Lamprell Reveals Client Behind ‘Very Large’ Offshore Wind Contract
The UAE-based offshore construction and fabrication specialist Lamprell has signed a capacity reservation agreement for the Moray West offshore wind farm project in Scotland.
The agreement is in furtherance of the exclusivity agreement announced back in January when Lamprell did not reveal the client.
The reservation agreement secures capacity in Lamprell’s Hamriyah yard for the work as the project moves towards the financial close and the full contract award.
Ocean Winds, a 50-50 joint venture between EDP Renewables (EDPR) and ENGIE, is developing the Moray West project.
The base scope of work is for the supply of 62 transition pieces, which includes 60 wind turbine transition pieces and two transition pieces for the two offshore substations, as well as for the shipping of the 62 transition pieces to a marshalling harbour in the UK.
With contractual negotiations successfully concluded, and subject to the final investment decision on the Moray West project, a full notice to proceed for this contract, valued at over USD 200 million, is anticipated early in the second half of 2022, Lamprell said.
”Having previously executed a large scope project for the Moray East wind farm, I am delighted that we have been able to offer a competitive solution for Moray West,” Christopher McDonald, CEO of Lamprell said.
”The placing of such reservation agreements is a very positive sign of forward planning and addressing limited capacity in the offshore wind fabrication industry. We look forward to working closely with the team from Ocean Winds in the period ahead.”
In anticipation of this and similar other awards in the renewables business unit, Lamprell has commenced a yard upgrade programme, including the construction of a renewables production line, through which the company said it will be able to construct jacket components, transition pieces, and monopiles.
This capital expenditure project is expected to double Lamprell’s annual renewables revenue capacity while lowering unit production costs and materially improving margin contribution on offshore wind foundations projects. Lamprell said that it continues to assess its future financing options to deliver its strategy, improve its fabrication capacity and strengthen the company’s balance sheet as it seeks to access higher-margin, larger-scope projects in both renewables and oil and gas end markets.
The funding strategy may include additional equity, project-specific financing, including small working capital facilities with Saudi banks, and hybrid facilities with a view to complete in the first half of 2022.
”In responding to the increasing demands on capacity in the expanding renewables sector, we have been making modifications and significant enhancements in our Hamriyah yard during the course of the past 3 years in order to provide added value for our clients,” McDonald said.
”The Group will continue to invest in its facilities to further strengthen our standing as a leading fabricator of offshore wind foundations and deliver significant improvement in our financial performance.”
The 850 MW Moray West will comprise up to 85 wind turbines, two offshore substations, and a total of 65 kilometres of export cables that will transport the electricity from the offshore wind farm to a landfall location east of Sandend Bay on the Aberdeenshire Coast and further to the onshore substation. The wind farm is expected to produce first power in 2024.
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