Turbine manufacturers such as Siemens Wind Power have been working to eliminate the most complicated and, therefore, sensitive element – the gearbox – by replacing it with a direct drive system.

These direct drive systems, powered by a permanent magnet generator, could run for years without maintenance.

Wind power breakdowns at a height of more than a hundred meters and potentially several hundred kilometers out to sea are not easy to fix.

According to Siemens, around half of the annual output of its wind turbines incorporate permanent magnet generators.

Siemens is not have been the first company to enter this new era of wind power, CTO Henrik Stiesdal, who built his first small wind turbine in 1976 and designed one of the first commercial wind turbines, licensed to Vestas in 1979, believes this can increase the company’s competitiveness.

“The Siemens claim to fame is that we have developed a simple and easy-to-industrialize machine that could significantly bring down energy costs,” he says.

The technology behind this achievement will be the focus of a seminar  at CWIEME Berlin in June.

“Two rare earths are used in the magnet – one is difficult and costly to source, while the other is not,” says Stiesdal. “In my seminar I will explain how we have managed to decrease the share of the truly ‘rare’ rare earth and will eventually eliminate it from the magnets we make in a few years’ time.”

According to Chloe Theobald, content manager for CWIEME Berlin: “Stiesdal is the industry authority on wind power technology and has so many invaluable insights to share with our guests at this year’s show.”- See more at: http://www.electronicsweekly.com/news/design/power/permanent-magnets-key-says-siemens-wind-power-expert-2014-05/#sthash.0Q06Ia4S.dpuf

http://www.fool.com.au/2014/05/01/will-lynas-corporation-limited-raise-capital-or-fold/

By Mike King – May 1, 2014

Rare earths producer Lynas Corporation Limited (ASX: LYC) is down to its last $23 million, having spent $74.3 million in the last quarter, placing the company in a perilous position.

The big problem for the company is that its production costs far exceed the average price it is currently receiving for its rare earth oxides (REO).

Lynas says the average selling price rose 5% to US$22.63/kg over the previous quarter, and received $21.9 million in revenues as a result. But operational, production and administration costs alone came to $46.1 million. Add in capital expenditure of around $7 million, debt repayments of $11.3 million, interest expenses of $9.2 million and other small expenses for a total of around $74 million, and you can see that the situation is clearly not sustainable.

During the last quarter, Lynas produced 1,089 tonnes, up 47% over the prior quarter, with the month of March alone contributing 575 tonnes. The company is targeting an annual production run rate of 11,000 tonnes and expects to meet that goal this quarter. But the company says it needs to produce double that (22,000 tonnes per annum) to get its cash cost down to $14-$15/kg REO.

And that’s just the cash cost and doesn’t include many other necessary expenses. It’s a bit like a gold miner saying they have cash costs of $600 an ounce, but their all-in-sustaining cost might be as much as $1,100 an ounce.

With just $23 million left in the bank, and US$440 million in debts, Lynas urgently needs to raise capital to stay in business. The company’s bankers may be wary of providing further financing, which leaves the possibility of Lynas asking shareholders to cough up some cash as a highly likely prospect.

With shares currently trading at 16.5 cents, the company may have to offer a significantly discounted price to entice investors to part with their hard earned cash. Even that may not be enough to keep the group afloat.