Vineyard Wind is asking a court to block its turbine manufacturer from walking away from a nearly complete offshore wind project as the two squabble over hundreds of millions of dollars in cost overruns.
Vineyard Wind 1 LLC outlined the dispute with GE Renewables US LLC in a memorandum filed April 8 in Suffolk County Superior Court in Boston (2684cv01041).
Vineyard maintains that its 2021 turbine supply agreement with the subsidiary of GE Vernova clearly allows Vineyard to withhold payments in the amount that GE Renewables owes to Vineyard as determined through an impartial review by the project engineer.
The 806-MW wind farm off the coast of Massachusetts has sustained two years of delays and more than $1 billion in damages from component failures that GE Renewables admitted were its own fault, Vineyard said, particularly the replacement of turbine blades determined to contain manufacturing defects.
The project engineer so far has decided claims worth $853 million in Vineyard’s favor, the court filing states, and Vineyard has withheld $308.1 million. The contract is worth approximately $1.32 billion, according to the filing.
No reply by GE Renewables was present in the docket as of April 13, but the parent company told RTO Insider in a prepared statement:
“GE Vernova recently completed the installation of all 62 wind turbines at the Vineyard Wind Farm. The majority of these turbines are now generating electricity for homes and businesses in Massachusetts. Unfortunately, Vineyard Wind has chosen to withhold payments for more than 18 months, totaling more than $300 million, for work performed.
“Consequently, GE Vernova exercised its contractual right to terminate the ongoing project agreements for non-payment. The company remains committed to the safety of the wind farm and stands by our performance and our contractual obligations. We will vigorously defend our position through the appropriate legal process.”
GE Vernova has suffered continuing losses and setbacks in its offshore wind business and has indicated it will be stepping back from the offshore sector after it fulfills its contract obligations.
But stepping back prematurely would be disastrous for Vineyard Wind, the plaintiffs say, dooming the project to failure and leaving behind a “dormant wind farm graveyard.”
GE Renewable Energy’s 13-GW Haliade-X was billed as the most powerful offshore wind turbine on the market when introduced. It has been deployed only at Vineyard and at Dogger Bank, under construction in the North Sea.
The Vineyard turbines still have dozens of significant nonconformities curtailing their performance, the court filing states, and will require specialized maintenance for their entire service lives.
The Haliade-X is larger and more complex than other turbines, the filing states. Most or all troubleshooting, optimization and repair work will rely on GE Renewables’ propriety tools and components.
The manufacturer is irreplaceable in the project, Vineyard says, which is why the parties agreed to a contract provision requiring GE Renewables to continue working during any dispute resolution process or related court proceeding.
Vineyard’s April 8 emergency motion for preliminary injunction and temporary restraining order seek to force it to do just that.
GE Renewables gave notice to Vineyard on Feb. 27 that it would terminate the contracts effective April 28 on grounds that it is owed more than 5% of the contract price. The two parties met as recently as April 6 but were unable to reach an agreement.
Vineyard said that under a mutually agreed timeline, GE Renewables will file an opposing brief by April 15 and if it chooses to reply, Vineyard will do so by April 17. A hearing will follow the week of April 20.
