Windflow welcomes mixed report on its turbines

Windflow welcomes mixed report on its turbines

by Pattrick Smellie

Nov 27 (BusinessWire) - Early versions of Windflow Technology Ltd's (WTL) turbines could require up to $966,200 of remedial work, the company said in a statement today on the outcome of the International Electrification Certification's inspection of turbines installed at New Zealand Windfarms Ltd's (NWF) Te Rere Hau windfarm.

However, WTL is welcoming the outcome, which identifies that the most serious problem initially identified by the IEC processes was the result of error.

The butt jointed construction of some 44 turbines at Te Rere Hau failed in IEC testing which, when repeated, turned out to have been "loaded to a considerably higher level than was intended or calculated at the time".

"The Expert has determined that at the test load actually applied, the cycles required to pass the type test were actually exceeded in both tests. This greatly reduces the degree of concern regarding these baldes although there is still a margin of unceratinty about the design validation for the blades due to the somewhat limited informationa about the material properties of the butt-jointed laminate.

These blades will not now be expected to fail but the expert recommends six-monthly inspections. This issue represented the largest potential liability for WTL, with repair on 40 turbines costed at $1.76 million in a worst case scenario.

NWF issued a statement saying it had no additional comment to add to the statement.

WTL traded down 0.66% at 50 cents a share, down 47.93% for the year, while NWF rose 2.7% to 38 cents.

The expert's report found smaller potential problems with gearbox bearings in 49 turbines, a possible gearbox housing issue for 35 turbines, and identified monitoring costs for these and the butt joints.

The issue of who pays for monitoring and remediation will now be a matter for discussion with NWF, WTL's chief executive Geoff Henderson told BusinessWire.

"The latest analysis is a welcome result," he said.

(BusinessWire) 17:31:24