Eneti Drops Plans to Build Jones Act-Compliant WTIV

Eneti Drops Plans to Build Jones Act-Compliant WTIV
Eneti has stopped discussions with a U.S. shipyard regarding the construction of a Jones Act-compliant wind turbine installation vessel.

Offshore wind and marine-based renewable energy specialist Eneti has discontinued discussions with a shipyard in the United States for the construction of a Jones Act-compliant wind turbine installation vessel (WTIV).

“We believe the U.S. market for offshore wind will offer significant opportunities for the company in the future, but right now we are focused on delivering on our existing commitments and deriving value from our existing fleet,” said Emanuele A. Lauro, Chief Executive Officer of Eneti.

In addition to scrapping plans for a Jones Act-compliant WTIV, Eneti’s unit, Seajacks UK, has secured four contracts with customers in NW Europe for between 189 to 240 days of employment for its NG2500-class vessels that will generate between approximately $11.6 million to $14.3 million of revenue in 2022.

Furthermore, Seajacks, a provider of installation and maintenance vessels to the offshore wind sector, has signed a deal with Van Oord to employ its Seajacks Scylla in Europe in 2023.

Currently employed through 2022 in Taiwan, the vessel will move to Europe upon completion of its existing turbine installation contract with Ørsted on the Greater Changhua Offshore Wind Farm.

The firm charter duration of the contract with Van Oord will generate approximately $60.0 million of revenue from the first quarter through the fourth quarter of 2023.

Despite scrapping one WTIV order, Eneti is not short of newbuilds. At the start of December, the company placed an order with Daewoo Shipbuilding and Marine Engineering for the construction of one wind turbine installation vessel. It exercised the option it had with DSME and signed a $326 million construction deal.

The vessel is an NG-16000X design by GustoMSC and includes a 2,600 Ton Leg Encircling Crane from Huisman Equipment B.V. of the Netherlands.

The vessel can install up to 20 Megawatt turbines at depths of up to 65 meters of water, and it can be adapted to operate on the alternate fuels of LNG or ammonia. Delivery of the vessel is scheduled for the second quarter of 2025.

To contact the author, email andreson.n.paul@gmail.com

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