a source <strong>of</strong> energy became a political priority.• POLITICAL SUPPORT: It took a long time to developfunctioning and pr<strong>of</strong>itable wind turbine technology.But the Danish wind industry was supported by astrong political belief in the project during the entiredevelopment phase. Regulatory framework, smartgreen taxes, and support schemes combined with strictenvironmental and climate-related political measuresmade wind technology a feasible business area for existingcompanies and upcoming entrepreneurs. In theinitial phase, this support created the necessary lift forthe industry’s take-<strong>of</strong>f.• PROLIFIC INNOVATION: Refining the technologythrough new thinking and innovation. Right fromthe beginning, the technology was developed in smallclusters across sectoral and pr<strong>of</strong>essional boundaries.Businesses, research institutes and communities contributedto development and production advances.This carried the seeds <strong>of</strong> a unique innovation culturewhich has since spawned a vast number <strong>of</strong> technologicaladvances and innovative solutions.• TIMING: Denmark took an interest in wind energy, beforeit was in fact pr<strong>of</strong>itable. In the 1970s and ‘80s, thewind turbine industry’s development was supported bygrants and schemes. When the viable market for windturbines emerged in the 1990s, as the focus on climateissues grew, Denmark could readily provide functioningtechnology, experienced-based knowledge and themeans <strong>of</strong> manufacture. Denmark had been training <strong>–</strong>and had a head start.The Political VisionTo a large extent, Denmark owes its position as the windmillcountry to decades <strong>of</strong> dedication to the task. Numerouspolicies and initiatives have served the dual purpose <strong>of</strong>reducing Denmark’s reliance on imported fuel and relievingthe strains on the environment and the climate.The OAPEC oil embargo on the USA and a number <strong>of</strong>Western countries in 1973 hit Denmark like a shockwave.At the time, 98 percent <strong>of</strong> Denmark’s energy consumptionwas based on imported fuel, mainly (90 percent) oil. So asoil prices rocketed sky high, Denmark’s economy took asevere blow.The initial political response resembled knee-jerkpanic. Among other measures, the goverment introducedcar-free Sundays and urged shopkeepers to switch <strong>of</strong>f theirlights outside opening times. Eventually, the crisis led to arecognition that the near-complete dependence on foreignenergy sources was an untenable position. So in 1976, anational energy plan was passed, aimed at reducing energyconsumption and easing the country’s dependence on oil.It included the first publicly financed research programmefor the utilisation <strong>of</strong> wind energy and the development <strong>of</strong>wind turbines.The first Danish Ministry <strong>of</strong> <strong>Energy</strong> was established inthe wake <strong>of</strong> the second oil crisis in 1979. Parliament alsopassed laws for thermal and natural gas research schemes,and in the same round <strong>of</strong> legislation introduced a publiclyfunded scheme for the installation and development<strong>of</strong> wind turbines. Renewable energy was now a politicalproject.The crises <strong>of</strong> the 1970s had an immense impact, notjust on politics, but also on the mood and attitudes <strong>of</strong> thebusiness community and the general public. The followingyears saw a large number <strong>of</strong> initiatives, partnerships, lawsand regulations to encourage sustainable energy. Amongthem was the establishment <strong>of</strong> the Risø Research Centrewhose mission was research-based technology development<strong>of</strong> wind power and wind turbines.According to Jan Serup Hylleberg, CEO <strong>of</strong> the Danish<strong>Wind</strong> Industry Association, this strong political vision wasthe catalyst for a wave <strong>of</strong> green creativity which gave Denmarka significant push forward: “When renewable energybecame a political project, the door opened to a wholerange <strong>of</strong> green initiatives and innovations. That was justwhat the nascent wind turbine industry needed, based onunproven technology and research as it was.”The Danish Cooperation ModelPolitical attention and support was not unique to Denmark.In industrial and economic powerhouses like Germany andthe US, legislators took a solemn interest in wind energy.One important reason for Denmark’s sensational succeswas the cooperation model that prevailed in the industry’sThe Green Innovation ModelPoliticsScienceBusinessCivil societyFigure 2: The rise <strong>of</strong> Denmark’s wind energy cluster has beenpropelled by the dynamic interaction between politics, business,science, and civil society (citizens, organisations etcetera).A Fresh BreezeBehind every product is a creative mind. Two creative mindsare behind INA/FAG bearings <strong>–</strong> a team that is twice as strong:Schaeffler Group Industrial.Renowned for creative technology and for 30 years <strong>of</strong> experiencein the wind turbine industry, we know what customersreally want. Continued close collaboration with manufacturersand operators provides impetus for both sides. New findingsfrom practical experiences are immediately implemented inour calculation and CAE tools that we use to initially generatevirtual models <strong>of</strong> our products. In reality they then becomehigh-performance gearbox bearings or durable main rotorbearings. Alternatively they are integrated in WiPro, our onlinemonitoring system, which is GL and AZT certified and used allover the world.A fresh breeze is blowing in the world <strong>of</strong> bearings technology.Make sure you benefit from it too!The Schaeffler Group with its brands INA, FAG and LuK, and currently around 65,000 employees at more than 180 locations ranks amongst the leading rollingSource: Monday Morning & CBS.bearing manufacturers and suppliers to the automotive industry worldwide. The group <strong>of</strong> companies stands for global customer proximity, innovative ability andthe highest possible level <strong>of</strong> quality. In Denmark, Schaeffler Group is represented by Schaeffler Danmark ApS with head <strong>of</strong>fice in <strong>Aarhus</strong> and sales <strong>of</strong> the INA andFAG brands to more than 60 different industrial sectors.12 Mondaymorning <strong>Aarhus</strong> <strong>–</strong> <strong>Capital</strong> <strong>of</strong> <strong>Wind</strong> <strong>Energy</strong> 13www.schaeffler.<strong>dk</strong>


incipient phase. The techological development was anchoredin what has been called the triple helix model <strong>of</strong>innovation in which businesses, authorities, and scientificinstitutions collaborate closely. In the case <strong>of</strong> wind turbinetechnology, the civil society <strong>–</strong> organisations, citizens etc. <strong>–</strong>is usually regarded as a fourth “helix”. See figure 2.Outside Denmark, the approach was more linear: organisedin a linear fashion from research to production.Businesses depended on researchers and engineers examininghow windmills should be constructed “in theory”.In Denmark, research and development was based on amuch more extensive dialogue and interaction betweenresearchers and manufacturers, continously exchangingknowledge and ideas.Abroad, the innovation agents were big companiesand big research institutions, projecting proportionallybig projects <strong>–</strong> and building bigger windmills. In Denmark,the scale was much more manageable. The innovationcluster was small, consisting <strong>of</strong> relatively youngmanufacturers and suppliers, supported by a new smallresearch unit and focusing mainly on a limited market<strong>of</strong> local customers. In turn, this approach mobilized significantsupport from the local communities, where thenew <strong>–</strong> and small <strong>–</strong> windmills were erected. See textbox.A number <strong>of</strong> large-scale projects met severe problems.The energy output was less than expected, the constructionsblew over etcetera <strong>–</strong> and the engineers had to startfrom scratch. The Danish approach proved more flexible.The casual cooperation between researchers, manufacturers,suppliers, and critical customers provided an organisationalstructure that enabled a much tighter connectionbetween research and practical experience. A much morefree flow <strong>of</strong> experience, ideas and observations on how differentdevices and technological improvements workedPublic Tailwind for the IndustryPublic support has been great since the Danish windindustry’s humble beginnings. The vast majority <strong>of</strong> thefirst 5,000 Danish wind turbines erected were financeddirectly by local wind syndicates, through which citizenseach bought a share in one. 2,000 <strong>of</strong> the 5,200 existingturbines in Denmark are still owned by local syndicates.Public support <strong>of</strong> wind energy remains strong. A surveyfrom January 2010 shows that:• 91 percent <strong>of</strong> Danes believe that Denmark should expandwind power further• 96 percent believe that parliament should support thewind industry so that it remains a world leader• 62 percent believe that wind power should account formore than half <strong>of</strong> the country’s electricity production.Source: Megafongave Danish manufacturers a far better basis for ensuringquality, making continous adjustments and improving thetechnology. As a bonus, smaller constructions actuallyproved more robust and cost-effective in the end.“While the USA forged ahead with a high tech developmentprogramme that had no particular contact betweenindustry and research, the practical knowledge <strong>of</strong> the Danishindustry was integrated in research-based development<strong>of</strong> wind turbine design and wind turbine operation earlyon. This created a platform for development and productionwhich has strengthened the final output in itself. Thatis: the robustness and quality <strong>of</strong> Danish wind turbines,”says Peter Karnøe <strong>of</strong> Copenhagen Business School, ascholar on the history <strong>of</strong> Danish wind energy.Cargo Service<strong>–</strong> the wind turbine expert in Port <strong>of</strong> <strong>Aarhus</strong>During the last couple <strong>of</strong> decades Cargo Service hasgained unique experience and expertise within loadingand handling <strong>of</strong> wind turbines and components. Eachyear the stevedore company is loading in average 80vessels with wind turbines and with a total weight <strong>of</strong>about 120.000 metric tons.Now Cargo Service is allocating additional focus andstrategic attention to the wind energy business segment.Having transferred the container activities to a new jointventure company Cargo Service is now ready to expandits wind turbine activities.Efficient and customised solutionsBy merging the two container terminals in Port <strong>of</strong><strong>Aarhus</strong>, Cargo Service is releasing an area <strong>of</strong> 100-150.000square meters, which is ideal for handling and storing thelarge wind turbine projects.may have covering loading, handling and storing <strong>of</strong> windturbines and components.Quality AssuranceCargo Service is currently in the process <strong>of</strong> developing a newQuality Assurance system for its wind power customers.- We will be able to <strong>of</strong>fer our customers a very thoroughquality check <strong>of</strong> all wind turbine components. Thecustomers will get a comprehensive quality documentationand they will be <strong>of</strong>fered the convenience <strong>of</strong> following eachcomponent/project online from reception to shipping,explains Lars Krabbe.OffshoreCargo Service has primarily been handling onshorewind turbines. Going forward however the <strong>of</strong>fshore windturbines will also be in focus.- The location in continuation <strong>of</strong> the container quay inPort <strong>of</strong> <strong>Aarhus</strong> is optimal. Back to back location withthe quay and the very efficient cranes provide us withprime working conditions. We are capable <strong>of</strong> handlingpractically any lift you can think <strong>of</strong>. With the heavylift crane we can handle single lifts <strong>of</strong> up to 182 metrictons in a range <strong>of</strong> 47 meters, says Lars Krabbe, ChiefCommercial Officer at Cargo Service A/S and adds:- With a unique location in a large port, an extensiveknow-how and all the necessary special equipment andmachinery, we can provide the wind energy industry withefficient and customised solutions <strong>of</strong> any project they- The <strong>of</strong>fshore turbines are assembled onshore and witha blade diameter <strong>of</strong> 120 m they obviously require a largeamount <strong>of</strong> vacant land. That is solved with the newlyreleased area. Furthermore Port <strong>of</strong> <strong>Aarhus</strong> is strategicallywell positioned in regards to the projected <strong>of</strong>fshore windpower plants in the Baltic Sea, says Lars Krabbe.He forecasts that Cargo Service will be involved in part <strong>of</strong>the Anholt project where 111 <strong>of</strong>fshore wind turbines willbe erected and connect by the end <strong>of</strong> 2012.www.cargoservice.<strong>dk</strong>14 Mondaymorning


The wind cluster <strong>of</strong> Central Denmark RegionCharacteristics <strong>of</strong> the wind industry ina radius <strong>of</strong> 75 kilometres from <strong>Aarhus</strong>:Number <strong>of</strong> wind companies: 60Of this, global wind turbinemanufacturers: 5Number <strong>of</strong> wind-employees withemployment in the Greater <strong>Aarhus</strong> area: 11.000Turnover from wind companies withheadquarters in Greater <strong>Aarhus</strong> area,bn.DKK: 45Proportion <strong>of</strong> total Danishrevenue from wind energyindustry, percent: 87SkiveDEIF A/SSkiveViborgGARDIT A/SMB Networks A/SMita-Teknik A/SYmer TechnologySilkeborgDELTAEnvision <strong>Energy</strong>Gamesa <strong>Wind</strong> Engineering ApSFavrskovDanish <strong>Wind</strong> Design ApSGL Garrad HassanLAC engineering ApSRandersDamatechEcology management ApSProdan A/SVestas <strong>Wind</strong> Systems A/SVink ASLemvigSkovgaard Invest ApSLemvigRandersNumber <strong>of</strong> employees in the municipalities0-4950-99100-249250-499500-9991000+HolstebroDifko Invest A/SKrangårdenRingkøbing-SkjernAgrowind ApSBest <strong>Energy</strong> A/SBTM Consult ApSGPV GroupHydra-Grene A/SJSB PlastK.P. Komponenter A/SOrbital A/SVest-FiberVestas Nacelles A/SVestas Nacelles A/SStruerHolstebroHerningRingkøbing-SkjernHerningDeugro Danmark A/SDUWET (Danish University<strong>Wind</strong> <strong>Energy</strong> Training)Electricon A/SFT Technologies ApSHendricks IndustriesUNIMERCO A/SIkast-BrandeSiemens <strong>Wind</strong>Power A/SIkast-BrandeViborgSilkeborgAB-Inventech A/SAlderslyst Elektro A/SArepa Firenew A/SAVN <strong>Energy</strong> A/SBachmann electronic GmbHDansk Eksportforening <strong>–</strong>Danish <strong>Wind</strong> <strong>Energy</strong> GroupDansk Overflade Teknik A/Skk-electronic A/SNiebuhr Gears A/SSiemens <strong>Wind</strong> Power A/S<strong>Wind</strong> ClusterZero-Max A/SEnvision <strong>Energy</strong>Gamesa <strong>Wind</strong>Engineering ApSHorsensHedenstedFavrskovSkanderborgVestas <strong>Wind</strong>Systems A/SHedenstedEltronic A/SHaco A/SReichhold Danmark A/SSkykon Towers<strong>Aarhus</strong>OdderVestasTechnologyR&DSuzlon <strong>Wind</strong><strong>Energy</strong> A/SHorsensEnergi HorsensHCP engineering A/SNissens A/SSyddjursSamsøSkanderborgMillWatcherNorddjurs<strong>Aarhus</strong>NorddjursGrenaa MotorfabrikSapa Pr<strong>of</strong>iler A/SSyddjursDMP-MølleserviceActua ApsBALLUFF ApSBaltShip A/SBP Lubricants A/SCargo Service A/SCowiDAFA A/SDBB Jack-Up Services A/SDevelco A/SDSV Air & Sea A/SGeodis Wilson Denmark A/SMAKE ConsultingNIRASNorth Sensor A/SOptica A/SPeter Madsen Rederi A/SSauer Roldskov AdvokatfirmaSchaeffler Danmark ApSSkykon A/SSuzlon <strong>Wind</strong> <strong>Energy</strong> A/SSweco Architects A/S,Skaarup Jespersen I Birk NielsenVestas Technology R&DÅrhus HavnNote: The overview <strong>of</strong> businesses covers only members <strong>of</strong> the wind industry.Source: Monday Morning and estatistik.<strong>dk</strong>.18 Mondaymorning <strong>Aarhus</strong> <strong>–</strong> <strong>Capital</strong> <strong>of</strong> <strong>Wind</strong> <strong>Energy</strong> 19


“Being the leading global region is anattraction in itself. A broad range <strong>of</strong>qualified companies and employeesgives <strong>Aarhus</strong> a really strong businessenvironment.”Stephan Mey, European CEO, Suzlonto <strong>Aarhus</strong> in 2011, its researchers will have the additionalcompany <strong>of</strong> around 250 highly skilled colleagues.The industry giant Siemens has placed its global headquartersand research centre for wind energy in Brande, just70 kilometres from the centre <strong>of</strong> <strong>Aarhus</strong>. Meanwhile, theSpanish wind turbine giant Gamesa and the Chinese Envision<strong>Energy</strong> both have their research centres in Silkeborg,less than 50 kilometres from <strong>Aarhus</strong>.Noticeably, the aggressively expanding Indian wind turbinemanufacturer, Suzlon, has recently chosen to locate itsEuropean headquarters in <strong>Aarhus</strong>. Suzlon has bought theGerman wind turbine manufacture, REpower, making itthe world’s third largest wind turbine manufacturer. Theintegration between the two companies will be monitoredfor some time from the <strong>Aarhus</strong> base where the GermanStephan Mey, whose background is in the German industrialgiant MAN Diesel, has been announced as the newinternational CEO just prior to the summer holiday, 2010.“<strong>Aarhus</strong> is the place for the wind industry,” says StephanMey. “The region has major companies and a whole bedrock<strong>of</strong> suppliers. At the same time, it’s just the right size: Itis not so big that you drown, but big enough to have the resources,manpower and partners necessary for a companylike Suzlon.” See text box.The Engine <strong>of</strong> the <strong>Wind</strong> Industry<strong>Aarhus</strong>’ status as the centre <strong>of</strong> the Danish wind industrybecomes evident, when the expanding circle <strong>of</strong> companieswhich supply components, services, and advice to thewind industry is taken into account.This important part <strong>of</strong> the industry does not show inthe <strong>of</strong>ficial industry statistics, and its size is unaccountedfor. But a conservative estimate can be derived from theDanish <strong>Wind</strong> Industry Association’s list <strong>of</strong> members. Theorganisation has 240 members, <strong>of</strong> which 78 <strong>–</strong> arounda third <strong>–</strong> are based in Central Denmark, with by far thegreatest concentration <strong>of</strong> companies in the Greater <strong>Aarhus</strong>area and surrounding municipalities.The wind cluster in Greater <strong>Aarhus</strong> has established itselfas an engine for the Danish wind energy industry. Notjust the manufacturers, but also notable suppliers like Skykon,provider <strong>of</strong> wind turbine tower solutions, and AVN<strong>Energy</strong>, supplier <strong>of</strong> components, have since become globalplayers themselves. And this has played a part in bringingrevenue and jobs to the <strong>Aarhus</strong> cluster which is today,clearly, the Danish economic centre for the export <strong>of</strong> windenergy technology.A dataset from Statistics Denmark, retrieved and analysedby business statistics experts eStatistik, shows thatcompanies located in the Greater <strong>Aarhus</strong> area and thesurrounding area account for 87 percent <strong>of</strong> Denmark’scombined turnover and export <strong>of</strong> wind energy. And, accordingto the Danish <strong>Wind</strong> Industry Association, over14,000 <strong>of</strong> Denmark’s 25,000 wind turbine jobs are todayfound in the Central Denmark region. This is three timesas many jobs as the second largest wind energy region inDenmark. 11,000 employees work within one hour’s drivefrom <strong>Aarhus</strong>.Most are employed by the major manufacturers, butmany jobs are found in other parts <strong>of</strong> the supply chain.According to the latest calculations from the Danish <strong>Wind</strong>Industry Association, around half are employed in productionjobs, while 20 percent <strong>of</strong> jobs are within research,testing and development or process and quality control.Suzlon CEO: <strong>Aarhus</strong> Is the Place to Be“<strong>Aarhus</strong> is the place for the wind industry.” Stephan Mey,newly appointed CEO <strong>of</strong> Suzlon Europe, has no doubt,that Suzlon, the world´s third largest wind turbine manufacturer,has chosen the right spot for its European headquarters.What are the crucial criteria for Suzlon’s location <strong>of</strong> itsactivities?“On the political level, there is a strong focus on strengtheningand developing the wind energy cluster. It is a clearlydefined goal as part <strong>of</strong> the tour activities and strengthensour business opportunities.”What should <strong>Aarhus</strong> do to remain an attractive epicentrefor wind energy?“Being the leading global region is an attraction itself. Abroad range <strong>of</strong> qualified companies and employees gives<strong>Aarhus</strong> a really strong business environment. The regionshould very much try to maintain it. The current visionto be the world’s wind capital is absolutely the logicalnext step. Initiatives like Navitas Park could strengthen<strong>Aarhus</strong>’ position further.”How does the Danish wind energy cluster stand in terms<strong>of</strong> the international competition?“It is not the largest in terms <strong>of</strong> volume, but it’s still thestrongest. It is the only region with companies, educationalinstitutions and politicians dedicated to wind energy.<strong>Aarhus</strong> is ahead <strong>of</strong> all its competitors in that area.”Which value do the many sub-contractors in the CentralDenmark have for Suzlon?“They have specific knowledge, knowhow and routineswhich we can learn from. Furthermore, the short geographicaldistance between them and us makes communicationand dialogue far easier.”Research in <strong>Wind</strong> <strong>Energy</strong> at Aalborg University<strong>Wind</strong> power is a central area <strong>of</strong> research and education at Aalborg University (AAU). Research in this area is coordinatedand carried out by research groups organised under the virtual centre for <strong>Wind</strong> <strong>Energy</strong> Structures andTechnologies at AAU (WEST). Much research is done in collaboration with international companies and researchinstitutions. Will you join us?<strong>Energy</strong> PlanningResearch within this area centres around the technical, economicand institutional possibilities and bar-riers for advancing sustainabledevelopment <strong>of</strong> energy systems. The focal points areintegration <strong>of</strong> the fluctuating power generation into the energysystem as well as the economic and institutional conditions thatsecure a good integration.Power Electronics & Power SystemsA number <strong>of</strong> different research activities in wind turbine systemsare on-going, e.g. a simulation platform where models <strong>of</strong> generators,power converters and control system are tested with differentsimulations. Other activities focus on power system stabilityat distribution and transmission level, energy storage and on-lineperformance optimisation <strong>of</strong> wind turbines.Automation & ControlModelling, control and supervision are <strong>of</strong> increasing importancein the effort to develop competitive technologies. Automation &Control work on the foundations for advanced control <strong>of</strong> futurewind energy installations. The work addresses performance, stabilityand fault tolerance by applying new results from a range <strong>of</strong>control technologies.Analysis & design <strong>of</strong> composite structuresResearch activities primarily concern analysis and design <strong>of</strong> lightweightcomposite and sandwich struc-tures. Based on solid mechanicsand finite element methods, projects focus on the mechanicalbehaviour <strong>of</strong> composite structures, adhesive bondedjoints, micro mechanics, structural design, modelling and simulation<strong>of</strong> the moulding process for wind turbine blades.Structural DynamicsThe group carries out research within global dynamics and mechanics<strong>of</strong> wind turbines, including the interaction betweenrotor, transmission system, tower and foundation. Special interestareas are control <strong>of</strong> blade vibrations, tower and rotor shaftthrough individual pitch regulation, generator moment controlor other strategies for vibration control.Foundation Engineering & GeotechnicsThe research group works with development and verification <strong>of</strong>computational models for the load bearing capacity <strong>of</strong> differenttypes <strong>of</strong> foundations, e.g. bucket, gravity and pile foundations.Especially experimental verification <strong>of</strong> constitutive models forsoil exposed to dynamic loads is an important area.Loads and SafetyResearch activities are related to stochastic modelling <strong>of</strong> environmentalparameters, material parame-ters in blades, tower andfoundation and load bearing capacities. This includes modelling<strong>of</strong> physical, statistical and model uncertainties. Reliability, riskanalysis and life cycle-based optimal planning <strong>of</strong> op-eration andmaintenance are also key areas.If your company wishes to explore the possibilities <strong>of</strong> researchcollaboration with Aalborg University, please contactAAU Matchmaking on tel. +45 9940 7376 or mail: match@aau.<strong>dk</strong>Hub North business networkHub North is a Northern Denmark business networkfor the wind energy industry. The aim <strong>of</strong> Hub North isto promote, unite, develop and strengthen the region’swind turbine industry. Industry participants in the networkare manufacturers and subcontractors within thewind turbine industry. AAU plays an important role inHub North in relation to knowledge sharing, innovationand research collaboration. Find out more about HubNorth or join the network at www.hubnorth.<strong>dk</strong>20 Mondaymorning A a l b o r g U n i v e r s i t y F r e d r i k B a j e r s Ve j 5 P. O. b o x 1 5 9 9 1 0 0 A a l b o r g P h o n e : <strong>Aarhus</strong> ( + 4 5 <strong>–</strong>) <strong>Capital</strong> 9 9 4 0 <strong>of</strong> 9 <strong>Wind</strong> 9 4 0 <strong>Energy</strong> m a t c h 21@ a a u . d k


<strong>Wind</strong> Industry Workforce<strong>Wind</strong> industry employees after company type, percent1040101114117%%4651ManufacturerSupplier <strong>of</strong> componentsetcetera.Other<strong>Wind</strong> industry employees after job type, percentProductionTest and development<strong>of</strong> new productsProcess and quality controlSales and marketingService andmaintenanceOtherFigure 3: The wind cluster <strong>of</strong> <strong>Aarhus</strong> houses the entire valuechain, from production to development, maintenance, andmarketing.also began to manufacture wind turbines in the early 1980s.Since then, these Central Denmark machine manufacturershave left a long trail <strong>of</strong> local technological knowhowand wind business tradition that now attracts majorinternational manufacturers to the <strong>Aarhus</strong> area by thenumbers.In 1997, Nordtank <strong>Energy</strong> Group and Micon mergedto form NEG Micron and become a global player. Witharound 10,000 wind turbines in 38 countries it claimed 20percent <strong>of</strong> the installed wind power in the world. In 2004,Vestas and NEG Micron merged to become the world’slargest wind turbine manufacturer.The same year, Bonus was bought by German industrialgiant Siemens. Vestas and Siemens <strong>Wind</strong>power consolidatedthemselves with headquarters in Randers andBrande respectively, while Vestas maintained part <strong>of</strong> itsmanufacturing activities in West Jutland.Over the years, this significant presence <strong>of</strong> leadingglobal manufacturers has given rise to a strong network<strong>of</strong> suppliers which, today, encompasses the entire supplychain in terms <strong>of</strong> development, production, and sale <strong>of</strong>wind turbines. In turn, the 80 or so companies who havesettled here in the wake <strong>of</strong> the manufacturers’ rapid expansionhave evolved into a powerful wind energy clusterin the Central Denmark belt. See page 30.tors and major environmental and energy-tech companiesin the area <strong>–</strong> like the world’s largest pump manufacturer,Grundfos, to name one.According to the Danish <strong>Wind</strong> Industry Association,there are significant cross-sector synergies between thewind cluster and these other supply chains.One significant effect is that the skill and educationlevels are higher than in the rest <strong>of</strong> Denmark. An analysisfrom eStatistic shows that the Central Denmark region hasa greater share <strong>of</strong> employees with higher education in thesefields than Copenhagen, the Danish capital, whose generallevel <strong>of</strong> education is considerably higher in practically anyother area. If you look specifically at the Greater <strong>Aarhus</strong>area, where the wind cluster has its centre, the trend is evenmore distinct.Almost 60 percent <strong>of</strong> the wind industry employees witha university education work in the Greater <strong>Aarhus</strong> area. In<strong>Aarhus</strong>, more than 25 percent have a higher education. Inthe rest <strong>of</strong> Denmark, the ratio is one to six. See figure 4.The Greater <strong>Aarhus</strong> area has by far the greatest proportion<strong>of</strong> decision-makers in the wind industry. Almost 60percent <strong>of</strong> all top executives, and more than half <strong>of</strong> otherhigh-ranking employees, work in the Greater <strong>Aarhus</strong> areawind cluster. See figure 5.<strong>Aarhus</strong> is High-End<strong>Wind</strong> industry employees after socio-economic status,percentGreater Rest <strong>of</strong><strong>Aarhus</strong> DenmarkAll employees 100 100Top executives 7 3High-skill employees 13 6Medium-skilled employees 22 10Other 58 81Greater <strong>Aarhus</strong>’ share <strong>of</strong> Danish wind industryemployment, percentGreater <strong>Aarhus</strong>All employees 35Top executives 57High-skill employees 53Medium-skilled employees 55Other 28Figur 5: The <strong>Aarhus</strong> wind cluster has a higher percentage <strong>of</strong>high-skilled employees than the rest <strong>of</strong> the country.Source: E-statistik.Source: Danish <strong>Wind</strong> Industry Association.10 percent work in sales and marketing <strong>of</strong> the manufacturingand service departments <strong>of</strong> the industry, while almost20 percent work in consultancy, management, and maintenance.See figure 3.Strong SynergiesThe wind cluster has benefited greatly from the strong pr<strong>of</strong>essionaland industrial environment in the region withinenergy and environmental technology. Many <strong>of</strong> the windindustry suppliers are also suppliers to other energy sec-Historic Power <strong>of</strong> cooperationThe Central Denmark wind cluster dates back to the 1970s,and many companies, both manufacturers and suppliers,are united by strong historic bonds.The Danish industrial wind energy adventure beganon the West Jutland heath in the end <strong>of</strong> the 70s when studentsand teachers at the so-called Tvind schools in Ulfborgand Ringkøbing decided to build the world’s largest windturbine. The Tvind Mill was developed and built between1975-78 and in many ways accelerated Danish wind energyresearch. At the same time, it inspired local machine manufacturersto initiate the development and manufacturing <strong>of</strong>wind turbines.Most notably: Vestas <strong>–</strong> today the world´s largest windturbine manufacturer. The company was originally calledVestjysk Stålteknik and, until the end <strong>of</strong> the 1970s, producedfarm vehicles from its address in Lem. Inspired bythe political and market interest in the Tvind project, andfurther urged by a decline in the farming industry, Vestasswitched to wind turbines and, late in 1979, put its firstwind turbine on the market. (See article page 27).The company Danregn, in Brande, between Ringkøbingand <strong>Aarhus</strong>, had the same idea. Danregn originally suppliedirrigation systems for agricultural use but in 1980 beganto manufacture the so-called Bonus wind turbine. Nordtankon the Djursland peninsula and Micon in Randers<strong>Aarhus</strong> Has the SkillsLevel <strong>of</strong> education in the wind industry, percentGreater Rest <strong>of</strong><strong>Aarhus</strong> DenmarkAll employees 100 100University 10 4Short-/medium-cycle higher education 18 10Vocational education & training 45 44High school 5 4Primary/N.A. 22 37Greater <strong>Aarhus</strong> share <strong>of</strong> the Danish wind industryemployment,Greater <strong>Aarhus</strong>All employees 35University 57Short-/medium-cycle higher education 49Vocational education & training 35High school 39Primary/N.A. 24Figure 4: The level <strong>of</strong> education among wind industryemployees is higher in the Greater <strong>Aarhus</strong> area than in therest <strong>of</strong> Denmark.Source: E-statistik.22 Mondaymorning <strong>Aarhus</strong> <strong>–</strong> <strong>Capital</strong> <strong>of</strong> <strong>Wind</strong> <strong>Energy</strong> 23


Denmark’s new hub for innovation, education and energyFACTSNAVITASIn 2014, Navitas, the new flagshipfor green energy, opens in the city<strong>of</strong> <strong>Aarhus</strong>. The impressive buildingwill be an international hub forgreen energy technology.Navitas will accomodate two educationalinstitutions, <strong>Aarhus</strong> School <strong>of</strong>Engineering and <strong>Aarhus</strong> School <strong>of</strong>Marine and Technical Engineering,as well as INCUBA Science Park.More than 2,300 students, teachers,researchers and entrepreneurs willinteract in an open and dynamic environmentand help enhance Denmark’sleading position within green energytechnology.“The world demands solutions able tosatisfy the growing need for energyand reduce CO2 emissions at the sametime. Navitas will become a top classinternational development laboratory,”says Niels Christian Sidenius, chairman<strong>of</strong> the Navitas steering committee.An international flagshipAmbitions are high and the vision isclear <strong>–</strong> Navitas is to be an internationalbeacon within knowledge environments.The spectacular, star-shapedbuilding will be the framework foran open and innovative environment.Here, education, development andresearch will embrace many differentsubjects in strong cooperation with thebusiness community. The results willbe improved education, new technologiesand a strengthened industrialdevelopment with a clear prospect <strong>of</strong>growth.“We want to create an environmentwhere boundaries between industrialdevelopment, public research andeducation do non existing. We wantan open, creative and future-orientedcampus environment,” explainsNiels Christian Sidenius. Navitasis expected to become a magnet forinternational expertise and to attractboth students and researchers from allaround the world.Boost for innovationNavitas will play a central role inboosting innovation within the Danishenergy sector by connecting knowledgeand research with the industrialmarket and thereby prepare companiesfor international competition.“Navitas establishes optimal conditionsfor developing and distributingknowledge and transforming it intonew products and production methods.This will beadvantageous forcompanies in theenergy sector, bothnow and in the future,and give them newmarket opportunities,”says Niels ChristianSidenius.37,000 energy efficient squaremetresNavitas will consist <strong>of</strong> approximately37,000 square metres situated in thedocklands <strong>of</strong> <strong>Aarhus</strong>. With this centrallocation, the building will be animportant part <strong>of</strong> a new vivacious cityquarter at the waterfront <strong>of</strong> <strong>Aarhus</strong>.It will be a low-energy class 1 building,according to the newest DanishBuilding regulation, and it is designedbased on the principles <strong>of</strong> integratedenergy design. This means thatNavitas is built with a high focus onpassive energy strategies, low energymeasures and good indoor climate.Furthermore, the building will beunique due to its ability to adjust itselfto users and conditions with the lowestpossible energy consumption. Theobjective is to reduce the energy consumptionwith 50 percent compared toa stanard building.Navitas will be Denmark’snew hub for energy, innovationand education atthe docklands <strong>of</strong> <strong>Aarhus</strong>.The building will be completedin 2014 and willaccomodate more than2,300 students, teachers,researchers and entrepreneurs.Navitas is a strategicelement <strong>of</strong> the focus ongreen growth as expressedby the City <strong>of</strong> <strong>Aarhus</strong> andCentral Denmark Region.The building will accommodatefacilities foreducation, laboratoriesand entrepreneurship.The building itself will bean energy laboratory. Thisinvolves that e.g. intelligentcontrol systems forreconciliation <strong>of</strong> energysavings have to be accessibleto researchers andstudents to be applied inongoing lessons.Navitas is designed accordingto the principles<strong>of</strong> integrated energydesign. The objective isthat the building obtains aclassification as a lowenergyclass 1 building,according to the newestDanish Building regulation.Navitas is based on climateand custom design.The building will exploitlocal energy resourcesoptimally and adjust tousers and conditions withthe lowest possible energyconsumption.FOCUS AREASEducationNew courses within energy at the engineering educations and highly specialisedfurther training for engineers in the energy industry will be established.Research and developmentNavitas will provide research and development in close cooperation between academicsand industrial partners. It will cover a complete energy technology portfolioincluding disciplines such as building efficiency, advanced grid technology, renewableenergy, and wind power technology .<strong>Energy</strong> Research ParkNavitas will have its own science park with focus on companies with direct or indirectaffiliations to the energy sector. Furthermore, it will include a project hotel anda Student Entrepreneurship Incubator.MatchmakingNavitas will play a central role as bridging research with business communitywithin the field <strong>of</strong> energy.www.navitas-park.<strong>dk</strong>


#3Vestas might be the world’sleading wind turbinemanufacturer. But its nativesoil, Central Denmark, stillplays an important role in itsglobal strategy.Vestas:The Grand Old Man<strong>of</strong> the Industry• The world’s largest wind turbine manufacturer, Vestas, is in the process <strong>of</strong> moving its headquarters to <strong>Aarhus</strong>• The roller coaster history <strong>of</strong> the company is representative <strong>of</strong> the development <strong>of</strong> the Danish wind turbineindustryOver the last 30 years, the wind giant Vestas has slowlymigrated from its home town <strong>of</strong> Lem on the western coast<strong>of</strong> Denmark, through Ringkøbing and Randers to <strong>Aarhus</strong>,where its new corporate headquarters is scheduled to openin 2011. In the course <strong>of</strong> this 114 kilometres journey, thecompany has undergone a exceptional transformation,from a small forge to a global wind energy market leader.It has kept facilities on its native soil in the Ringkøbing-Skjern area. But by and large, it is a global operator witharound 22,000 employees around the world, a marketshare <strong>of</strong> 12.5 percent and a turnover <strong>of</strong> 49.4 billion kronerin 2009. Since Vestas produced its first turbine in 1979,the company has installed over 40,000 turbines around theworld. Today, it erects a new turbine every three hours.Vestas can claim the credit for almost a third <strong>of</strong> the world’scombined wind power capacity over the last thirty years.The Beginning: LemThe story <strong>of</strong> Vestas begins in 1898, when 22-year-oldHans Søren Hansen bought his local forge and foundedhis company. Right from the beginning, the enterprisewas engaged to windmills, servicing the numerous Danishfarms where small mills powered threshers and similarmachinery. But its main product was steel window framesfor industry.During WWII, the company went bankrupt due to alack <strong>of</strong> raw materials, but already in 1945, the founder’sson, Peter Hansen, founded VEstjyske STaalvarefabrik A/S(West Jutland Steel Factory Inc.), shortened “Vestas”. Initially,it produced household machines, but slowly turnedto farm vehicles and small cranes for trucks.The oil crisis <strong>of</strong> the 1970s brought political attention toenergy security. Concording with the spirit <strong>of</strong> the times,Vestas commenced its first wind turbine experiments. In1979, Vestas developed its tall, three-bladed trademarkturbine, simply known as the ‘Danish Concept’ in the industry.The design which conquered the world and is theindustry standard even today.Interest in wind turbines was modest in the beginning,mainly stemming from communes and small, alternativefarmers. In 1980, Vestas had 36 orders for wind turbines.The introduction <strong>of</strong> highly advantageous American taxschemes which contributed up to 50 percent <strong>of</strong> the price <strong>of</strong>the turbines, changed this and created what has since beenreferred to as the ‘Great Californian wind rush’. In 1983,Vestas’ orders rocketed from around 30-40 per year to 155.Within a year they, had 550 orders, and in 1985s, they sent1,200 turbines across the Atlantic.In 1986. the American market suddenly collapsed asa new political agenda put a stop to the tax rebates. Thisspelled disaster for Vestas, which applied for an administrationorder. On January 7th 1987, Vestas was declaredtechnically bankrupt. The wind turbine adventure <strong>of</strong> the1980s was over.The Recovery: RingkøbingOn the same day, Vestas rose from the ashes for a secondtime with the founding <strong>of</strong> Vestas <strong>Wind</strong> Systems A/S. Withjust 60 employees, it set out on a remarkable recovery.The bankruptcy had taught the company a valuablelesson, and Vestas began to forge new markets so that itwould never be dependent on one clientele again. A jointventure with India was established, and Vestas openedsales <strong>of</strong>fices in Germany, Sweden, the US and Italy. Slowly,turnover began to grow from 100 million kroner in 1987 to500 million kroner in 1990.26 Mondaymorning <strong>Aarhus</strong> <strong>–</strong> <strong>Capital</strong> <strong>of</strong> <strong>Wind</strong> <strong>Energy</strong> 27


At the same time, technological development began topick up speed. In the 1980s, Vestas had been producing100 kilowatt turbines. In 1995, it launched a 1.5 megawattsturbine. The same year, the company embarked onits first <strong>of</strong>f-shore project, featuring 10 sea turbines in TunøKnob in the Kattegat Straights south-east <strong>of</strong> <strong>Aarhus</strong>.In 1998, Vestas was once again back on top as the world’slargest wind turbine manufacturer with a turnover <strong>of</strong> 2.6billion kroner. The same year, the company moved its headquartersto an old shipbuilding yard in Ringkøbing. Turnoverincreased to 6.5 billion kroner in 2000, and the yearafter, it grew by almost 50 percent to 9.52 billion kroner.“In order to attract and keep theworkforce we need, both domesticand foreign, we have chosen to locateour new base in <strong>Aarhus</strong>. We think ithas the right facilities <strong>–</strong> also outside<strong>of</strong>fice hours.”Ditlev Engel,, CEO, VestasThe Merger: RandersIn 2003 Vestas merged with its competitor, Central Jutland’sother big wind turbine manufacturer, NEG MI-CON. In one stroke this created a wind giant with a globalmarket share <strong>of</strong> 35 percent. The new company was calledVestas, but moved into NEG MICON’s <strong>of</strong>fices in Randers.By 2005, Vestas was undisputedly the world’s dominantwind turbine manufacturer. But it had also faced anumber <strong>of</strong> challenges which put the colossal growth <strong>of</strong>the company <strong>of</strong> 30-40 percent per annum between 1987-2005, into perspective. Following the merger <strong>of</strong> two verydifferent organisational cultures, a number <strong>of</strong> technicalproblems arose. In 2003 Vestas was forced to take downand repair 80 <strong>of</strong>f-shore turbines which had been erectedat Horns Rev.The answer to many <strong>of</strong> these problems went by thename <strong>of</strong> Ditlev Engel, who took the stage as new CEOin 2005. One <strong>of</strong> Engel’s first decisions was to establish anew development centre in <strong>Aarhus</strong>. He also launched the‘Will to Win’ strategy, aimed at increasing earnings andimproving the quality <strong>of</strong> Vestas’ products. Among otherthings, this was achieved by improved monitoring <strong>of</strong> windturbines, which means that Vestas can now follow over15,000 turbines from its development centre in <strong>Aarhus</strong>,and adjust each individual turbine to optimise performancein accordance with wind conditions. He also establishedan all-new organisation with 14 business regions,each controlled by its own president, who report to thegeneral management: Engel and CFO Henrik Nørremark.The Future: <strong>Aarhus</strong>“Will to win” worked. In just three years, Ditlev Engelmanaged to change a loss <strong>of</strong> 1.45 billion kroner intoa record pr<strong>of</strong>it <strong>of</strong> 3.8 billion kroner in 2008. That year,Ditlev Engel announced Vestas will move its headquartersto <strong>Aarhus</strong> in 2011, neighbouring the research and developmentcentre. For now, Vestas’ long journey has reachedits final destination.In reality, the journey has been far longer than the 114kilometers between Ringkøbing and <strong>Aarhus</strong>. More thananything, Vestas is now a global company with 99 percent<strong>of</strong> its business outside <strong>of</strong> Denmark. The headquarters in<strong>Aarhus</strong> will function as a strategic junction, where DitlevEngel can keep abreast <strong>of</strong> his presidents and their businessregions which are spread out over the globe. Ditlev Engelemphasizes that one <strong>of</strong> the advantages in having theirheadquarters in Denmark is that, “it is possible to talk toAsia in the morning and the USA in the evening”.But why <strong>Aarhus</strong>?“Central Denmark and <strong>Aarhus</strong> play an important rolefor Vestas for many reasons. This is where a large part <strong>of</strong>our company was founded. There is a special know-how,knowledge and understanding <strong>of</strong> our products and thewind industry in general among employees, local residents,politicians and educational institutions,” says Ditlev Engel.“<strong>Aarhus</strong> is the largest and most international city in theregion. In order to attract and keep the workforce we need,both domestic and foreign, we have chosen to locate ournew base in <strong>Aarhus</strong>. We think it has the right facilities <strong>–</strong>also outside <strong>of</strong>fice hours. When the world is getting smallerand smaller, it will be more and more crucial to have a ‘onestop shop’ concept in place for overseas employees. For thisreason, Vestas has engaged in the International Communityas well as the international school in <strong>Aarhus</strong>. We havehigh hopes that an international high school will soon beestablished,” he says.There is no doubt that attracting and holding on to globalcompanies is a major challenge for Denmark. Looking forward,what does it take for Denmark and <strong>Aarhus</strong> to remainattractive to companies like Vestas?“Denmark has a great deal <strong>of</strong> experience and knowledge<strong>of</strong> wind energy. But we have got to pool our resourcesto really make a difference and take on countries suchas China and the US. We hope that the different educationalinstitutions in the Greater <strong>Aarhus</strong> area and the rest<strong>of</strong> the country will work strategically together to supportthe wind energy industry and its suppliers. The concept<strong>of</strong> creating clusters <strong>of</strong> special knowledge within energy inCentral Denmark is the right one. We have got to worktogether to make it internationally.”HANDLE WITH CARE IN PORT OF AARHUS* Moderne port facilities* Lift capacity up to 182 tons* Outreach up to 47 meters* Easy access from E45Mindet 2, P.O. Box 130, DK-8100 Århus C . Tel. +45 86 13 32 66 . Fax +45 86 12 76 62port@aarhus.<strong>dk</strong> . www.aarhushavn.<strong>dk</strong>28 Mondaymorning <strong>Aarhus</strong> <strong>–</strong> <strong>Capital</strong> <strong>of</strong> <strong>Wind</strong> <strong>Energy</strong> 29


#4The entire wind turbinesupply chain is represented inCentral Denmark. The closerelations between suppliers andmanufacturers is a tremendouscompetitive advantage.A Unique Supply Chain• <strong>Aarhus</strong> and its surrounding area is home to the biggest concentration <strong>of</strong> chain suppliers in the globalwind industry• Many have taken a leap from small family businesses to companies with global aspirations• The tradition for cooperation and major partnerships keeps the supply chain dynamic• The suppliers constitute a vast knowledge bank and is a strong asset to the Danish wind clusterOne <strong>of</strong> the strongest assets <strong>of</strong> the Danish wind turbineclusters is the great number <strong>of</strong> suppliers to the industry.No other place in the world sees the same concentrationas the Central Denmark Region. The names ‘Vestas’ and‘Siemens’ may be on the turbines, but a significant portion<strong>of</strong> their design, technology, control systems and individualcomponents is developed and manufactured by suppliersand subcontractors like KK Electronic, Niebuhr Gears andSkykon. This closely knit and geographically concentratedsupply chain is an important junction in the knowledgeinfrastructure which, from a global perspective, makes<strong>Aarhus</strong> and the surrounding area a central knowledge hubfor the industry.The large bedrock <strong>of</strong> suppliers has grown in sync withthe development <strong>of</strong> the major wind turbine manufacturerssuch as Vestas, NEG Micon and Bonus (now merged withSiemens <strong>Wind</strong> Power), It has contributed significantly tothe rapid technological development which characterisesthe wind industry. Over a few decades, the entire industryhas undergone a dramatic transformation from idealisticamateurism to big business. It now accounts for around 8.5percent <strong>of</strong> Danish export.In 1980, the average wind turbine had a capacity <strong>of</strong> 30kilowatt and a diameter <strong>of</strong> 15 metres. With current technology,it is possible to build turbines up to 5,000 kilowattwith a diameter <strong>of</strong> 115 meters. Progress has been especiallyrapid in the last five years, when global wind energy capacityhas almost quadrupled. The progress has been drivenby the major manufacturers, but their suppliers have alsoplayed an active role in the development <strong>of</strong> the industryand today, several suppliers aspire to operate globally.Small, owner-run suppliers, with perhaps just a handful<strong>of</strong> employees, are becoming pr<strong>of</strong>essionally-run businesseswith hundreds <strong>of</strong> employees.The Variety <strong>of</strong> the Supply ChainToday, a wind turbine is a tremendously complex structurewhich has more in common with contemporary aircraftsthan the windmills erected in the 1970s. That complexityis mirrored in the supply chain.A wind turbine is made up <strong>of</strong> a foundation, tower,blades and nacelle. The nacelle contains the mechanicalcomponents, cooling systems, gears, and generator, as wellas control systems and electrical components. These essentialparts are all manufactured by different, highly specialisedsuppliers. In addition to this, an “invisible” supplychain affords project planning, consulting, logistics, installation,marketing and so on. See figure 1.A closer look at the crowd <strong>of</strong> suppliers in Central Denmarkmakes the strengths <strong>of</strong> the area apparent. The 80 or sosubcontractors covers the entire chain. From DAFA inBrabrand, which supplies sealing materials, and Skykon,which has its headquarters on <strong>Aarhus</strong> Harbour and is a bigplayer in composites, towers and <strong>of</strong>f-shore foundations, toconsultancies such as Cowi, Rambøll and Niras. The companiesheavy on manpower are typically located furtherout <strong>of</strong> <strong>Aarhus</strong>, with the intensity <strong>of</strong> scientific and researchoperations gradually increasing the closer you get to the30 Mondaymorning <strong>Aarhus</strong> <strong>–</strong> <strong>Capital</strong> <strong>of</strong> <strong>Wind</strong> <strong>Energy</strong> 31


<strong>Wind</strong> Power Supply Chain<strong>Wind</strong> turbine manufacturers and suppliersTotal TurbineDesignGarrad HassanSuzlonGamesaVestasSiemensControl systemsand electricalcomponentsBachmannDEIFKK ElectronicMita-TeknikSuzlonGamesaVestasSiemensThe rest <strong>of</strong> the value chainConsulting andCertificationPlaning and parkdesignDifkoSuzlonGarrad Hassan GamesaTeknologisk Institut VestasCOWISiemensDHIGarrad HassanFigure 1: The high concentration <strong>of</strong> enterprises from the entire supply chain is a unique feature <strong>of</strong> the Danish wind cluster.Source: Danish Ministry <strong>of</strong> Foreign Affairs .MechanicalComponents andGeneratorsAH BolteHydra GreneNissensScanvibZero-MaxFinancing andInsuranceSuzlonGamesaSiemensAtradiousDifkoSølystTransportationand InstallationBaltshipDeugroKrangårdenE. SøndergårdMaterials andRaw MaterialsH.J. HansenJSB PlastSuzlonGamesaVestasSiemensOperations,service andmaintenanceNettransportationand el SalesNorth PoolBlades and BladeTechnologyJSB PlastSuzlonGamesaVestasSiemensNacelleManufacturingand AssemblySuzlonGamesaVestasSiemensTowers and OtherSteel ProcessingWelcon/SkykonVærum smedjeH.J. HansenNiebuhr Tandhjulsf.VestasMarket Analysisand ExhibitionServiceExportforeningencity, where most development departments are based.It is from this supply perspective that the <strong>Aarhus</strong> areaand Central Denmark stand out in the global wind industry.Both highly specialised knowledge and technicalknowhow on an international scale is located in a fairlysmall geographical area. “The entire grey area around development,testing, trials and manufacturing is centered inCentral Denmark. This is a great strength which continuesto attract companies to the area,” says Niels Brix, VicePresident for Commercial & External Affairs at Skykon.See text box.Consolidation and CooperationThe trend in the wind turbine industry is consolidation,just like other industries, such as mobile phones and cars.An increasing number <strong>of</strong> links <strong>of</strong> the supply chain is outsourcedto larger suppliers. As the market for wind turbinesmatures, suppliers <strong>–</strong> including design and developmentcompanies <strong>–</strong> will eventually become fewer and larger,providing manufacturers with combined solutions. Simultaneously,they gradually adopt management control systemssuch as Lean and Six Sigma as part <strong>of</strong> their operationsstrategy, <strong>of</strong>ten urgingly encouraged by their customers.Stepping up to face global challenges and the increasingdemands <strong>of</strong> manufacturers can be a big mouthful forsmall suppliers. In order to deal with this task, a number <strong>of</strong>Jutland’s suppliers have founded the network organizationMidtVind to share knowledge and experience.MidtVind, a subcontractors´ group within The Danish<strong>Wind</strong> Industry Association, is a good example <strong>of</strong> thespecial partnership culture and spirit which characterisesthe Danish wind industry. MidtVind, a forum for subcontractorsin the Central Denmark belt, was founded in 2008and has grown from 6 to 14 members. The members meetroughly every second month and the work is organisedinto a number <strong>of</strong> so-called “experience groups” coveringfive areas: sales and marketing; manufacturing and engineering;research and development; purchasing and logistics;and human resources.The network was initially established to support membersthrough the fast and turbulent maturation process <strong>of</strong>the entire wind industry which rapidly increases demandson suppliers’ organisations. According to MidtVind projectdirector, Kim Nedergaard Jacobsen, customers are continouslyraising their standards in terms <strong>of</strong> quality, problemmanagement, reliability, and stability, as well as a greaterconcern for social responsibility.The collaborative mind-set that MidtVind representsis a unique feature <strong>of</strong> the Danish wind cluster. In today’sthoroughly competitive market, this level <strong>of</strong> cooperation ishardly rivaled anywhere.The regional project manager <strong>of</strong> Invest in Denmark,Peder Bo Sørensen, sees it as a crucial part <strong>of</strong> the secretbehind the success <strong>of</strong> the Danish wind clusters. “Thebulkheads are not as watertight as you see in Germany,for example <strong>–</strong> neither between individual companies norbetween researchers and technology developers,” he says.The network gives the individual suppliers access to avaluable pool <strong>of</strong> experience and knowledge.“We’ve benefited greatly from Midtvind. There are very fewcompetitors in MidtVind, so we have a very open forumfor the exchange <strong>of</strong> information. For instance: How do youhold your own in the Chinese market? We have recentlyestablished a sales <strong>of</strong>fice in China together with a storageand manufacturing hall nearby in Wuqing which we sharewith four other companies,” says Jacob Norby, managingdirector <strong>of</strong> DAFA, which employs around 100 people andhas an annual turnover <strong>of</strong> 200 million kroner.Critical (Brain) MassBecause suppliers are no longer confined to delivering individualcomponents but play an increasingly active role in thedevelopment <strong>of</strong> new designs and solutions they collaborateclosely with the manufacturers’ researchers and developers.“We are in almost daily contact with the major manufacturers’development departments,” says Jacob Norby.As Rasmus Niebuhr, director <strong>of</strong> gearing manufacturerNiebuhr Gears in Ikast, puts it, “To a great extent, it is thedevelopment <strong>of</strong> the major clients which has driven us forward.We are in close contact about technical matters, andwe test new products in the clients’ development departmentsbefore we start production. This creates a good synergy,”says Rasmus Niebuhr. Like DAFA, the company isnow establishing itself in China, tightly coordinated withthe major manufacturers. This means that a start-up orderis already in place. “We are where we are because <strong>of</strong> themajor clients,” says Rasmus Niebuhr.SkykonThe <strong>Aarhus</strong>-based company Skykon is a clear illustration<strong>of</strong> the consolidation trend among the wind turbine industry’ssuppliers. With more than 25 years’ experience as asubcontractor to the wind turbine industry, Skykon is nowset to become the leading supplier <strong>of</strong> towers and compositematerials for turbine components. Instead <strong>of</strong> justsupplying individual components, it now <strong>of</strong>fers integratedsolutions, developing the design in collaboration with themanufacturers. A key element in Skykon’s business strategyis the acqusition <strong>of</strong> smaller subcontractors in order tobecome the international leader in its field.According to Niels Brix, Vice President for Commercial &External Affairs, Skykon’s growth exemplifies a generaltrend in the industry. It holds great advantages for Skykon’scustomers, the major manufacturers. “Instead <strong>of</strong>sourcing individual components from a long list <strong>of</strong> suppliers,they can buy a complete solution from Skykon. Whenit comes to towers, we can deliver the complete construction,with all the elements such as mounts, internals andcabling, all ready to be erected.”According to Niels Brix, this development also means thatthe suppliers can be integrated into the manufacturer’sdesign and development process to a greater degree, resultingin a much closer cooperation. “In the old days,manufacturers came with a design and said, ‘There yougo, get on with it’. Today, they call for components that fitthe particular circumstances, but it is our job to deliverthe solution. For Skykon, this is especially prominent inthe field <strong>of</strong> <strong>of</strong>f-shore wind.”32 Mondaymorning <strong>Aarhus</strong> <strong>–</strong> <strong>Capital</strong> <strong>of</strong> <strong>Wind</strong> <strong>Energy</strong> 33


“They say an expert is someone whohas made all the mistakes withoutanyone noticing. This applies perfectlyto the Danish companies, with their20-30 years <strong>of</strong> experience.”Kim Nedergaard Jacobsen, Project Director, MidtVindThe tight bonds places a significant demand on thesuppliers’ knowledge skills and pr<strong>of</strong>essionalism. In thisrespect, they can benefit from the great combined knowledgepool among the suppliers <strong>of</strong> the region.Most <strong>of</strong>ten, the Central Denmark wind cluster ispraised for its technical skills. But in fact, the knowledgeskills in the region cover a number <strong>of</strong> areas, from engineeringto global marketing. Because Denmark has a status asfirst mover, the region is home to a large number <strong>of</strong> playerswith thorough understanding <strong>of</strong> customers and local peculiarities<strong>of</strong> different markets, as they have been cultivatingthem from the beginning.This legacy means access to a knowledge and experiencenetwork with no equal anywhere in the world. Inshort, the knowledge cluster has gained critical mass. Thisgoes for recruitment as well. It is possible to engage specialistswho “were born and raised” in the industry andhave unique understanding <strong>of</strong> its operations and markets.The subcontractors constitute a central and importantpart <strong>of</strong> this regional knowledge network. Many expertswho launched their careers at the major manufacturersare now with suppliers, but equally involved in driving thetechnological development.The concentration <strong>of</strong> knowledge and experience in theregion has not gone unnoticed abroad. In recent years,a number <strong>of</strong> foreign wind turbine manufacturers haveopened <strong>of</strong>fices in the <strong>Aarhus</strong> area to utilise local skills andinsource the knowledge and know-how in the region.Others are content to place specific development taskswith Danish suppliers, for example system solutions whichare tailored to suit the local needs <strong>of</strong> different markets.“The Danish subcontractors have important know-howwhich is especially valuable for new players in the market.For example, large parts <strong>of</strong> the Chinese shipping industryare changing to wind turbine manufacturing. They haveshown a great interest in the technical insight and practicalexperience found in the Central Denmark belt,” says KimNedergaard Jacobsen from MidtVind, adding: “They sayan expert is someone who has made all the mistakes withoutanyone noticing. This applies perfectly to the Danishcompanies, with their 20-30 years <strong>of</strong> experience.”The relatively high concentration <strong>of</strong> knowledge and experience<strong>–</strong> and companies <strong>–</strong> also factors heavily in attractinghigh-skill employees <strong>–</strong> from Danish universities, engineeringcolleges, and business schools, as well as from thoseabroad. This helps maintain the dynamics <strong>of</strong> the region.According to Peder Bo Sørensen from Invest in Denmark,the Danish knowledge easily bears comparison withthe world’s best-known scientific cluster, Silicon Valley inthe US. “The many development centres, public researchinstitutes, and experienced suppliers constitutes a criticalmass within a clearly defined field. This creates synergiesbetween the region’s many players and helps to maintainand attract new talent. The high concentration has a selfperpetuatingeffect,” he says.Sauer Roldskov is a specialized international law firm focusingon the cleantech sector. Our firm gives legal advice to suppliers<strong>of</strong> equipment and services, equity investors, banks, utilities,developers <strong>of</strong> new technologies, project developers andproject owners.We combine unique industry skills with deep legal knowledgeand provide value-adding advice in close, direct cooperationwith our clients, where good chemistry and trust are essentialto our business.Sauer Roldskov provides innovative legal advice on:>> Renewable Transactions>> Legal Due Diligence>> Project Finance>> Project Development>> Commercial Contracts>> Claims & Arbitration>> Risk Assessmentsauer roldskovSoender Allé 4DK-8000 <strong>Aarhus</strong> C, Denmarktel. +45 7070 2928info@sauerroldskov.com34 Mondaymorning <strong>Aarhus</strong> <strong>–</strong> <strong>Capital</strong> <strong>of</strong> <strong>Wind</strong> <strong>Energy</strong> 35www.sauerroldskov.com


#5China and the US lead theglobal race for green energy.But Northern Europe remainsan important market, <strong>Aarhus</strong>being the obvious springboard.Incubator for theGlobal <strong>Wind</strong> Industry• The worldwide market for wind energy is set to increase significantly• Global presence is essential to get a piece <strong>of</strong> the action• The dominant companies are attracted by markets and skills• Denmark can become a skills centre for the wind turbine industry in the future• The wind industry cluster in <strong>Aarhus</strong> acts as a unique incubator for global playersThe high concentration <strong>of</strong> historically interconnectedwind companies in and around <strong>Aarhus</strong> are not just notablein a Danish context. This cluster is also remarkable froman international perspective. No other place on earth canboast the complete range <strong>of</strong> skills required for the productionand development <strong>of</strong> wind turbines within such a smallgeographic area.But, while the Danish wind cluster completely dominatedthe world market a few years ago, the industry todayhas become much more globalised, with production, development,and research centres spread all over the world.In the course <strong>of</strong> just ten years, wind energy has becomea strategic target area for governments around theworld, boosting the global market for wind turbines andwind technology. From 2000-2009, the annual growthin global wind energy capacity increased eightfold fromaround 5,000 megawatts to around 40,000 megawatts. Andaccording to the latest market projections from the internationallyrenowned wind energy analysts, BTM Consult<strong>–</strong> coincidentally based in Central Denmark <strong>–</strong> the annualoutput will grow to over 70,000 megawatts during the nextfive years. See figure 1. BTM estimates that the combinedglobal market, just for wind turbines, will be worth theequivalent <strong>of</strong> 2,000 billion kroner in five years <strong>–</strong> approximatelythe same as Denmark’s annual GDP.<strong>Wind</strong> energy has become big business, and global giantssuch as GE in US, German Siemens and Enercon, andthe Spanish Gamesa have intensified their efforts to targetthe billion dollar market.Vestas remains the world’s largest wind turbine manufacturer,but the last ten years’ increased competition hasknocked ten percent <strong>of</strong>f the company’s global marketshare. Vestas and GE now have roughly the same share <strong>–</strong>12.5 percent <strong>–</strong> <strong>of</strong> the world market.Meanwhile, new growth economies in Asia have taken asevere interest in clean-tech and sustainable energy whichmeans that wind industry here is flourishing, particularlyInstalled <strong>Wind</strong> Power in the WorldAnnual and cumulativeNW per year40,00035,00030,00025,00020,00015,00010,0005,00001983Figure 1: Global wind power is booming at a rapid pace.Source: BTM Consult.Cumulative MW-160.00001990 1995 2000 2005 2009-140.000-120.000-100.000-80.000-60.000-40.000-20.00036 Mondaymorning <strong>Aarhus</strong> <strong>–</strong> <strong>Capital</strong> <strong>of</strong> <strong>Wind</strong> <strong>Energy</strong> 37


in India and China. Indian corporation Suzlon is nowthe world’s third largest wind turbine manufacturer,while three Chinese companies, Sinovel, Goldwin andDongfang, now rank among the 10 largest manufacturersworldwide. See figure 2.When the global players decide where to locate theiroperations, they look in two directions: where the marketsare, and where they can find the best skills. This makesDenmark and the large wind industry cluster around<strong>Aarhus</strong> an important destination in the wind energyworld.But this goes both ways. It is just as important forVestas to be present in new global hot spots as it is forSiemens, Suzlon and Gamesa to link up with the Danishwind cluster. As Vestas' research director, Finn StrømMadsen, says: “Today, we are going directly where thelargest markets are, and where we can find the world’s bestskills within specific technological fields.”European Hot SpotsThere is no <strong>of</strong>ficial map <strong>of</strong> the wind turbine industry’sglobal skills centres and largest production clusters. Butall the major wind turbine manufacturers share two commonfeatures: Their growth has been encouraged by extensivewind energy development in the areas in whichthey are based. And they have themselves fostered a supportingnetwork <strong>of</strong> suppliers in their immediate vicinity.It is just as evident that manufacturers have establishedthemselves on each others´ “home turf ” to gainaccess to the local market and the skills the region <strong>of</strong>fers.Often, local authorities have sought to make their particularregion attractive through special conditions, infrastructuredevelopment, and the creation <strong>of</strong> educationand knowledge centres.Supplied and Cumulative <strong>Wind</strong> <strong>Energy</strong>Capacity in 2009Vestas (DK)GE <strong>Wind</strong> (US)Suzlon (IN)Repower (GE)Sinovel (CH)Enercon (GE)Goldwind (CH)Gamesa (SP)Dongfang (CH)Siemens (DK)OthersTotalFigure 2: China is home to 3 leading turbine manufacturers.Source: BTM Consult.Suppliedwind energyin 2009,MW4,7664,7413,7183,5103,2212,7272,5462,4752,2657,03337,002Share <strong>of</strong>global windenergyinstallations2009, pct12.512.49.89.28.57.26.76.55.918.597Cumulative Share <strong>of</strong>windenergy cumulativeinstallations global wind2009, MW energy capacity,pct.39,70522,96114,5655,65819,7985,31519,2253,76511,21326,440168,64624.814.39.13.512.43.312.02.47.016.5105“You find people here who were bornand raised in the industry. They havea thorough understanding <strong>of</strong> howwind turbines work and are able tolook ahead and see which type <strong>of</strong>products will be in future demand.This is why Denmark is so interestingto foreign players <strong>–</strong> particularly thosenew to the industry.”Finn Strøm Madsen, Research Director, VestasToday, the global power centres are Denmark, Germany,Spain, the US, India, and China. Spain, North Germanyand Denmark in particular have built up sizablebusiness clusters around wind turbine production.According to the Spanish ministry <strong>of</strong> industry, 700companies beside the national flagship Gamesa employ atotal <strong>of</strong> 40,000 people directly or indirectly in the Spanishwind energy sector. Among them are four Vestas factoriesand its sales- and service headquarters for the entireMediterranean.Germany also harbours hundreds <strong>of</strong> wind energy companies.According to Invest in Germany, over 85,000 peopleare directly or indirectly employed in the field <strong>of</strong> windenergy. Northern Germany in particular has been good atpooling skills in clusters, for example the <strong>of</strong>f-shore centrein Bremerhaven. The city university is a focal point for alocal wind energy network <strong>of</strong> 140 companies within <strong>of</strong>fshorewind.The European wind clusters have attracted so muchattention as growth and employment drivers, that evencountries with no wind energy traditions have engagedin gigantic wind projects. Great Britain, for example, hasnow set out to integrate <strong>of</strong>f-shore turbines in its energyinfrastructure and establish itself as a manufacturing an<strong>dk</strong>nowledge centre for <strong>of</strong>f-shore wind energy.“This has the potential to provide tens <strong>of</strong> thousands <strong>of</strong>long-term jobs in technical consultancy, installation, operationand maintenance and the associated legal and financialservices. There is also potential to establish a manufacturingbase in the UK which could also help create exportopportunities,” says Jenny Bird <strong>of</strong> the British think tank theInstitute for Public Policy Research (IPPR).IPPR has published “Prospects for Creating Jobs fromOff-Shore <strong>Wind</strong> in the UK” an analysis <strong>of</strong> the socioeconomicperspectives <strong>of</strong> establishing a British <strong>of</strong>f-shore cluster.It estimates that Great Britain could create up to 70,000green jobs by setting ambitious <strong>of</strong>f-shore wind targets.Jenny Bird points to Denmark, North Germany, and Spainas role models for a British wind cluster.whereDO WE LOOK WHEN THERE ARE NOFOSSIL FUELS TO LOOK FOR?As the world races on towards development, our finite conventional energy suppliescontinue to deplete. To power sustainable development, we need to look towardsrenewable, eco-friendly energy sources, like the wind. At Suzlon, we serve yourenergy needs by providing dependable wind energy solutions backed by excellentcustomer response and a fully integrated and secure supply chain, which deliverscustomised solutions to ensure project performance globally. Come to us, so the windcan power the world’s future and yours.www.suzlon.comWorld’s 3rd largest wind turbine manufacturer | Workforce <strong>of</strong> 16,000 employees across 25 countries | Fully integratedsupply chain with manufacturing units on three continents | R&D facilities in Denmark, Germany, India and The Netherlands* Combined Suzlon and REpower. Source: BTM Consult ApS, March 201038 Mondaymorning <strong>Aarhus</strong> <strong>–</strong> <strong>Capital</strong> <strong>of</strong> <strong>Wind</strong> <strong>Energy</strong> 39


The Growth Engine <strong>of</strong> the <strong>Wind</strong> IndustryAmbitions are equally high outside <strong>of</strong> Europe. Beyonddispute, the growth engines <strong>of</strong> today’s global wind industryare the US and China. Between them, they accountedfor two thirds <strong>of</strong> the global production <strong>of</strong> wind energy in2009. 22 percent <strong>of</strong> the world’s total wind energy capacityis installed in the USA, making the world’s largest windenergy nation by far. But with a mindblowing growth rate<strong>of</strong> 113 percent last year, China is easily the most rapidlyexpanding. In 2009, China installed six times as manywind turbines as Europe’s largest market, Spain. This madeChina the world’s absolute largest wind market in 2009,and brought the country’s wind energy capacity to almost26,000 MW <strong>–</strong> only beaten by the USA. See figure 3.The two enormous markets don’t just fuel a bubblinglocal industry. They constitute obvious destinations forthe major European wind turbine manufacturers. Butcontrasting with the European wind clusters, not least theGlobal GiantsThe 10 largest markets in 2009, annual installed MWShare <strong>of</strong> global windMW energy installations, %China1375036,1US992226,0Spain23316,1Germany19175,0India11723,1Italy11142,9France11042,9Great Britain 10772,8Canada9502,5Portugal6451,7Total33982% <strong>of</strong> world total 89,2 %The 10 largest markets by the end <strong>of</strong> 2009, cumulativecapacity, MWShare <strong>of</strong> globalMW cumulative capacity, %USA3515922,0China2585316,1Germany2581316,1Spain1878411,7India108276,8Italy48453,0France47753,0Great Britain 43402,7Portugal34742,2Denmark34082,1Total137277% <strong>of</strong> world totalFigure 3: The US has by far the largest wind power capacity inthe world. But China’s grows much faster.Source: BTM Consult.Danish one, the activities are spread out over a far greatergeographical area.In China the wind industry includes around 50 turbinemanufacturers and over 100 suppliers. A number <strong>of</strong> companiesare gathered around Beijing, Shanghai, Guangzhou,and Chengdu, but otherwise, according to BTM Consult,there is no definitive industrial centre. However, a number<strong>of</strong> foreign companies, among them Vestas, Gamesa andgear manufacturers Flender and Bosch Rexroth, are beginningegun to settle in Tianjin close to Beijing. Vestasrecently opened its fourth Chinese factory there.The wind turbine industry is also dispersed across thewhole <strong>of</strong> the USA. According to the American <strong>Wind</strong> <strong>Energy</strong>Association (AWEA), there are over 200 wind turbinemanufacturing facilities in the USA, spread out in practicallyevery state. Together they employ 85,000 people. GE,which has publicly stated its aim to become the world’slargest wind turbine manufacturer, has recently built a newheadquarters in Schenectady in the state <strong>of</strong> New York.Vestas has recently inaugurated its third American factoryin Brighton, Colorado, and last year established a developmentcentre in Houston, Texas.A third country beginning to catch the attention <strong>of</strong> theinternational wind industry is India which is now the fifthlargest wind energy market in the world. In no time, Indiahas spawned the world’s third largest wind turbine manufacturer,Suzlon, and today boasts a host <strong>of</strong> suppliers to theindustry. In addition, India is establishing itself as one <strong>of</strong>the world’s largest suppliers <strong>of</strong> engineers and IT specialistswhich factors heavily in Vestas’ decision to open a researchcentre in the Indian university city Chennai which willalso lay the foundation for a Vestas nacelle factory.The Incubator <strong>of</strong> the <strong>Wind</strong> IndustryIn the future, access to a qualified workforce and coretechnological skills will be a crucial factor when the largewind industry corporations locate its activities. With thisin mind, Vestas has initiated a thorough analysis <strong>of</strong> thebest global locations, encompassing wind turbine knowledgeand regional conditions.Obviously, Vestas does not wish to publish the detailedresults <strong>of</strong> this global mapping process. But as Finn StrømMadsen says: “Where we are present today, with researchand development and our own <strong>of</strong>fices, is where we expectto develop our network in the future.”Taken at face value, this means that <strong>Aarhus</strong> in Denmark,Dortmund and Husum in Germany, the Isle <strong>of</strong>Wight in Great Britain, Houston in Texas, Chennai in India,and Singapore will be the most important skills clusters<strong>of</strong> the future.In addition to this, Strøm Madsen specifically mentionsBeijing as a strategic destination. <strong>Aarhus</strong> will remain one<strong>of</strong> the most important junctions in Vestas’ global researchand development activities. When it comes to an understanding<strong>of</strong> wind turbine systems, the Danish wind clusterremains at the top <strong>of</strong> the global skills pyramid. “Whenit comes to system analysis, the concentration <strong>of</strong> skills isvery large,” says Finn Strøm Madsen.Today, general engineering skills and specific experi-ence within narrow technology fields can be found in a fargreater concentration in other parts <strong>of</strong> the world. But FinnStrøm Madsen emphasizes that the historic understanding<strong>of</strong> wind turbine systems prevalent in Denmark is unique.“You find people here who were born and raised in the industry.They have a thorough understanding <strong>of</strong> how windturbines work and are able to look ahead and see whichtype <strong>of</strong> products will be in future demand. This is whyDenmark is so interesting to foreign players <strong>–</strong> particularlythose new to the industry. It all begins with understandingturbines and how they work. If you build on your knowledge<strong>of</strong> how to make a concrete foundation, you will getnowhere,” says Finn Strøm Madsen.According to Peder Bo Sørensen, an expert in the windturbine industry and regional project director <strong>of</strong> Invest inDenmark, a great part <strong>of</strong> this knowledge can be found withthe suppliers and subcontractors <strong>of</strong> the Greater <strong>Aarhus</strong>“The systems have become verycomplex, and a number <strong>of</strong> manufacturershand entire subsystemsover to suppliers instead <strong>of</strong> buyingindividual components.”Peder Bo Sørensen, Project Director, Invest in Denmarkarea. “The systems have become very complex, and anumber <strong>of</strong> manufacturers hand entire subsystems over tosuppliers instead <strong>of</strong> buying individual components. In thatcontext, it is unique that the entire supply chain <strong>of</strong> productionand development is present in the region.”The role <strong>of</strong> the <strong>Aarhus</strong> cluster as a global incubatoris also prominent among foreign manufacturers. As theformer CEO <strong>of</strong> Suzlon in Denmark, Erik Winther Pedersen,states: “We chose to establish ourselves in Denmark,because this was where the expertise was. Simply put, wecould relatively easily recruit experienced personnel fromexisting companies.”Pedersen emphasizes that the skills and traditions <strong>of</strong>the Greater <strong>Aarhus</strong> area are a fertile breeding ground fornew businesses: “It might well be that the dominant universitiesin the wind turbine field are not in <strong>Aarhus</strong>. Butthe companies do have their development and technicaldepartments in Central Denmark. This helps to increasethe attractiveness <strong>of</strong> the region. When a whole region isbuzzing with wind activity, employees know that theyhave good possibilities to jump between the companies,”says Erik Winther Pedersen.Today, 14 different nationalities are employed at Suzlon’s<strong>of</strong>fice in <strong>Aarhus</strong>. Following the takeover <strong>of</strong> theGerman company REpower, Erik Winther Pedersen hasswapped places as CEO with the German, Stephan KarlNeighbourhood GrowthMarket forecast for Northern Europe, megawatt50,00040,00030,00020,00010,0000Today2020 totalGermanySwedenUKPolandLithuaniaLatviaIrelandNetherlandsFinlandEstoniaDenmarkBelgiumFigure 4: <strong>Wind</strong> energy enjoys tremendous growth in some <strong>of</strong>Denmark’s neighbouring countries.Source: Danish <strong>Wind</strong> Industry Association.Mey, who, with his experience from German industrial giantMAN Diesel, will oversee the fusion <strong>of</strong> the two windturbine companies.Booming NeighboursThe region is also an interesting destination in terms <strong>of</strong>market access. Even though the Danish wind turbine marketis miniscule compared to giants like the US and China,or even Southern Europe, the Greater <strong>Aarhus</strong> area enjoysproximity to other Northern European markets: Belgium,Estonia, Finland, Holland, Ireland, Latvia, Lithuania, Poland,Germany, Sweden and Great Britain.According to the Danish <strong>Wind</strong> Industry Association, atleast 4,500 megawatts were installed in these neighbouringmarkets in 2009. The association estimates that the annualincrease in windpower capacity will mount to at least 7,300megawatts by 2020.Furthermore, Denmark has decided to build its largest<strong>of</strong>fshore wind turbine park ever, capable <strong>of</strong> generating400 megawatts, beside the island <strong>of</strong> Anholt in the Kattegatsea, 60 kilometres east <strong>of</strong> <strong>Aarhus</strong> Harbour. While stronggrowth is expected in the Swedish, Polish and Dutch markets,the most powerful expansion is expected in GreatBritain and Germany. Great Britain is planning to increaseits capacity from around 4,000 megawatts in 2009to 26,000 megawatts in 2020, while the German market isexpected to grow from a capacity <strong>of</strong> around 26,000 megawattsin 2009 to 49,000 megawatts by 2020. See figure 4.In total, the wind turbine industry is predicting a combinedgrowth in Denmark’s neighbouring markets <strong>of</strong> morethan 10 percent per annum, from 35 gigawatts today, to atleast 117 gigawatts by 2020.40 Mondaymorning <strong>Aarhus</strong> <strong>–</strong> <strong>Capital</strong> <strong>of</strong> <strong>Wind</strong> <strong>Energy</strong> 41


#6<strong>Aarhus</strong> is bound for a positionas the leading global knowledgecentre <strong>of</strong> wind energy.Cross-sector cooperation is thekey to success.A knowledge Brokerin the Green Economy• Access to knowledge is crucial to the wind industry• Designing the sustainable energy systems <strong>of</strong> the future requires close cooperation between skillsclusters and universities• <strong>Aarhus</strong> is launching a number <strong>of</strong> initiatives to become a leading global knowledge centreThings are really heating up in Central Denmark’s research,innovation, and business environments. In <strong>Aarhus</strong>’educational and research institutions, in the city administrationand in the business world, everybody is well-aware<strong>of</strong> the rapid development in the wind industry. A number<strong>of</strong> initiatives are underway to consolidate the region’sstrong position as an incubator for global wind energy development.They revolve, <strong>of</strong> course, around the region’s major windturbine manufacturers and the closely knit network <strong>of</strong>suppliers surrounding them. It is widely recognized thata crucial condition for the success <strong>of</strong> the industry is theaccess to a highly skilled workforce and specialised knowledgeabout wind technology <strong>–</strong> especially concerning howto adapt technology to the intelligent and cross-border energysystems <strong>of</strong> the future.This knowledge does not rest with individual companies,research institutions or public authorities. It must beattained, processed and utilised through a close cooperationbetween them <strong>–</strong> and other skill clusters around theworld.The City <strong>of</strong> <strong>Aarhus</strong> has decided to take a central rolein this process. As mayor Nicolai Wammen and aldermanLaura Hay put it: “It is our shared ambition that <strong>Aarhus</strong>should be the world’s capital <strong>of</strong> wind energy: The most importantglobal gathering point and skills centre for the development<strong>of</strong> the sustainable energy systems <strong>of</strong> the future.”Within the next few years, four initiatives in particular willaim to fulfill that vision:• AN AMBITIOUS CLIMATE STRATEGY: The City Councilhas committed itself to obtain carbon neutrality by2030. Supporting wind power and the regional windindustry has been singled out as a key priority. Onemeasure is the erection <strong>of</strong> an <strong>of</strong>f-shore wind turbinepark in <strong>Aarhus</strong> Bay. It will supply green electricity tothe entire <strong>Aarhus</strong> area, work as a testing ground fornew wind turbine design and hopefully be attractiveto wind companies around the world. The Council isalso supporting research and business partnershipswhich will improve the ability to exploit wind energyand seeks to establish more public-private development,demonstration, and implementation partnershipsbetween authorities, companies and scientificinstitutions specialised in energy and climate technologies.Se page 48 on <strong>Aarhus</strong>’ climate strategy.• AN INNOVATION CENTRE FOR ENERGY. To ensure internationalimpact, a new international power centrefor energy and energy technology will commenceconstruction on <strong>Aarhus</strong> Harbour in 2011. The planis to create an open, creative innovation environment42 Mondaymorning <strong>Aarhus</strong> <strong>–</strong> <strong>Capital</strong> <strong>of</strong> <strong>Wind</strong> <strong>Energy</strong> 43


“Our task is, in collaboration withenterprises and colleagues fromother global knowledge centres,to give the wind turbine industrya platform for developing productsand components for the windenergy systems <strong>of</strong> the future.”Ove Poulsen, Director, <strong>Aarhus</strong> School <strong>of</strong> Engineering, andpr<strong>of</strong>essor, <strong>Aarhus</strong> UniversityBearing this in mind, the main prospect <strong>of</strong> the NavitasPark and other regional initiatives is to make <strong>Aarhus</strong> theleading centre and gathering point for the general systemdevelopment <strong>of</strong> future wind turbine designs. As director<strong>of</strong> <strong>Aarhus</strong> School <strong>of</strong> Engineering, pr<strong>of</strong>essor at <strong>Aarhus</strong> UniversityOve Poulsen, says: “Our task is, in collaborationwith enterprises and colleagues from other global knowledgecentres, to give the wind turbine industry a platformfor developing products and components for the wind energysystems <strong>of</strong> the future.”In order to strengthen its capacity within system modelling,ASE has appointed Martin Greiner, an expert insystem modelling from Siemens’ main research departmentin Munich, pr<strong>of</strong>essor <strong>of</strong> System Engineering, buildinga specialised research staff around the pr<strong>of</strong>essorshipthat will cooperate with colleagues from other knowledgecentres. Among other things, they will consider howwind energy systems should be designed today to be ableto fit into future 100 percent renewable, intelligent, crossborderenergy systems.At the same time, this research group will breed a newgeneration <strong>of</strong> engineers with a more systemic approach.The new graduate engineering programme will give studentsthe tools to adress the highly complex challenges <strong>of</strong>energy system modelling.According to Ove Poulsen, one <strong>of</strong> the first milestonesis to map the 100 percent sustainable energy net which isrequired to meet the IPCC’s goal <strong>of</strong> stabilizing the globaltemperature by 2050. “In turn, we must deduce which demandsthis imposes on the systems we develop today,” saysOve Poulsen.Capture the synergieswith MidtVind- the supplier networkNIEBUHRGEARSWith an extensive experience and expertise the MidtVindsuppliers address the constant needs <strong>of</strong> the wind powerindustry for innovations and product development in theirrespective core competence areas.The network also has the ability to act as an integrated andactive cooperation partner in the wind turbine value chainwith manufacturers, thus promoting system solutions andcomponents integration. The complementary skills <strong>of</strong> theparticipating companies and a continuous dialogue andcooperation ensure the capture <strong>of</strong> potential synergies andstate-<strong>of</strong>-the-art solutions.46 MondaymorningMidtVind is sponsored byEU and Danish regionsand supported by theDanish <strong>Wind</strong> IndustryAssociationMidtVind - a supplier network from Denmark. See further information:Lund & Sørensen (www.ls-windpower.com), DOT (www.dot.<strong>dk</strong>), Liftra (www.liftra.com),kk-electronic (www.kk-electronic.com), Hydra Grene (www.hydragrene.com),Electricon (www.electricon.<strong>dk</strong>), Deugro (www.deugro.com), DAFA (www.dafa.<strong>dk</strong>),AB Inventech (www.ab-inventech.<strong>dk</strong>), AH Industries (www.ah-industries.<strong>dk</strong>),AVN <strong>Energy</strong> (www.avnenergy.com), DEIF (www.deifwindpower.com),Niebuhr Gears (www.niebuhr.<strong>dk</strong>), Weissenborn (www.weissenborn.<strong>dk</strong>)


#7The City <strong>of</strong> <strong>Aarhus</strong> hascommitted itself to becomecarbon neutral in 2030. <strong>Wind</strong>energy factors heavily in thepolitical strategy.<strong>Aarhus</strong> Aspiring forGreen Leadership• The <strong>Aarhus</strong> City Council has decided to make <strong>Aarhus</strong> carbon neutral by 2030• <strong>Energy</strong> reduction and sustainable energy production are the core elements in an ambitious political strategy• Mobilizing enterprises, citizens, and the scientific community behind this agenda will be instrumental tosuccessThe city <strong>of</strong> the future is green. Around the world, plannersand politicians are sketching ambitious concepts for sustainablecities, and front runners like <strong>Aarhus</strong> are alreadylocked on target. As early as 2007, the <strong>Aarhus</strong> City Councillaunched an ambitious and proactive climate strategywith energy efficiency and sustainable energy as its keyelements.The political vision at the core <strong>of</strong> this strategy is that<strong>Aarhus</strong> must become carbon neutral by 2030. On the roadto this goal, the city wants to be an attractive developmentcentre, testing ground and showcase for green solutionsand technologies. The underlying mindset is that climatechange and the policies addressing it need not limit thecity’s growth. On the other hand, they <strong>of</strong>fer new businessopportunities and growth prospects. Through a number <strong>of</strong>policies and initiatives, the city is trying to establish a favourableframework for green growth and green industries.<strong>Wind</strong> power is a top priority. Not just as a vital part <strong>of</strong>a switch to renewable energy sources, but also as a drivingforce in green business development.”We want to be a green city, and a large part <strong>of</strong> our energyconsumption must be covered by wind. It is an energysource that we are already familiar with, we have a a strongindustrial foundation here, and we expect that it can bringus a sizeable step closer to carbon neutrality. Regardingour desire to be a ‘demonstratorium’ <strong>of</strong> new green solutions,wind power will also play a special role. We wish tobe a solid testing ground for wind technologies,” says climatedirector at the City <strong>of</strong> <strong>Aarhus</strong>, Jan Nielsen.The City is taking measures to erect more wind turbines,establish research and business partnerships and invest inbetter exploitation <strong>of</strong> windpower.From Vision to Success<strong>Aarhus</strong> aspires to set a new national standard for greencities <strong>–</strong> and become a role model for other cities, when itcomes to sustainability and green policies.As the city’s climate vision states: “<strong>Aarhus</strong> takes the leadin the climate struggle to develop a sustainable municipalitythrough initiatives which affect buildings and physicalstructures as well as citizens’ behavoiur. <strong>Aarhus</strong> will putits own house in order, go through with demonstrationprojects and influence national legislation.”A large part <strong>of</strong> our energy consumptionmust be covered by wind. It isan energy source that we are alreadyfamiliar with, we have a a strongindustrial foundation here, and weexpect that it can bring us a sizeablestep closer to carbon neutrality.Jan Nielsen, Climate Director, City <strong>of</strong> <strong>Aarhus</strong>48 Mondaymorning <strong>Aarhus</strong> <strong>–</strong> <strong>Capital</strong> <strong>of</strong> <strong>Wind</strong> <strong>Energy</strong> 49


A number <strong>of</strong> initiatives will help pushing the city ina green direction. New environmental technology, greenbusiness support, a doubling <strong>of</strong> the woodland area, andsustainable buildings are some <strong>of</strong> the key goals. From 2009to 2012, almost 7 million euro from the council budgethas been earmarked for the first steps in the process. Thepolicies that will sustain the strategies, plans, and partnershipsrequired to meet the goal, enjoy substantial politicalbacking.“Our climate visions and climate goals are now right atthe top <strong>of</strong> the political agenda. We have used the last couple<strong>of</strong> years to develop a realistic, long-term green strategywhich will ensure that we reach our goals. It has broadpolitical support from the city council,” says Jan Nielsen.He points to five crucial conditions for meeting the 2030 goal:• FRAMEWORKThe city facilitates and enables green projects by makingrenewable energy investments attractive. Policiesthat wil ensure green development <strong>of</strong> the city and itsbusinesses enjoy strong political backing.• INVOLVEMENTThere is equally broad recognition that political decisionsalone will not do the trick. Success will depend onthe shared efforts <strong>of</strong> all stakeholders. To make <strong>Aarhus</strong> asustainable city will require cooperation from the businessworld, educational institutions, and citizens.• COMMITMENTThe city has made a binding commitment to reduceCO2-consumption significantly over the coming yearsby abiding by national and international agreements.See text box.• FOCUSThe city should fortify its position where it is alreadystrong. The main focus points are energy efficient technology,wind power, biomass, and thermal heating.• INNOVATIONThe City will improve the framework for research anddevelopment within clean technology and energy production.Projects on new technologies is a top priority.As yet, the city’s carbon emissions reduction has beenlimited. The latest research shows that emissions haveonly decreased by one percent between 2007-2009. Butaccording to Jan Nielsen, considerable reductions arejust around the corner. “The first green initiatives are justbeing completed, and a lot more will be implemented inthe near future. We are well on the way to seeing the firstmajor reductions in carbon emissions, even though thereis still a long way to go before we can call ourselves a sustainablecity.”In recognition <strong>of</strong> the city’s green initiative, <strong>Aarhus</strong>was named an <strong>of</strong>ficial <strong>Energy</strong> City by the Danish Ministry<strong>of</strong> Climate and <strong>Energy</strong> in 2009, along with five othermunicipalities.Binding CommitmentsIn recent years, <strong>Aarhus</strong> has signed several agreementscommitting it to significant carbon emissions reduction.Covenant <strong>of</strong> Mayors: Along with 500 other European cities,<strong>Aarhus</strong> has signed an agreement to go beyond theEU goal <strong>of</strong> reducing energy consumption by 20 percentby 2020.Climate Council: <strong>Aarhus</strong> has a binding agreement withThe Danish Society for Nature Conservation to adhere toannual reductions <strong>of</strong> 2 percent or more until 2030.The “Trend-Breaker” Agreement. In a deal with Elsparefonden,<strong>Aarhus</strong> has committed to reducing the combinedannual electricity consumption in public buildings by twopercent per year.Green Plans<strong>Aarhus</strong>’ most powerful weapon in its local battle againstclimate change is knowledge. To make an entire city carbonneutral requires precise mapping <strong>of</strong> its energy production,consumption and supply chain:“If you want to cut a city’s emissions in an effective andeconomically viable way, it is crucial to know its energyconsumption <strong>of</strong> the public sector, private businesses, andindividual households in detail. We have spent the lastcouple <strong>of</strong> years analyzing this. Now, we know what needsto be done, and the next years will be about implementingspecific measures and initiatives to reduce energyconsumption and increase the proportion <strong>of</strong> renewableenergy,” says Jan Nielsen.“Our vague ideas <strong>of</strong> which initiatives and strategiesmight work have been superseded by accurate knowledge<strong>of</strong> which measures will in fact be effective in our particularregion.”This knowledge is the starting point for the city’sclimate plan <strong>–</strong> a comprehensive catalogue <strong>of</strong> green initiativesand projects initiated by the City Council or expectedto commence within the next couple <strong>of</strong> years. Itrevolves around to two key areas.• THE TRANSFORMATION OF ENERGY CONSUMPTIONto renewable sources. The use <strong>of</strong> sustainable energy<strong>–</strong> windpower in particular <strong>–</strong> will be extended. A newenergy infrastructure will support the switch to sustainableenergy. There are political targets <strong>of</strong> increasingenergy production from wind and biomass, andfinancial support for green business development andgreen research has already been granted.• THE REDUCTION OF ENERGY CONSUMPTION <strong>of</strong>households, companies, and the public sector. Thefocus lies mainly on electricity, heating, and traffic,which account for 94 percent <strong>of</strong> emissions. A broadrange <strong>of</strong> energy saving initiatives have been passed,including strict low energy requirements for localplanning, support for energy efficient construction,When it really counts.<strong>Wind</strong> force: 11-12Wave height: 14 m risingHumidity: 97%Controller: >99,96% availabilitywww.bachmann.info/nolimits50 Mondaymorning <strong>Aarhus</strong> <strong>–</strong> <strong>Capital</strong> <strong>of</strong> <strong>Wind</strong> <strong>Energy</strong> 51


Monday Morning ShareInnovation by CommunicationMonday Morning Share is our innovation and communication platform on mm.<strong>dk</strong>. The platform is a place for organizations,thought leaders, and key decision makers to gain knowledge about the greatest challenges <strong>of</strong> our time. The goal forall users on mm.<strong>dk</strong> is to join forces in creating new innovation and new solutions.On Monday Morning Share you will find all analyses and articles published in Monday Morning Weekly over time. Andit is <strong>of</strong> course updated every week. You will have the opportunity to comment and debate on every article and therebyshare your thoughts and innovative ideas with other key decision makers.Our readers about Monday Morning:95% that87% sets75% MorningSubscribe to Monday Morning Share today and get new ideas and inspiration for innovation.Subscribe on mm.<strong>dk</strong> or by sending an e-mail to share@mm.<strong>dk</strong>Source: Monday Morning Reader Analysis June 2010thinks that Monday Morning provides thorough analysesthey cannot find in other media.thinks that Monday Morning is a front runner that <strong>of</strong>tena new agenda in society .percent has great use <strong>of</strong> the knowledge base on MondayShare.improvement <strong>of</strong> the energy infrastructure, and development<strong>of</strong> an energy-neutral transport network. Seetext box.At the same time, the city is pursuing a “matchmakingstrategy”, recruiting climate ambassadors and initiatingclimate partnerships, to forge alliances between residents,politicians, researchers, and businessmen in the battleagainst climate change.Favouring <strong>Wind</strong> Power<strong>Aarhus</strong>’ high pr<strong>of</strong>ile on climate is good news for the windindustry. <strong>Wind</strong> energy is likely to become the prevailingenergy source in future <strong>Aarhus</strong>. In a number <strong>of</strong> ways, thecity council is determined to provide the political conditionsand resources necessary to turbocharge the development,innovation and utilisation <strong>of</strong> wind technology. Anumber <strong>of</strong> initiatives in the climate strategy will, more orless directly, benefit the wind turbine industry.• MORE WIND TURBINES: The Anholt Off-shore <strong>Wind</strong>Farm, due to function from August 2012, will be thelargest wind turbine park in Denmark, with a combinedcapacity <strong>of</strong> 400 megawatts, equalling 4 percent<strong>of</strong> Denmark’s energy consumption <strong>–</strong> or approximately400.000 households. It will also act as a leadingtest centre for wind turbines. Another park at MejlFlak, 8 kilometres <strong>of</strong>f-shore from <strong>Aarhus</strong>, has beenprojected, and initial environmental asessmentshave been carried through. Proper legal and technicalprocessing has not yet commenced, but the scale<strong>of</strong> the current plans is 20 turbines <strong>of</strong> 4-6 megawattseach, supplying 100,000 households with electricity.• INTELLIGENT ELECTRICITY NETWORK: The city supportsthe development and establishment <strong>of</strong> an intelligentelectricity infrastructure which can sustain windenergy as the prevailing source.• KNOWLEDGE HUB: The council is determined tomaintain and improve the local skills and knowledgebase that the wind industry needs to evolve. The newNavitas Park <strong>–</strong> an innovation and research centre forenergy and energy technology <strong>–</strong> is just one example<strong>of</strong> the city encouraging and funding partnerships betweenresearch and industry. See page 42• REGIONAL BRANDING: A support network, “InternationalCommunity”, has been established in order toensure the best possible environment for internationalemployees, specialists and executives from around theworld. Among its backers are Vestas, <strong>Aarhus</strong> University,and the City <strong>of</strong> <strong>Aarhus</strong>.Key AreasIn order to meet the 2030 neutrality goal, the <strong>Aarhus</strong> ClimatePlan for 2010-2011 targets nine key areas <strong>of</strong> action.City Development: Increased demands on energy efficientconstruction and the creation <strong>of</strong> carbon neutralresidential areas.Building: Renovation <strong>of</strong> public buildings, construction <strong>of</strong>low energy buildings, and thermographic mapping <strong>of</strong> heatingleaks from all properties.Electricity and Heat Supply: More sustainable energy,improved energy infrastructure, intelligent electricity network,and more energy efficient heating.Transport: Environmental-friendly vehicles; implementingelectric cars and trains, promoting cycling.Supporting Business: Create attractive conditions forclean-tech companies by building knowledge environmentsin the fields <strong>of</strong> climate and energy. Guidance andassistance on carbon reduction for companies.Open Air: More green areas and natural resorts. Afforestation.Adapting to Climate Change: Advances in adapting toclimate change, including safety concerns.Public Purchasing: Climate-friendly purchasing, favouringsuppliers with “climate qualifications”.Communication and Campaigning: Establishing dialogueand participation among citizens, businesses, andinstitutions through the council’s web portal 2030.<strong>dk</strong>,networks, and campaign activities.Despite the fact that wind energy has become an establishedand growing business, the constant need for research,innovation, and new business models persists.<strong>Wind</strong> technology must be improved and refined to meetfuture demands and standards. <strong>Aarhus</strong> has an ardentwish to play a major role in this process, striving to becomea leading laboratory for the development <strong>of</strong> greentechnologies.Innovation by Communication<strong>Aarhus</strong> <strong>–</strong> <strong>Capital</strong> <strong>of</strong> <strong>Wind</strong> <strong>Energy</strong> 53


COWI <strong>Wind</strong>The Complete Service PackageAdvertiser’s GuideLAC engineeringMillwatcherSchaefflerCargo ServiceAalborg UniversitetIHA <strong>–</strong> Ingeniørhøjskolen i ÅrhusÅrhus HavnSauer RoldskovSuzlon <strong>Energy</strong>NirasMidtVindBachmannCOWIVestas2413152124-252935394547515556Monday Morning:Editor in chief: Erik Rasmussen.Editorial team: Bjarke Wiegand, Rasmus Bebe, Anna Eriksen Fenger, Kalle Jørgensen.Graphic design: Anne S<strong>of</strong>ie Bendtson, Marie Brodersen, Peter Ørnt<strong>of</strong>t.Advertising: Sidsel Bogh.Pro<strong>of</strong>reading: Lise Nielsen.Printing: Rosendahls.978-87-90275-17-4Bangui Bay, Philippines.In <strong>Aarhus</strong>... and the rest <strong>of</strong> the world!COWI has promoted wind energy for more than 30 years. We <strong>of</strong>ferThe Complete Service Package within wind - onshore as well as<strong>of</strong>fshore - and although we began our work in Denmark, we haveto this day participated in the development <strong>of</strong> more than 400 windpower projects in more than 50 countries around the world.With 6000 employees located at 40 subsidiaries around the world,COWI makes the international wind business local. In the largestwind markets, like e.g. North America and China, we also havededicated wind experts.COWI A/SParallelvej 2DK-2800 Kongens LyngbyDenmarkTel.: +45 45 97 22 11Fax: +45 45 97 22 12E-mail: cowi@cowi.comwww.cowi.comOne <strong>of</strong> our early projects was thedetailed design <strong>of</strong> Ebelt<strong>of</strong>t Pierproject from 1985 - a signatureproject at the time. Today, we useour experience when we design <strong>of</strong>fshorefoundations for the world’slargest <strong>of</strong>fshore wind park, LondonArray, or when we establish thestandard for how to make state <strong>of</strong>the art wind studies in China.www.cowi.com/wind<strong>Aarhus</strong> <strong>–</strong> <strong>Capital</strong> <strong>of</strong> <strong>Wind</strong> <strong>Energy</strong> 55


Dear Worldour new wind turbine is forall 6,867,294,312 * <strong>of</strong> you.<strong>Wind</strong> means the world to us. For 30 years it has been our mission to growwind energy to meet more <strong>of</strong> the world’s electricity needs. From supplyingjust 2% today, we aim for the wind industry to supply 10% by 2020.For that to happen we have been working with our partners, clean energygroups and policy-makers investing billions in the development <strong>of</strong> evermore efficient turbines to make wind energy the most attractive energyto power suppliers.Our latest wind turbine, the new V112-3.0 MW, represents the ultimateinnovation. The radical blade design is so efficient, it operates productivelyat low wind speeds, lowering the cost <strong>of</strong> the energy produced and evenexpanding the number <strong>of</strong> sites where wind energy can now be harnessed.The unique features <strong>of</strong> the V112 mean more wind energy can be producedin more varied environments by more countries. It means more <strong>of</strong> theworld’s energy needs can be met by a clean, renewable and affordableenergy source that won’t endanger our planet’s future. Our new V112wind turbine is for all <strong>of</strong> you.For more on how our relentless commitment to wind energy can helpour world,visit vestas.com/OurWorld* Source: United 56 Nations MondaymorningPopulation Division. Aug 2010

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!