ABB – ABB invests in strategic partnership with clean energy start-up to offer end-to-end wind energy portfolio

September 6, 2023
ABB

  • ABB Motion acquires minority stake in WindESCo, a leading analytics software provider for improving performance and reliability of wind turbines
  • Venture capital investment complements ABB’s wind portfolio with digital offering, allowing it to expand its market reach beyond wind converters and services

ABB Motion and WindESCo, have signed a strategic partnership, where ABB has acquired a minority stake in the company through its venture capital unit, ABB Technology Ventures (ATV). US-based WindESCo is the leading analytics software provider for improving the performance and reliability of wind turbines. Leveraging WindESCo’ solutions, the investment will strengthen ABB’s position as a key enabler of a low carbon society and its position in the renewable power generation sector. It will allow the company to continuously improve wind turbines’ performance and reliability, offer end-to-end solutions to wind customers and open a new market channel for its digital offering. Financial details of the investment were not disclosed.

ABB is a leading independent supplier of wind converters for medium voltage and low voltage wind turbines. WindESCo has around 25 employees and works with 40 customers on projects in 18 countries. It has developed a market leading OEM agnostic asset performance monitoring software to detect anomalies in wind turbines, propose corrective actions and measure their results. The company has also developed a wake optimization solution that leverages data across a wind plant to optimize plant output. With their combined offering, ABB and WindESCo can now offer a complete solution approach to customers. WindESCo will be able to leverage ABB’s electrical domain expertise to further strengthen its software offering, while ABB closes a gap in its wind portfolio by adding a digital offering to the already digitally enabled wind converters.

“This strategic venture capital investment allows us to strengthen our market position supporting the energy transition and continue to shift our portfolio of customer solutions towards renewables and decarbonization. It will complement ABB’s wind portfolio with a strong digital offering by WindESCo, that enables both companies to leverage their strong presence in the growing wind market. This win-win transaction will offer a holistic solution approach to our customer bases, and it will expand the service offering by ABB Motion. We look forward to developing new synergies with the talented team at WindESCo,” commented Chris Poynter, President, System Drives division, ABB Motion.

 

Mo Dua, CEO, and founder of WindESCo, said: “There is tremendous value locked in the wind turbine converter data. While most of the solutions have focused on the mechanical systems, there are no solutions having a meaningful impact on the electrical system. The equity investment by ABB and our technical collaboration will allow WindESCo to expand its offering to the wind turbine electrical system with the goal of being the leading comprehensive asset performance monitoring solution provider for the wind industry. We are glad ABB chose WindESCo as their digitization partner.”

The partnership helps expand ABB’s ecosystem of innovation partners developing solutions that support decarbonization and energy efficiency. Since 2009 ABB has made investments of around $400 million from its capital venture arm that are aligned with its electrification, robotics, automation and motion portfolio.

 

SourceABB

EMR Analysis

More information on ABB: See full profile on EMR Executive Services

More information on Björn Rosengren (Chief Executive Officer, ABB): See full profile on EMR Executive Services

More information on ABB Motion: https://new.abb.com/about/our-businesses/motion  + ABB Motion keeps the world turning, while saving energy every day. Our pioneering drives, motors, generators products and integrated digital powertrain solutions are driving the low-carbon future for industries, cities, infrastructure and transportation. Through our global presence we are always close to our customers. We help them optimize energy efficiency, improve safety and reliability and achieve precise control.

ABB Motion portfolio: Drives, Motors and Generators, Services, Traction. 

21,100 employees, 23% of Global ABB Revenue / $ 6.7bn in 2022 at -3% with 7 Divisions.

More information on Tarak Mehta (President Motion and Member of the Executive Committee, ABB): See full profile on EMR Executive Services

More information on Chris Poynter (President, System Drives division, ABB Motion, ABB): See full profile on EMR Executive Services

More information on ABB Technology Ventures (ATV): https://global.abb/group/en/technology/ventures  + Strategic venture capital for breakthrough industrial technology startups.

ABB Technology Ventures (ATV) is the venture capital unit of ABB Group. ATV looks for breakthrough technology companies aligned with ABB’s goal to write the future of industrial digitalization and has invested more than $300 million into start-ups spanning a range of sectors including robotics, industrial IoT, AI/machine learning, cybersecurity, electric mobility, smart buildings, and distributed energy.

More information on Kurt Kaltenegger (Head of ABB Technology Ventures, ABB): See full profile on EMR Executive Services

 

More information on WindESCo: https://www.windesco.com/ + Unlocking The Hidden Value of Renewable Energy Plants.

WindESCo is the leading renewable energy performance analytics company.

At WindESCo, our passion lies in empowering our customers to maximize the performance, energy production, and reliability of their assets, ultimately unlocking the hidden value of their projects and contributing to a greener future for all. We believe that data holds the key to achieving these goals. When you choose WindESCo as your partner, you gain access to a dedicated team that is committed to guiding you on your journey toward smarter, more efficient energy production.

Through proactive recommendations and seamless implementations, we strive to optimize your entire plant, increase your Annual Energy Production (AEP), and drive more revenue for your business. Our comprehensive approach ensures that you not only achieve linear improvements but also experience continuous optimization, leading to sustained growth and success.

With the launch of WindESCo Swarm, the first patented solution for wake mitigation and collective control of wind turbines, we have revolutionized the industry. By implementing WindESCo Swarm on new and existing assets, we can deliver farm-level AEP improvements of 3-5% while safeguarding assets from climate risks and extreme events, leading to a more efficient and resilient renewable energy infrastructure.

In 2022, we updated our visual identity to align with our mission and visions for the company’s future. We have a global reach, extending our expertise and services to optimize all renewable energy assets and supporting infrastructure. From onshore and offshore wind plants to floating wind installations, solar arrays, green hydrogen projects, battery storage systems, and electrical systems, we aspire to accelerate the energy transition and preserve our planet through both organic expansion and strategic industry partnerships.

Our team is dedicated to leveraging data-driven solutions to revolutionize the renewable energy sector, making it more efficient, reliable, and environmentally sustainable. Together, let’s create a brighter and cleaner future for generations to come. 

WindESCo has around 25 employees and works with 40 customers on projects in 18 countries. It has developed a market leading OEM agnostic asset performance monitoring software to detect anomalies in wind turbines, propose corrective actions and measure their results. The company has also developed a wake optimization solution that leverages data across a wind plant to optimize plant output.

More information on Mohot Dua (Founder and Chief Executive Officer, WindESCo): See full profile on EMR Executive Services

 

 

 

EMR Additional Notes: 

  • OEM (Original Equipment Manufacturer):
    • Company that produces parts and equipment that may be marketed by another manufacturer.
    • Usually tagged on hardware or software that’s less expensive than normal retail products.
    • An OEM refers to something made specifically for the original product, while the aftermarket refers to equipment made by another company that a consumer may use as a replacement.
    • Electrical OEM manufacturers makes equipment or components that are then utilized by its customer, another manufacturer or a reseller, usually under the final reseller’s brand name. OEMs come in many shapes and sizes, making complete devices or specific components.
  • MRO (Maintenance, Repair and Operations):
    • It refers to all the activities needed to keep a company’s facilities and production processes running smoothly.
    • Supplies consumed in the production process that do not become part of the end product.
    • Maintenance professionals use MRO items to maintain company structures, equipment, and assets. Purchases that fall under MRO include maintenance tools and equipment, replacement parts for production equipment, consumables such as personal protective equipment (e.g., safety goggles, work gloves), cleaning products and office supplies.
  • Integrated Supply:
    • Integrated supply chain management refers to an enterprise resource planning approach to supply chain management.
    • Large-scale business strategy that brings as many links of the chain as possible into a closer working relationship with each other. The goal is to improve response time, production time, and reduce costs and waste.
    • Often takes the form of integrated computer systems. For example, the supplier’s computer system may be set up to deliver real-time data to the buyer’s computer. This allows the buyer to know: The current status of all orders., which products are in the supplier’s inventory …
    • Integration, operations, purchasing and distribution are the four elements of the supply chain that work together to establish a path to competition that is both cost-effective and competitive.
    • Integrated supply is the end-to-end process of managing the MRO supply chain (spare parts) through consolidated sourcing practices, storeroom operations, inventory management, data governance, and continuous improvement. The objective is to leverage spend, reduce transactions, and cut inventory and associated costs while eliminating risk around critical spares.

 

  • Carbon Dioxide (CO2):
    • Primary greenhouse gas emitted through human activities. Carbon dioxide enters the atmosphere through burning fossil fuels (coal, natural gas, and oil), solid waste, trees and other biological materials, and also as a result of certain chemical reactions (e.g., manufacture of cement). Carbon dioxide is removed from the atmosphere (or “sequestered”) when it is absorbed by plants as part of the biological carbon cycle.
  • Decarbonization:
    • Reduction of carbon dioxide emissions through the use of low carbon power sources, achieving a lower output of greenhouse gasses into the atmosphere.