Singapore-based Keppel Offshore & Marine, which has just delivered two offshore power substations to Taiwan, has signed an agreement with Ørsted to develop new wind power projects globally.
Keppel O&M has been expanding its footprint with construction of an offshore facility in Germany’s North Sea and building a wind turbine installation vessel, Charybdis, in the US for Dominion Energy.
This follows Keppel O&M’s recent completion of its first project for Ørsted in Singapore in September – two stations for Taiwan’s Greater Changhua 1 & 2a offshore wind farms.
According to the Global Wind Energy Council’s 2021 Offshore Wind Report, offshore wind has the biggest growth potential of any renewable energy technology.
Offshore Wind Capacity
About 235 gigawatts (GW) of new offshore wind capacity is forecast to be installed over the next decade under current policies, a capacity which is seven times bigger than the current market size, and is a 15% increase on the previous year’s forecasts.
Keppel O&M designs and builds for the offshore, marine and energy industries. Denmark-based Ørsted develops, constructs and operates offshore and onshore wind farms, bioenergy plants and waste-to-energy facilities.
However, Ørsted’s offshore wind power business has been hit by historically low wind speeds this year, which cost the company 2.5 billion Danish krone ($380 million) more in the first nine months of 2021 than last year.
The company announced that it is divesting 50% of its Greater Changhua 1 wind farm.
“Ørsted’s valuation and investor appetite is held up by extraordinary forecasts for wind turbine capacity growth of 18% per annum towards 2035,” Peter Garnry of Saxo Bank in Copenhagen said.
- George Russell
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