Wind turbine makers seek to expand US supply chain

HOUSTON (Reuters) - Siemens Energy is holding its first U.S. supplier workshop this week at the wind industry's largest convention as it works to expand the number of companies that can supply components for its towering wind turbines, a Siemens official said Tuesday.

A panel of international wind turbine makers at the American Wind Energy Association's conference in Houston agreed that the U.S. is currently the top market for their turbines as the industry seeks to grow beyond niche status to a target of providing 20 percent of U.S. electric supply by 2030.

"To build turbines here is key for us," said Michael Revak, director of Siemens Wind Power Americas, at the AWEA conference.

Officials from Gamesa Corp, Suzlon Wind Energy, GE Energy, Vestas Wind Systems and Clipper Windpower each said they want to include more American-made components, such as gear boxes, bearings and blades in their machines.

But they warned that the absence of clear federal policy to support long-term wind development is a stumbling block preventing increased investment in U.S. production facilities and manufacturing jobs.

Revak said the Houston workshop will serve as Siemens' introduction to potential new suppliers. "We are telling people where we are going and what we are looking for," Revak said.

Last month, Siemens received one of its largest orders to date for 218 wind turbines from a unit of Juno Beach, Florida-based FPL Group, the largest U.S. wind developer.

Blades for the turbines will be made at a facility Siemens opened in Iowa in 2007, Revak said.

Tremendous growth in all forms of renewable energy could reinvigorate the nation's dwindling manufacturing sector, said Bob Gates of Clipper Windpower.

"The silver lining of $4 gasoline is that everyone gets to think about energy and the compelling renewable energy story," Gates said.

"Here's an opportunity to bring jobs back to places like the Rust Belt," said Andris Cukurs of Suzlon Wind.

Federal policy -- such as a long-term extension of the production tax credit or carbon regulation -- is needed to offer stable, predictable incentives for wind generation to further the industry's investment to build a supply chain, panelists said.

"That's a hump many thought we were over," said Adam Umanoff of Chadbourne & Parke LLC, who moderated the discussion. "But we're hearing a continued focus on the need for federal policy," Umanoff said.

While the U.S. offers great expansion for wind generators, China and Europe also are very attractive markets, said Roby Roberts of Vestas Americas.

"It is a global market and we see the path in Europe, with policy and transmission," said Roberts. "In the U.S., we're still having problems."

"We need to make some changes in this market because there are other places we can spend our money," Roberts said.

(Reporting by Eileen O'Grady; Editing by Christian Wiessner)