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Zoltek's Take: This article reiterates what we have said hundreds of times before…..wind turbine blade manufacturing has been growing exponentially since 2005, when oil prices were equal to or lower than where they are today. Noted in this article is the fact that from 2005 to 2006 production doubled and from 2006 to 2007, production rose 38%. Even more impressive is that in the next 10 years, production is expected to triple from today’s levels.
The first key point we would like to make is regarding the main R&D focus of blade manufacturers. As noted in this article, the main objective of the R&D is to “reduce the cost of wind energy to less than fossil fuels.��? In order to get more power, you have to make longer blades so that any given turbine covers a larger area. It’s that simple.
The second key point is the “reservations toward carbon fiber.��? Yes, aircraft manufacturers are moving towards composite intensive planes and they’re willing to pay more for carbon fiber. This is why we have been banging the table regarding the notion that aerospace grade manufacturers can enter our commercial markets. We don’t think they can because they won’t have the extra capacity to make long-term commitments in the commercial markets and they prefer selling smaller volumes at far higher prices. With regards to adequate supply, this was previously a problem and concern in the wind energy market. We have said before that our capacity constraints in years past kept potential customers from wanting to commit to carbon fiber. That being said, we have since alleviated that concern and have proven to the market that Zoltek can add capacity quickly and efficiently, while maintaining our prices. So, the argument that we can’t scale to meet the global wind energy demand is completely broken and has no merit whatsoever.
The third key point is that three wind turbine manufacturers have committed to Zoltek carbon fiber, two of which are the largest turbine manufacturers in the world.