Shipping and marine transportation company Scorpio Bulkers has signed a letter of intent to construct a wind turbine installation vessel with options for up to three additional vessels.
The first vessel will be built by Daewoo Shipbuilding and Marine Engineering for delivery in 2023.
This vessel is a GustoMSC NG-16000X design and includes a 1500 leg encircling crane (LEC) from Huisman Equipment.
The total project cost is expected to be approximately $265-$290m, subject to final design modifications.
The contract is expected to be signed in the early part of the fourth quarter of this year and will include options to construct up to an additional three units having similar specifications.
Scorpio Bulkers said the wind turbine installation vessel will be one of the most “sophisticated dedicated” turbine installation vessels in the world.
It will have the capacity to install onto pre-prepared foundations the largest wind turbines currently designed, at a height of over 185 metres above sea level and in water depth in excess of 65 metres.
The vessel incorporates various features, including hybrid-battery power and will also be built to be fuel cell-ready.
The shipping outfit said contract rates of $220,000 a day for wind turbine installation vessels “imply attractive cash-flow and return on capital” and noted potential for rates to improve as the market tightens over the next three to four years.
Scorpio Bulkers chairman and chief executive Emanuele Lauro said: “Scorpio Bulkers is embarking on a new and exciting journey.
“The world urgently needs to reduce emissions and offshore wind will make a pivotal contribution. We appreciate the encouragement and assistance of multiple partners – including suppliers, customers, and shipbuilders – as we take a significant first step in transitioning the Company towards a sustainable future.
“This strategic direction now aligns with our future customers, investors, finance providers and the growing momentum in global public policy.
“At the same time, the Board of Directors carefully considered this project and believes that this transition will result in higher and more predictable shareholder returns in a structural growth market. Our transition has begun.”