Eneti Newbuild Jack-Ups Secure More Work While Under Construction - Offshore WIND
Eneti Newbuild Jack-Ups Secure More Work While Under Construction | Offshore Wind
Eneti Newbuild Jack-Ups Secure More Work While Under Construction
Eneti’s wholly-owned subsidiary, Seajacks UK Limited, has signed a vessel reservation agreement with an undisclosed client to transport and install wind turbines.
With mobilization commencing in the first quarter of 2027, the contract will be performed by one of Eneti’s two NG16000X Wind Turbine Installation Vessels (WTIVs) currently under construction at Hanwa Ocean in South Korea.
Inclusive of mobilization and demobilization, the engagement is expected to be between 210 and 245 days and generate approximately USD 87 million to USD 100 million of gross revenue. Project costs are expected to be USD 15 million in aggregate.
Emanuele Lauro, CEO of Eneti, said: ”Through the ability to employ either of our two newbuilds, this project provides both maximum flexibility and accretive future cash flows. With net revenues approaching $350,000 per day, the contract reflects the improving fundamentals of offshore wind and current market conditions.”
Back in December 2022, Seajacks UK signed a similar contract with an undisclosed client for a transport and installation project scheduled to start in 2025.
The contract will be performed by Eneti’s first of two NG16000X WTIVs ordered at Daewoo Shipbuilding and Marine Engineering in Korea.
The vessel, to be named Nessie, will be delivered by the shipyard during the fourth quarter of 2024.
Nessie and her sister vessel will be capable of installing up to 20-megawatt turbines at depths of up to 65 metres of water.
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Related Knowledge Center: Offshore wind energy
Over the next decade, U.S. offshore wind power is expected to grow from a single 30-megawatt wind farm off Rhode Island to more than 2,000 MW of capacity along the Atlantic Seaboard. There are contracts for wind power off the coasts of Massachusetts, Connecticut, New York, Maryland, New Jersey, Rhode Island, and Virginia.
The National Renewable Energy Laboratory has estimated the United States has over 4,000 gigawatts (GW) of offshore wind potential, enough to power the country four times over.
The growth in part being spurred by state solicitations, including in New York, where then-Gov. Andrew Cuomo (D) set a commitment of 9,000 MW of offshore wind by 2035, and in Connecticut, where in June 2021, Gov. Ned Lamont (D) signed legislation authorizing the construction of 2,000 MW of offshore wind by 2030.
The offshore development is also being driven by an investment tax credit set to end in December 2019 and is equal to 12 percent of expenditures. U.S. Sens. Susan Collins (R-Maine) and Tom Carper (D-Del.) have introduced a bill to extend the tax credit for up to eight years.
The Interior Department has held eight competitive lease sales that resulted in 15 offshore wind leases over 1.7 million acres that has the potential for 21 GW of capacity. In February 2022, the Bureau of Ocean Energy Management completed a bidding process that realized $4.37 billion for 488,000 acres across six lease areas in federal waters off New York and New Jersey.
Projects have also been proposed off the Southeast coast, off California and Hawaii, and for the Great Lakes.