Modern wind turbines stand as key players in steering the world towards Net Zero by 2050. Yet, to meet this target, the challenge lies in adding approximately 33,000 wind turbines annually and quintupling current installation growth by the decade’s end. The hurdle? Soaring steel and commodity prices hamper developers’ will to construct higher and more effective turbines. Surprisingly, the solution might be found in the woods. Literally. Therefore, this article sets out to explore the question: Can wood unlock cheaper wind turbines?
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Bigger turbines are better – but also expensive
Scaling up global wind turbine installations faces real-world challenges for developers. While increasing capacity is demanding larger and more effective turbines, the associated higher production costs, coupled with recent surges in commodity prices are forcing developers to choose smaller, less efficient towers to safeguard their margins. The average cost to build 1MW of wind turbine capacity has surged by 38% in the past two years, driven by a 93% increase in critical minerals since pre-COVID and volatile steel prices.
Could scrap metal result in lower prices?
The use of scrap metal in wind turbine manufacturing, exemplified by Siemens Gamesa’s GreenerTower and Vestas’ low-emission tower made from 100% steel scrap, offers a potential cost-saving avenue. As the cost of scrap metal generally undercuts that of virgin steel, and recycling saves 72% of the energy we need for primary production, these initiatives could lead to significant savings once commercial maturity and large-scale production are achieved, but even when we get to that point, uncertainty lingers about whether these efforts will lead to future reductions in wind turbine prices or if manufactures will absorb the cost-savings without passing them on to developers.
Insights
86% of wind power life cycle emissions are attributed to the extraction of raw materials and manufacturing. This includes using metals such as steel, aluminum, and copper. The remaining 14% of emissions are contributed by transportation, installation, operations, and maintenance (O&M), and decommissioning and disposal. Source: WoodMackenzie
Wooden turbine towers to the rescue
Our modern-day wind turbines have historically relied on steel to withstand natural forces, until now. The Swedish company Modvion, founded in 2016 in Gothenburg, is challenging the norm by harnessing the potential of wood to create taller, cheaper, and more sustainable wind turbine towers. Made from spruce, small modules, each consisting of 144 layers of 3mm-thick LVL is the secret sauce that makes up the towers that can sufficiently support today’s wind turbines.
“Wood and glue is the perfect combination, we’ve known that for hundreds of years. And because using wood is lighter [than steel] you can build taller turbines with less material.”
– David Olivegren, Founder and Board member
Once installed, the wooden tower structure not only outlives the mechanical parts but also has a negative climate impact, storing between 240-950 tons of CO2 per tower, depending on height and load. For a 105-meter-tall tower, about 200 sustainably farmed spruce trees are used to create enough LVL.
Five birds, one stone
Developers and investors in the wind sector should pay attention to this innovative technology. Wooden turbine towers, according to Modvion, offer solutions to multiple challenges developers face:
Higher towers – Higher revenues:
Wooden towers minimize the need for expensive reinforcements or maintenance, making them more cost-efficient than steel, particularly for taller structures.
Lighter constructions:
Wood is lighter weight when compared to steel and reduces the tower’s overall weight by approximately 30%, leading to cost savings.
Easy transportation:
LVL modules enable easy on-site assembly, addressing transportation issues associated with towering wind structures, thus reducing costs. To this claim Modvion adds that that the reduced transportation costs are very project-specific, but generally speaking Modvion towers can be adapted to transport restraints, circumventing costly infrastructure remodeling that is done today. Crane optimization will benefit from the higher specific strength, allowing 30% higher tower segments to be lifted compared to steel.
No exposure to steel price fluctuations:
The absence of steel means immunity to the volatile fluctuations in steel prices, providing stability for developers.
Reduced CO2 emissions:
The life cycle emissions from a 110m tall tower of steel is approximately 1250 tons of CO2. The corresponding wooden turbine tower emits 90% less emissions, which means around 125 tons of carbon dioxide, and considering.
The cost challenge
As previously discussed, the threat of narrowed profit margins looms over developers opting for taller steel-based towers, making cost a paramount factor. Modvion confidently asserts that its towers will not exceed the cost of traditional steel towers and, in the long run, will prove more economical. The degree of cost reduction hinges on the tower’s height – the taller the tower, the more pronounced the cost advantage over steel. To put it in perspective, Modvion has told us that a wooden tower could, over time, slash costs by 25% compared to traditional 150-meter towers.
Opposing views
Dr. Maximilian Schnippering, Head of Sustainability at Siemens Gamesa, challenges the optimistic outlook on potential savings, citing logistical hurdles. In a recent statement to the BBC, he remarked, “More pieces are likely to mean more trucks, more people, and more time to complete the installation.” Despite this, Schnippering acknowledges the modular system as “an advantage” and sees wooden towers as a “nice complement” to steel towers.
While it might seem that Schnippering’s views are influenced by Siemens Gamesa’s competition with Vestas, a key investor in Modvion, the company actively collaborates with various OEMs to diversify its portfolio. Vestas remains a crucial partner, but Modvion is committed to expanding partnerships for broader industry impact.
Anticipating progress
Despite being in its early stages, Modvion has accelerated its path to a global rollout with the successful completion of the ‘Wind of Change’ project. This marked the commercial delivery of a 105m tall tower with a 2MW turbine installed, demonstrating significant momentum.
The company’s ambitious ‘Raise Me Up’ project, set to commence in Q4 2023, aims to develop, test, and implement a 6MW tower for large onshore platforms, with a potential delivery date in 2025.
“Vestas is currently offering Modvion towers to a few, selected customers. As the first OEM implementing our component, they tell us that all wind farm developers in Sweden asks them when they can purchase Modvion towers. A great signal of course. As 60% of the German, Swedish, Finnish markets are already at total heights above 230m, the market pull for our solution is only strengthening”.
Otto Lundman, CEO, Modvion
Modvion’s vision is to secure a 10% market share within the next decade, equating to 2,000 wooden turbine towers annually. While wooden towers may not dominate the landscape yet, they represent a promising addition to the wind energy sector’s evolution—a development that developers should closely monitor.
