It's about to get real for New York-listed Eneti.
The Scorpio Group-backed owner has signed a contract for an NG-16000X newbuilding, a wind-turbine installation vessel (WTIV) first announced last August.
The deal with South Korea's Daewoo Shipbuilding & Marine Engineering includes an upgrade to specifications that leads to an expanded cost of $330m, market sources told TradeWinds.
But if that development might have been expected, Eneti's move into the US Jones Act market is more of a surprise.
The Emanuele Lauro-led shipowner is believed to be in an advanced stage of discussions with several US yards for a WTIV that would be built, operated and financed by American citizens in compliance with the Jones Act cabotage regime.
The only such newbuilding under construction so far was ordered by Virginia-based Dominion Energy at Keppel AmFELS in Brownsville, Texas. It is expected to be the first WITV of its kind to comply with the Jones Act upon delivery in 2023, and Dominion expects to support offshore wind projects "through 2027 and beyond".
Eneti confirmed details of the DSME deal in an announcement filed after the close of trading on Tuesday.
The disclosure came as US President Joe Biden approved Massachusetts' 800-MW Vineyard Wind 1 offshore project, about 24 km (15 miles) south of Martha's Vineyard.
Eneti announced on 3 August that it had signed a letter of intent with DSME for a WTIV newbuilding to cost between $265m and $290m, with delivery in 2023. The shipowner was called Scorpio Bulkers at the time.
In the interim, the company has been selling off almost its entire fleet of bulkers to raise liquidity for the transition, while laying the groundwork for the contract signing now ready to be announced.
Eneti confirmed it is keeping one of the three DSME options announced at that time, perhaps reflecting the expansion of focus to the Jones Act tack. The option is at the same price as the firm unit, net of currency adjustments.
The heavier newbuilding price is believed to stem from upgrades to the contracted vessel, including specifications of its crane. Rising steel prices and appreciation of the South Korean won against the dollar also added to the costs.
Eneti said the newbuilding includes a 2,600-tonne leg-encircling crane. The vessel is capable of installing 20 MW turbines at water depths of 65 metres.
