Wind turbine manufacturer calls in receivers

Scottish wind turbine manufacturer Proven Energy has called in the receivers after identifying a fault with its flagship turbine.

The defect affects shafts on the P35-2 model, and although management believes it is a minor problem that can be repaired, it has advised customers to temporarily stop using the product. The firm’s P7 and P11 models have not been affected.

A statement on the company’s website said “a significant number of shafts may be affected across multiple manufacturing batches”. All Proven 35-2 owners were advised to place their wind turbines on brake as soon as it was safe to do so, but under no circumstances should the parking brake be applied while the turbine is rotating at normal operating speeds.

As a result of the product issue and the inability to obtain necessary additional funding, the directors had no option but to cease trading. Blair Nimmo and Tony Friar of KPMG were appointed joint receivers of Proven Energy at the request of the company’s directors.

“Although Proven has achieved substantial turnover growth in recent years, the company has made significant losses as it focused on product development, making it difficult for the business to cope financially with the cost of the product failure,” Mr Nimmo said.

A number of offers to buy the business have been received and KPMG has set a closing date for final and unconditional offers to be submitted by 5pm today (27 September).

Mr Nimmo confirmed that Proven Energy supplied customers with warranties for its turbines, rather than being supplied by a third party. “Therefore, customers with warranties will become claimants. Any potential purchaser of the business may be willing to honour those warranties but that will be a purely voluntary act at their discretion.”