Clarksons Renewables Offshore Wind Project and Vessel Newsletter
Clarksons Offshore & Renewables
The world’s #1 provider of chartering, logistics & marine advisory services for the offshore wind and energy markets.
Clarksons Renewables Newsletter
WEEK 7 - HIGHLIGHTS
By David Matthews, Head of Strategy, Clarksons Renewables
Looking at recent announcements in the energy sector you would be convinced that renewable energy was now unstoppable. We have 12,000 wind turbines installed globally with projections of 30,000 being installed by 2030. That figure is predicated on the investment of significant resources into the offshore wind vessel sector to build out the projects being planned. This week at the Marine Money conference in Hamburg we saw the vessel owners and the financial institutions come together to look at shipping across all sectors to discuss how and where to put resources (cash) to work. Clarksons presented the offshore wind sector as a global opportunity alongside senior figures from Olympic Subsea, Eneti and the Harren & Partner Group . The focus of the panel debate was on raising awareness of the industry, the vessels and the small matter of the $20bn required to finance all the newbuilds required. That said there is competition from many other more traditional markets. We will continue to work with all stakeholders to facilitate the vessels required for 30,000 wind turbines for 2030.
However BP, Shell and the other majors in O&G have all benefited from the recent energy crises and sustained high oil prices, which has now influenced their future and their role in renewables. The point at which we reach peak oil looks to be post 2035 and they are investing to capitalise on the period between now and then with increased spend on Exploration & Production (E&P).
Several of the O&G companies are scaling back their renewables ambitions on the back of significant challenges in finding projects with decent returns. The reality is that all projects will have to compete for funding in the board room and the rate of return weighs more when making these decisions than some of us would like.
Upstream: “But it is increasingly clear that finding low carbon projects with high rates of return is not easy and Shell is not alone as it hesitates before plunging into the debt-financed low-risk and low-return world of offshore wind.”
Bloomberg: “A key plank of the revised strategy is a stronger focus on green investments close to BP’s heart, such as bioenergy, hydrogen and charging points for electric vehicles, which return 15%, rather than wind and solar, which return 6%-8%
OFFSHORE RENEWABLES NEWS
TotalEnergies and Corio Generation recently announced the launch of their joint venture partnership to develop the Formosa 3 offshore wind farms in Taiwan. The new venture will focus on the development, construction and operation of offshore wind farms and other renewable energy projects in Taiwan and also across Asia. Under this agreement, Corio will remain the majority shareholder and lead developer with 50 per cent plus ten shares overall in the project. This partnership between TotalEnergies and Corio will combine TotalEnergies' expertise in the offshore wind industry and Corio's experience in project development and engineering in the Asian region. The announcement comes after Taiwan’s Bureau of Energy confirmed in late December 2022 that Formosa 3’s Haiding 2 wind farm had been successfully awarded 600 MW grid capacity following the first phase of Taiwan’s Round 3 auctions. The Formosa 3 project comprises three proposed wind farms – Haiding 1, 2, and 3 – in Changhua county on the central-western coast of Taiwan. The project received Environmental Impact Assessment (EIA) approvals in 2018, with an EIA-approved capacity of around 2 GW. Source: TotalEnergies
BP has entered South Korea offshore wind market with new Deep Wind Offshore joint venture. The companies formed a joint venture to develop offshore wind opportunities in South Korea. The joint venture will see bp enter the South Korean offshore wind market through Deep Wind Offshore’s existing presence in the region. As part of their agreement, bp has acquired a 55% stake in Deep Wind Offshore’s early-stage offshore wind portfolio, which includes four projects across the Korean peninsula with a potential generating capacity of up to 6GW. South Korea is targeting almost 22% of its energy to come from renewable sources by 2030 and is expected to become a leading offshore wind region. This includes a highly capable team in four offices around the country, and a strong history in South Korea since 2006 through its owner Knutsen Group, which is currently one of the biggest clients to the Korean yards in the shipbuilding segment. Today, bp has a 40-year history in the country, including sizeable oil and LNG trading activities and its Castrol lubricants business. Source: BP
Nippon Yusen Kaisha (NYK Line) has concluded a time charter contract with Siemens Gamesa for a crew transport vessel (CTV) in Japan. The vessel will be engaged in transporting workers to the offshore wind power generation facility at Ishikari Bay New Port, which is scheduled to begin commercial operation in December 2023. This will be the first CTV operation inside Japan by the NYK Group. According to the company, the aim is to use this as a foothold for further expansion into the offshore wind power generation business, which is expected to grow in the future. Source: NYK Line
Hexicon and IX Wind team up for 1,3GW floating wind project in Taiwan. Floating wind technology firm Hexicon and IX Wind combine local knowledge and expertise in offshore wind development to provide services for the development and construction of a floating offshore wind project in Taiwan. The companies will offer project management, consultancy and engineering services to the project. With this partnership Hexicon is entering the Taiwanese market. Commissioning for the project is potentially scheduled as early as 2028. Source: Hexicon
Renewable energy consortium awarded GBP 1.5 million funding to install the world’s first offshore charging station within a UK wind farm. The funding was awarded as part of the Department for Transport and Innovate UK’s GBP 60 million Clean Maritime Demonstration Competition (CMDC). Project leaders Oasis Marine have partnered with Turbo Power Systems, Verlume, and the Offshore Renewable Energy (ORE) Catapult to deliver the offshore charging station solution. This energy storage and charging infrastructure will enable fully electric maritime operations within offshore wind farms. During the two-year project, offshore charging infrastructure will be developed for charging hybrid and electric crew transfer vessels (CTVs) and will be demonstrated over two phases. The first will prove the transfer of power utilising Verlume’s battery and intelligent energy management technology, to charge a vessel via the Oasis Power Buoy while at sea. During the second phase the project will work with Vattenfall regarding technical and regulatory developments, aiming to lead to an on-turbine demonstration at their European Offshore Wind Deployment Centre (EOWDC) within Aberdeen Bay. AC power generated by the existing wind turbines will be supplied via Turbo Power Systems high power charging solution to the Oasis Power Buoy. During the demonstration a hybrid CTV would operate from Aberdeen Harbour to the wind farm, to then connect and recharge from the Oasis Power Buoy whilst waiting in field as maintenance technicians work on the turbines. Currently vessels can only be charged within ports and most wind farms are too far from shore to allow journeys to be fully completed on battery power. Enabling offshore charging from a zero-emission energy source will allow CTVs to operate on electric power for the majority of the time. Source: Oasis Marine
Rem Offshore has secured a charter contract with ASSO Subsea for their new commissioning service operations vessels (CSOV) Rem Power. The vessel will support the construction phase of wind farms, providing welfare and transfer services to personnel. No details were shared on the charter length and value. Source: Rem Offshore
Seaway7 has been awarded a large contract for the transport and installation of inner-array grid and export cables on an undisclosed offshore wind farm project. The scope includes the transport and installation of inner-array and export power cables and respective cable protection systems. Operations on the project will commence in 2023 and continue through 2024 and 2025. The project remains subject to client final investment decision (FID). Source: Seaway7
Equinor has awarded to contracts to Subsea7 and DeepOcean for the Irpa and Verdande field development. The plan for the Equinor-operated Irpa deep-water project is for it to be developed as a nearly 80km subsea tieback to the Aasta Hansteen floating production storage and offloading (FPSO) vessel. Under the contract, the Subsea7 and DeepOcean consortium will be responsible for the engineering, transportation and installation of a monoethylene glycol (MEG) pipeline, production riser, subsea structures, umbilical and tie-ins. Located in the Nordland Ridge area, the Equinor-operated Verdande project will be developed through a subsea tieback to the existing Skuld field and Norne FPSO facilities. The consortium will handle the engineering, transportation and installation, which will include a 7.5km-long pipe-in-pipe production pipeline, flexibles, umbilical, subsea structures and tie-ins, for this project. Source: Offshore Technology
Edda Wind has secured debt financing of up to €120m for three commissioning service operations vessels (CSOV) newbuilds. With a 6-year term from delivery and amortization profiles spanning 12 to 15 years, the financing is in-line with our modelling assumptions. Nine of the 10 vessels in the company's fleet have now secured debt financing. Source: Clarksons Securities
EDF Renewables completes acquisition of the Newcastle Offshore Wind (NOW) project in Australia. The 10GW floating offshore wind project is planned to be installed near the Port of Newcastle which is located within Australia’s Hunter-Central Coast Renewable Energy Zone (REZ). Initial project developers Newcastle Offshore Wind Energy Pty Ltd (NOWE) have almost ten years of experience on the project, working closely with the EDF Renewables’ team in Australia for the last twelve months. NOWE will continue to work on the project with the renewables unit of France’s EDF as a collaborative partnership that will be scaled up to meet the project needs, said Dave Johnson, CEO of EDF Renewables in Australia. NOW will be situated near the port and energy transmission infrastructure. It will be developed in stages to support the Government’s renewable targets and align with the planned retirement of the coal-fired power stations in the region. Source: EDF Renewables
NOV launches new offshore wind service vessel concept. For wind farms located farther offshore and in deeper waters, robust operation and maintenance strategies are required. Support vessels must be able to operate safely and longer in increasingly challenging environments. The modular service and operations vessel (MSOV) is a new concept to optimize offshore wind farm operations and maintenance. The MSOV was developed based on GustoMSC's Enhydra MSOV design. It is a collaboration across NOV's Marine and Construction business unit. Source: NOV
Contacts
OSLO
Frederik Colban-Andersen | Managing Director
Erik Tønne | Managing Director, Market Analysis
Jens Egenberg | Head of Research Renewables
Anders C. Hagen | Chartering Walk-2-Work, Subsea
Recommended by LinkedIn
Vegard Vollsæter | S&P and Newbuilding T&I/CSOV
Espen Bjørnson | Chartering Subsea & Wind
HAMBURG
David Matthews | Head of Strategy Renewables
Rouven C. Willner | Projects SOV, CSOV
Henning Leverkus | Chartering CTV, Tugs & Workboats
Sina Ingber | Marketing & Projects
COPENHAGEN
Gabriel Andersen | Principal Consultant Logistics and EPC
LONDON
Neil Buchan | Head of APAC Subsea & Wind
Mikkel Nielsen | Principal Consultant Logistics & O&M
Chris Roberts | Chartering and Renewables Consultant
ABERDEEN
James Braid | Divisional Director Logistics, Transport & Installation
Olivier Candeel | Chartering & Consultant Transport & Installation
Oliver Thompson | Market Analyst, Transport & Installation
Chris Tweedie | Chartering Subsea and Offshore
HOUSTON
Jonathan Lints | Director Subsea and Renewables
Jack Fitzgerald | Chartering Jones Act Specialist
Tylor Bojé | Chartering OSV / Jones Act Lead
SHANGHAI
Jack Qiu | Projects Newbuilds and China
SINGAPORE
Tilly Manley | Chartering APAC Renewables