Clarksons Renewables Offshore Wind Project and Vessels Newsletter

Clarksons Renewables Newsletter

Week 4

WEEK 4 - HIGHLIGHTSBy?David Matthews, Head of Strategy, Clarksons Renewables

EU to rival Biden's Inflation Reduction Act

The EU have announced a plan to rival Biden's Inflation Reduction Act but the scope and financial commitments have yet to be firmed up, the stock market's reaction has been lukewarm with renewable stocks posting mixed performances last week. It's always difficult to coordinate multiple EU members on such large-scale initiatives, quickly.

Pakistan and South Africa Grid Issues and Power Outages

Pakistan and South Africa have unfortunately suffered continuing power outages due to weak grid, which is stifling the growth and deployment of renewable power despite it being ready and cost effective for the populations needing it. They are not alone. This week in Scotland we heard at the offshore wind conference in Glasgow that 30GW of offshore wind is reliant on significant grid upgrades to deliver the power into the UKs national grid. A bottle neck that has been talked about for decades unfortunately.

Expanding Private Solar Projects in South Africa

Back to South Africa. The SA government made a big comeback with plans to have annual auctions in the country over a period of 7 years for both wind, solar and dispatchable hybrid power. Although the first few auctions have now passed the grid operator ESKOM has fallen short of government plans to build out the grid required. Other non-subsidised projects have been accelerating in the solar space with 9GW of new solar being installed in projects which are allowed to proceed without a licence. This 9GW of solar covers 10% of the countries power requirements but have ended up competing with those who won in the auctions for grid capacity. ESKOM is under severe pressure to build out the grid whilst they have rolling blackouts country wide.

Germany to Blow Wind Targets

Germany is gearing up their offshore wind development and is now announcing a new area development plan allowing for a more rapid expansion than previously targeted. The newly unveiled blueprint facilitates for building out the country's targeted 30 GW of capacity by 2030, with the potential to exceed the 2035 target of 40 GW by as much as 10GW

United Kingdom’s Green Transition Success

The UK’s installed base of onshore and offshore wind met 26.8% of the demand in 2022. Up from 21.8% which was dominated by large scale offshore wind installations reaching completion in 2021/22. The UK’s energy mix is No.1 Gas 38.5% No.2 Wind 26.8% and then No.3 Nuclear 15.5%. The target to be reach net zero is still 2050.

OFFSHORE RENEWABLES NEWS

SMST gangway to be installed on first ever Asian Commissioning Service Operations Vessel (CSOV).?Singapore-based marine logistics company Marco Polo Marine has awarded SMST the contract for the delivery of their mission equipment to the first ever Asian CSOV. SMST’s mission equipment consisting of an access & cargo tower with motion compensated gangway, a telescopic access bridge L-series, and a 5 ton 3D motion compensated crane will be used in transferring personnel and cargo from the vessel to the wind turbines.

The CSOV with SMST mission equipment is planned to enter the market by the end of the first quarter of 2024 and will be used in commissioning works during construction of offshore wind farms, as well as maintenance operations. In 2022, Marco Polo Marine, via its Taiwan-based subsidiary PKR Offshore, has since signed a MOU with Vestas Taiwan for her deployment across offshore wind farms in Taiwan, Japan and South Korea, over a 3-year period. Source: SMST and Marco Polo Marine

Germany is gearing up their offshore wind development, and is now announcing a new area development plan allowing for a more rapid expansion than previously targeted.?The newly unveiled blueprint facilitates for building out the country's targeted 30 GW of capacity by 2030, with the potential to exceed the 2035 target of 40 GW by as much as 10 GW. The plan identifies specific areas for new wind farms in the North and Baltic Seas, outlines a timeline for tendering, commissioning and grid connection and implements measures to accelerate expansion. The German Offshore Wind Act (WindSeeG) was amended last year to increase targets for installed capacity to at least 30 GW by 2030, 40 GW by 2035 and at least 70 GW by 2040. With the new area development plans now announced, the country may overshoot these targets by a wide margin. Source: Clarksons Securities

PGS enters the offshore renewables market.?The Oslo-listed company has won its first wind farm site characterisation project, marking its entry into the offshore wind market. The survey will cover two European wind farm sites, both of which are in the development phase. PGS will mobilize a 3D vessel for the project in early April 2023 and expects to complete acquisition towards the end of June. The project will be acquired with the ultra-high-resolution 3D?(UHR3D) P-Cable system which provides more detailed subsurface?data for shallower targets compared to traditional seismic acquisition systems, according to PGS. Source: PGS

Eneti-owned Seajacks UK has signed two new contracts in North-West Europe for between 75 and 102 days of employment for one of its NG2500-class vessels.?The deals are expected to generate between approximately US$5.7m (€5.2m) and US$7.1m of revenue in 2023. Furthermore, additional extensions were negotiated for another NG2500-class vessel which will generate an additional €2.9m of revenue. In addition, an existing contract for its NG14000X-class vessel has been extended which has generated an additional €2.6m of revenue. Source: Eneti

Integrated Wind Solutions (IWS) expands fleet with two additional newbuilds. The Oslo-listed company announced that it has exercised options for two additional walk-to-work commissioning service operations vessels (CSOV), bringing the fleet to six identical sister vessels. The firm yard price is about EUR 52.5 million per vessel.?Both CSOVs will be built by China Merchants Industry and are scheduled for delivery in the second quarter of 2025. Source. IWS

Rovco signs long-term charter of multipurpose vessel for offshore wind site characterisation projects.?The UK-based company has announced that it has signed an initial three-year charter contract of the multipurpose support vessel, Glomar Supporter. Upon completion of dry dock in February 2023, the vessel will be delivered to Rovco complete with a keel-mounted nacelle, a range of deck equipment and dedicated survey and reporting offices. Source: Rovco

Jan De Nul has confirmed that its heavy-lift vessel Les Alizés has left CMHI Haimen Shipyard in China and is heading for Europe.?The vessel was delivered by the shipyard on 16 January 2023. Les Alizés is designed to load, transport, lift and install foundations for offshore wind turbines. The vessel has a 5,000-tonne capacity main crane, deck loading capacity of 61,000 tonnes and deck space of 9,300 m2. The vessel can transport the future foundations and is a crane vessel for floating installation. This means the ship is not dependent on water depth or seabed conditions. Les Alizés’ first project will be in Germany, transporting and installing 107 monopile foundations and an offshore substation topside at ?rsted’s Gode Wind 3 and Borkum Riffgrund 3 offshore windfarms. Source: Clarksons Renewables Intelligence Network

Gulf Marine Services awarded offshore wind contract in France.?Gulf Marine Services (GMS) has signed a contract to provide support for the construction and development of an offshore windfarm in France. The contract, with an as yet unspecified client, is due to be completed later in Q1 2023. Mansour Al Alami, GMS Executive Chairman, said "We are pleased to be awarded this contract, which is a further reflection of the strong demand for our vessels. This contract also reflects our long-term commitment to the renewable energy sector." Source: Clarksons Renewables Intelligence Network

Australia has opened its first offshore wind area for feasibility licence applications.?The Australian Ministry for Climate Change and Energy has opened the period of invitation for applications for feasibility licences for the Gippsland notified area. The invitation period in the Gippsland will be open?until 27 April, 2023. The declared area offshore Victora covers approximately 15,000 km2 offshore and runs from Lakes Entrance in the east to south of Wilsons Promontory in the west. The area can support more than 10 GW of offshore wind capacity. Source: reNews

Tender for a Crew Transfer Vessel (CTV) for German offshore wind farm.Trianel Windkraftwerk Borkum II (TWBII) has issued a contract notice seeking a CTV with a transport capacity of at least 24 persons, for the transport of persons, but also of material, components and spare parts to the offshore wind farm Trianel Windpark Borkum II and possibly to other wind farms in the near of the project. The contract?starts on 1 March 2023?and?ends on 31 December 2023. Bids can be submitted?until 6 February. Source: Offshore WIND

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

Tim?B?rner?|?Chartering Walk-2-Work, Gangways

Henning Leverkus?| Chartering CTV, OSS, 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