Clarksons Renewables Project and Vessel Newsletter, Offshore Wind
Clarksons Renewables Newsletter
Week 46
RECENT EVENTS
Offshore wind market development in Japan
Neil Buchan, Head of APAC Renewables, summarises his findings from his recent trip to Japan.?
Yokohama, Tokyo & Akita (with Seoul and a brief spell back in the UK in between)… I have been fortunate enough to spend a large portion of the last month in one of my favourite countries. The food alone is enough to keep me coming back, even if it weren’t one of the most exciting prospects in the offshore wind market.
The Clarksons Renewables team and I spent valuable time with various stakeholders including developers, local and foreign contractors/shipowners, as well as politicians and ministry officials.
We heard some clear and consistent messaging around the market development, both challenges and opportunities. Below are a few of my key takeaways:?
?As much as any of the above points, I was delighted (but not surprised) to see the level of enthusiasm from local companies to play a hands-on role. This attitude, coupled with a sensible partnership-model allowing knowledge transfer, sets the perfect scene for a local supply chain to thrive.
?Thank you to all my generous hosts in Japan for the usual hospitable welcome. I’ll be back very soon!
Our Clarksons Renewables Team in Japan: Frederik C. Andersen, Neil Buchan, Tilly Manley, Rouven Willner and Mark Koh.WEEK 46?IN A REVIEW
By David Matthews, Head of Strategy, Clarksons Renewables
Offshore wind continues to go global with announcements in New Zealond 1.4GW being developed by BlueFloat Energy, Energy Estate, and Elemental Group which will be split between fixed and floating wind and due to be complete before 2030.
The Philippines are targeting 21GW by 2040 whilst other traditional O&G players divert resources into zero carbon technologies such as Vitols investment in Vortex Energy acquiring a 3 GW pipeline of wind and solar, this come after Equinors investment in BeGreen a 6GW pipline in Poland and the Nordics. Anyone with a reasonably sized energy portfolio will see its value increasing as the demand for projects heats up.
The UKs Autumn budget came and went yesterday and left the energy sector now able to assess the impacts of the windfall tax levied on their recent profits. In the end it was not as bad as some thought but those selling on the wholesale market will be affected more than those with PPAs and CFDs. Electricity yesterday was still trading 4 x levels of last year at ￡115/Mwh.?These windfall taxes will be adopted by other governments around the world to help refill the Government accounts post covid as the recession deepens.
RWE this week is looking to win favour with local communities where they develop projects in Germany by sharing 0.2 eurocents per kWh produced by its onshore wind and utility-scale solar plants within the municipalities in which the assets are located. The move will go some way to win over those against development in their local community when they see a direct impact locally benefiting those closest to the development. Obviously, this can be seen from differing points of view as in buying favor but either way it may accelerate the role out with less opposition to new developments.
Also in Germany the state-owned investment and development bank KfW announced the launch of a new power-to-X platform consisting of two funds that aim to deploy €550m of equity investments, loans, and grants into green hydrogen projects. The PtX Development Fund will focus on financing hydrogen production plants in emerging markets, while the PtX Growth Fund's remit will be the financing of "large-volume plants for the production, transport, storage and use of hydrogen" for companies with links to Germany.
The MMO market in the North Sea looks set to be a significant growth sector between now and 2026. MMO (maintenance, modification, and operation) has been at historically low levels. This increase in O&G activity may apply additional pressure on vessel availability for offshore wind. Quality vessels may seek out those longer-term higher rate contracts. We will continue to monitor this in the coming months.
OFFSHORE RENEWABLES NEWS
Gulf Marine Services (GMS) has been awarded a six-year contract for one of its large class vessels in Europe.?The UAE-based owner of self-propelled, self-elevating support vessels for the offshore energy industry, had signed the contract is “with one of the world's leading offshore windfarm developers. Under the terms of the agreement, GMS will provide support for the maintenance of offshore windfarms over the 6-year duration," GMS said. The signing of the definitive contract remains subject to no complaints being raised during the applicable standstill period. Earlier this month, GMS said it had won two new contracts and a contract extension for its vessels at improved day rates.
Source: Clarksons Renewables Intelligence Network and 4coffshore
?Cecon Contracting AS has recently entered into an agreement for building a new state-of-the-art cable installation vessel.?The vessel is designed by NSK Ship Design together with Cecon’s engineering team and will be delivered from Sefine Shipyard in Turkey Q1 2025. The vessel will be delivered with Methanol dual fuel system and with a battery pack for hybrid energy storage. These innovations will yield a significant reduction in harmful emissions compared to existing conventional tonnage. Developing an environmentally friendly cable installation vessel without compromising on vessel capacities was one of the main design objectives. The new vessel can also operate in other segments of the offshore industry when not installing cable. It is prepared for typical offshore wind services as well as light construction work.
Source: Cecon Contracting AS
Edda Wind orders another Commissioning Service Operation Vessel (CSOV).?The newbuild will be of Salt 0474 design, which is a further development of the Salt 0217 design and will be delivered in April 2025. In addition, the company has an option with the yard for one more vessel. The price in the low "EUR 60s", a 30% increase in price compared to the ~ EUR 48 m price paid for its first CSOV orders in 2019. Including the latest newbuild, Edda Wind will have a fleet of 10 purpose-built vessels, of which six are currently under contract. This will be vessel number six in the series built at Gondan in addition to the existing vessels Edda Passat and Edda Mistral delivered by the same yard in 2018.
The vessel Edda Passat received a contract extension for seven month at dayrates in excess of 25% over current level.??rsted and Edda Wind have entered into the extension of this contract - in direct continuation of the firm period, which is expiring in March 2023. ?rsted have as part of the agreement agreed to waive the remaining options they had on the vessel, leaving Edda Wind free to trade Edda Passat in a very?favourable market going forward. Edda Wind said the new, higher rate “reflects positive development in the SOV market.” The Service Operation Vessel (SOV) Edda Passat has operated for ?rsted at Race Bank Offshore Wind Farm since it was built in 2018.
Source: Oslo B?rs News
?Strategic Marine has signed an order to build three ‘Brevity’-class crew transfer vessels (CTVs) from Chartwell Marine.?The vessels will be progressively delivered between 2023 and 2024. The vessels, with a capacity of 32 personnel, will be progressively delivered between 2023 and 2024. The three Brevity CTVs are meant for a new client for the Singapore-based shipbuilder and are the first Chartwell project to be launched in Asia.
Source: Offshore WIND
?Offshore Support Vessel (OSV) Normand Jarl?has remobilised from Singapore for further work on ?rsted Changhua wind farm in Taiwan. Work is expected to run at least through year end and well into first quarter 2023.
Source: first-hand Subsea Newswire
?India has released a draft for a 4 GW offshore wind tender, proposing to lease out seabed areas across five blocks off the coast of the southern state Tamil Nadu.?While it was announced already in June that the leasing auctions are expected to take place before March 2023, the new document reveals that bidders can take advantage of accelerated depreciation, concessional customs, excise duties and tax holidays if available, and development rights are spread across five blocks ranging from 655 MW to 912 MW each. The government expects to tender 5 GW per year for the following five years, as a step towards the country's 2030 target of 30 GW.?At an average of 3,000 full-load hours, 30 GW would generate around 90 TWh, sufficient to cover 7% of the country's current power consumption. India targets net zero emissions by 2070.
Source: Clarksons Securities
?Hywind Tampen becomes first offshore wind installation to deliver power to oil & gas.?The Norwegian energy giant Equinor has announced that the first turbine on the Hywind Tampen floating offshore wind farm started producing electricity this week. The turbine is the first of 11 which will make up the Hywind Tampen project, the world largest floating offshore wind project so far, and also the first offshore wind site to deliver electricity directly to offshore oil & gas installations. The combined capacity of the 11 turbines will stand at around 95 MW when completed and is expected to generate at least 380 GWh annually, sufficient to cover 35% of the electricity power demand of the five Snorre A and B, and Gullfaks A, B and C oil & gas platforms. When Hywind Tampen is fully operational, Equinor will operate an estimated 47% of the world’s floating wind capacity. Seaway 7 is installing the inner arrays for the 11 turbines at the site, as well as two export cables.
Source: Clarksons Securities
?Vattenfall has issued a call for tenders for framework agreements for cable testing and fault-finding at its offshore wind farms in the UK and off mainland Europe.?All contracts, which are subject to renewal, will have a duration of five years with an option to extend for one year. The contracts are expected to start in summer 2023.?Vattenfall divided the tender into three lots and is seeking up to five contractors per lot.?Lot covers offshore wind farms in the UK region, Lot 2 involves Vattenfall’s projects in the Netherlands, Sweden, and Denmark, while Lot 3 includes the company’s projects in Germany. The deadline for requests to participate is?20 February 2023.
Source: offshore WIND
?Valmont sells offshore wind business to Euro Steel, a Denmark-based supplier of steel products to the European wind market.?The offshore wind business, known as Valmont SM, is based in R?dekro, Denmark, and was acquired by Valmont in 2014. The provider of wind turbine towers and direct-drive generator rotor houses is expecting to generate approximately USD 100 M of revenue in fiscal year 2022. Valmont Industries expects the transaction, which is subject to customary closing conditions, to be completed in fourth quarter 2022. The company plans to utilize the net cash proceeds from this transaction toward the repayment of short-term borrowings. This transaction enables the company’s renewable energy management team to focus exclusively on solar. The value of the transaction has not been disclosed and no further financial details are being provided at this time.
Source: offshore WIND and 4c offshore
?Shell and partners have cancelled floating wind project offshore in France.?Oil major Shell?and state-owned Chinese energy company CGN on Tuesday said that they would drop their plan for a floating wind power project on France's Brittany coast, citing inflation and supply chain problems among other reasons. “The economic conditions linked to the project have been significantly modified, calling into question, for all the partners of the consortium the economic viability of the project,” a Shell spokesperson said. Shell added that the project faced “several technical, commercial and financial challenges all in the context of constantly increasing costs” and “very strong” supply chain constraints. The project was originated by French floating wind power specialist Eolfi SA, CGN Europe Energy and CDC's Banque des Territoires. Shell inherited the project back in 2019 with the acquisition of Eolfi.
Source: ReNews and Reuters?
The US Bureau of Ocean Energy Management (BOEM) identifies draft wind energy areas in the Central Atlantic for public review and comment.The eight draft Wind Energy Areas (WEAs) cover approximately 1.7 million acres offshore North Carolina, Virginia, Maryland, and Delaware, with their closest points ranging from approximately 19 to 77 nautical miles off the U.S. central Atlantic coast.?After receiving feedback from government partners, ocean users, and stakeholders, BOEM may further modify the final WEAs. Through the 30-day public comment period that started on 16 November, BOEM is seeking comment on potential conflicts with the draft areas, including with a potential US Coast Guard (USCG) fairway for transiting vessels, commercial fishing, a NASA danger zone, and marine habitat areas.
Source: BOEM ad Offshore WIND
领英推荐
Contacts
Research
Jens Egenberg?+47 92 02 01 70
Erik T?nne?+47 95 75 01 77
Oslo
Frederik Colban-Andersen?+47 91 82 28 04
Anders C. Hagen?+47 91 80 07 61
Vegard Volls?ter?+47 92 68 48 55
Espen Bj?rnson?+47 90 94 44 39
Hamburg
Rouven C. Willner?+49 174 933 0093
Tim?B?rner?+49 173 631 4996
Henning Leverkus?+49 172 589 3520
David Matthews?+44 790 095 6539
Sina Ingber?+49 162 213 2764
Aarhus
Gabriel Andersen?+45 81 95 95 43
London
Neil Buchan?+44 77 7139 5479
Mikkel Nielsen??+44?77 4704 3014
Aberdeen
James Braid?+44 780 840 3790
Olivier Candeel?+44 788 422 5030
Oliver Thompson?+44 122 425 9621
Chris Tweedie?+44 773 606 6412
Houston
Jack Fitzgerald?+1 713 235 7469
Shanghai
Jack Qiu:?+86 13 8117 88836
Singapore
Tilly Manley:?+65 9665 1034
?Smarter decisions.?Powered by intelligence.?
Copyright ? 2021 Clarksons Norway AS, All rights reserved.
Our mailing address is:
Clarksons Norway AS?
Munkedamsveien 62c
Oslo, 0168
Norway
Want to change how you receive these emails?
You can?update your preferences?or?unsubscribe from this list.