Show notes
Lars Bendsen joins the spotlight to discuss how AC883 helps operators source turbine parts to cut costs and reduce downtime. AC883 can offer faster response times and better pricing than manufacturers based in Europe. Lars shares how his company's approach helps prevent extended turbine downtime by providing quick access to critical components.
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Allen Hall: In the wind industry, a turbine standing still often means one thing, waiting for parts that should be readily available. This week on the uptime spotlight, we're joined by Lars Benson of AC 8 83, which is based in Canada. AC883 has direct connections to manufacturers in Denmark where most critical worm turbine components are actually produced Lars shares, house site operators can cut costs and dramatically reduce downtime by bypassing the OEM middleman and sourcing parts directly from the original suppliers.
Welcome to Uptime Spotlight, shining Light on wind Energy's brightest innovators. This is the progress powering tomorrow.
Allen Hall: Lars, welcome back to the show. Thank you. Spare Parts is a huge issue all over the world, but it seems like in the US and Canada, there's always a shortage. They're looking for spare parts. They don't know where to get them, and the easy answer has been to call the original equipment manufacturer in terms of the GE Vestus Siemens, cesa, Nordex, whoever that may be, and just to place a order.
There are other opportunities out there. What happens when a wind side in Texas just decides to buy from the wind turbine manufacturer? How much are they paying overpaying for that part?
Lars Bendsen: I can't say exactly on on dollars and cents, but but we know the markup from the OEMs.
Then they're not shy of earning money on that, those parts. And yeah, so it's very simple. We can get those parts directly from Europe directly from the suppliers to the OEMs.
Allen Hall: Yeah. And if I'm an operator, and I haven't been over to Denmark to look at the situation there, a significant number of critical parts are actually manufactured in Denmark or in the surrounding areas.
You have no way of knowing that if you own the turbine,
Lars Bendsen: that's true. You don't. Somehow the OEMs have been really good and keeping a bit of cloud cloudy around that area. It's actually pretty simple. They all produced either in in Denmark and Germany for basically all turbines. GE turbines is a target turbine from Germany that that they bought back when.
So that's why sim that's a German turbine as well. It's not a US turbine at all.
Allen Hall: And the supply chain has remained that way for a long time.
Lars Bendsen: It's a BP parts. It's standard parts. There's no rocket sites in it. Of course, there's some legacy some software parts and stuff that we could be desk, some, what we call it electronic boards, which software on, of course we can't do that.
That's fair enough, right? That's actually where the OOM has its value. That's totally good.
Joel Saxum: I think part of the reason that you see this, that gap there in the industry is the simple fact that, and I don't take this as a slight Lars because I love your website and what you guys do for marketing and branding, but in that corner of the world, and Alan, you and I were just talking about this couple of German companies we're talking about they're not that good at global branding and global marketing.
As a unit like culturally, so you don't see really what's going on almost behind that curtain as an American, when you log in and go I need some breaks, or I need this, or whatever. You don't see that manufacturer's website pop up. You may see an AC 8 83 pop up that says, Hey we have we sales spare parts.
But you just don't as an American and to be honest with you. Running around the United States talking to all these wind site operators, they're so dang busy with their day-to-day life and solving the, putting out the fires and the problems that they have every day, that they don't have time to go search for that stuff.
So what do they do? They just call their procurement or the person that they know and they say, Hey, get me this. And if they end up overpaying for. 10, 20, 50% or whatever. It got the turbine back up and runway because uptime is king. So what else are you guys doing to strategically work with your clients and your customers to make sure that they don't have to do that?
Lars Bendsen: Generally speaking, I agree with larger countries let it be germinated. But the US and Big Canada they have such a big inner market. They're horrible in doing export, generally speaking. They're not good at it. They're really good at producing stuff and doing the take care of their own stuff.
Denmark, I think it's 97% is export or being produced in Denmark, something like that. Because we have five, 5 million people, there's no inner market we need to get out there where the market, inner market in US and Canada and Germany is so big. You don't, we don't need export. We're not real good at it.
And don't call Canada US export. It's not export, it's the in the market. So far,
Allen Hall: the turnaround times from the OEMs tends to be slow if they have the part in stock and there's so much demand at for some specific parts that they don't always don't have it sitting on a shelf to send to you, which is a huge problem.
So you have to develop a subsequent chain, a supply chain, and why not go right to the source? Which is gonna be in Denmark for the most part. Why not do that as to source the actual part instead of an imitation part or a refurbished part, which I've seen more of recently. You can actually get the real part.
Lars Bendsen: It's still surprising me sometimes. We hadn't known em last year. They just closed their warehouse for three months. We just closing them. We cannot supply it for three months. How's that gonna work? This wasn't a European summer thing, was it? No, that was gonna be six weeks. That's only six weeks. No, it was exactly in the fall, I think it was.
And they just decided to close it for three months. And I don't understand this, OEMs should earn $0 on the turbines itself. They're earning money on the service and the parts look at the accounting on vest and seems real. They're earning no money. It's only on their aftermarket and vest, in all fairness, are extremely good at it.
Really good at it. They have 75% or whatever the accurate number is covered of the fleet with service and parts is great. So we are not hunting as much vessel because why would we find that needle in the haystack where you could say that Siemens and ge they have less percentage, way less, maybe half of that depending on countries, et cetera and areas.
But still, again, how can you allow yourself to just close your warehouse to three months?
Joel Saxum: That's crazy. Do let me ask you something about that, Vesta the vests setup 'cause in my mind, okay. I worked with a Danish company, very process driven, very controlled. There was step changes in gates and, everything was mapped out very well in how the company operated.
So do you believe that the, one of the reasons that Vestas may have a really good control of spare parts inventory and the direct connection to those sites is because they sign those. 20, 25, even 30 year FSAs. Is it all based on this overarching business model that, that encompasses that and the others aren't just, aren't doing that?
Lars Bendsen: I don't know. I think it's I think everybody wants to do it. That's just my 2 cents. I'm not an expert in that area, but my 2 cents is that vessel has the power to demand that. And they're not selling any new wind farm without a service contract, whatever's 5, 10, 15. They do not. Where some of the wind inside the smaller, they have less power.
The owners say, you know what, that's all well and good, but then we're not gonna buy your turbines. And then GE and Siemens has to cave in a little bit. That's my 2 cents.
Joel Saxum: I think strategically like GE with having expanded in their service thing and then now changing it to the hub and spoke model, like I think that this is my 2 cents, right?
I think GE saw some bloat. In what was happening in service. And I'm not gonna say parts 'cause I don't think that's true, but service and this FSA and I think that GE is actually strategically pulling back from signing these FSAs. And because some of the stuff with, we've heard horror stories with, and this isn't just ge, it's all the OEMs with, liquidated damages, catching up with people and those kind of things because they don't have access to spare parts.
So they don't have access, they don't have the service people to get out there quick enough. So it's a, there's a large problem in the industry and I would say that if you're a wind farm operator or wind site supervisor, technician, whatever, it's at some point in time, you've felt the pain of not having that spare part that you need to get your turbine up and running.
And that's where a C 83 comes into play.
Lars Bendsen: Yeah, I agree, but I also believe that some some owners are too small that the OEMs even care. We have seen some horrible example that, you know. Care list. That sales person sold that wind farm. That's it. He can care list and the aftermarket people sitting in Denmark and they are, they're closing at four o'clock eastern as it's four o'clock.
It's not four 10. It's four o'clock.