Eneti Inc. (NYSE: NETI), the former Scorpio Bulkers, has entered into a binding agreement for the construction of one Wind Turbine Installation Vessel (WTIV) at Daewoo Shipbuilding and Marine Engineering in South Korea. In addition, it reports that it is in advanced discussions with American shipbuilders for the construction of a Jones Act-Compliant WTIV.
Eneti Inc. has been relentlessly selling off the Scorpio fleet of dry bulkers to transition towards marine-based renewable energy. In February, it said its intends was to sell or have commitments to sell its remaining wholly-owned or finance leased dry bulk vessels during the first quarter of 2021.
“Since last August, we have been unequivocal about our intention to enter the wind turbine installation sector,” said Eneti Chairman and CEO Emanuele Lauro. “This contract with Daewoo is a milestone for the company, as it reflects months of customer engagement and collaboration with partners, both old and new. This vessel will have the advanced lifting capabilities and energy efficiency that offshore wind developers require, not just today but well into the next decade.”
JONES ACT WTIV
“In addition, we are laying the groundwork for a Jones-Act compliant WTIV to address the American mandate for offshore wind development,” Lauro continued. “The growing calls for a safe, efficient, American-constructed and American-operated asset have been clear and loud. We are intent on providing a state-of-the-art solution to our customers so that they can comply with the Jones Act as they bring renewable energy to the U.S. consumer.”
The contract price for the WTIV ordered at DSME is $330 million and the Vessel will be delivered in early third quarter 2024. In addition, the company holds an option to construct an additional Vessel at the same price, net of currency adjustments.
The vessel is an NG-16000X design by GustoMSC, a subsidiary of National Oilwell Varco, and includes a 2,600 ton leg encircling crane from Huisman Equipment B.V. of the Netherlands. The vessel is capable of installing up to 20 MW turbines at depths of up to 65 meters of water, and it can be adapted to operate on LNG or Ammonia.
Eneti says the WTIV under discussion with American shipbuilders “would be constructed, financed, and operated by American citizens in compliance with the Jones Act, in order to address the heightened demand for transportation and installation capacity on the Continental Shelf of the United States.”