With the termination of the Offshore Wind Renewable Vitality Certificates (OREC) settlement for the Empire Wind 2 offshore wind undertaking, BP and Equinor have cancelled the contract for the undertaking’s offshore substation (OSS) with the Singapore-based firm Seatrium.
As reported earlier immediately, 4 January, the Empire Wind three way partnership has signed an settlement with the New York State Vitality Analysis and Improvement Authority (NYSERDA) to terminate the Offshore Wind Renewable Vitality Certificates (OREC) contract for the 1,260 MW Empire Wind 2 amid troublesome financial situations which can be affecting the undertaking’s viability.
Seatrium, a wholly-owned subsidiary of Sembcorp Marine Offshore Platforms (SMOP), secured contracts for the supply of two offshore substations for Empire Wind, one for the 816 MW Empire Wind 1 and one for the 1,260 MW Empire Wind 2, in Might 2023.
The contract for the Empire Wind 2 offshore substation, price USD 250 million (round EUR 228 million), has now been cancelled, Seatrium stated on 4 January.
Development work on the Empire Wind 2 OSS was anticipated to begin in June 2024, with minimal engineering work carried out, Seatrium stated and added that the corporate will make the development capability put aside for this undertaking obtainable for different tasks in its pipeline.
The cancellation of the Empire Wind 2 OSS contract will not be anticipated to have a fabric monetary influence on Seatrium’s earnings per share and internet tangible asset per share for the present monetary 12 months, the corporate knowledgeable.
“The contract is structured on progressive cost milestones, and cost for the work carried out to this point has been acquired, leading to impartial undertaking cashflow,” Seatrium said in its press launch.
For the primary substation, the Empire Wind 1 OSS, Seatrium began development work within the fourth quarter of 2023. The Empire Wind three way partnership confirmed the Empire Wind 1 undertaking contract for Seatrium stays unaffected and continues as deliberate, in accordance with the corporate.
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