Keppel to build wind turbine installation vessel in the U.S. worth about S$600m

Keppel Corporation has announced that the contract is for the engineering, procurement and construction of a Wind Turbine Installation Vessel (WTIV) by Keppel Offshore & Marine (Keppel O&M) for a United States energy company, Dominion Energy Inc. The securing of this contract is in line with Keppel Corporation’s Vision 2030, which includes seeking opportunities in providing renewable energy solutions, the company said in its release.
 
The vessel is being built by Keppel O&M’s shipyard in the U.S., Keppel AmFELS, and will be Jones Act compliant. Scheduled for delivery in 2023, it will be available for charter hire to offshore wind developers, in support of several U.S. wind projects. The vessel is expected to be fully utilised on U.S. East Coast projects exceeding 5 gigawatts of U.S. offshore wind construction through to 2027.
 
The vessel’s hull will have a length of 472 feet, a width of 184 feet and a depth of 38 feet, making it one of the biggest offshore wind installation vessels in the world. Its features include a main crane with a boom length of 426 feet and an expected lifting capacity of 2,200 tonnes. The WTIV will have accommodations for up to 119 people. The vessel is designed to handle current turbine technologies as well as next generation turbine sizes of 12 megawatts or larger and will also be capable of the installation of foundations for turbines and other heavy lifts.
 
Work on the vessel, which will be named Charybdis, has commenced with a keel laying ceremony - where steel is laid to form the first part of the keel - held yesterday at Keppel AMFELS’ yard in Brownsville, Texas, marking the start of a major construction milestone.
 
According to a report1 by The American Wind Energy Association (AWEA), the US Department of Energy found the U.S. could develop a total of 86 GW of offshore wind projects by 2050. Project developers expect 14 offshore wind projects totalling 9,112 MW to be operational by 2026. States are driving strong demand for offshore wind energy and have established over 29,100 MW of offshore wind procurement targets as of September 2020.
 
Keppel O&M provides design and construction solutions across the value chain of offshore wind farms, such as wind turbine foundations, substation platforms, as well as installation and support vessels. It is currently building converter stations and substations to support the offshore wind energy industry in the German sector of the North Sea and Taiwan. It delivered and has a stake in Blue Tern, one of the world’s largest and most advanced multipurpose offshore wind turbine installers for the UK North Sea.
 
The above contract is on progressive payment terms and is not expected to have any material impact on the net tangible assets and earnings per share of Keppel Corporation Limited for the current financial year.
 
About Keppel Offshore & Marine / Keppel AmFELS
Keppel AmFELS is wholly owned subsidiary of Keppel Offshore & Marine (Keppel O&M), a world leader in providing total solutions to the offshore, marine and energy industries with a global network of yards and offices. Keppel O&M has extensive know-how across a wide range of capabilities – design & engineering, new builds, conversions & repairs, and support services
 
Since its establishment in 1990, Keppel AmFELS has built up its facilities and capabilities to become the most well-equipped shipyard in the Gulf of Mexico. It has extensive expertise and a strong track record in the construction, refurbishment, conversion, life extension and repair of a complete range of mobile drilling rigs, platforms, and ships. Backed by a highly skilled workforce and state-of-the-art facilities, Keppel AmFELS is well-positioned to service the oil, gas, renewable energy, transport and industrial sectors, as well as the Jones Act market.