Windfarms and Windflow in dispute over turbine certification

Wednesday 12th August 2009

New Zealand Windfarms is in dispute with Christchurch wind turbine pioneer Windflow Technologies over the fact that turbines already supplied will not meet the high international certification level promised by Windflow.

Windfarms is Windflow's largest customer, having installed five of the two-bladed turbine units at its Te Rere Hau site in the Manawatu in 2006, and ordered a further 92 turbines which are being progressively installed now.

Windfarms chief executive Steve Cross said it was unclear what impact, if any, this would have on the capacity of Windflow's turbines to meet expected performance standards, but regarded it as prudent to notify the NZX of the issue.

NZAX-listed Windflow appeared blind-sided by the NZX announcement yesterday afternoon, and responded today with a defence of the turbines' performance and clarifying that it was still aiming to be the first wind turbine manufacturer in the world to achieve the International Electrotechnical Commission WT01 standard.

Shares of Windfarms fell 5.3% to 71 cents and Windflow was unchanged at $1.40, having fallen 22% in the past week.

Windfarms had ordered its turbines knowing that the model being supplied had not passed certification and that "the turbines installed and under construction for Te Rere Hau are slightly different from the latest version submitted for certification", Windflow CEO Geoff Henderson said.

MightyRiverPower, with a 20% shareholding in Windflow, is also a major potential user of the turbines at its Long Gully project, south of Wellington.

Businesswire.co.nz

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