Investing in Wind Energy Gearbox Advancements
Cost-Efficient Wind Power Starts With Better Mechanics
Mar 14, 2009
In the early days of wind energy - well before publicly traded companies were interested - efficiency and durability weren't technical considerations. Proponents were just trying to prove it could work at all. Now, however, with the industry starting to generate revenue in the billions, companies realize profits can be made as well. Investors in the companies able make wind energy cost-effective stand to make a pretty penny themselves. Much of that cost-effectiveness lies in a wind turbine's gearbox.
State of the Technology
To determine exactly why one gearbox manufacturer may be a better investment than their competition, some basic mechanical concepts of the gearbox should be understood.
There are only two basic types of transmissions used on wind turbines - traditional gearboxes that spin the generator at a speed faster than that of the actual fan blades, and direct drives which directly connect the fan blades and the generator.
The advantage of a gearbox is simply that they're proved to work, and most wind turbines are already built to use them. The downside is that the torque created by the spinning motion - and its speed amplification by a factor of 40 - cause tremendous wear and tear on the gearbox. Maintaining them and replacing their parts is a significant expense, almost to the point where wind energy isn't cost effective enough to compete with gas and coal energy.
Specifically, the bearings used in current gearboxes aren't yet durable enough, and it's now realized that the oil used to lubricate gearboxes needs to be of a very high quality, withstand incredible heat, and it must remain meticulously clean.
In retrospect, technicians also now realize wind turbines and gearboxes were not designed with easy maintenance in mind.
Direct drive systems are newer and less tested, but simpler. The fan blades literally attach directly to the turbine, and are expected to cause less wear and tear. Therefore, they may be cheaper to utilize over time. Of course, it's still not clear if direct drive systems will work well enough.
Investment Opportunities
Clipper Windpower (CRPWF.PK,CWPR.L) may be one of the best known wind turbine powertrain manufacturers, if not the best known. The company has truly designed and built a gearbox that specifically addresses the known problems with current gearbox technology.... ease of maintenance, and excessive wear.
Clipper's "Quantum Drive" transmission reduces torque to about 25% of what it would be with a typical gearbox by using its two-stage gearbox rather than the normal three-stage gearbox. And, two sets of roller bearings are used to reduce bearing wear by preventing misaligned shafts.
Though Clipper's technology is impressive, Hansen Transmissions' (HSN.L) gearboxes are the industry's favorite. The company owns about 1/4 of the wind turbine gearbox market, even though their design hasn't been significantly improved in years.
Kaydon Corporation (KDN) and Timken Co. (TKR) are both involved in multiple aspects of wind energy mechanics, yet are also diversified into complimentary lines of business. Both manufacture superior anti-friction bearings, thus addressing a key problem facing wind energy.
Finally, Broadwind Energy Inc. (BWEN) manufactures parts used in various aspects of wind energy infrastructure, such as towers, pinion gears, shafts, ring gears, and planet pinions. The company also offers maintenance services, which is an opportunity that will grow side-by-side with the wind energy industry.
Change is Constant in the Wind Energy Industry
As with any investment, investors should perform due diligence with any of these stocks, and constantly monitor the progress (or lack thereof) of any companies they own.
It's also worth noting there are always new and better wind infrastructure companies becoming available. The problems and solutions presented here, however, are likely to remain constant.
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