A SCOTTISH renewable energy company which sold hundreds of defective wind turbines collapsed yesterday.
Proven Energy has gone into receivership, leaving customers uncertain over the future of their flawed generators.
As reported in yesterday’s Press and Journal, the company told owners to shut down its 35-2 model turbines amid fears of mechanical failure which experts warned could lead to blades flying off.
Many of the 500 generators which have been put up in Scotland are owned by farmers – and a union representing the industry said last night its members needed to know if they would be able to use their turbines again.
Receivers KPMG said Proven directors had no option but to cease trading after the company revealed the defect and struggled to raise extra funding. Proven had warned its biggest investor, the Low Carbon Accelerator fund, it would not be able to cope with its losses unless it received another cash injection.
Proven, which has offices in East Kilbride and Stewarton, Ayrshire, has also made 55 of its 75 employees redundant.
Last night Blair Nimmo, head of restructuring for KPMG in Scotland and one of the joint receivers of Proven, said: “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 added he hoped to sell all or part of the business and its assets.
Farmer Fred Hendry, of Byth Stone, Alvah, near Banff, has had a Proven 35-2 turbine generating power on his farm since June 2010, but said he did not believe the receivership would make much difference to his situation.
He said he intended to continue running his turbine because he had been told the defect was minor and could probably be resolved by installing a new shaft, which an Inverurie-based engin- eering business had offered to carry out. Farmers’ union NFU Scotland said members who have 35-2 turbines would want answers on what action to take.
Spokesman Bob Carruth said: “The news that a major turbine manufacturer has gone into receivership is a blow to the fledgling renewables industry in Scotland.”
A spokesman for KPMG said if customers did have a guarantee from the company then they should make a claim to the receivers.
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