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Breakbulk June 2021

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14 The Journal of Commerce | June 2021 www.joc.com Breakbulk & Project Cargo Wind Energy buildingthefirst-ever Jones Act– compliantWTIV, Charybdis,at the KeppelAmFELSshipyard in Browns- ville, Texas.Charybdis will be able to handle 12 megawatt turbines, accord- ing to industry publicationNorth AmericanWindpower. Mackey saidCharybdis has similar specificationsto the vesselEnetihas ordered from South Korean ship- builder DSME, which will becapable of installing turbines with capac- ities up to 20 megawatts at water depths up to 65 meters. But Eneti is "looking at a slightly diŽerent specification"for its Jones Act ship that will make itbetter suited for USEastCoast projects, he said. Eneti has upgraded the specifica - tions for the DSME-built ship, includ- ing a Huisman crane that will have a lifting capacity of 2,600 metric tons, compared with an earlier proposed crane with 1,500 metric tons capac- ity. The vessel will also beableto operate using ammonia or liquefied natural gas (LNG) fuels, as well as use shoreside power when berthed. These upgrades, together with higher steel prices and an appreciating South Korean won, increased the cost of theDSMEship from about $290 mil- lionwhen the originalletter of intent was signed in August to $330 million now, Mackey told call participants. Delivery of theDSMEship is now due in the third quarterof 2024.Enetihopesto secure the ship's first contract in the next 12 to 14 months, managing director David 2030 goal, according to the adminis- tration, including investment in four to six Jones Act–compliant ships it expects to cost between $250 million and $500 million each. Mackey noted that obstacles to reaching the 2030 goal include the need to invest in ports and vessels that can handle the massive oŽshore wind component cargoes, as well as power grids to process and distribute the electricity they generate. There are 30 oŽshore wind energy developments proposed oŽ the US Atlantic coast between Maine and South Carolina, according to Eneti. Of these, 10 key projects total 16,211 megawatts, including the 2,640 megawatt Dominion field oŽ Vir - ginia, the 2,500 megawatt Atlantic Shores project in New Jersey, and the 2,400 megawatt Empire Wind farm in New York. Eneti believes these projects will go ahead, but the uncertain timing is one reason the company has not finalized an agreement for the WTIV yet, Mackey said, pointing to delays seen in LNG projects in the US. "We don't want to wind up where LNG has been for years, where the ships come faster than the projects can come, so while we're very sure about future prospects over the ensu- ing number of years, actually timing it perfectly for the first project is not a game that we're really keen to play," Mackey said during the call. l email: keithwallis@hotmail.com Morant said during the conference call.Globally, excluding China, about 5,000 turbines are forecast to be installed between 2021 and 2024, hesaid. Due to underinvestment in WTIVs, jack-up capacity "will be extremely tight" by 2024, Morant said, with a projected global shortfall of five ves- sels by 2025, rising to seven in 2026. This could lead to project delays and have a positive impact on daily charter rates. Current charter rates are about $225,000 per day, Morant said. Typical oŽshore turbine installa- tion contracts last between five and 18 months, with a normal duration of eight to nine months, managing director Tim Sanger said. Biden's 'starting gun' The Biden administration has "fired the starting gun" on US oŽshore wind development by encouraging developers to install 30 gigawatts of oŽshore wind energy by 2030, Mackey said. Approximately $12 billion in annual capital invest- ment will be needed to reach the "We don't want to wind up where LNG has been for years, where the ships come faster than the projects can come." Installing 30 GW of US oshore wind by 2030 will require $12 billion in annual investment. Shutterstock

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