General Electric (GE +2.10%) recently announced plans for a factory for offshore wind turbine blades in the U.K. The plant is intended to support the growth of the offshore wind market in the U.K. and in particular the Dogger Bank Offshore Wind Farm.
GE has been named as the preferred supplier for the third phase of the Dogger Bank wind farm, having already won 190 orders of its giant Haliade-X turbine on the first two phases. At the time of its completion, the Dogger Bank project will be the world's largest offshore wind farm.
GE is hoping the offshore wind market will take off in the next few years. Image source: Getty Images.
The investment in the plant is a testimony to GE's drive to establish itself as a leading player in offshore wind power. That's something investors should be welcoming as management aims to increase offshore wind power sales from just $200 million in 2020 to around $3 billion by 2024. GE Renewable Energy is already a leading player in onshore wind power with revenue of $10.9 billion in 2020.
If GE achieves its aim, then its future looks very bright. Most industry observers are predicting a substantial jump in offshore wind installations from 2025 onward. Although competition in the industry will remain fierce, the Dogger Bank project and the new factory is a good opportunity for the company to demonstrate its ability to execute and ultimately grow its offshore wind business.
