Despite the ongoing federal debates about the future of renewable energy tax credits, representatives of Nordex USA were all smiles Tuesday as they celebrated the reopening of the company’s wind turbine production facility in West Branch.
Production at the new facility, with more than 100 workers already on board, began about four months ago, producing the company’s first U.S.-made N163/5X turbine over the past four months. Production at the plant idled in 2013, when the facility was still owned by Acciona, but Nordex purchased that company in 2016, then announced last year it planned to resume manufacturing at the West Branch plant.
“We are here for the long term,” said Manav Sharma, CEO of Nordex Group’s North American division. “We are not here as a fly-by-night operator.”
Since 2013, the West Branch facility has been used for warehousing and as a training center for Nordex employees. But since last year’s announcement, the company assembled more than 100 workers and fully retrofitted the plant for wind turbine production, which resumed earlier this year. The plant will produce nacelles, hubs and drivetrains for 5-megawatt turbines, with production capacity planned to exceed 2.5 GW annually.
Manufacturing operations were clicking into full gear after Tuesday’s ceremony, in the wake of the U.S. Senate’s passage of President Trump’s “One Big Beautiful Bill.” A section of that bill that would have imposed an excise tax on most solar and wind energy projects was dropped. But an amendment championed by Iowa senators Chuck Grassley, that would have slowed the elimination of green energy tax credits included in the 2022 Inflation Reduction Act for several years into the future, failed to pass.
The bill now includes just a one-year extension of the tax credits, until June 2026, and as a result, manufacturers will be rushing to complete and install as many new products as possible before the deadline.
Mr. Sharma acknowledged the challenges of the changing federal policies imposed by the new bill, which a Politico article reported “will make it too challenging to move forward with many new wind and solar energy projects, likely depriving the United States of added electricity capacity at a time of soaring energy demand, critics said.”
The bill is heading to the House for a reconciliation vote, where its future was uncertain as of Wednesday afternoon.
“Uncertainty of any kind is the bane of business,” Mr. Sharma said to reporters after the formal ceremony. “We do, however, express our gratitude to Senator Ernst and Senator Grassley, because they put up a fight at the last minute to protect our business.”
He clarified, however, that Nordex’s commitment to West Branch, and to Iowa manufacturing as a whole, remains strong, with 10 turbines already set to begin production this week.
“We do believe that this has created awareness, that we now have not a complete drop-dead,” he said of the tax credits. “It is still going to be challenging, but we do believe that wind is a very powerful source of energy. It’s very economical. And we do believe that given the time, the sector can stand on its own two feet. Like I said, uncertainty is the enemy of business. Is there uncertainty in the business today? Yes. But does that dissuade us from taking the business decision that we needed to take? No. And the reason is economics.”
Nordex leaders affirmed that the reopening of the West Branch plant is part of the company’s overall goal of bringing manufacturing operations back to the United States.
Nordex chief commercial officer Ibrahim Oezarslan said he’s been working for the company for 27 years, and recalled sending the company’s first six turbines from Germany to Palm Springs, California in 1999.
“That’s where the journey started for Nordex in the U.S.,” Mr. Oezarslan said of the company, which is headquartered in Hamburg, Germany and maintains production facilities in Germany, Brazil, India, Mexico, Poland and Spain. “Through all these years, we have been showing the commitment, the loyalty, the trust in the American market. And this is also the proof here today with the reopening of this factory. America needs reliable, affordable and electricity greater than ever before, and we believe that we at Nordex are in a position to help fulfill that need.”
He then gestured behind him at the truck-sized nacelle that served as the backdrop for Tuesday’s event.
“If you need the proof of the Nordex commitment to the U.S. market, and also for Iowa, I think what we’re seeing here behind us – 40 years experience, 40 years engineering, 40 years quality management, 40 years assembly technology – this is the proof that we are committed to Iowa, we are committed to the U.S. market, and we are committed to continue investing, producing and delivering our turbines to the market,” he said.
Frank Macchiarola, chief advocacy officer for the American Clean Power Association (ACP), based in Washington, D.C., which represents all sectors of the renewable energy industry, applauded Iowa leaders like Mr. Grassley, Ms. Ernst and Iowa Gov. Kim Reynolds for their support of clean energy initiatives.
“It’s great to be in Iowa,” he said. “While they’re back in D.C. talking about energy policy, here in Iowa, they’re putting it into practice. They’re shaping the energy future of the United States. And as some policy makers seek to take us back to the energy of the past in this country, it’s leaders from Iowa … who are taking us into the future.”
Mr. Macchiarola said that clean energy manufacturing is bringing 122,000 full-time jobs to the U.S., providing $18 billion of support to the nation’s Gross Domestic Product.
“In Iowa alone, that means 28 factories like this, 22,000 jobs and $600 million in investment,” he said, “and the fact is, we’re going to need all of that.”
He said according to ACP research, U.S. demand for electricity could increase as much as 50% over the next 15 years, after 25 years of “flat demand.”
“And the reason we have that is because we’re winning the race on AI in this country,” he said. “We’re bringing back domestic manufacturing that’s generating the need for more energy, and more electricity specifically. But in order to do that, we need smart, sound policies that accelerate the energy transition to wind, solar and battery storage, and you’re doing it right here in this facility.”
ACP CEO Jason Grumet released a statement on the Senate reconciliation bill Tuesday, calling it “a step backward for American energy policy.”
“The intentional effort to undermine the fastest-growing sources of electric power will lead to increased energy bills, decreased grid reliability, and the loss of hundreds of thousands of jobs. Most discouraging is forfeiting the progress we’ve made in manufacturing batteries, wind turbines and solar panels, and the economic growth occurring in communities across the country. With energy demand skyrocketing, we must work as a nation to maximize all domestic energy resources. While it was expected that this legislation would shift the direction of U.S. energy policy, we can’t afford to pick winners and losers when it comes to reliable, American-made energy. We need all of it— and we need it fast.”
In her remarks at the ceremony, Gov. Reynolds thanked Nordex for their commitment to Iowa’s advanced manufacturing base – the largest economic segment in the state, representing 18% of the state’s GDP.
“Ultimately, companies don’t invest in buildings, they invest in communities, and this moment is a tremendous vote of confidence in the community and in the people of West Branch,” she said. “12 years ago, this facility was quieted, but today it roars back to life with more than 100 high-quality jobs and a world-class training center … the future of energy runs straight through the American Midwest, and this is what happens when you have a bold-thinking business partner(ing) with forward-looking states to push the boundaries of innovation and development.”
She noted that 66% of Iowa’s power is generated by renewable energy – the highest percentage in the nation – and of that, 63% comes from wind turbines.
“To have Nordex choose to reopen right here in West Branch says a lot about this small town, and about Iowa too,” she said. “It says we’re not afraid to compete. It says we’re ready to lead. And it says that we believe that the best days of American manufacturing lie not behind us, but before us. With this investment, Iowa will become home to one of the most advanced nacelle assembly plants in the country, supplying clean energy products across the U.S. and beyond.”
She praised the Nordex workforce, saying “you’re not just building turbines, you’re building energy independence.”
“You’ve made a smart bet,” she said. “We truly value our partnerships, and the basis for our collaboration goes way beyond the bottom line. It extends to shared values and a common commitment to hard work, to quality and doing business with integrity. For our part, we could not be more grateful for the opportunity to help Nordex, its workers and our state reach new heights of prosperity together. So today, we celebrate more than a factory reopening. We celebrate the return of pride, of purpose and of progress, and a continued commitment to ensuring that this state remains a magnet for investment, for innovation and opportunity, where the winds of change are powered by an Iowa workforce and an Iowa spirit.”
