Marco Polo Marine 5LY has signed a three-year framework agreement with Vestas Taiwan for the deployment of its new commissioning service operations vessel (CSOV) across offshore wind farms in the Asia Pacific region.
This agreement finalises its prior landmark memorandum of understanding (MOU) in December 2022 between its Taiwan-based subsidiary PKR Offshore and Vestas for the maiden deployment of its new CSOV.
The new CSOV, which can accommodate up to 110 persons, is currently under construction at Marco Polo Shipyard in Batam, Indonesia, and is expected to commence operations in the East China Sea in the second half of 2024.
“We are thrilled to announce today the formalisation of our partnership with Vestas, which marks a critical milestone in our efforts to tap into accelerating demand for support vessels from the region’s offshore wind farm industry,” says Sean Lee, CEO of Marco Polo Marine.
“This achievement underscores Marco Polo Marine’s unwavering commitment to delivering cutting-edge, specialised wind construction vessels that offer its customers unparalleled performance, quality, and reliability. In an era where the global focus is shifting towards clean energy solutions, we stand ready to leverage on the robust, long-term demand for our marine vessels,” adds Lee.
The Global Wind Energy Council (GWEC) has forecast 680 gigawatts (GW) of new wind power capacity to be installed over the next five years, representing 136GW per year to 2027.
See also: Interra Resources granted 12-month extension to meet SGX watch-list exit requirements
Globally, the total installed capacity for wind power grew to 907GW in 2022, up 78GW from 2021. This year, new wind capacity could surpass a milestone of 1 terawatt (TW).
In Asia, the GWEC expects new offshore wind installations to exceed 10GW in 2026 and nearly 15GW by 2030. By 2050, the region is projected to achieve a total of 613GW offshore wind installations.
Dennis Mordhorst, regional director offshore support for Vestas Asia Pacific, says: “We are delighted to have achieved this significant milestone with our partner Marco Polo Marine which will enable us to deploy such a technically advanced multipurpose vessel to our upcoming operations in Asia Pacific.”
See also: First Sponsor Group ups stake in Dutch property firm NSI for $26.6 mil
“Given the current shortage of suitable vessels for wind farm operations in the region, we are confident that by entering into such a long-term agreement, we are enhancing vessel market maturity and pricing stability. This in turn is expected to lead to improvements in future projects and Vestas' operational readiness,” Mordhorst adds.
Against this backdrop of expected growth in Asia, Marco Polo Marine expects the industry to grapple with a shortage of suitable specialised wind installation vessels. Coupled with the global pivot towards clean energy, the company foresees expected strong demand for its marine vessels over the long term.
Shares in Marco Polo Marine closed 0.1 cents or 2% up at 5.1 cents on Nov 20.
