SOV/CSOV market trending in multiple directions, but electrification a near-certainty

That was among a number of conclusions in Riviera’s 5 November 2024 webinar, New departures for Commissioning Service Operation Vessels (CSOVs), led by RenewMarine director Stephen Bolton and Damen product manager offshore wind vessels, Mark Couwenberg.

That electrification of service operation vessels (SOVs) and commissioning service operation vessels (CSOVs) is the most likely technical development was a theme asserted by the speakers in the webinar and firmly backed up by polls of delegates during it.

“Full-electric is a no-brainer,” said Mr Couwenberg. “The only question is how quickly it’s going to happen,” he told the webinar, noting that alternative fuels are another way of achieving decarbonisation but a dearth of infrastructure means ammonia, hydrogen and green methanol “are not viable yet.”

Apart from electrification, which he also expects to play a key role, Mr Bolton used his wide experience to draw out a number of trends in the SOV and CSOV segment. These included the growth in the size of CSOVs ordered in recent months, not least those contracted by a joint venture between Schoeller Holdings and Deutsche Offshore Schifffahrt.

These ‘construction commissioning service operation vessels (C-CSOVs)’  will accommodate up to 100 windfarm technicians and have a length overall of 96 m. As Mr Bolton  noted, they will also have a large, modular working deck, providing more than 850 m² of unobstructed space and be able to undertake offshore wind work and cable repair, IMR and light construction work above and below water. Then there is Island Offshore’s 120-m vessels, which will have accommodation for 130.

Apart from electrification of vessels, said Mr Bolton, “there is a definite trend towards larger units,” but, as he also noted, smaller units have also been proposed, if not ordered in significant numbers yet. Mr Bolton cautioned excessive growth in vessel size – and attempts to combine the functions of a CSOV with other roles, such as those of an anchor-hander for the floating wind market – could have a significant adverse effect on fuel consumption if multipurpose units are brought to market. “If alternative fuels aren’t available for this kind of much larger vessel, fuel burn – and by implication emissions – could go through the roof,” he told delegates.

Then there is the capex involved in much larger vessels. Mr Bolton believes many of the CSOVs that have been ordered recently for delivery through 2025/26 will ‘hit a sweet spot’ between capex and charter rates, but speculated that for larger vessels ordered today, it might be harder for owners to manage the gap between the best rates they might achieve and those paid for less costly work scopes.

Mr Couwenberg said there is also a fine trade-off between the lower capex of purpose-designed small SOVs and their ability to succeed in a market characterised by the use of ever-larger turbines in deeper water. The lower gangway on a small or mid-size SOV might make working on larger turbines a challenge, the speakers suggested, unless vessels are confined to near-shore work.

Mr Bolton and Mr Couwenberg speculated that, to some extent, the increase in the size of CSOVs is being driven by the demands of the offshore oil and gas market, where some of the larger newbuilds or ‘offshore energy support vessels’ that have been ordered will also work. That probably explains the large size of the working decks on some recent newbuilds, they suggested. Space is needed for ROVs and hangars and to support subsea inspection work, they agreed.

Both agreed that although demand for SOVs and CSOVs for the floating wind market will pick up, the direction of travel in that segment of the market is less clear. Mr Bolton believes gangways could probably be adapted to work in an environment in which both ship and turbine are moving, but said there are lot of unknowns, and a lot of different floating substructures being proposed for floating windfarms, each with their own requirements.

Asked if it would be possible to transfer windfarm technicians from a SOV/CSOV in a significant wave height of 4.0 m Hs, both expressed concern. Describing a situation in which windfarm technicians were asked to cross a gangway in 4 m Hs with a 20-m access height and high wind speeds, Mr Couwenberg  said that was a scenario that “could place too much pressure on those being transferred, those on the bridge of a vessel and on DP operators.”

Mr Bolton agreed “we might be reaching a limit” beyond which transfers might not safely proceed. “Everyone wants more access, but we need to be careful,” he said. “We need to be careful around crew welfare.”

In time, they also speculated, SOVs and CSOVs capable of operating in ice will also be required for windfarms in the Baltic. Both also agreed that despite large numbers of CSOVs being ordered in the last couple of years, there is little danger of over-capacity for the time being.

Polls conducted during the webinar suggested delegates agreed with the speakers’ assertions. Asked whether existing CSOV designs are too ‘light,’ 53% of delegates said more research is needed, but a third said current designs are sufficient for their intended purpose.

Asked what is driving the appetite for CSOV orders, 30% said genuine market demand, but 63% said it was a combination of genuine demand and investor interest. Asked if the CSOV market is being used as a cover for funding OSVs for the offshore oil and gas market, 60% of those responding said there might be isolated cases, but don’t believe it’s a widespread practice.

Reflecting on comments Mr Bolton made during the 2024 OWJ conference about a potential crewing crisis for SOVs and CSOVs, 44% of delegates agreed that there is a potential crisis but feel it is being addressed (an opinion Mr Bolton did not agree with).

60% of delegates said they believe the need for vessels that fill the gap between CTVs and small SOVs is purely project dependent. 325 felt that existing CTVs and SOVs adequately cover all operational needs.

And asked what would be their preferred carbon-neutral fuel for the coming decade, 52% said full electric propulsion was the answer, followed by 24% in favour of methanol/diesel dual-fuel engines and 16% in favour of hydrogen.