Sembmarine consortium bags 6 billion euros in contracts for offshore renewables project

SEMBCORP Marine (Sembmarine) and its consortium partner GE Renewable Energy’s Grid Solutions have jointly secured a framework cooperation agreement (FCA) from Dutch transmission system operator TenneT.

The FCA covers a period of five years with the option to extend another three years. It comprises three contracts to supply high voltage direct current (HDVC) electrical transmission systems for three mega offshore wind farm projects, for a combined capacity of 6 GW in the Netherlands, as part of TenneT’s offshore grid acceleration programme.

Each of the contracts is valued at about two billion euros (S$2.9 billion), said Sembmarine on Thursday (Mar 30).

Under Sembmarine’s scope of work, the group will oversee the engineering, procurement, construction, transportation, installation and commissioning of three 2 GW HVDC offshore converter platforms. These platforms will be progressively installed to serve TenneT’s three offshore wind farm projects, namely: IJmuiden Ver Beta, IJmuiden Ver Gamma, and Nederwiek 2 grid connections.

Both IJmuiden Ver projects are located about 62 km off the coast of the Netherlands, while the Nederwiek project is about 95 km off the coast.

Construction of each of the three offshore converter platforms will comprise a 25,500-tonne topside and a 9,500-tonne jacket foundation structure, with works to commence from the third quarter of 2024 at Sembmarine’s yards in Singapore and Batam, Indonesia.

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Sembmarine’s wholly-owned subsidiary in the UK will perform offshore hook-up and commissioning, including the provision of logistics and warranty support from its base there, as well as the establishment of a European office in the Netherlands.

Completion of the platforms is expected to take place sometime from the fourth quarter of 2029 to 2031.

The latest contract award represents the third HVDC offshore platform project to be delivered by Sembmarine. It also marks the largest offshore renewables project to be secured by the group to date.

“Offshore renewables is an important pillar of our business and we will continue to develop cleaner, greener and renewable solutions across our entire business value chain in the offshore, marine and energy sectors,” commented Chris Ong, chief executive of Sembmarine.

Shares of Sembmarine : S51 0% last changed hands at S$0.111, down S$0.004 or 3.5 per cent, as at 1.24 pm on Thursday when it requested for a trading halt, pending the announcement. It has since requested to resume trading at 3.15 pm on the same day.