Broker Fearnley Offshore Supply says recent additions to the orderbook for commissioning service operation vessels (CSOVs) will likely not be enough to meet demand as the global offshore wind market continues to grow quickly
In a mid-March 2023 report, the broker highlighted recent newbuilding activity but said the market will comfortably absorb newbuilds ordered to date, and more will be needed.
“With an expected 4,800 turbines (excluding China) to be commissioned between now and 2026, the vessel segment might get even tighter than previously expected,” said Fearnley, “leading to rates exceeding €55,000 (US$58,500) for commissioning support during the high season.”
The broker said including recently ordered CSOVs, there are approximately 60 purpose-built units worldwide, of which well over half are in the orderbook, which has grown aggressively in the last 18 months. “The number could surpass 80 units this year at the current pace,” it said.
“Despite this rapid fleet growth, we remain firm that such a development will not alter the market balance because multipurpose vessels eligible for oil and gas work will be in extremely high demand from next year to 2027. Absent project development delays on a large scale, we need to see even greater fleet growth to meet demand.”
The latest semi-annual Offshore Review and Outlook report released by Clarksons Research also highlighted the fast pace of growth in the market for offshore wind vessels such as CSOVs.
Clarksons said momentum in the offshore wind industry continues, with active capacity growing by 15% in 2022 to 60 GW (2012-22 CAGR: +29%).
“The wind newbuild ordering cycle continues,” the company said, with 24 CSOVs contracted last year, largely from European owners, all including batteries. Clarksons said the wind vessel market continued to tighten and walk-to-work rates rose >30% year-on-year.
Among the recent players who have ordered newbuilds, Edda Wind has been the most aggressive player and continues to expand. The company recently raised Nkr1.2Bn via a share issue, with strong precommitments from existing shareholders Østensjø Rederi, Wilhelmsen, Seatankers and Eastern Pacific Shipping.
The capital raised by Edda Wind will be deployed to fully finance the equity portion of four CSOV newbuilds placed speculatively at Vard in Norway and Vietnam.
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