Morgan Stanley's infrastructure investment arm is teaming up with U.S. maritime, energy and logistics solutions company Crowley to advance offshore wind energy solutions for the United States.
Investment funds managed by Morgan Stanley Infrastructure Partners (MSIP), a private infrastructure fund platform within Morgan Stanley Investment Management (MSIM), will hold a majority stake in Crowley Wind Services Holdings, a joint venture combining Crowley's end-to-end maritime and logistics capabilities with the financial strength and expertise of Morgan Stanley. Crowley will operate the business.
The partnership will focus on repurposing and operating existing U.S. port facilities and leasing them under long-term contracts to offshore wind developers. The terminals will support manufacturing, assembly and storage of wind farm components as well as provide developers with maritime services such as Jones Act-compliant feedering vessels to transport components from ports to offshore wind installations.
"In our view, the U.S. offshore wind industry is in its early stages with ambitious goals to develop 30 gigawatts of capacity from offshore wind by 2030 and unlock a pathway to 110 gigawatts by 2050," said Daniel Sailors, managing director, MSIP. "We believe port infrastructure is essential to the build-out and long-term maintenance of offshore wind projects and we are excited to partner with Crowley to provide the foundational infrastructure that will enable the development of this important industry."
Crowley provides wind energy solutions for the U.S. offshore wind industry, including port operations and terminaling, feedering vessels and operations, and project management. Through a public-private partnership with the Commonwealth of Massachusetts' Clean Energy Center and the City of Salem, Mass., Crowley plans to begin construction this fall on the Salem Wind Services Terminal, which will support the development and operation of offshore wind lease areas off the northeast U.S. coast. In addition, the company is pursuing the development of a U.S. West Coast terminal in Eureka, Calif., in a public-private partnership. Crowley also has a right-of-first refusal agreement to lease and potentially develop a wind services terminal at Port Fourchon, La.
"The partnership of our two companies will help lead the growth of the wind energy sector and provide clean, renewable energy for the U.S. through high-quality maritime and logistics operations and services. Our collaboration will help create not just more value as a business, but cleaner, more sustainable energy for our communities," said Bob Karl, senior vice president and general manager, Crowley Wind Services.
Crédit Agricole Corporate and Investment Bank served as financial advisor to MSIP, and Kirkland & Ellis LLP served as its legal counsel. DNB Markets served as financial advisor to Crowley, and Vinson & Elkins LLP served as the company's legal counsel.