Thursday, July 04, 2024

 

German Offshore Wind Farm Selects China’s Most Powerful 18MW Wind Turbines

wind turbine
Ming Yang would supply 16 of the 18.5 MW turbines for a German offshore wind farm (Ming Yang)

PUBLISHED JUL 3, 2024 3:59 PM BY THE MARITIME EXECUTIVE

 

 

A new offshore wind farm planned for the German North Sea signed a preferred supplier agreement reserving the world’s largest wind turbines with a rating of 18.5 MW, which could make it the first to employ the massive equipment. News of the selection however has been met with resistance from the industry and today the German government said it plans to review the supply agreement.

Luxcara, an asset manager based in Germany, reported it signed an agreement with China’s Ming Yang Smart Energy as the preferred supplier for 16 wind turbines with a rated capacity of up to 18.5 MW. The plan calls for the turbines to be installed in 2028 at the Waterkant site. Luxcarta won the right to build the wind farm in the German government’s August 2023 auction. Waterkant would be located approximately 55 miles from Borkum in the North Sea.

They reported the wind turbines were selected from an international tender and after extensive due diligence. Ming Yang committed to using renewable energy in the manufacture of the turbines and that relevant electrical components for the turbines would be sourced from European suppliers.

“The Waterkant team thoroughly examined the turbine offers received in response to an international tender launched in late 2023,” the company wrote in its announcement. “Besides technological, financial, contractual and environmental aspects, the decision for Ming Yang was also based on an extensive due diligence exercise, covering the supply chain, ESG compliance aligned with the EU taxonomy and cyber security supported by independent experts from international advisors DNV and KPMG.”

The European wind industry lobby responded to the news criticizing the deal noting it gives China access to the German and EU infrastructure. They cited dangers of unfair competition building on an April 2024 announcement that the European Commission was planning to review the market for possible “distortions” from Chinese competition.

Germany’s economy minister told Reuters that they would look “very closely” at the supply agreement. He also cited the need for fair competition. He made the statements on the same day it was announced that Germany would block a deal to sell MAN’s gas turbine business to a subsidiary of China’s state shipbuilder. It is part of the growing anxiety over China’s aggressive competition and efforts to make inroads into the West.

Chinese wind turbine manufacturers are anxious to gain opportunities in the European market. Luxcara highlights by selecting the largest turbines available it is maximizing the production from the site and expediting Germany’s energy transition. They said it would help to create competition in the industry but that control would remain with an independent German company.

Ming Yang announced its plans for a turbine able to generate between 18 and 20 MW in 2023. They said it was evolving from the current platform for 14 to 16 MW with a lightweight design with an integrated drivetrain and employing large carbon-fiber blades with high-performance airfoils. They said it will be suited for medium to high wind regions and can sustain typhoons.

The turbines planned for Waterkant would have a rotor diameter of 260 meters (853 feet). The company says the site will be able to generate electricity for approximately 400,000 homes.

Two other Chinese manufacturers, CSSC Haizhuang and Dongfang, have also announced 18 MW turbines. Both companies installed prototypes earlier this year at their test sites. GE Verona had announced plans for a competing offering but recently shelved its efforts saying it would focus on the 15 MW turbines which will be the workhorse of the industry.


DOF Buys Maersk Supply Service for $1.1B and Maersk Spins-Off Wind Business

DOF offshore
DOF will acquire the offshore business to become the largest provider in the energy sector (DOF file photo)

PUBLISHED JUL 2, 2024 5:46 PM BY THE MARITIME EXECUTIVE


 Norway’s DOF Group will pay approximately $1.1 billion to acquire Maersk Supply Service further consolidating the offshore service sector focusing on the oil and gas sector. The deal comes just a year after A.P. Moller-Maersk sold the company to A.P. Moller Holding and is a further step in the restructuring of the industry.

Under the terms of the agreement, DOF will pay $577 million in cash and issue new shares to A.P. Moller Holdings which will become a 25 percent owner of the combined company. Maersk Supply Service will undergo a further restructuring separating its offshore wind installation business and its assets in Brazil with DOF buying the company and 22 vessels, consisting of eight high-specification CSV vessels, 13 high-specification AHTS vessels, and one cable layer. After completing the deal, DOF Group’s total fleet will be 65 owned vessels and a total of 78 offshore/subsea vessels.

They highlight that the deal will create one of the largest oil service companies listed on the Oslo Stock Exchange with an estimated market capitalization of $2.3 billion. According to the companies, the combined company to be known as DOF will provide a comprehensive offering and be a major integrated service provider for the energy industry. 

DOF CEO Mons Aase highlights the combined company will have the largest fleet of CSVs and high-end AHTS vessels. He said it will enhance the customer experience through increased scale, global reach, and industry-leading services.

The two businesses' operations are said to be strategically and geographically complimentary. They expect the combination will spur further growth opportunities. The transaction is subject to standard approvals and is expected to close during the fourth quarter of 2024.

“This long-term solution for Maersk Supply Service’s OSV activities together with DOF Group is founded on our shared values and unwavering commitment to safety and efficiency of our operations. The combination of our talented employees, modern fleet and geographical spread will create a leading offshore service provider characterized by unique scale and a wide range of product and service offerings across key markets for the benefit of our customers,” said Christian Ingerslev, CEO of Maersk Supply Service.

Under the terms of the agreement with DOF, the offshore wind sector has been carved out from Maersk Supply Service. In March 2024, Maersk Supply Services announced it would partner with Louisiana-based Edison Chouest Offshore for the offshore wind business. Maersk has a large wind installation vessel currently under construction at Seatrium due in 2025 and with Edison Chouest, they plan to develop a feeder supply network to move materials from shore to the installation vessel.

A.P. Moller Holding reported today the launch of a new company Maersk Offshore Wind which takes the operations for the offshore wind business from Maersk Supply Service. The installation vessel is expected in mid-2025 and is under contract to provide services to the Empire Wind project in New York being developed by Equinor.

Maersk Supply Service was launched in 1967 as the first Scandinavian offshore company and focused on the oil and gas sector. A.P. Moller-Maersk sold the company in March 2023 to its parent company, the family investment company, as the final step for the shipping line to exit the energy sector. However, with the prolonged downturn in the offshore energy sectors, Maersk Supply Service continued to reorganize including launching into the offshore wind sector and ordering a wind installation vessel. In 2023 it also exited its operations in Australia and the Pacific to focus on the wind sector and offshore energy.

No comments:

Post a Comment