Arkansas Gets Wind Energy Plant
July 20, 2009
Nordex USA Inc. announced that it was beginning construction on its $100 million wind turbine manufacturing plant at Jonesboro, Arkansas. The Jonesboro plant, which is the German company’s first in the U.S., will employ 700 people at an average wage of $17 an hour. The nacelle plant will be built on 187 acres in the Craighead Technology Park and will have 115,000 square feet of production space, 10,000 square feet for a Training Academy and 35,000 square feet of office space.
"In a time when our economy has slowed, it’s gratifying to see the creation of high-paying jobs in the clean-energy sector,” Arkansas Governor Mike Beebe said. “In Arkansas, jobs in clean-energy industries are outpacing the overall job market, and Nordex is helping to drive that."
With a typical wind turbine requiring about 8,000 components, that will mean a ripple effect in related jobs in the supply chain. Additional jobs will be created through the contracting of services. For example, Nordex has hired the construction firm, H&M Company, Inc. of Jackson, Tennessee, which will dedicate between 250 and 300 workers to the construction project. In addition, Nordex aims to completely localize its suppliers within the next three to four years, as the wind industry matures, which will further stimulate domestic manufacturing.
"There’s no doubt we’ve seen a surge of interest among wind industry players in Northeastern Arkansas since Nordex announced it would build here last October," said Mark Young, President and CEO of the Jonesboro Regional Chamber of Commerce, with whom Nordex has worked closely on site selection.
According to Nordex USA, the U.S. could well be the world’s biggest wind market as early as next year. That means more sustainable power – and more jobs. Wind energy is the most affordable renewable energy and at some locations simply the most competitive. Power generation costs have fallen by 50% in the last 15 years, moving the generation costs of wind power system close to grid parity. Wind power could help to reduce CO2 emissions by 10 billion tons within twelve years and cover around 12 percent of the world’s energy requirements.
"After much careful planning, we are eager to break ground and make this plant a reality," said Ralf Sigrist, president and CEO of Nordex USA of Chicago, in a news release. "The plant is critical to our goal of generating 20% of global revenue in the US, and I must say I am extremely pleased that construction will begin on schedule." (continued below)
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For the state of Arkansas, Nordex believes wind power will play an increasingly significant role. "We want to demonstrate that wind is not only a job engine but also a viable energy source for Arkansas," said Mr. Sigrist. "We are confident that what makes environmental and, in particular, economic sense will gain broad acceptance among policy makers and constituents, and that a national Renewable Energy Standard will be adopted to direct energy policy into the right direction" Construction will occur in two phases, beginning with the nacelle assembly plant and then the rotor blade manufacturing facility.
The nacelle assembly will start in the second half of 2010 and be fully operational by 2012. It will have an annual production capacity of 300 turbines, or 750 megawatts. The entire facility will be fully operational by 2014. "The U.S. is hungry for wind power," Sigrist said , "and Jonesboro will supply it with the highest-quality turbines in the world."
The Jonesboro operation will be an original equipment manufacturer (OEM) producing one of the largest classes of wind turbines in the world, the 2.5 megawatt N90 and N100. In the US, each of these utility-scale turbines is capable of generating enough renewable energy to power about 700 homes. Nordex was the first manufacturer to build a turbine this large in 2000 and has the longest track record for reliability in the class.
"The wind industry is fairly young in the US, so we have to train people from the ground up," said Joe Brenner, Vice President of Production for Nordex USA. "Making turbines requires specialized skills. It’s not just a $100 million facility. It’s a new industry, and the most important resource we can put time and money into is our people."
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