Cadeler orders new $400m 'hybrid' as China churns out big offshore wind vessels

Group moves to expand fleet in response to looming installation bottlenecks, but Chinese yards are building even more for domestic customers.

Cadeler CEO Mikkel Gleerup.
Cadeler CEO Mikkel Gleerup.Photo: Cadeler

Cadeler, owner of the world's largest fleet of jack-up wind turbine installation vessels, has placed an order for another new-generation model, leading contractors' efforts to keep pace with steeply rising demand from the sector.

With numerous industry reports alerting offshore wind developers and governments to a looming shortage of vessels — especially those able to cope with the increasing size and capacity of offshore wind turbines — newbuild orders are increasing.

The latest order will pave the way for an eleventh high-capacity WTIV vessel in Cadeler’s fleet.

Cadeler is listed on the Oslo Stock Exchange and in New York following a merger with former rival Eneti, completed in December last year.

The company has now entered into a binding contract for the manufacture and delivery of its third 'A-class' hybrid design vessel – to be called Wind Apex.

The hybrid A-class vessel can convert from being a foundation installation unit to a wind turbine installation vessel within a short period of time, Cadeler said.

Cadeler already has two P-class, two M-class and two A-class vessels under construction. This third A-class vessel is scheduled to be delivered in the first half 2027, Cadeler said.

It will be built by COSCO Heavy Industries in Qidong, China, to standards that will permit it to sail under the Danish flag, the Copenhagen-based comany added.

Mikkel Gleerup, CEO of Cadeler, said: “Cadeler owns the largest jack-up fleet in the industry and is well positioned to provide our partners with access to an even wider and more flexible fleet of next-generation offshore wind farm installation vessels.

"The decision to build a third A-class vessel is based on the strong market demand for assets specialising in installing foundations."

Cadeler recently signed firm contracts and entered a long-term agreement with Danish offshore wind developer Orsted, tying up the first A-class vessel from 2027 to 2030.

Gleerup said the company is in advanced contract negotiations to secure capacity from the second A-class unit.

Cadeler said it had been able to achieve a very competitive price for this third A-Class vessel due to "the strong collaboration that Cadeler has built with COSCO Heavy Industries, synergies from building several similarly designed jack-ups."

Cadeler secured the yard slot by negotiating a Letter of Intent for the vessel in 2022 and said today (Wednesday) that the contract price for the delivery of this third A-class is approximately $400m.

Cadeler says its A-class vessels will be able to transport and install seven complete 15MW turbine sets per load or six sets of 2XL monopile foundations, cutting down the number of transits needed for each project.

Along with the P-class vessels, the A-class will cater for some of the largest dimensions of wind turbine components in the offshore wind industry.

Chinese dash

Investment in heavy-lifting wind farm installation vessels for the Chinese market has been proceeding at an even faster rate, due to what some analysts see as a more unbridled dash to expand offshore wind capacity using bigger turbines.

In the latest example of this, China Merchants Heavy Industry launched a 2,000-tonne capacity jack up from its Haimen shipyard, in Nantong last week.

The jack-up, called Daqiao Hai Feng, has 138-metre cantilever legs and can install wind turbines in up to 70 metres of water.
"The arrival of the Daqiao Hai Feng is yet another indicator of China's strategic positioning in opposition to that of Europe. While some European turbine manufacturers have started to put the brakes on the race to gigantic turbine capacity, Chinese manufacturers continue to announce ever larger turbines,"commented Maëlig Gaborieau, an analyst with marine intelligence firm Spinergie.
"The Daqiao Hai Feng enters the Chinese market in this context with a crane capacity of 2,000 tons, enabling it to transport and install two sets of 25-MW turbines at an announced speed of 48 hours," he observed.
Last year, a similar Chinese jack-up WTIV, the Baihetan, carried out the unprecedented installation of a 16MW offshore wind turbine one year after it was delivered to state-run power giant China Three Gorges (CTG). The installation operation took 5.2 days, Gabiorieau noted.

China currently has about 23 WTIVs operational, all capacities included, but this number is increasing, along with the specifications needed to accommodate next-generation turbines, agreed Shashi Barla, head of renewables research at Danish analyst Brinckmann.

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Published 22 May 2024, 15:15Updated 22 May 2024, 15:15
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