The future of Vineyard Wind is in serious peril after its turbine manufacturer is attempting to back out of the project over claims of being owed hundreds of millions of dollars.
Vineyard Wind filed a lawsuit in Suffolk County Superior Court on Wednesday, alleging that GE Renewables, the company hired to design and build the 62 850-foot tall turbines at the wind farm, is planning to breach its contract and walk away from the project by the end of the month.
If this comes to pass, it would be a critical blow to the Vineyard Wind, which would be the largest offshore wind farm in the country. Located 14 miles south of Martha’s Vineyard. The final turbine blade was installed at Vineyard Wind in March, and the project was in the process of bringing all of its turbines online.
Without GE, it would be nearly impossible for Vineyard Wind to find another company to do the commissioning work, Vineyard Wind attorneys and officials wrote in court filings.
“If [GE Renewables] abandons the Project now, does not fix the [wind turbines], is not around to provide service and maintenance (which only GER can do), and no longer stands behind the yield warranty, [Vineyard Wind’s] survival will be imperiled,” Vineyard Wind CEO Klaus Møller wrote to the court.
In particular, Vineyard Wind would not be able to obtain financing for the operation of the farm, or generate enough revenue to repay its construction loan of approximately $2 billion, Mr. Møller wrote.
Much of the dispute hinges on which company owes the other money, and how that all changed when one of the turbine blades broke in July 2024.
In February of this year, GE sent a termination notice to Vineyard Wind, saying it planned to cancel its agreements to supply the turbines and maintain them on April 28.
According to the lawsuit, GE asserted that it could terminate the agreements if Vineyard Wind failed to pay a portion of the $1.3 billion contract price. GE, and its subsidiary GE Vernova, argue that Vineyard Wind is withholding hundreds of millions of dollars owed for work at the wind farm.
“GE Vernova recently completed the installation of all 62 wind turbines at the Vineyard Wind Farm. The majority of these turbines are now generating electricity for homes and businesses in Massachusetts,” GE Vernova spokesperson Tim Brown wrote in a statement to the Gazette. “Unfortunately, Vineyard Wind has chosen to withhold payments for more than 18 months, totaling more than $300 million, for work performed. Consequently, GE Vernova exercised its contractual right to terminate the ongoing project agreements for non-payment. The company remains committed to the safety of the wind farm and stands by our performance and our contractual obligations. We will vigorously defend our position through the appropriate legal process.”
In the 33-page lawsuit, Vineyard Wind didn’t dispute that it owes GE money, saying it is currently withholding $308 million. But said the companies’ agreements allows Vineyard Wind to withhold payments to GE if GE owes Vineyard Wind money, according to the lawsuit.
In this case, Vineyard Wind said the manufacturer owes Vineyard Wind $394 million due to the shoddy work that led to the turbine blade break and nearly two years of delays.
Sixty-eight of blades made by GE at a Canadian plant at the farm had to be replaced due to inadequate bonding that “were so poorly made that they were beyond repair,” according to the lawsuit.
Vineyard Wind also noted several other “nonconformities,” such as repeatedly tripped sensors that cause the blades to shut off.
A project engineer was brought in to settle claims between Vineyard Wind and GE after the blade failure. They determined that GE owed more than $850 million, including the contractual cap of $394 million in delay damages.
When GE didn’t pay for those damages, Vineyard Wind withheld paying other invoices, according to the suit.
If not resolved, the financial dispute could prove fatal for Vineyard Wind. Some of the turbines have been running for several months, but GE still needs to do final commissioning work to allow them to all run at full power.
GE was also planned to oversee their operation for at least the first five years.
Because the turbines were designed, manufactured and installed by GE, few other companies would wish to step in just before the finish line, especially after the high profile failure of the blade in 2024, Vineyard Wind contends.
“Working on another supplier’s [wind turbines] and certifying their fitness for operation would also require the supplier to assume risks well beyond what a supplier would likely be willing to do,” the company’s attorney wrote. “That may be especially true here, where the high-profile July 2024 blade failure, ensuing suspension order from federal authorities, and blade replacement campaign may all make another turbine supplier particularly wary of signing off on [GE’s turbines], and [GE’s] blades in particular.”
The two parties had met last week in an attempt to work something out, but could not come to an agreement, according to the lawsuit.
Vineyard Wind is now asking the court to find that GE is in breach of contract and enact an injunction for failing to fulfill its obligations to Vineyard Wind.
A hearing on an emergency motion of a preliminary injunction is scheduled for April 16.
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