Concerns over safety of deep-sea transfers of wind-turbine components off the US east coast helped drive New York-listed Eneti's decision to pursue a Jones Act-compliant installation newbuilding in an American shipyard.

Safety was confirmed as a factor by Eneti chief operating officer Cameron Mackey in a conference call with equity analysts on Thursday as the Scorpio Group-backed company discussed its approach to the US market.

Mackey noted that it is legally possible under Jones Act provisions to use a foreign-built wind turbine installation vessel (WTIV) for such contracts if turbine components are ferried to it aboard Jones Act barges, but he said operational realities are different.

"It doesn't take an expert to see that the large, delicate and heavy [turbine] components can only be transported in the Atlantic Ocean and lifted off [vessels] by a crane at some heightened risk," Mackey said.

"We've been encouraged by regulators and customers that a Jones Act installation vessel is a much better solution for installation off the coast of the US. That's what lies behind our investment decision."

Eneti, the former Scorpio Bulkers, on Tuesday announced that it is in "advanced discussions" with several US shipyards to build a Jones Act-compliant WTIV.

Market sources have identified the trio as Keppel AmFELS in Texas, ST Engineering Halter Marine and Offshore in Mississippi and the Philly Shipyard in Pennsylvania.

At the same time, Eneti confirmed that it had signed a contract with South Korea's Daewoo Shipbuilding and Marine Engineering for a $330m WTIV to be delivered in the third quarter of 2024 for international work.

Speaking again of the US investment, Mackey stressed that as a non-US citizen, Eneti cannot be the ultimate owner of the vessel, which he estimated could be completed and delivered within the next three years. Eneti is in discussions with potential partners.

"Irrespective of operational efficiencies, there's a fair degree of support at the federal, state and local level around US assets doing the work in America," Mackey said.

Eneti's approach stands in contrast to a wind farm project offshore Massachusetts approved Tuesday by US president Joe Biden. The Vineyard Wind 1 project plans to use a foreign-flagged WTIV in combination with US-flag barges carrying turbine components from New Bedford, Massachusetts.

Thursday's conference call also provided some further detail on Eneti's contract with DSME.

The vessel's cost, originally estimated at between $265m and $290m, grew through a combination of vessel enhancements including a stronger crane, alongside rising steel costs and the conversion rate of the South Korean won against the US dollar.

The delivery date is also about a year later than originally specified in a letter of intent announced last August, but management said the advanced date puts delivery more in line with the rush of turbine-installation projects expected to available at the time.

Instalment payments of $33m are to be paid in both 2021 and 2022, with $66m due in 2023 and $198m due in 2024. Eneti said it plans to work with South Korean export credit authorities on the financing.

The DSME unit is expected to find work either in Northern Europe or Asia.