Havfram Shuts Down Development Unit, Shifts Focus to Offshore Wind Transport and Installation | Offshore Wind - Offshore WIND
Havfram Shuts Down Development Unit, Shifts Focus to Offshore Wind Transport and Installation | Offshore Wind
Havfram Shuts Down Development Unit, Shifts Focus to Offshore Wind Transport and Installation
Norway-based Havfram has decided to wind up its business unit dedicated to the early-phase development of offshore wind farms, Kontiki Winds. Moving forward, the company said it would fully focus on the offshore wind transport and installations market.
The news came a day after Havfram revealed that Kontiki Winds was ending its collaboration with RWE and NTE on the bid for the Utsira Nord tender in Norway.
“The challenges surrounding our industry at the moment are well known and felt most sharply in origination and development. This has contributed to this difficult decision. Under different market conditions I’ve no doubt we would have thrived,” said Rick Campbell, Vice President of Offshore Wind Development at Kontiki Winds via LinkedIn.
In September 2021, Havfram, NTE, and RWE joined forces to participate in the licence process to develop floating offshore wind power at Utsira Nord.
RWE and NTE will continue their cooperation and will jointly apply to develop offshore wind power at Utsira Nord, according to Havfram.
Utsira Nord, located around 30 kilometres off the Norwegian coast, is open for the construction of up to 1.5 GW of floating offshore wind.
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After a comprehensive assessment of its overall business strategy, Havfram decided to discontinue its business branch Kontiki Winds, and said it would be fully dedicated to offshore wind transport and installations.
The company has several wind turbine installation vessels (WTIVs) lined up at CIMC Raffles Shipyard in China.
Havfram also signed a contract with Ørsted for the transportation and installation of wind turbines at the Hornsea Three offshore wind farm and was selected by RWE as the preferred supplier for the transport of wind turbines at the Nordseecluster project.
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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.