Switzerland-based power and automation giant, ABB Ltd. ABB disclosed a large power infrastructure contract with Rampion Offshore Wind Farm in the UK. As per the deal, ABB will offer substations and related power infrastructure at the wind farm.
In particular, the company will provide power infrastructure for the onshore substation as well as the offshore platform for efficient integration of the new wind farm into the transmission grid of the country. Apart from these, ABB will facilitate the expansion of an existing substation.
As a matter of fact, this project is constructed by E.ON – an energy company – in collaboration with the UK Green Investment Bank plc. Positioned off the Sussex coast between Worthing and Brighton, the wind farm will comprise 116 turbines. The 400 Megawatt project is expected to conclude in 2018.
Post-completion, the wind farm will generate electricity for about 300,000 homes and curtail annual CO2 emissions by at most 600,000 tonnes. It will largely contribute to the UK’s target of attaining 15% of the total energy production from renewable sources by 2020. Presently, Europe has offshore wind power of about 8 gigawatts that are connected to the grid.
Bottom-Line
We believe the above-mentioned contract win is significant and in sync with ABB’s long-term vision of creating a better world with the help of sustainable solutions. The company’s Power division is well equipped to add to the value chain of these projects. As the company continues to focus on its ‘Next Level Strategy’ in a bid to solidify its foothold in growing markets, we believe its competence will fetch more orders from varied firms in the future.
Of late, ABB has been keen on enhancing the lifestyle of European nations via a spate of deals. Most recently, the company grabbed the order to aid European countries’ Waste-to-Energy Initiatives. Also, ABB disclosed the contract to assist expansion of Stadler Trainsacross Europe.
ABB currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the broader industrial goods sector include II-VI Incorporated IIVI, Dycom Industries Inc. DY and Capstone Turbine Corp. CPST. While II-VI Incorporated and Dycom Industries sport a Zacks Rank #1 (Strong Buy), Capstone Turbine holds a Zacks Rank #2 (Buy).
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