Title XI support sought for CREST Wind SOV

HAV 832 SOV design SOV is now under construction

According to MARAD’s latest listing of applications for Title XI financing guarantees, Crowley SOV I, LLC is seeking a Title XI guarantee for the 288-foot HAV 832 service operation vessel (SOV) on order at Fincantieri Bay Shipbuilding, Sturgeon Bay, Wis., for operation by the CREST Wind joint venture between Crowley and Esbjerg, Denmark-headquartered Esvagt.

The application is seeking $146,475,743 in Title XI support over a 20-year term and lists the actual cost of the vessel to the applicant as $167,840,708.

The vessel is described on the MARAD listing as “One (1) new build Service Operation Vessel (SOV), a key vessel for U.S. offshore wind farms, used to transfer and accommodate land-based technicians to service and maintain offshore wind installations.”

As we reported earlier, vessels built for the offshore wind sector have been designated “Vessels of National Interest.” That designation, prioritizes offshore wind vessels for consideration for Title XI federal ship financing.

The program — generally referred to as “Title XI” based on the part of the Merchant Marine Act of 1936 that established it — is administered by MARAD.

As explained by MARAD, the program “provides for a full faith and credit guarantee by the United States Government to promote the growth and modernization of the U.S. merchant marine and U.S. shipyards. Through long-term debt repayment guarantees, the program encourages U.S. shipowners to obtain new vessels from U. S. shipyards cost effectively. It also assists U.S. shipyards with modernizing their facilities for building and repairing vessels. The repayment term allowed under the program generally is much longer, and the interest rates are lower, than those available from the commercial lending market because of the obligations guaranteed by the U.S. Government.”