Posted on December 17, 2020
InfraStrata plc (AIM: INFA), the U.K. infrastructure project specialist that bought the assets of U.K. shipbuilders Harland & Wolff and Appledore Shipyard, has signed a Letter of Intent (LOI) with Triumph Subsea Services Limited covering the construction of two Windfarm Development Vessels (WDV). Each vessel will have a length of 200 meters and a beam of 35 meters.
According to InfraStrata, the WDVs, when fabricated and delivered, will incorporate the latest in advanced marine technology, robotics, safety systems as well as autonomous systems. Additionally, these vessels will come with diesel-electric hybrid engines that will eventually transition into hydrogen fuel cells, thereby offering what management consider to be the “greenest” solutions to wind farm developers.
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Under the terms of the LOI, InfraStrata’s fully owned subsidiary, Harland & Wolff (Belfast) Limited would be responsible for the build, assembly and delivery of the WDVs to Triumph. The LOI initially contemplates the build of one vessel, with Triumph having an option for an additional vessel to be built at Harland & Wolff (Belfast).
As multi-purpose vessels, the WDVs will not only be utilized for fixed and floating wind farm installations but will also be capable of subsea cable laying and providing marine services for offshore carbon capture and green hydrogen projects.
In line with the U.K. Government’s target of having at least 40GW of installed wind capacity, once constructed, the WDVs will also fullfil project developers’ obligations to incorporate as much local content as possible within their projects in order to be eligible for and monetize the various Government-led incentives; particularly in the wind farm and marine sectors. The WDVs are expected to be fabricated with local content from a U.K. supply chain and will be principally utilized for projects within the United Kingdom.
Infrastrata says the next steps towards a binding contract will involve, inter-alia, analysis of the detailed design packages, agreement of timelines and milestones from fabrication to delivery and, finally, placing of the necessary financing structures by Triumph and its partners with Harland & Wolff. Once contracted, each vessel would be expected to generate revenues for Harland & Wolff of between GBP 340 million (about $460 milliomn and GPB 360 (about $475) million over the 24-30 month period of fabrication, followed by additional revenues if further through-life support contracts are secured.
John Wood, Chief Executive Officer, commented: “This LoI is one of many potential projects that we are working on and is in line with our strategy to make the Harland & Wolff Group a leading shipbuilder and fabrication company in the U.K. As previously indicated, fabrication will become a huge element of our business moving forward and, by utilizing both our Belfast and Appledore capacities symbiotically, we are able to provide an attractive works schedule to our clients. Should this project proceed to contract, it will provide a sound base for Harland & Wolff to demonstrate its capacity and capability to deliver cutting-edge vessels, whilst retaining sufficient spare capacity for other projects across both yards.”