InfraStrata has signed a letter of intent (LoI) with Triumph Subsea Services (Triumph) for the construction of two Wind Farm Development Vessels (WDVs) each with a length of 200 meters and a beam of 35 meters.
Under the terms of the LoI, the wholly owned subsidiary of InfraStrata, Harland & Wolff (Belfast) will be responsible for the construction, assembly and delivery of WDVs to Triumph. Initially, the LoI envisages the building of a single vessel, with Triumph being able to build an additional vessel at Harland & Wolff (Belfast).
WDVs can integrate the latest maritime technology, robotics, safety systems as well as autonomous systems. In addition, these vessels will come with diesel-electric hybrid engines that will ultimately convert to hydrogen fuel cells, providing what management considers to be the “greenest” options for wind farm developers.
As multipurpose vessels, WDVs will not only be used for fixed and floating wind farm installations, but will also be capable of laying subsea cables and providing marine facilities for offshore carbon capture and green hydrogen projects.
In line with the UK Government’s objective of providing at least 40GW of installed wind capacity, once developed, WDVs will also fulfill the obligations of project developers to integrate as much local content as possible into their projects in order to be eligible for and monetize the various government-led incentives, especially in the wind and marine sectors.
WDVs are planned to be produced with local content from the UK supply chain and will be used mainly for projects in all United Kingdom nations.
Following the signing of this LoI, the next steps towards a binding contract will include, inter-alia, the review of comprehensive concept packages, the agreement of timelines and milestones from manufacturing to delivery and, finally, the establishment of the required financing frameworks by Triumph and its partners with Harland & Wolff.
Once contracted, each vessel would be expected to produce revenues for Harland & Wolff in the range of £340 million to £360 million over the 24-30 month manufacturing period, followed by additional revenues if additional long-term support contracts are obtained. Although all parties plan to enter into a contract to construct vessels by the end of June 2021, it should be noted that this LoI does not currently provide for any contractual obligations on either party at this stage and should therefore not be construed as a binding manufacturing/construction contract.
“This LoI is one of many potential projects that we are working on and is in line with our strategy to make the Harland & Wolff Group a leading shipbuilder and fabrication company in the UK. As previously indicated, fabrication will become a huge element of our business moving forward and, by utilising both our Belfast and Appledore capacities symbiotically, we are able to provide an attractive works schedule to our clients. Should this project proceed to contract, it will provide a sound base for Harland & Wolff to demonstrate its capacity and capability to deliver cutting-edge vessels, whilst retaining sufficient spare capacity for other projects across both yards.
“Given the expected quantum of local content that will be required in all UK renewable projects in the future, we have positioned our shipyards to provide pathways to our project development clients, which easily meet their obligations to the Government as they move from the planning to the construction phase of their respective projects. These vessels would be at the forefront of the latest technological innovations for the marine industry and we are very excited to be a critical part of this hugely important part of the economy that we believe is set to grow exponentially in the months and years to come.”
John Wood, chief executive officer.
