Offshore Wind Project and Vessel News

Week 34

Scottish authorities add three additional Scotwind floating wind projects – all include hydrogen plans. The projects will be located in the NE1 area east of Shetland. The newly announced projects are two 500 MW floating wind farm proposed by Ocean Winds and ESB Asset Development, as well as an 1,800 MW wind farm proposed by Mainstream Renewable Power and Ocean Winds. The Scottish Government will be paid GBP 56 million by the successful applicants, and once the farms are operating, it is expected that the Crown Estate Scotland will receive GBP 4 million per GW by the operators. The option fees are GPB 10 million for each of the 500 MW projects, and GBP 36 million for the 1,800 MW project. The projects offered agreements through the ScotWind round now include 20 developments that?total up to 27.6 GW?in capacity. Floating wind projects accounts for 17,871 MW out of the 27,6 GW of awarded capacity in Scotland, and through the Scotwind auction, Scotland has broken both the record for a single offshore wind auction and for the awarded floating wind capacity with good margin.

Australia’s new federal government targets huge offshore wind potential. As part of the newly elected Australian government mandate to increase clean energy sources, the government looks to accelerate the growth in offshore wind by designating large offshore areas to be surveyed for their development potential. The designated offshore zones lie in parts of the Indian and Pacific Ocean as well as parts of the Bass Strait due its if favourable seabed configurations and wind speeds. Planned projects such as Spinifex, Western Australia Offshore Wind and Star of the South are likely to progress to the next stage of development as part of the approved Offshore Electricity Act 2021. Australia has already announced 39 GW of projects, and as such, Australia has the potential to become a huge market player. Furthermore, with its vast coastline, Australia has several areas with favourable conditions for offshore wind facilities, both fixed and floating. The previously mentioned Bass Strait, located between the southern part of Australia and Tasmania, are one of these areas, with 10 GW of offshore wind projects already having been proposed here. Wind speeds of 10 m/s at 100-meter elevation combined with ideal water depth of 20-40m makes this a targeted area for fixed-bottom turbine farms. The Pacific Ocean near NSW and the Indian Ocean near Perth offers wind speeds of 9 m/s, and according to Rystad Energy, 22 GW of the 39 GW proposed offshore wind projects in the pipeline for Australia are located in these areas.

DEME and Havfram enter offshore wind partnership in Norway. The two companies have signed a MOU to offer different construction services across the offshore wind sector in Norway. The first projects will be selected through the auction for the S?rlige Nordsj? 2 area. By supplying cables, wind turbines, substations for both fixed and floating turbines, as well as delivering installation and transport for such services, DEME and Havfram are planning to become a major player in the Norwegian offshore wind market. 3 GW of bottom-fixed offshore wind capacity will be auctioned off in the S?rlige Nordsj? 2 area, with the first 1.5 GW of capacity expected to be put out to tender this year.

Denmark to host Baltic Energy Security Summit. Danish news outlet Altinget reported on Tuesday that Denmark is planning a new offshore wind summit together with neighboring?countries and the EU Commission to discuss boosting offshore wind in the EU's north-eastern waters. The meeting comes after a similar North Sea summit that saw pledges to build at least 150 GW of capacity by 2050. Expansion in the Baltic appears even more critical in our view as it hosts just 2.8 GW of offshore wind today, and as many of the surrounding countries remain dependent on Russian energy supplies. Sweden already has ambitious plans to build enough offshore wind capacity to generate ~120 TWh annually, corresponding to about 75% of its current generation, much of which could be situated in the Baltic Sea. Poland is also emerging as an important offshore wind market.

BOEM Publishes RFI, RFCI for Gulf of Maine Offshore Wind Opportunities. The Department of the Interior has released the next steps into bringing the opportunities of offshore wind energy to the Gulf of Maine, as part of the Biden-Harris administration’s goal of deploying 30 GW of offshore wind energy capacity by 2030. The RFI is the first step in Bureau of Ocean Energy Management′s (BOEM) leasing process and commercial planning for suitable offshore wind locations. The purpose of the RFI is to gauge interest in the development of commercial wind energy leases within the RFI Area, which consists of about 13,713,800 acres in the Gulf of Maine. The RFCI is the second step in processing the State of Maine’s research lease application. Maine’s application requests 9,700 acres on the Outer Continental Shelf situated more than 20 nautical miles off the Maine coast. If developed, the research array would comprise up to 12 floating offshore wind turbines capable of generating up to 144 MW of renewable energy.

Taiwan to launch a tender for 100 MW of offshore floating wind capacity by the end of 2022 – developers invited to propose their demonstration projects. The applicants will submit their proposal with location and project plans by the end of 2022. The projects will be selected in 2023, and must be completed and commissioned by 2026. The maximum capacity for a single project is set to 50 MW, and the total will not exceed 100 MW. As for the regulations regarding the projects, the Bureau of Energy of Taiwan′s Ministry of Economic Affairs demands that the projects cannot overlap the protected sea areas of Taiwan. Additionally, the projects must be located in the sea area beyond the low tide.

SSE and partners name its 2.6 GW floating offshore wind project Ossian. The project is located off the Angus Coast, more specifically in the E1 Zone. The SSE, Marubeni and CIP-owned offshore farm of 2.6 GW is one of the largest lease areas offered by Crown Estate Scotland to any bidder in the ScotWind process.

Consortium of developers planning 5 GW offshore wind park in New Zealand. BlueFloat Energy, Energy Estate and Elemental Group, Beach Energy New Zealand together with other offshore wind developers have announced an agreement that potentially can lead to multiple large-scale offshore wind parks being developed in the near future in New Zealand. The consortium of the mentioned companies has spent the last couple of years studying the feasibility of offshore wind in the South Taranaki area. The first turbines are expected to be operating by the end of the decade. Furthermore, the consortium has unveiled plans to develop four offshore wind projects across New Zealand, in Taranaki, Southland and Waikato with the potential to generate up to 5GW of power.

Mainstream Renewable Power and Ocean Winds Win 1.8 GW ScotWind Site. Ocean Winds and Mainstream Renewable Power (majority-owned by Aker Horizons) have been appointed as the preferred bidders for an area with a 1.8 GW potential by the Crown Estate Scotland. The location of the wind farm is off the Shetland Islands in Scotland. The two companies, Ocean Winds and Mainstream will now have, as the preferred bidders, the opportunity to enter into an option agreement for the site. The site off The Shetland Islands is suitable for floating offshore wind due to its 100m water depth.

Japanese Vessel Owners Team Up on Offshore Wind Vessel Management. Penta-Ocean Construction (POC) and “K” Line Wind Industries have entered into an agreement regarding future collaboration on management of vessels in the offshore wind industry. POC will be outsourcing different operations to “K” Line Wind Service while “K” Line Wind Services provide their offshore vessels to be utilized to POC.

Marco Polo Marine, a Singapore-based vessel owner and shipbuilder to the oil & gas and offshore wind sectors, reported a 139.5 pct increase in revenue for Q3 2022, partly driven by a significant increase in average charter rates. The company says that both its shipyard and ship chartering segments “experienced tremendous growth”, leading to the significant jump in revenue. The shipbuilding division of the company operated with close to full capacity, at an average utilization rate of 86% during the third quarter. The revenue increased as a result of stronger demand from end customers, and higher capacity following the completion of extension works on Dry Dock 1 in the second quarter of the year, as well as higher ship repair activities.

Subsea 7 awarded floating wind FEED contract. Subsea 7 has been awarded FEED contract for floating wind development in South Korea by Corio and TotalEnergies. The project is named The Gray Whale 3, and it is a 504MW development located around 60 to 70 kilometres offshore from Ulsan.

Cadeler reports solid H1 2022 results, highlights supply-demand gap for offshore wind vessels. Offshore wind installation contractor Cadeler reported its H1 2022 results today that showed continued improvements in dayrates and financial results. EBITDA landed at €23m, exactly in-line with Clarksons Securities estimates. On the market side, the company painted a bright picture. Demand for offshore wind continues to surge driven by the European energy crisis as well as the energy transition. Cadeler sees a sharp deficit in supply and demand for offshore installations by mid-decade, a sentiment we share. Meanwhile, the company has booked up its two existing vessels through 2024 and has contracts extending as far as 2027. Only one of the three newbuilds remains uncontracted at this stage, despite first delivery not expected until mid-2025.

Contacts

Research

Jens Egenberg?+47 92 02 01 70

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

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

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

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