Siemens Energy and E.ON, both based in Germany, have announced what may be one of the largest wind power deals ever. Under the terms of their partnership, Siemens will supply 500 wind turbines to E.ON for U.S. and Europe projects.

The nature of the agreement is unique. It allows the two companies to work together on improving turbine efficiency and reducing maintenance costs. Siemens and E.ON will be working together closely in their efforts to improve the performance of the wind turbines.

E.ON's new wind turbines will have a total capacity of 1,150 megawatts and will be delivered and installed in 2010 and 2011. Each turbine will have a capacity of 2.3 megawatts on its own. The impressive capacity marks one of the largest wind-power deals to date. E.ON plans to use 600 megawatts of the planned capacity for its U.S. projects. The other 550 megawatts will be installed in wind farms all over Europe.

"This agreement with E.ON is the largest single wind power deal Siemens has ever signed in its history," said René Umlauft, the CEO of the Renewable Energy Division within the Siemens Energy Sector. "The new partnership between E.ON and Siemens is not only to the great benefit of the two companies. The cooperation also marks an important step in the remarkable evolution of wind power as a mainstream energy source."

While the two companies are partnering for the total number of wind turbines, E.ON will place orders with Siemens for each individual project. The partnership has set certain overall terms for the purchase of the turbines, and individual purchase orders will reflect those terms.

"This agreement represents a major milestone in the supply chain strategy for E.ON's Renewables Business," said Dr. Frank Mastiaux, the CEO of E.ON Climate & Renewables. "We are delighted that Siemens shares our vision and agrees to work together to deliver benefits to both parties. This makes a significant step in the industry's journey from boutique to industrialization."

The two companies are both heavily involved in energy, and have dedicated significant resources to expanding their individual renewable energy efforts. E.ON's Climate & Renewables department has set a goal of investing at least six billion Euros in renewable energy and climate protection projects by 2010. The various wind turbine projects associated with E.ON's new partnership are under the direction of that department.

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