Clarksons Renewables Offshore Wind Project and Vessels Newsletter
Clarksons Renewables Newsletter
Subsea 7’s 2Q report revealed a fresh order intake of $2.2 billion, elevating the group’s backlog to $10.4 billion, with a book-to-bill ratio of 1.4. The report further underscored improvement in the group’s renewable-related outcomes and activities. Compared to the previous year, the value of the renewable backlog has doubled, currently amounting to $1.7 billion. This includes $0.6 billion set for execution in 2024. Revenue from renewable projects reached $309 million, marking an increase from $260 million in 2Q 2022. The net operating income from renewables in 2Q 2023 was $9 million, a significant improvement from a net operating loss of $71 million in 2Q 2022, with the latter influenced by additional costs from specific projects.
In relation to offshore renewables operations, Subsea 7 confirmed that Seaway Aimery has completed the cable lay scope of the Seagreen project, signifying the full completion of the $1.4 billion project. In the UK, the Seaway Strashnov is making headway at Dogger Bank A, where 71 of 95 monopiles have been installed, allowing for commencement of Dogger Bank B in late 2023. The Seaway Alfa Lift is currently en route to Europe were it will be deployed for transit piece installation at Dogger Bank A, B and C, from 3Q 2023 through 2025. Additionally, the construction of Seaway Ventus, a heavy-duty jack-up designed for turbine and monopile installation, remains on track for delivery in 2023. Source: Subsea 7
Equinor delivered net operating income of $7.05 billion in the second quarter of 2023, however, with net operating income from renewables coming in at negative $91 million. This takes the 1H 2023 total for renewables to a negative $180 million, significantly down compared to the same period last year (positive $35 million). The company attributes the negative development to a divestment gain on an equity accounted investment in 2022 and increased development costs in 2023. Although producing offshore wind assets contributed positively with $33 million for the quarter, this was offset by net losses of $37 million from projects still under development. Investment additions to property, plant and equipment (PP&E), intangibles and equity accounted investments in 2Q 2023 reached $267 million, with $224 attributed to offshore wind projects, largely driven by the commercial scale lease in California.
In terms of power generation, Equinor's renewable sources produced 335 GWh in the quarter, a slight increase from 325 GWh during the same quarter last year. The majority of the power generation—251 GWh—was derived from the offshore wind farms Dudgeon, Sheringham Shoal, and Arkona. However, due to lower average wind speeds at UK wind farms, the marginal increase in production compared to 2Q 2022 was primarily driven by onshore power plants in Poland. Source: Equinor
Clarksons Research has released the latest edition of the World Shipyard Monitor this week. While its focus is shipping, the recent trends and sentiments are likely to be relevant for the offshore segment as well. In the first half of 2023, new orders reached 678 ships with a combined 44.2m dwt and 17.8 CGT. This represents a 25% year-on-year decrease in terms of CGT and a 7% decrease in terms of dwt on an annualised basis (compared to the full year 2022, which saw orders for 1,665 ships with a total of 95.2m dwt and 47.4m CGT). Nevertheless, despite newbuild prices being high and uncertainties surrounding fuelling technology and the economic outlook dampening the appetite for orders, the figures remain above the 2010s' average. Around 45% of the tonnage contracted in this period is classified as alternative fuel-capable, with a significant increase in interest for methanol-capable ships leading to orders for 62 such units with 4.3m GT. However, LNG fuel adoption remain slightly ahead, even when excluding LNG carriers, with 56 units of 5.2m GT ordered. Some shipowners continue to seek fuel optionality by ordering ships with "ready" notation for LNG, methanol, or ammonia.
Newbuild prices have continued to rise, with the Newbuilding Price Index hitting 171 points by the end of June. This indicates a 6% increase since the start of 2023 and an 11% increase since the beginning of 2022. The orderbook has remained stable in CGT terms, growing just 4% over the last 12 months after previously expanding by 18% between July 2021 and 2022. The current order book represents approximately 10% of the fleet in dwt terms, with significant variation across sectors, from 51% of fleet capacity for LNG carriers to just 5% for tankers. Source: Clarksons Research
Nexans is expanding its presence in the offshore wind and interconnection market by adding a third cable laying vessel, the Nexans Aurora, to its fleet. The ship will feature three turntables, offering a 13,500-tonne loading capacity, and will host an array of subsea tooling, including jetting and ploughing equipment. According to Nexans, the vessel will be capable of laying up to four cables simultaneously. Nexans Aurora is expected for delivery in 2026 and will contribute towards the company’s newly expanded backlog with a €1.7 billion contract with Tenne T and the €1.43 billion contract for EuroAsia interconnector project. Source: Nexans
Construction has commenced on the transmission system for Sunrise Wind, which includes a 160-kilometre subsea export cable that will link the offshore wind farm to the grid connection point in New York. A consortium between Siemens Energy and Aker Solutions will deliver the high-voltage direct current (HVDC) system. Siemens Energy will provide the HVDC system — comprising two converter stations — on a turnkey basis and will conduct onshore civil work in partnership with local companies. Meanwhile, Aker Solutions will handle the construction of the platform, which includes a steel jacket substructure and a topside platform deck to house the electrical equipment. Source: Siemens Energy, OffshoreWind
The Swedish government has rejected Vattenfall's proposal to construct an offshore wind farm at Stora Middelgrund, located off Sweden's west coast. Citing potential negative impacts on the environment, the government stated that Vattenfall had failed to demonstrate that the proposed site complied with the stipulations for appropriate locations as per the Environmental Code. Vattenfall acquired the Stora Middelgrund project back in 2019 with expectations that, once completed, the wind farm would generate between 2.5 to 3 terawatt-hours (TWh) of electricity annually. Source: OffshoreWind
Anma Offshore has announced completion of the final Environmental Impact Assessment (EIA) for its proposed 532MW wind farm, located 40 kilometres west of the South Korean peninsula’s southwestern coastline. Following a 15-month consultation process, Anma Offshore Wind is gearing up to participate in the forthcoming Renewable Portfolio Standard auction for wind projects scheduled for later this year. This project is poised to become one of the first utility-scale initiatives in Korea, with construction set to commence in the first half of 2024. Source: Anma Offshore Wind
Jera, Japan’s largest energy company, has successfully acquired 100% of the shares of Parkwind NV from Virya Energy. Parkwind is Belgium’s largest offshore wind platform and operates four offshore wind projects - Northwind, Belwind, Nobelwind and Northwester 2 – totalling 771 MW. Further, Parkwind is actively expanding with a development pipeline of 4.5 GW across European and other international markets. In addition, Parkwind is overseeing the construction of the 254 MW Arcadis Ost 1 project in Germany which is expected to reach full operation in 2024. Source: JERA
Cyan Renewables, a new offshore wind vessel owner based in Singapore, has acquired 100% interest in the Service Operation Vessel (SOV) Groenewind from Belgium's DEME group. Currently, the SOV operates under a 17-year long-term charter with Siemens Gamesa, servicing the Rentel and SeaMade offshore wind farms in Belgium. The 60-metre vessel became the first twin hulled DP2 advanced dynamic positioning SOV when delivered in 2021. Cyan Renewables is fully owned by Seraya Partners and claims to be Asia’s first pure-play offshore wind owner in the offshore wind industry. Source: OffshoreWind
UK-based Octopus Energy has unveiled plans to invest $20 billion in offshore wind projects by 2030 as part of its strategy to generate 12 GW of renewable electricity annually. The company will pursue projects globally, with a particular emphasis on Europe. Having first entered the offshore wind farm market last year, Octopus Energy has already participated in five offshore deals, amounting to $1 billion in total. At present, the company is involved with the Lincs offshore wind farm and Hornsea One off the UK coast, as well as with Borssele V in the Netherlands. Source: Octopus Energy
A floating buoy, equipped with a LiDAR (Light Detection and Ranging) and additional sensors, has been deployed off the coast of Brindisi, Italy. The purpose of this operation is to conduct comprehensive surveys and preliminary work for the construction of the Kailia Energia and Lupiae Maris floating offshore wind farms. Renantis and BlueFloat Energy initiated this action for the Kailia Energia project, while Gruppo Hope and Galileo are responsible for the Lupiae Maris project. The buoy will remain in the water for at least a year, gathering data on wind, weather conditions, and wave motion in the area designated for the future wind installations. Source: BlueFloat Energy
Contacts
OSLO
Frederik Colban-Andersen?|?Managing Director?
Erik T?nne?|?Managing Director, Market Analysis
Jens Egenberg?| Head of Research Renewables
Anders C. Hagen?| Chartering Walk-2-Work, Subsea
Vegard Volls?ter?| S&P and Newbuilding T&I/CSOV
Espen Bj?rnson?| 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
领英推荐
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
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