US CLEAN ENERGY GOALS PUSH US SHIPBUILDING FORWARD

The US government is pushing ahead with offshore wind leases, and the future looks bright for the nation’s shipbuilding industry, but there are roadblocks ahead

8 Charybdis, the first Jones Act-compliant WTIV, is now under construction at Keppel AmFELS's shipyard in Brownsville, Texas and is expected to be operational by late 2023

On releasing its February 2023 US wind market report US analysts Intelatus Global Partners concluded “The White House goal of 110GW by 2050 is looking somewhat conservative.” It forecasts around 70 projects that will install over 78GW of capacity in this and the next decade, with more to come.

Funding is being made available. In August 2022, the US Inflation Reduction Act (IRA) committed billions to a new clean energy economy powered by American innovators and manufacturers. The goal is to be a net-zero economy by 2050, and in February 2023, the US Department of Energy (DOE) announced new investment in floating offshore wind –two-thirds of America’s offshore wind resources are located in deep water requiring floating platforms. The investment aims to reduce the cost of floating wind energy by more than 70% by 2035.

The previous month, the National Renewable Energy Laboratory, the Business Network for Offshore Wind National Offshore Wind, the National Offshore Wind Research & Development Consortium, and other consortium partners, released the A Supply Chain Road Map for Offshore Wind Energy in the United States, a roadmap for meeting national offshore wind targets for 2030 and 2050.

It concludes that existing port and vessel infrastructure is inadequate to install 30GW of offshore wind energy by 2030 and estimates that 4-6 dedicated wind turbine installation vessels (WTIVs), 4-6 dedicated heavy-lift vessels and 4-8 USflagged specialised feeder barges would be required.

However, it states, investment in new marshalling ports and installation vessels is hindered because of uncertainty in the project pipeline, which creates risk for investors looking for a return on investment. “Investing in new vessels is particularly challenging due to their high capital costs, short construction contracts, and difficulty in creating consistent pipelines of contracts.”

The Jones Act, which requires vessels transporting merchandise between U.S. ports (including offshore wind turbine locations) to be US-flagged, is a key factor in selecting the vessels that will be used for offshore wind energy projects. The US also currently has a shortage of mariners with sufficient offshore wind experience, which could create a short-term installation bottleneck for projects that rely on US-flagged vessels. This risk could diminish over time as more US vessels are built and their crews are appropriately trained.

The report also states that, although domestic shipyards have interest in building new vessels, there are a limited number of yards that can build large, highly specialised installation vessels, which will constrain the number of these vessels that can reasonably be built in the US in the 2020s without significant additional investments. Even shipyards with sufficient technical capabilities may have existing commitments throughout the 2020s, which could limit their availability to construct offshore wind vessels.

Specialized feeder barges are less expensive to build, have shorter construction time frames, and can be constructed by a greater number of U.S. shipyards, which may cause the nation’s industry to favour installation methods that use feeder barges and either US or foreign-flagged WTIVs and heavy lift vessels.

Vessel construction is moving ahead, even if it is not at the pace required. In September 2022, a consortium led by Hamburg-based ONP Management and Boston-based Renewable Resources International announced the development of a transport and installation vessel solution FEEDERDOCK, dedicated to address the Junes Act requirements and the evolving shortage of offshore wind installation assets. The concept was designed by Hamburgbased Tractebel Overdick, and the assets will be operated by Bremen-based Atheleon, formerly known as SAL Renewables and part of the Harren Group.

With a crane capacity of 3,000 tons and a crane hook height of up to 182 meters above deck, FEEDERDOCK is designed to install 25MW wind turbines and foundations up to 2,800 tons in water depths of up to 70 metres. The FEEDERDOCK concept involves a U-shaped, heavy lift jackup installation vessel paired with US-built articulated tug barges (ATBs) docking inside the installation vessel before jacking-up. This unique arrangement avoids challenging “floating-to-fixed” component transfers at sea and meets Jones Act requirements.

Charybdis, the first Jones Act-compliant WTIV, is now under construction to ABS Class. Charybdis, which is expected to be operational by late 2023, will first be deployed out of New London harbor to support the construction of Revolution Wind and Sunrise Wind, both under joint development by Ørsted and Eversource. The approximately $500 million vessel will operate as part of Dominion Energy's Contracted Assets segment.

The 472-foot vessel is being constructed in Brownsville, Texas, at Keppel AmFELS's shipyard, using domesticallysourced steel. It is designed to handle current turbine technologies as well as next generation turbine sizes of 12MW or larger. It will also be capable of the installation of foundations for turbines. Once complete, the vessel will be homeported in Hampton Roads, Virginia, one of the nation's premier offshore wind installation harbors. For use on Revolution Wind and Sunrise Wind, the vessel will work from State Pier in New London, Connecticut, another of the nation's premier offshore wind installation harbors.

In December 2022, Houston-based Bleutec Industries announced funding to support construction of Jones Actcompliant offshore wind installation vessels. The company has developed a proprietary Binary Marine Installation Solution (BMIS) in cooperation with naval architect NETSCo and Netherlands heavy lift company Penthus. The companies view BMIS as a cost-effective, Jones Act compliant alternative to the more expensive jack-up WTIVs currently being utilised by offshore wind contractors in Europe.

The BMIS model will be built around a combined vessel spread comprising a piling installation vessel, a WTIV-Light and service operation vessels (SOVs). The piling installation vessel will feature a gantry crane capable of lifting up to 4,500 MT, a hydraulic hammer, and deck space for the piles. The WTIV-Light will be capable of installing wind turbines of up to 22MW, while the SOVs will provide the necessary accommodation and crew support services for working in depths of up to 60 metres. Deployment is expected to take place during the early part of 2026.

There are several SOVs already under construction in the US. Ørsted and Eversource, together with Edison Chouest Offshore shipyard, announced the commencement of construction of first US-flagged Jones Act-compliant SOV last year. The vessel will be capable of housing 60 passengers.

Most recently, in January 2023, Crowley and Danish offshore maritime leader ESVAGT announced that they will jointly build and operate a SOV under a long-term charter with Siemens Gamesa Renewable Energy. Under the new contract, USbased Crowley will manage and crew the SOV to support Siemens Gamesa’s service operations on the Dominion Energy Coastal Virginia Offshore Wind project. ESVAGT, based in Denmark, will support Crowley with design, construction, crew training and operation services as part of the two companies’ joint venture, CREST Wind, created in 2021. The 88-metre vessel will be built at Fincantieri Bay Shipbuilding and will feature modern accommodations for 80 crew and technicians and is expected to enter service in 2026.

Several crew transfer vessels (CTVs) are under construction. In January 2023, St. Johns Ship Building in Florida held a keel laying ceremony for the second of six of aluminium CTVs that will service US offshore wind projects for construction, operations, and maintenance. The Chartwell Ambitious aluminium catamarans have the capacity to transport 24 personnel to and from wind turbines with speed, safety, and stability. The vessels were commissioned by the Rhode Island-based Atlantic Wind Transfers.

Additionally, American Offshore Services (AOS) has ordered four hybrid-ready CTVs from Rhode Island-based Blount Boats. The vessels are expected to be delivered in 2023-2024 and will immediately go to work servicing U.S. offshore wind farm projects. Starting in 2023, AOS said it will provide CTVs and equipment to four different wind farms on the U.S. East Coast during the construction phase.

Recent federal incentives

8 Crowley and ESVAGT announced plans to jointly build and operate a SOV under a longterm charter with Siemens Gamesa Renewable Energy in January 2023. The 88-metre vessel will be built at Fincantieri Bay Shipbuilding and is expected to enter service in 2026

International Manufacturing Facilities

The supply chain roadmap points to the value of the IRA for developing more infrastructure, wind farms and vessels.

“Recent federal incentives such as clean energy tax credits in the Inflation Reduction Act of 2022 (IRA) will help domestically produced components be cost competitive with imports from established international manufacturing facilities. However, additional incentives may be required to encourage domestic manufacturing of components or supply chain assets that are either not considered in the IRA or receive tax credits that are smaller than the cost premium for domestic manufacturing.”

It further states the industry will likely need to invest over $11 billion in marshalling ports, fabrication ports, and large installation vessels by 2030 to support the manufacture, transport, and installation of major offshore wind energy components. A domestic supply chain will likely require an investment of at least $22.4 billion in manufacturing facilities, ports, and large installation vessels.