UK MAIB: Watch Officer was Sleeping and Likely Drunk as Cargo Ship Grounds

BBC Marmara grounded in July 2021 in Scotland (file photo courtesy of Briese Schiffahrts)

PUBLISHED NOV 30, 2023 5:25 PM BY THE MARITIME EXECUTIVE

 

 

The UK Marine Accident Investigation Branch (MAIB) issued a damming report today investigating the 2021 grounding of a cargo vessel on the west coast of Scotland. They identify issues including the fact that the watch officer was likely drunk and sleeping when the vessel grounded as well as endemic issues in the industry of falsifying records and disabling bridge alarms. The local control station was also overwhelmed and distracted by other duties meaning it failed to challenge the vessel as it failed at several steps before the grounding.

The findings were considered sufficiently alarming that MAIB followed up its specific recommendations to the shipping company, Briese Schiffahrts of Germany in the case and to the Maritime and Coastguard Agency, with a broader safety flyer to the shipping industry. They are warning of the dangers of “circumvention of navigational safeguards.” They are urging ship owners and managers to carry out detailed and accurate reviews looking at the use of lookouts and navigational systems while highlighting in the report the frequent violations or flagrant falsifying records. The issue of ships disregarding the requirement for lookouts at night and in low visibility situations has surfaced recently in other cases such as collisions in the North Sea, including the fatal collision of the Scot Carrier and Karin Høj in December 2021.

The 46-page report details the investigation into the grounding of the BBC Marmara, a 5,344 GT multipurpose dry cargo vessel built in 2010 and registered in Portugal. Manning requirements called for 12 crew to be aboard and the vessel was properly staffed with 11 Russian/Ukrainian nationals and one German.

The vessel departed Ireland on July 23, 2021, carrying 1,407 metric tonnes of reinforced concrete beams and was sailing to Scotland. The approved routing called for the vessel to navigate the Scottish coast to the port of Scrabster on the north coast of Scotland.

On the evening of July 24, the second officer, a 37-year-old Ukrainian who had been working for Briese since 2014, was in the cabin of the vessel’s able seaman along with a cadet. He later admitted that he was drinking beer and had a Jagermeister, a German drink that is 35 percent alcohol by volume, for three hours before his watch. Shortly before midnight, he went to the bridge and did a handover and conversation with the master of the vessel before taking the watch. The report does not address if the master observed any signs of drinking.

The drinking, however, did not stop there. Shortly after his watch began, the AB and cadet joined him on the bridge and were drinking beers, which they said the master had given them. They were also talking and the report says music was played.

Shortly after 0200, the BBC Marmara overshot a planned course alteration, and the Electronic Chart Display (ECDIS) and Information System’s alarm began sounding. It rang 15 times before a course correction was made. About 40 minutes later, the vessel missed a reporting call to the traffic monitoring station and at 0330 the ECDIS “look ahead alarm” went off. The vessel was moving at 11.2 knots and two minutes later went aground causing what MAIB describes as “significant damage,” with a survey showing the bow thruster and forepeak tank were penetrated.

 

Damage pictures from MAIB report

 

During their investigation, the review of the vessel’s voyage data recorder picked up “loud snoring” at 0248 and it continued intermittently as the vessel crossed its planned track. Despite Briese’s written policy saying a lookout was mandatory during darkness and restricted visibility, they found the second officer was alone on the bridge except for the brief period when he was socializing. They also noted that the shipping line’s policy prohibited the consumption of beverages above 19 percent alcohol while onboard.

The logs indicated however that a lookout was present. MAIB writes in the report, “It has become accepted practice on aboard to falsify documentation to satisfy the requirement of port state, flag state, and internal audits and inspections.”  They also found that the crew considered the Bridge Navigational Watch Alarm System “an inconvenient distraction” and frequently disabled it as well as setting “inappropriate” limits on the ECDIS. 

The final safeguard in this instance, the Stornoway MRCC, they found was distracted by another task. The VTM operator on duty was busy and failed to challenge the BBC Marmara. MAIB says staffing was at recommended levels but it did not reflect the other required functions of the staff when multiple incidents were underway. The report also notes that this was the third grounding of a general cargo vessel within the UK coastguard monitored area in a three-year period.

The ship owner and the Maritime and Coastguard Agency responded to the report and findings taking specific actions. MAIB however calls for a study of personnel issues and the impact of tasks for the MCA while calling for Briese to implement crew resource efforts and review and implement management assurance tools. At the same time, they are cautioning the broader industry that this and other similar recent cases highlight the need to adhere to navigation safeguards.

 

Navy Divers Show Details of Challenging Plane Salvage Project off Oahu

Courtesy USN

PUBLISHED NOV 30, 2023 7:28 PM BY THE MARITIME EXECUTIVE

 

The U.S. Navy has released underwater footage from the wreck site of a maritime patrol plane that overshot the runway at the Marine Corps airfield at Kaneohe Bay, Hawaii last week. Luckily, the video appears to show only slight damage to the reef structure on the bottom. 

At about 1400 hours on Nov. 20, a P-8 Poseidon attempted to land on the main runway at Marine Corps Base Hawaii. It failed to stop before the end of the pavement and skidded into the water, according to a Marine Corps spokesperson. The plane came to rest in shallow water just offshore. 

Multiple federal and local first response agencies attended the scene. All nine crewmembers were able to make it to shore, and no injuries were reported. The Navy deployed three layers of boom around the plane to prevent any potential fuel spill from escaping into the bay; this proved unnecessary. The aircraft has now been fully defuelled, without any reported mishap or leakage. 

Now that its fuel has been pumped off, the plane is making contact with the bottom at only two points, the Navy said this week. It is secured to mooring points in order to prevent it from drifting off.

The video suggests that the plane is essentially intact, including its landing gear and underbelly. The Navy is working on a salvage plan, and is prioritizing safety and environmental protection, it said in a statement. An investigation into the cause of the accident is under way, with an aim to prevent similar incidents in the future. 

According to local media, two different salvage options are under consideration. The first would be picking it with a large crane and placing it on shore. The other would be to use roller bags to support it and then roll it back up onto the runway. 

 

Maersk Tankers Looks to Lead Industry with Order for Large Ammonia Tankers

Maersk Tankers ordered large ammonia gas carriers to develop a new segment of the market (file photo)

PUBLISHED DEC 1, 2023 12:05 PM BY THE MARITIME EXECUTIVE

 

After having left ship ownership to become a manager and pool operator, Maersk Tankers along with investment partner Mitsui & Co. looks to lead the tanker sector into ammonia transportation. The company, which is owned by A.P. Moller Holding and has Mitsui as an investor in Maersk Product Tankers, placed the largest tanker order to date in the ammonia sector.

Maersk Tankers reported that it has placed an order with Hyundai Samho Heavy Industries in South Korea for large ammonia carriers. It includes a firm order for four tankers as well as options for up to six additional vessels. Maersk Tankers will operate the vessels and expects them to enter the charter pool by 2027 with Mitsui as a co-investor in the first four vessels. HD Korea Shipbuilding & Marine Engineering, the holding company for the shipyard, reported the value of the four-vessel order at $432.4 million.

Maersk highlights that many of today’s clean ammonia projects under development will require seaborne transportation. Ammonia is poised to become a fuel source as well as a carrier for hydrogen which can be released through a cracking process. Maersk Tankers looks to become a first mover in the sector responding to the market which is looking for solutions to transport larger volumes of ammonia.

“Concrete actions are needed for the tanker industry to progress the energy transition, and in Maersk Tankers, we want to play our part in making transportation of clean energy a reality,” said Tina Revsbech, CEO of Maersk Tankers.

The newbuilds will have a capacity of 93,000 cbm, which will be among the largest ammonia carriers in operation, capable of carrying a full cargo of ammonia. The first four VLACs are due to be delivered between late 2026 and the second half of 2027. 

Maersk Tankers reports it is working with MAN Energy Solutions and Hyundai Heavy Industries’ Engine Machine Division (EMD) to make the vessels capable of running on ammonia. However, a decision to install ammonia-capable engines requires both regulatory and customer support.

 

Hyundai's rendering of large ammonia gas carriers

 

Both companies look to leverage their experience in gas tankers to develop this new segment of the market. Maersk Tankers highlights it was an early entrant into LPG and ammonia shipping starting in 1972 and continuing till it sold its gas tanker business in 2013. This year, the company again began managing gas tankers and reports it has nearly 30 very large gas carriers VLGCs now under management. Maersk Tankers manages a fleet of 150 vessels with 40 pool partners.

HD Korea Shipbuilding has been working on the development of designs for large ammonia gas carriers, having previously received design approvals from leading classification societies. Hyundai is building the segment reporting in September an order for four 88,000 cbm ammonia tankers with two to be delivered to EPS while the other two are being built for Greece’s Capital Management and will be operated by EPS. The deliveries are anticipated to begin in the second half of 2027 and each contract includes an option for one additional vessel.

Hyundai highlights that its shipbuilding operation has won approximately 61 percent of the orders for ultra-large LPG and ammonia carriers placed this year. They have a backlog of 23 ships from a total of 38 orders placed for gas carriers. In total, Hyundai’s shipbuilding companies have received orders valued at $15.74 billion in 2023 for a total of 154 vessels and a floating offshore production unit. HD Korea Shipbuilding reports that the orders represent more than 138 percent of its yearly target.

CMB.TECH Leads Effort to Build Four Hydrogen-Powered Shortsea Cargo Vessels

The vessels use an innovative design that provides space for hydrogen or other alternative power systems (Boeckmans)

PUBLISHED NOV 29, 2023 3:56 PM BY THE MARITIME EXECUTIVE

 

Plans were announced for four hydrogen-powered general cargo vessels as the Saverys continue to push forward on multiple fronts with their efforts to develop what they are calling future-proof shipping. The announcement of the order for the cargo ships follows the news yesterday that they have also expanded their order for hydrogen-powered Commission Service Operation Vessels (CSOV) for the offshore wind sector.

Through their company CMB.TECH and in a partnership with Belgian shipowner and operators of shortsea vessels Boeckmans, the Saverys will build four hydrogen-powered vessels. They will be 5,000 dwt general cargo vessels suited for shortsea routes and designed to significantly reduce greenhouse emissions.

“By embracing innovative propulsion systems such as hydrogen, we are not just building ships; we are working toward a greener future for global trade routes,” said Alexander Saverys, CEO of CMB.TECH, announcing the order.

The vessels will be built at the Dung Quat shipyard in Vietnam with the first vessel expected to be delivered in the second half of 2025. The partnership said they will be deployed on major sea routes, including northern Europe, the Mediterranean, North Africa, and West Africa.

The four vessels will be based on an innovative design developed jointly with Dutch shipping company Handelskade. The concept places conventional diesel-electric engines under the ship’s forward accommodations block. As such they are also making the stern area available for alternate propulsion systems, such as hydrogen or other alternative low-carbon engines. This configuration also provides ample space available for the storage of these alternative fuel sources away from the accommodations.

“The ship’s primary design philosophy is to achieve lower emissions through hull shaping, innovative design, and the application of the latest technologies,” explains Pierre Durot, Director of Boeckmans.

By optimizing the design for the hull and the vessel’s operations, Durot highlights that they have already achieved a 40 percent reduction in emissions compared to traditional general cargo vessels operating with diesel propulsion.

“This can be reduced even further by implementing new sustainable propulsion systems,” says Durot.  “The ship’s diesel-electric configuration simplifies the integration of new systems into the power grid and creates storage space for fuels such as hydrogen.”

The Saverys look to increase the use of alternative fuels including hydrogen and ammonia in all segments of the shipping industry. They have previously announced plans for a large bulker using alternative fuels. Yesterday, they confirmed that they have expanded an order with Damen Shipbuilding Group to five CSOVs that will be powered by hydrogen. They reported that construction has already begun on the first of the vessels and they will incorporate a hydrogen propulsion system similar to the technology used for the first hydrogen-powered crew transfer vessel.

Outlining their vision for the future, the Saverys detailed with their plans for tanker company Euronav efforts to accelerate the use of alternative fuels. They look to lead the shipping industry in the adoption of new power sources including ammonia and hydrogen.

 

EUNAVFOR Provides Details on Abducted Fishing Boat to Somalia for Follow-Up

Fishing dhow was tracked by EURONAV Operation ALALANTA before enter Somalia's territorial waters (EUNAVFOR)

PUBLISHED DEC 1, 2023 2:20 PM BY THE MARITIME EXECUTIVE

 

 

The joint EU-sponsored force responsible for maritime security along the East African coast including Somalia reports that it has tracked and provided details to the Somali police forces for follow-up on the recent security incident. First reported a week ago, the disappearance of a fishing boat raised fears of new piracy activity in the northwestern Indian Ocean off Somalia and came days before the assault on the tanker Central Park, which the U.S. blamed on pirates.

Media reports in Somalia last week highlighted the seizure of the ALMERAJ 1 possibly as a stateless vessel involved in illegal fishing activities. The report said that pirates had seized the fishing dhow and were demanding $400,000 in ransom while threatening to use the vessel as a mother ship for additional assaults on commercial shipping.

The European Union Naval Force Operation (EUNAVFOR) ATALANTA which monitors shipping to maintain security in the region reports it was informed of the incident on November 22 by the commander of the Somali Coast Guard. EUNAVFOR began investigating the reports of an abduction of what they are calling an Iranian-flagged fishing dhow off the coast of Eyl (Puntland, Somalia).

Operation ATALANTA monitored the dhow closely for more than 230 nautical miles away from the coast of Somalia. This included the deployment of an unarmed drone and the involvement of the EU embassy in Mogadishu and the Somali authorities. An Italian and a Spanish warship are currently deployed to the area of operation for Operation ATALANTA.

 

EUNAVFOR reports tracking the vessel including through the use of a drone (EUNAVFOR)

 

“Ultimately, having also lost its two towed skiffs in adverse weather, ALMERAJ 1 reversed course toward the Puntland coast and reached the Somalia territorial waters,” reports the command of the EU operation. After being closely monitored by ATALANTA units, they communicated its last known position to the Somali police forces. “Eventually, Somali police forces took over the escort to shore, and for following actions with regard to the suspected pirates.”

EUNAVFOR reports that the last piracy incident in the region took place in 2019. The operation remains vigilant to any maritime security events in its area. They also strongly recommend merchant and other vulnerable vessels register in the Maritime Security Centre - Horn of Africa's Voluntary Registration Scheme, to provide the most effective monitoring and response by ATALANTA forces and their partners in countering maritime security threats.

Operations and the registration requirements transitioned to a voluntary basis after the successful efforts reduced the risk and ended the frequent actions against merchant ships in the region. However, with renewed tensions across the region, the U.S. and UK issued new security warnings this week for all ships operating in the areas ranging from the Gulf of Aden, the Indian Ocean, and the Persian Gulf.

 

Scotland’s Last Lightship is Falling Apart and Will be Deconstructed

North Carr (2009 photo) is Scotland's historic lightship but is slated to be deconstructed in 2024 (M J Richardson photo - CC BY-SA 2.0)

PUBLISHED DEC 1, 2023 11:39 PM BY THE MARITIME EXECUTIVE

 

 

Scotland’s last lightship, and one of the final surviving examples of the unique and critical part of navigation safety, is in critical condition and likely to be dismantled starting in 2024. The charitable organization that controls the vessel known as North Carr, reports it determined given the state of the vessel, there is no alternative except to scrap the ship.

“Over the past five years, it has become apparent the hull has suffered a significant level of decay,” wrote Taymara, a Scottish charity founded in 2007 to utilize the founders’ maritime skills and volunteering for the benefit of the community. The charity acquired the lightship in 2010 for £1 million intending to stabilize it, ultimately securing a permanent berth, and raising money for its full restoration. They contend over the past 13 years they spent £70,000 on the ship and countless volunteer hours.

Built in 1933, she was only one of two light vessels in Scotland, serving as an important marker for navigation. She is just 101 feet in length (30.78 meters) and has no propulsion. She had to be towed to her service points. In addition to her light, she was outfitted with a power horn used to warn ships. Her light is situated 40 feet above sea level and the directional foghorn reportedly has a range of ten miles. It was known to deafening. 

 

In 1988 while she was still in good repair a decade after retirement - Timwether photo in public domain

 

She is credited as providing a critical service during World War II when she was repositioned to a point between the Mull of Kintyre and the Mull of Galloway. Her light was only lit at pre-arranged times for security, but she provided a vital navigation point both for the Arctic convoys and the troopships heading into and out of the Clyde.

Returning to normal service after the war, in 1952, a major refit was undertaken, installing new diesels and generators. A radio beacon was installed in 1954 and two years later the Watch House was built.

The coast of Scotland was battered by one of the worst gales in history in December 1959 and the North Carr at about 2:00 a.m. in the midst of the storm issued a distress call after breaking her moorings. Most of the RNLI lifeboats were unable to leave the harbor due to the storm, but the Broughty Ferry crew was in a more sheltered station and launched their boat, Mona, in a desperate attempt to save the crew of the North Carr. The Mona, however, was lost in the storm, with the bodies of seven of her crew found on the beach at Buddon Ness the following morning. The light vessel crew were eventually rescued by an RAF helicopter.

The lightship was decommissioned in 1975 and laid up at Leith intended for scrap. However, the following year she was purchased for display and in 1977 opened to the public. In 1989, financial and technical problems resulted in her closure. She reopened in 1992, but was sold in 1995 to Dundee City Council and 15 years later to the charity. She is registered with National Historic Ships UK.

 

She is decaying with the charity saying she becoming unsustainable (Taymara)

 

In recent years, the North Carr has suffered damaging leaks, the spread of extensive rust, and leaks in the hull which volunteers repaired with emergency cement boxes and other means. The vessel is largely original from 1932 and now the charity reports the time has come “when no more can be done.”  They fear her deteriorated state will lead to her becoming unsustainable with potentially dire consequences.

They announced this week that they believe there is no other option but to deconstruct the North Carr lightship, setting January 5, 2024, as a deadline for alternate proposals. Taymara notes that it is an arbitrate date for the start of the deconstruction and it will be a lengthy planning process before actual work begins. 

The lightship retains much of her original equipment including her lifeboats, which were previously removed for conservation, as well as firefighting gear, engine room generators, compressors, electrical equipment, onboard windlass, internal furnishings, and accommodations. 

 

North Carr in 2008 at the dock in Dundee, Scotland (John Ferguson photo - CC BY-SA 2.0 license)

 

In the absence of any external intervention that might be forthcoming, the only solution available Taymara says is to rescue every movable artifact and ultimately to remove the hull from Victoria Dock in Dundee, Scotland.

Taymara concluded its message by saying it is a very sad time for members, who have a tremendous affection for the iconic vessel and who have worked tirelessly to try and ensure that she might have a future. Regrettably, given the state of the vessel, there is no other way forward.
 

Top photo by M J Richardson - CC BY-SA 2.0 license 

 

Abandoned Tanker Grounds in Vietnam Drifting 1,000 Miles From Philippines

Vietnamese officials were surprised to find an abandoned tanker drifting ashore (Boarder Guard photo)

PUBLISHED DEC 1, 2023 3:41 PM BY THE MARITIME EXECUTIVE

 

 

Like the legendary “Flying Dutchman,” a product tanker thought lost in the Philippines two weeks ago washed ashore today, December 1, hundreds of miles away in Vietnam. The Provincial Board Guard Command was puzzled by an uncrewed vessel grounding on its coastline.

The authorities were investigating reports of a large vessel drifting off the coast of Cu Lao Cham island located offshore from Da Nang on the central Vietnamese coast. The vessel appeared abandoned and was driven onto the rocky coast by strong waves. The bow of the vessel was damaged by the grounding, and it became lodged along the coastline.

The Vietnamese Boarder Guard however reported it was impossible to board the vessel because of its position and the strong waves. They were able to identify the vessel as the King Rich, a 132 meter (433 foot) long product tanker registered in Sierra Leone. Other than the damage to the bow during the grounding, the 13,925 dwt vessel however appears to be in good condition.

"Currently, there are no crewmembers aboard the King Rich vessel, and we have not yet ascertained the remaining cargo and fuel on the ship. Authorities are actively implementing surveillance and protection measures to restrict public access to the ship," the leadership of the Border Guard Command of Quang Nam Province reported.

The previously reported position of the King Rich was on November 18, approximately 80 nautical miles from Badoc Island, in the Philippines, nearly 1,000 miles away from Vietnam near the Philippine island of Luzon. 

The 13 Indonesian and three Chinese crewmembers aboard the King Rich abandoned ship on November 18 reporting that the ship’s propeller shaft had broken, and it was taking on water. They later told the Philippines Coast Guard that they had secured the engine and fuel tanks before getting into the life rafts. The Coast Guard congratulated a Hong Kong-registered containership for its quick action in rescuing the crew.

Two days after the vessel was abandoned, the Philippine Coast Guard overflew the area and reported the ship was still afloat. They had ordered the owner to make arrangements to tow the vessel before it was lost.

Eleven days later, the King Rich grounded in Vietnam apparently having drifted in a southwesterly direction across the width of the South China Sea.

It is the second incident this week when an unmanned vessel washed ashore. South Korea was faced with a mystery when a small, Chinese-registered vessel was found abandoned and sinking on its coast. The Chinese owner of the vessel reported that the vessel had washed away from an anchorage in Shandong Province, while the Koreans were also checking to make sure the vessel was not conducting illegal activities or being purposefully sunk for an insurance claim.

 

NTSB: Failure to Follow Maintenance Procedures Caused $1.2M in Fire Damage

Extensive fire damage to the engine room caused by the oil leak on the Endo Breeze after maintenance (NTSB report)

PUBLISHED DEC 1, 2023 9:29 PM BY THE MARITIME EXECUTIVE

 

 

A failure to follow recommended maintenance procedures, or possibly a perceived shortcut in the process, is believed to have caused a fire that resulted in $1.2 million in damage and disabled a 46,700 dwt product tanker while she was maneuvering within the confines of a shipping channel. The National Transportation Safety Board issued a report highlighting how a maintenance error was likely the cause of a preventable casualty, but that the fast response and appropriate actions of the crew prevented more damage or injuries.

The NTSB used this instance to highlight the consequences of a crew’s actions. They report that they have investigated several recent casualties involving mechanical or fuel line fitting failures that led to engine fires following the maintenance of shipboard diesel engines. The report concludes that the fire that occurred in April 2022 aboard the Malta-flagged Endo Breeze “shows what can happen when equipment manufacturers’ recommended maintenance procedures are not followed.”

The 600-foot product tanker was departing the Sunoco Terminal in Linden, New Jersey on April 29, 2022. Approximately two hours after leaving the berth and navigating around Staten Island, the bridge ordered full ahead on the engines. At around the same time, the second and fourth engineers who were making a round in the engine room smelled fuel oil and saw a haze in the air near the starboard main diesel engine. The spotted fuel oil on the deck and a fuel mist coming from the aft end of the engine.

Within approximately two minutes, they noted that the leak had turned into a fire near cylinder no. 4 on the starboard engine and the fire was quickly spreading. The engine room space and control room were evacuated while the second engineer secured all ventilation, pumps, fuel and oil values, and some auxiliary machinery. The vessel lost main power going on to its emergency generator and the engine room’s fixed carbon dioxide fire extinguisher system was employed. The tanker made an emergency anchorage in the Raritan Bay Channel. It would be two days before the New York Fire Department would give the all-clear that the crew could re-enter the engine room with the danger of a reflash.

During its investigation, the NTSB discovered that the second engineer, aided by a motorman and wiper, performed maintenance the previous day on the starboard main engine which included replacing fuel injectors and fuel injector pumps. The second engineer told the NTSB he had experience conducting this type of maintenance and followed the recommended procedures including for the reassembly. He replaced consumable items and reused prescribed parts including the banjo tube and bolts that were found to be in good condition. He also reported testing the engine at the end of the process and found no leaks. In conducting a post-casualty examination, however, the NTSB found a slight offset, resulting in misalignment to the fuel injector pump and a fracture near the top portion of the inboard side of the banjo tube mounting surface to the sealing flange.

Ruling out other issues with the parts, the NTSB writes it is likely the engineer did not correctly follow the manufacturer’s reassembly procedure for the fuel injector pump. It specified an order of steps and points such as the torque settings. The report concludes that when the engine was fully loaded with a full-ahead order, the expanded stress due to heath and the slight misalignment caused the banjo tube to fracture resulting in the leak that caused the fire.

“In this case, not following the tightening sequence described in the diesel engine manufacturer’s manual led to the misalignment and failure of a high-pressure fuel connection on an engine’s fuel injector pump’s assembly,” the report concludes. “Due to the high risk of fire associated with pressurized fuel, when working with diesel engine components, it’s critical to carefully follow manufacturer assembly procedures and review manufacturer manuals and guidance on a regular basis to ensure familiarity with correct maintenance procedures.”

The NTSB report also emphasized the need for training to prevent and contain engine room fires. The crew’s effective response to the fire aboard the Endo Breeze they concluded limited the damage and prevented injuries.
 

 

New Jersey Plans to Restart Offshore Wind in 2024 After “Bump in the Road”

New Jersey plans to accelerate its next wind solicitation after losing its two main projects (Orsted file photo)

PUBLISHED DEC 1, 2023 10:14 PM BY THE MARITIME EXECUTIVE

 

 

The Governor of New Jersey is looking to restart his state’s offshore wind programs reiterating that they remain committed to offshore wind as a key component of the state’s renewable energy program. The state said the governor’s action reaffirmed its overall commitment to achieving 100 percent clean energy by 2035 and developing the economy by building the industry and its supporting supply chain.

The New Jersey Board of Public Utilities (NJBPU) was directed by the governor to accelerate the timeline of the state’s fourth offshore wind solicitation. Originally scheduled for the summer of 2024, Governor Phil Murphy on November 29 directed NJBPU to launch the next offshore wind solicitation in early 2024. However, the state does not expect to announce the awards in early 2025 for projects that will not be operational till 2032.

“I have directed the BPU to take this action in recognition of the strong future of New Jersey’s offshore wind industry,” said Governor Murphy. “New Jersey can – and will – continue to remain a burgeoning offshore wind development hub that attracts new projects and their accompanying economic and environmental benefits for generations to come.”

Speaking on a local TV news station at the beginning of the week, the Governor described Ørsted’s cancelation of the Ocean Wind 1 and Ocean Wind 2 projects as “a bump in the road.” Ocean Wind 1, which was to have been the largest wind farm in the United States with 1.1 GW of power, had received federal approval in July 2023 and was due to begin construction with power starting in 2025 and completion in 2026. It was to have been followed by an equally large second phase, which together were billed as the hallmark of the state’s renewable energy program. Ørsted canceled both projects at the end of October citing rising costs and development problems.

The cancelation sets back New Jersey with its first large offshore wind farm now likely to be Atlantic Shores, a partnership between Shell New Energies US and EDF Renewables. It calls for a 1.5 GW project off the coast of Atlantic City but is not expected to be online until 2027 and 2028.

New Jersey hopes to solicit at least 1.2 GW of power in the next round, but the governor did not set a specific start date. Also, the state has not discussed if, like New York and Rhode Island, it would be adapting the structure of the bids to address the financial and supply concerns that emerged and are currently derailing large wind farm projects both in the United States and Europe.

State officials highlight that the industry is moving forward despite the well-publicized challenges. Last week, the Bureau of Ocean Energy Management approved another large wind farm, Empire Wind, which will be built off New Jersey but the power will be sold to New York. The first commercial-scale U.S. offshore wind farm, South Fork in New York is days away from first power, and a large project is also erecting its wind turbines off Massachusetts. Dominion Energy also received approval and is starting its large project off Virginia.

New Jersey highlights that it received strong interest in its third solicitation completed in June. It is expected to announce the results by the start of 2024 with as many as four projects proposed. The state outlined a plan for a total of seven solicitations which started in 2018 and calls for four more rounds with bids in 2024, 2026, 2028, and 2030. Governor Murphy’s goal is for 11 GW of offshore wind energy in New Jersey by 2040, which could power 3.2 million homes with renewable energy.

Despite setbacks, states are still counting

on offshore wind

2023/11/28

In an aerial view, wind turbines generate electricity at the Block Island Wind Farm on July 7, 2022, near Block Island, Rhode Island. 

- John Moore/Getty Images North America/TNS

In recent months, East Coast states’ plans to install massive new offshore wind farms have been battered by bad economic news, canceled contracts and newfound uncertainty about the projects officials are counting on to reach their clean energy goals.

Despite the setbacks, state leaders say they don’t intend to dial back their offshore wind ambitions. They’re planning new strategies and investments to help the industry weather its rocky start. And they’re holding fast to mandates that offshore wind make up a substantial portion of their future power supply.

“New Jersey is committed to wind energy, and doubling down is the answer,” New Jersey state Sen. Bob Smith, a Democrat who chairs the Environment and Energy Committee, said after a developer canceled two projects off the state’s coast. “I don’t think we have a choice. Offshore wind could literally be an inexhaustible source of energy.”

Some developers who have recently pulled out of long-planned projects cite interest rates, inflation and supply chain issues, saying the price at which they agreed to sell their energy no longer warrants their costs. States have resisted the companies’ requests for more subsidies or price hikes, casting additional projects in doubt.

Some observers say that for states to reach their clean energy goals, governments — and customers of public utilities — may have to pay more than they initially planned.

“State lawmakers have their backs in a corner here,” said Carlos Ochoa, ocean program manager with the National Caucus of Environmental Legislators, a forum for state lawmakers. “If they don’t want to renegotiate with those projects, they’re going to have a delay in the construction of the projects and put in jeopardy their mandates.”

In Massachusetts, developers canceled a pair of projects earlier this year, saying they could not complete the work under the original agreement. The state is seeking new bids for those projects, which may come in at double the initial price, said state Sen. Julian Cyr, a Democrat who has promoted offshore wind in his district in the Cape Cod region.

In response, Massachusetts has partnered with Connecticut and Rhode Island to collectively seek 6 gigawatts of offshore wind — enough to power 2 million homes — by allowing bidders to submit multistate proposals.

“We’re going to look back and say this was a really positive outcome of this unfortunate period,” said Katie Dykes, commissioner of Connecticut’s Department of Energy & Environmental Protection. “It will allow us to secure lower prices through economies of scale, and to share the cost of individual projects.”

Dykes said states in the region also are discussing combined investments in transmission infrastructure, and they’ve used the slowdown in project builds to align their technical standards on transmission to ensure power from offshore turbines can move throughout the region.

In New York, state regulators announced that they would speed up the process for soliciting new offshore wind proposals, in part to backfill projects that developers are expected to cancel. Last month, the state announced a $300 million investment to build facilities that will construct blades and other turbine components.

“New York is in an active position in addressing the challenges facing the industry, not a passive position,” said Doreen Harris, president and CEO of the New York State Energy Research and Development Authority. “We believe we can solve for all these variables.”

On the West Coast, state leaders also are pushing hard for offshore wind development. The Pacific Ocean’s deeper waters require floating wind turbines, a technology that’s still being developed. That means projects in places such as California aren’t as close to construction, so it’s unclear whether the current challenges will affect the industry’s Pacific expansion.

Setbacks

Along the Atlantic Coast, seven states have committed to sourcing nearly 43 gigawatts of offshore wind power by 2040. That’s enough to power about 14 million homes. Those mandates set off a frenzy of federal ocean leases, developer permitting applications and state investments in supply chains and ports — yearslong strategies that have put states on the verge of getting turbines in the water.

But that momentum slowed when developers canceled several of the projects that were supposed to serve as the industry’s launchpad. In New Jersey, Danish developer Ørsted announced last month that it was abandoning two projects that were set to provide 2.2 gigawatts of power. The company cited rising interest rates, inflation and supply chain issues. That announcement followed another trio of cancellations in Massachusetts and Connecticut, totaling 3.2 gigawatts.

Meanwhile, New York regulators last month rejected a petition from wind companies to provide more state subsidies to four offshore projects — funding that developers said was necessary to carry out contracts totaling 4.2 gigawatts.

And some projects have run into opposition from local communities that are concerned about sightlines or fishing — along with misinformation from oil industry-backed groups that claim offshore wind is harming whales.

In total, the canceled and threatened projects represent more than half of the offshore wind capacity that had been under contract with state regulators. Despite developers’ requests to renegotiate the contracts, states have been reluctant to do so, wary of raising rates on consumers.

If states and developers can’t resolve their impasse over prices, observers say, more companies could cancel their contracts. That would force states to restart the bidding process and further set back their timelines for offshore wind deployment.

Companies will likely seek higher prices during that rebidding process, said Timothy Fox, a vice president at ClearView Energy Partners, LLC, an independent research firm. Those bids may conflict with state regulators’ duty to provide reasonable rates for consumers, he said, opening up the possibility that some bids could be rejected.

Long term, though, Fox noted that the “state policies that represent the primary drivers for offshore wind today remain stable.”

State leaders say the recent struggles are hiccups that may slow their progress but won’t threaten offshore wind’s place in their energy future.

“There’s no denying the challenges the industry is facing at this particular moment,” said Dykes, commissioner of the Connecticut agency. “But we have some of the best offshore wind resources in the world just off of our coast, and we have some ambitious goals for decarbonization. Those fundamentals remain just as true today as they were in 2018.”

Walt Musial, principal engineer with the National Renewable Energy Laboratory and a leading offshore wind expert, said the recent cancellations may put at risk President Joe Biden’s goal of reaching 30 gigawatts of offshore wind nationally by 2030. The country currently has almost no offshore wind generation, though several commercial projects are on the verge of coming online. But state mandates — many of which take effect in 2035 or 2040 — are still within reach, Musial said.

“When you look at the choices they have for renewable energy development in those regions, offshore wind almost has to be part of that mix,” he said. “The exact date that this happens on isn’t as important as whether they follow through with offshore wind development.”

Cyr, the Massachusetts senator, said the state’s mandate of 5.6 gigawatts of offshore wind power by 2035 is attainable, “but the timeline is just much more condensed. The complicating factors all add up to making these projects more challenging to execute.”
State efforts

New Jersey has committed to reaching 11 gigawatts of offshore wind by 2040, and state lawmakers have invested heavily to build a port capable of handling giant turbines and loading them onto ships. Despite the bad news from Ørsted, state leaders think their efforts will pay off.

“We picked the wrong team, but we’re now actively looking for the right team,” said Smith, the state senator. “We’re going to find us a wind vendor that’s going to be able to get the job done. It’s going to be a tremendous industry.”

Smith said lawmakers are working to improve the state’s grid to make it easier for offshore wind to connect to transmission lines, and they’re pursuing federal money from the Inflation Reduction Act to support the industry. The state’s mandate for offshore wind procurement by 2040 is “possible, but it’s harder,” he said.

Last month, New York announced that it had awarded 4 gigawatts of new offshore wind contracts. Harris said the new contracts show that developers still believe in the industry’s future in New York.

Meanwhile, nine East Coast states and four federal agencies signed an agreement in September to collaborate on ports, manufacturing facilities and workforce development.

“It’s become more clear that the industry will not establish in every state, but the ways in which we can become complementary to one another has become a strong focus,” Harris said.

Musial, the offshore wind expert, noted that a project in Virginia received federal approval for a wind farm that will generate 2.6 gigawatts. Other projects in Maryland and Delaware appear to be on track, he said.

“A lot of these economic headwinds we’re talking about right now were totally unforeseen,” he said, but long term, “the alternatives [to offshore wind] aren’t any cheaper.”

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