Keppel Corp has secured a newbuilding contract worth SGD 600m ($440m) for a vessel for the offshore renewable energy sector.
The Singapore-listed shipyard group gave away few details about the contract other than the fact that it would involve engineering, procurement and construction work.
The identity of the purchaser has also been kept under wraps other than being described as an “energy company”. No date for delivery was disclosed.
The order comes in the wake of Keppel’s pivot away from the traditional offshore industry towards providing renewable energy solutions under its Vision 2030 initiative.
Keppel is currently building converter stations and substations to support the offshore wind energy industry in the German sector of the North Sea and in Taiwan.
The Vision 2030 initiative was first outlined in May this year, when Keppel said it focus will be more on areas such as renewables, environmental solutions and nearshore floating infrastructure.
Vision 2030 initiative
This culminated in the launch late last month of a strategic review of its offshore and marine activities which may see them offloaded or merged with another entity.
The review will see it examine the strategy and business model of Keppel Offshore & Marine, assess its current capacity and global network of yards and restructuring to seek opportunities as a developer of renewable energy assets.
Clarksons Platou Securities recently described offshore wind is one of the fastest growing energy sources due to its steady power generation, limited political opposition and increasingly competitive costs.
The broker estimates that demand for wind turbine installation vessels (WTIVs) is expected to grow significantly in the coming years due to high investment levels by wind farm developers.
However, the market to build these vessels is likely to be highly competitive as shipyards in China and South Korea look to grab a slice of the action.
Closer to home, Keppel’s domestic rival Sembcorp Marine has also targeted the renewables sector as part of its renewed strategy following its spin-off from parent Sembcorp Industries.
