Using 2008 information provided by the US International Trade Commission, McClatchy News Services reports (14 April 2009) the following:

• US manufacturing of wind turbine parts (estimated 8,000 total in a single wind turbine) increased, but imports grew at a higher rate
• Wind turbine imports from Europe and Asia were approximately $2.5 billion (2004: $60 million)
  • Imports of AC generators (primarily for turbines) was $645 million (2004: $38 million)
  • Imports of towers was $944 million (2004: $46 million)
  • Equipment imports were principally from Denmark (28%), Spain (27%), Japan (15%), Germany (12%) and India (7%)

Ship with Imported Turbine Components (Freeport, TX) April 2009

US ports (and transportation companies) have been significant beneficiaries of the expanding domestic wind markets as international companies have been in better positions to serve US equipment and technology needs.  In March 2008, the American Wind Energy Association (AWEA) reported significant growth in imports and offloading requirements in Longview, WA; Vancouver, WA; Stockton, CA; Corpus Christi, TX; Beaumont, TX; Milwaukee, WI and Duluth, MN.  Many of these ports have seen labor needs increase by several fold and to respond to future import requirements are dramatically expanding their facilities (e.g. Vancouver increasing rail capacity from 45,000 cars to 160,000).

The pictures above are from the wind equipment import facilities in Freeport, TX.  Suzlon (Indian wind turbine manufacturer) has been the largest user of the port and estimated that they expected to bring in 300 turbines in 2008 (2007: ~100).  Turbines are also being imported through the port from manufacturers in Denmark, China, Spain, Brazil and other countries.  In the case of Suzlon, they were sourcing projects being developed in west Texas, Wyoming, Idaho and the northeast from the Freeport facility.  GE estimates that transportation costs generally contribute 20% to the capital costs of a wind turbine, so it is particularly impressive that Suzlon can source these distributed US markets after manufacturing in India, incurring trans-oceanic shipment costs and then moving by truck and/or rail from Freeport.

While GE Wind has manufacturing facilities in Pensacola, FL; Greenville, SC; and Tehachapi, CA, they also import some blades (Tecsis: Brazilian manufacturer) and raw materials (steel).  In the same McClatchy report above, GE wants to increase it US production of wind turbines components to ultimately reduce transportation costs.  The AWEA estimates that only 50% of wind turbine components in US projects are actually produced in the US.  China is an important supplier of components with Vestas (Denmark) indicating that they have 300 suppliers in China, but only a handful in the US.

With more certain US renewable energy generation expected, there are major efforts underway by foreign manufacturers to build facilities in the US.  The US International Trade Commission indicates that 11 blade and 16 tower manufacturers either have existing plants or plan to open new plants in the US to serve the regional markets.  More jobs will be created in this sector due to expected market growth, but the technology and manufacturing processes are still mostly the intellectual property of foreign companies who have a material head start.

The question posed by the Miami Herald and McClathcy News Services is real… can the US catch up?