Offshore construction company Lamprell has signed a capacity reservation agreement for the construction of transition pieces for wind turbines to be deployed at the Moray West offshore wind farm in the UK.
Ocean Winds is developing the Moray West project. Ocean Winds is the result of a 50-50 joint venture between EDP Renewables (EDPR) and ENGIE, with a presence in eight countries.
The reservation agreement secures capacity in Lamprell's Hamriyah yard in the UAE for the work as the project moves towards a financial close and full contract award.
The base scope of work is for the supply of 62 transition pieces, which includes 60 wind turbine generator transition pieces and two transition pieces for the two offshore substations, as well as for the shipping of the 62 transition pieces to a marshaling harbor in the UK.
Monopiles are a simple steel pile made by steel tubes and cones that sit beneath the turbine tower, typically through a transition piece. The monopile is inserted between 10 and 20 meters into the seabed depending on the stability of the seabed, extending the turbine tower underwater and into the seabed.
Transition pieces form, together with the monopiles, the foundation of the turbines. The transition piece includes various functionalities such as access for maintenance, cable connections for the energy produced by the turbine and the corrosion protection for the foundation. The transition piece is fixed on the foundation structure, whether monopile or jacket, and consists of thick-walled steel tubes.
"With contractual negotiations successfully concluded, and subject to the final investment decision on the Moray West project, a full notice to proceed for this very large contract is anticipated early in the second half of 2022," Lamprell said. For Lamprell, a 'very large contracts' are those over $200 million in value.
Major yard upgrade for renewables
"In anticipation of this and similar other awards in the Renewables business unit, the Group has commenced a significant yard upgrade program, including the construction of a state-of-the-art renewables production line, through which we will be able to construct jacket components, transition pieces and monopiles, thereby expanding the Group's capacity and product offering.
This major capital expenditure project is expected to double Lamprell's annual renewables revenue capacity while lowering unit production costs and materially improving margin contribution on offshore wind foundations projects," the company said.
"The Group continues to assess its future financing options to deliver its strategy, improve its fabrication capacity and strengthen the Group balance sheet as it seeks to access higher margin, larger scope projects in both renewables and oil and gas end markets. The funding strategy may include additional equity, project specific financing, including small working capital facilities with Saudi banks, and hybrid facilities with a view to complete in H1 2022," Lamprell said.
Christopher McDonald, CEO of Lamprell said: "Having previously executed a large scope project for the Moray East wind farm, I am delighted that we have been able to offer a competitive solution for Moray West. The placing of such reservation agreements is a very positive sign of forward planning and addressing limited capacity in the offshore wind fabrication industry. We look forward to working closely with the team from Ocean Winds in the period ahead."
"In responding to the increasing demands on capacity in the expanding renewables sector, we have been making modifications and significant enhancements in our Hamriyah yard during the course of the past 3 years in order to provide added value for our clients. The Group will continue to invest in its facilities to further strengthen our standing as a leading fabricator of offshore wind foundations and deliver significant improvement in our financial performance."