KepCorp

KepCorp formed a 75/25 JV with Seafox Group to build and own a US$220m wind turbine installation vessel with a carrying capacity of 12 turbines & capable of operating in water depths of up to 65m in the North Sea. The harsh environment multi-purpose self elevating vessel is scheduled for delivery in 2Q012. Seafox has the option of acquiring Keppel’s stake in the JV co.

This vessel is larger than the US$130m jack-up vessel contract that Cosco recently clinched, which is designed to carry 8-12 turbines at water depths of up to 45m. While the majority of existing offshore wind farms are located in water depths less than 45m, those coming online are expected to move further offshore and into harsher environments such as the North Sea, where wind speeds are higher, more constant and thereby requiring more robust solutions.

There is also an increasing trend towards larger wind turbines which are heavier. KepCorp will have a competitive edge as it virtually has a monopoly of building harsh environment jack up platforms for the North Sea area.

There is a growing market potential for servicing the emerging offshore wind energy sector, esp in deeper waters. The UK expects to install some 8,000 offshore wind turbines in the next decade, of which some 2,700 turbines would be required at water depths greater than 45m. The new gen KFELS MPSEP vessel is among the first on order worldwide that is capable of fulfilling this water-depth requirement and will give KepCorp a good headstart in this new business segment.