UPDATED: Sembcorp Marine wins breakthrough wind turbine installation vessel contract

The wind turbine installation vessel will be based on Sembcorp Marine’s inhouse design and on collaboration with the customer.

Sources suggest that the customer is Maersk Group, which has been developing plans to enter the offshore wind installation market for some time. When contacted by OWJ, a spokesperson for Maersk Supply Service said no comment was possible at present.

The vessel is due to be completed in early 2025. The yard did not describe the design of the vessel in detail but did state it is designed to operate with feeder vessels.

In a statement, Sembcorp Marine said it collaborated with its customer intensively over two years, providing design development and verification work. It said the vessel “will be capable of operating at a high level of efficiency and is able to handle next-generation wind turbines.”

Sembcorp Marine Rigs & Floaters senior vice president Wong Teck Cheong said, “We are grateful for the confidence our customer has placed with Sembcorp Marine to bring this breakthrough vessel to the offshore wind market. The group looks forward to continuing the close collaboration with our customer to execute this project and contribute to the pace of the energy transition.”

Sembcorp Marine president and chief executive Wong Weng Sun said, “This is another important step for the offshore wind industry. Sembcorp Marine is pleased to support the energy transition with its innovative products and to collaborate with its customers to contribute to a more sustainable and greener future.”

Responding to the order, analysts at Clarksons Platou Securities said several players have been out in the market, including Fred Olsen Windcarrier, though that project appears to be on hold following the failed IPO for the unit in early March 2022.

Clarksons Platou Securities said the order will bring the credible wind turbine installation newbuilding list to 13 units. Although that appears to be substantial given that there are 15 vessels on the water today, it estimates that after all of the newbuilds are delivered, only 16 of 27 vessels will be capable of installing 12+ MW turbines with reasonable efficiency.

“In other words,” said the analysts “we believe that net growth in the high-end fleet of wind turbine installation vessels is marginal. Turbine installation demand is rapidly increasing, which should lead to increasing earnings for owners.”