Sembcorp Marine Bags Offshore Wind and Ferry Projects

Sembcorp Marine is breaking new ground in renewable  energy engineering solutions with two separate projects worth over S$200 million (USD 145 mln).

The Group has inked an agreement with Ørsted Wind Power subsidiary Optimus Wind Limited for engineering, procurement, construction, hook-up and commissioning works on two topsides, to be deployed at the Hornsea 2 Offshore Wind Farm in the UK North Sea.

With a combined weight of approximately 8,700 tonnes, the two topsides will be fabricated at Sembcorp Marine’s integrated yard facilities for delivery in the first quarter of 2021.

The 1.4 gigawatt (GW) capacity Hornsea 2 Offshore Wind Farm – the world’s biggest when operational in 2022 – is located 89km north-east of Grimsby, and will be capable of supplying green electricity to over 1.3 million UK households.

Sembcorp Marine Head of Offshore Platforms Mr Samuel Wong said, “Sembcorp Marine is honoured to have the customer’s trust in our ability to deliver the topsides safely, on time and with the desired quality. We are very grateful to Ørsted and Optimus for the contract, and for the opportunity to progress further in the competitive offshore renewable energy market.”

Separately, Sembcorp Marine has won its first design-and-construction roll on/roll off passenger (ropax) ship project comprising three identical plug-in ropax ferries. These vessels will be built to a proprietary design from Sembcorp Marine subsidiary LMG Marin for delivery to Norled AS in the fourth quarter of 2020.

Specially tailored to Norled’s shortsea Hella-Vangsnes-Dragsvik connections in Norway, the 84.2-metre long multi-deck, double-ended ferries can each carry up to 300 passengers and crew, as well as 80 cars or a combination of 10 cars and 10 trailer trucks.

The highly energy-efficient vessels will operate normally on zero-emissions battery power at a service speed of 10 knots. When required, they can run on combined battery-diesel hybrid backup modes.

“Sembcorp Marine’s project with Norled marks our entry into the ropax ferry design and construction segment,” Head of Specialised Shipbuilding Mr Tan Heng Jack said. “It also demonstrates our ambition to be a leading provider of renewable energy-driven solutions. We sincerely thank Norled for their confidence in Sembcorp Marine and hope this project is the start of a long-term relationship that brings many more future collaborations with the customer.”

The Norled ropax ferries will use lithium-ion batteries for propulsion, complemented by energy-efficient solutions throughout the vessels’ design and shore-side hydroelectricity recharging points along their service route. This enables the ferries to operate with zero emissions cost-competitively.

LMG Marin Managing Director Mr Torbjorn Bringedal said the energy-efficient solutions to be installed on the ferries include quick-connection shore charging plugs; auto-mooring; auto-cross; efficient hull, propulsion and heat recovery systems; as well as minimised hotel and auxiliary loads. “We are confident the vessels’ energy-saving features will meet Norled’s green requirements,” he said.

LMG Marine offers a wide range of designs and technologies for sustainable ship operations, including LNG, battery, hydrogen and hybrid propulsion systems. These customisable solutions cater for ropaxes, high-speed ferries, cruise and expedition vessels, as well as other ship types of varying sizes and for different operating environments.

Commenting on the ropax ferry project with the Sembcorp Marine Group, Norled Chief Technology Officer Mr Sigvald Breivik said, “Ship design, passenger comfort and working conditions for personnel were key considerations when we awarded the project to Sembcorp Marine. We were particularly happy to share with this partner a common understanding of Norled’s ambition to build innovative new vessels equipped with zero-emissions technology, as part of our focus on reducing emissions.”

A game-changer in environmentally-friendly ferry operations, Norled launched MF Ampere, the world’s first all-electric car ferry, in 2015. The vessel now operates between Lavik and Oppedal in Norway.

Sembcorp Marine expects a positive contribution to its earnings from the contracts with Optimus Wind Limited and Norled AS. However, the contracts are not expected to have any material impact on the Group’s net tangible assets and earnings per share for the year ending December 31, 2018.