Eneti Ends Talks to Build Jones Act-Compliant Wind Turbine Installation Vessel

Offshore wind installation company Eneti said Tuesday it has terminated talks with a shipyard in the United States to build a Jones Act-compliant Wind Turbine Installation Vessel. 

Eneti in May 2021 ordered a $330 million Wind Turbine Installation Vessel from South Korea's Daewoo Shipbuilding and Marine Engineering.

The company at the time said it was also in talks to build another offshore wind installation vessel for the U.S. offshore wind market.

However, Eneti, established after Scorpio Bulkers decided to sell its bulker vessel fleet to focus on offshore wind, said Tuesday that the talks for the Jones Act-compliant vessel had been discontinued.

Emanuele A. Lauro, Eneti Chief Executive Officer, said: “We believe the U.S Market for offshore wind will offer significant opportunities for the company in the future, but right now we are focused on delivering on our existing commitments and deriving value from our existing fleet.”

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With several gigawatts of offshore wind capacity to be installed along the U.S. East Coast in the next decade, access to Jones Act compliant Wind Turbine Installation Vessel is of strategic importance to the U.S. offshore wind market. Currently, there is no such vessel in operation, however, there's one under construction in Texas.

Eneti also said that Seajacks, its UK-based offshore wind installation subsidiary, had secured four contracts with customers in NW Europe for between 189 to 240 days of employment for its NG2500-class vessels that will generate between approximately $11.6 million to $14.3 million of revenue in 2022.

In addition, the company announced on December 27, 2021, that the Seajacks Scylla, another vessel of Seajacks UK limited, signed a contract with Van Oord for employment in Europe in 2023. The firm charter duration of the contract will generate approximately $60.0 million of revenue from the first quarter through the fourth quarter of 2023.

Eneti in December 2021, ordered the second WTIV from South Korea-based builder Daewoo Shipbuilding and Marine Engineering (DSME).