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Braemar Seascope Offshore - Renewables Vessel Report Renewables Vessel Report - June 2013

MARKET NEWS & ANALYSIS

June 2013

VESSEL DAYRATE CHARTS MARKET COMMENTARY

Dry Cargo

Tankers

Email: offshore.aberdeen@braemar.com

Containers

Tel: London +44 (0)20 7903 2700

Offshore

Aberdeen: +44 (0)1224 628 470

LNG - Specialist - LPG

Sale & Purchase

Singapore: +65 6410 9013 www.braemarseascope.com

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New Trainee Broker

Welcome to the latest edition of the Braemar Seascope Offshore Renewables Vessel Report.

We hope you find the latest edition of our report useful please ensure you have our new email addresses.

The past few months have been a bust time in the Offshore Renewables market with a number of key projects progressing well and seeing large fleets active to try to make the most of Europe’s milder summer weather.

Aberdeen: offshore.aberdeen@braemar.com London: offshore.london@braemar.com Singapore: offshore.singapore@braemar.com Perth: offshore.perth@braemar.com Research: offshore.research@braemar.com

We have also seen a number of new players moving into the Renewables vessels market some with smaller crew vessels and other established companies staking their claim to future Round 3 work with orders for a new generation of wind turbine installation vessels.

Sean Bate Market Analysis Manager offshore.research@braemar.com

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Braemar Seascope Offshore is pleased to advise that Douglas Rickman (24) has joined our office in Aberdeen in the role of Trainee Shipbroker.

Douglas has a Degree in Business Management having studied at Leeds Metropolitan University, and has also previously worked in Kenya as a teacher.

Market Commentary

A

ll systems go in various areas with UK and Germany. In Germany there are 6 projects ongoing at the moment with a significant amount of offshore hardware and support tonnage being deployed, some for the first time. Similar pace in the UK where major construction works have commenced at West of Duddon Sands and Gwynt Y Mor. The latter installing their first turbine on 23rd May 2013. All facets of construction under way including turbine and cable install, trenching and grouting. Other projects that are not so far advanced are already making firm preparations with environmental investigation and erection of round 3 Met Masts. Significant news also with several OWF developers announcing grid connections and ends to consultation phases.

In terms of vessels, this season marks a net increase in the number and types of ships being used offshore, particularly in the booming German sector. Owners reporting success expanding into the sector include Sealion Ship-

GRAEME RIDDELL

(MICS)

Shipbroker

Click Here to Email Graeme offshore.aberdeen@braemar.com Tel: +44 (0)1224 628 470

ping with their 3 'V' class MPSV's “Significant amounts working in the region and Siem Contractors with 2 modern an- of Offshore Hardware chor handlers Siem Garnet and & Support Tonnage Siem Topaz performing dive

Are Being Deployed�

work and route clearance respectively in German Bight. The roles being performed by the latter two are significant departures in that they would normally be assigned in the Oil & Gas sector.

Signals are therefore that contractors are getting serious about reducing cost and increasing performance and safety. The range is wide from Infra Sea Solutions 'Innovation' with her 1500t crane at Northwind to the advent of large 'Fully Classed' crew transfer vessels with catamaran, SWATH and Trimaran hulls.

Some still in the planning phases of their wind farms will be looking carefully at how these units perform to see if operating envelopes are improved.

Chartering

Statoil Expects Renewables Surge by 2040

Statoil has released its latest Energy Perspective long-term Market Outlook document and expects renewables to grow to 8% of the market by 2040 from a base level of just over 1%. According to the report wind power generation capacity grew on average by 16.5% a year and solar capacity by 67 a year between 2002 and 2012. In 2012, wind solar, hydro, biomass and geothermal capacity made up 40% of the total European power generation capacity.

Cape Cod Offshore Wind Progresses Reports indicate that the first offshore wind farm in the USA could begin to take a step forward after over a decade of delays. In a recent interview US Interior Secretary Ken Salazar has said that he is optimistic that the first offshore wind farm in the US will break ground this year. The initial project will be in the state of Massachusetts off Cape Cod. The USD 2.6bn project has been worked on since 2001.

Round 3 Windfarm Jackup for Seajacks Seajacks has announced the construction of the Scylla purpose-built Round 3 Wind Turbine Installation vessel. The self propelled jack-up vessel was ordered from Samsung Heavy Industries alongside options for two additional units.

The new vessel is based on the Gusto MSC NG14000X design and will be the fifth to join the Seajacks fleet since 2009. The vessel will be equipped with a 1,500t leg encircling crane and will have a deck space of over 5,000 square metres.

Delivery of 14m-Cat for Osiris Projects Osiris Projects has announced a new 14m catamaran vessel which will be customised for crew transfer work. The vessel, which was built by Blyth Workcats, will be designed to carry out shallow water survey work and will be similar to a 15m catamaran Lia that was launched in 2004. The new vessel follows the launch of a 27m SWATH catamaran Bibby Tetra in 2011 and is Osiris Projects 4th custom build project. ŠCopyright Braemar Seascope Offshore 2013

Chartering

Piriou Enters Renewables Market

Piriou Shipbuilding has entered into the offshore renewables market with a series of wind farm support ships. The company’s first deal is with BMT Nigel Gee for two units that will be available for operation in Europe at the end of 2013. The company is also set to take part in the Seawork 2013 exhibition in Southampton later in June to showcase its projects in the Marine Renewables Sector.

East Anglia Work for Oleg Strashnov The heavy lift vessel Oleg Strashnov is scheduled to carry out work on the East Anglia Offshore Windfarm for Wood Group Kenny. The vessel will be supported by the AHT Union Princess and a crew transfer vessel. The Oleg Strashnov has previously carried out installation of foundation supported by the Smit Angola and the Bremen Fighter. The new workscope which represents the second phase of the offshore operations at the site will take place over a period of two weeks depending on suitable weather. The East Anglia Zone is located of Suffolk.

Gwynt y Mor Windfarm Work Underway A fleet of vessels are currently on site at the Gwynt y Mor offshore windfarm site 15km to 20km off the coast of North Wales. The accommodation vessel the Wind Solution is to be anchored at the site and will make monthly port visits with a series of crew transfer vessels taking personnel to various locations at the site. The Stanislav Yudin heavy lift vessel will be carrying out the installation of around 160 foundation monopoles whilst deploying its eight-point anchor spread.

West of Duddon Sands Vessels at Work DONG Energy and ScottishPower Renewables are undertaking construction work at the West of Duddon Sands project.

Currently the sub-station has been installed at the site along with a number of foundation and turbine pieces.

There are two installation vessels: Pacific Orca and the Sea Installer working at the location. In addition there is the Stemat Spirit, Coastal Vanguard and the workboat Odin.

Installation of array cables is to start this month and turbine installation will run from August to June 2014. ŠCopyright Braemar Seascope Offshore 2013

Chartering

Steel Cut on DBB Jackup

DBB Jackups new wind turbine installation vessel has begun construction with the first steel being cut at the Nordic Yards shipyard in Wismar. The vessel, which is equipped with DP2, will have an loa of 80m, a beam of 32m and a crane with a lifting capacity of 500 tonnes. It will be designed to operate in water depths of up to 50m.

Sea Trials for Windserver Prototype NV Service has recently completed a prototype of a new 25m Windserver aluminium trimaran. The company is currently working on completing sea trials with the vessel which was constructed following a contract with Fjellstrand in 2012. The company is also currently working on a newbuild vessel (hull 1691) which is set for launch in early June.

Study of Fishing Fleet to Support Windfarms A study by Scottish Enterprise of the potential for the Fishing Fleet to support the offshore wind industry is to be carried out. The research will seek to identify the scale and scope of the demand from wind developers for vessels to service offshore projects, and subsequently the potential use and modification options for the vessels of any interested owners. In addition, the study will look into possible operational locations out of which adapted fishing boats could operate.

Red 7 Secures Cable Contracts Red 7 Marine has announced a series of contract awards covering cable protection and cable installation work.

The company will carry out the installation of more than 100 concrete mattresses using the vessel DP Reel. The scope also includes a series of supporting operations which will also all be carried out in the summer of 2013.

In addition, the company has been awarded a contract covering installation of the export cable for the Biscay Marine Energy Platform near Bilbao in Spain. ŠCopyright Braemar Seascope Offshore 2013

Chartering

DP Gezina Named

The windfarm service support vessel DP Gezina has been named at Holland Shipyard after undergoing conversion works. The vessel which will be Chevalier Floatels flagship, was lengthened by nine metres and had sponsons added to improve its seakeeping. The DP Gezina will now be capable of accommodating between 60 and 90 personnel and had equipment installed to enable it to carry out DP2 and crew transfer workroles.

Final Turbine Installed at Lincs Windfarm Dong Energy has announced that the final wind turbine has been installed at the Lincs Offshore Windfarm. The 75th Siemens 3.6MW unit was installed by the jack-up installation vessel MPI Resolution which began working on the site in the middle of July last year. The full commissioning of the 270MW windfarm is set to take place later this year. The windfarm is 8km off the coast of Lincolnshire near Skegness.

GMS Jackup Active on Contracts Gulf Marine Services has won three new contracts worth a total of around USD 46 million. The work covers transformer installation in the German offshore sector and will utilise the jack-up barge GMS Endeavour. The vessel has previously been working on wind farm installations and maintenance contracts and has work through to the second quarter of 2014. Meanwhile, the sister barge GMS Endurance has recently begun a new contract with ConocoPhillips in the Southern North Sea.

London Array Fully Powered The London Array offshore windfarm has now reached full capacity at 630MW. The site, which is now the world’s largest offshore windfarm, had the last of the 175 turbines installed and commissioned in early April.

The first phase at the project will reach around 630 MW and should produce enough electricity to power nearly half a million homes a year.

ŠCopyright Braemar Seascope Offshore 2013

Aquamarine Power Gets Lewis Consent Aquamarine Power has received full consent from the Scottish Government for a 40MW wave farm off the North-west coast of Lewis in Scotland. The company believes this could eventually lead to the deployment of around 40 to 50 Oyster wave device along the coast near to Fivepenny Borve. The project would have the potential capacity to power around 30,000 homes.

Pelamis Celebrates Year of Testing The Pelamis P2 wave energy converter has completed a year of testing a the European Marine Energy Centre in Orkney. The P2 test programme has accumulated 5,000 grid connected operating hours and exported 160MWh of electricity to the national grid. According to the company the proven average output capability of the device is now around 100kW.

Wave Hub Wins Floating Turbine Deal The Energy Technologies Institute has confirmed that Wave Hub has been selected as the preferred location to build and test a floating offshore wind turbine concept. A Pelastar tension leg platform prototype will be developed

by Glosten in partnership with Alstom. The unit will use the Haliade 150 6MW offshore wind turbine. KML and LDD have won the contract to carry out studies for anchoring subsea installation works. The project is set to commence in 2015 and last eight to ten years.

Floating Wind Platform in US The University of Maine in the USA has unveiled floating platform for an offshore wind turbine. The unit will be the fist grid connected floating wind turbine in North America. The prototype is around 65 foot tall which is one-eighth of the size of the planned units for a potential 5GW 20 milles of the coast off Maine in 2030. The aim is for the windfarm to eventually consist of 170 5MW turbines. ŠCopyright Braemar Seascope Offshore 2013

London Array Substation Installation

5 Days with Seajacks Leviathan

Jan-04

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Contact Us Braemar Seascope Offshore is a division of Our services include: Braemar Shipping Services PLC, a leading Spot and period chartering integrated provider of brokering and consultancy services to the shipping industry. Short sea and ocean towage At Braemar Seascope Offshore our aim is Newbuild and second hand sale & to provide cost effective solutions to our purchase clients' offshore programmes.

Regular advances in technology mean our Bespoke research and reports work is a direct response to constantly Corporate mergers, acquisitions & changing market needs.

fleet sales

From offices in London, Aberdeen and Singapore we specialise in the worldwide off- Valuation services shore market.

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Sean Bate Market Analysis Manager 35 Cosway Street London NW1 5BT UK Phone: +44 (0)20 7903 2736 E-mail: offshore.research @braemar.com

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