French energy engineering firm Areva and Spain's Gamesa Corporación Tecnológica Monday said they were joining forces to create an offshore wind power business, embracing the consolidation wave of an industry plagued by massive costs.

 

The two groups will have an equal share of the joint venture which still has no name, Areva renewables division's head Louis-Francois Durret said during a conference call.

 

The move highlights the hurdles faced by the burgeoning offshore wind power industry, as massive research and development costs have hampered growth even though governments around Europe and elsewhere are eager to boost the green part of their energy mix. The costs have triggered consolidations; this latest tie-up follows the creation of a joint venture between Japan's Mitsubishi Heavy Industries Ltd. and Denmark's Vestas Wind Systems last autumn.