Sembmarine bags its biggest single deal for supply of renewable energy

Sembcorp Marine (Sembmarine) has secured its biggest-ever single deal for the supply of renewable energy, which will boost its order book to well over $20 billion.

A consortium comprising Sembmarine and GE Renewable Energy's Grid Solutions has secured three contracts from Dutch grid operator TenneT, totalling EUR6 billion (S$8.6 billion), to supply high-voltage direct current (HVDC) electrical transmission systems for three mega offshore wind farm projects in the Netherlands.

The projects, each valued at $2.88 billion and stretching over eight years, will provide a combined capacity of 6 gigawatts (GW) and are a part of TenneT's offshore grid acceleration programme.

While no exact amounts were stated, analysts reckon Sembmarine's share of the entire deal could be well over $5 billion, which will boost its last order book, which stood at a combined $18 billion following the company's recent combination with Keppel Offshore & Marine.

The project is the largest offshore renewables project secured by the Singapore company, and the scope of work involves the engineering, procurement, construction, transportation, installation and commissioning of three 2GW HVDC offshore converter platforms -- the biggest and most powerful of their kind in the industry.

Each platform will comprise a 25,500-tonne topside and a 9,500-tonne jacket foundation structure piled into the seabed.

The platforms will contribute towards TenneT's sustainability ambition through its offshore grid development programme, which involves the installation of 40GW of offshore wind energy in the German and Dutch North Sea, to enable Europe to be the world's first climate neutral continent, Sembmarine said in a statement.

The offshore converter platforms will be progressively installed to serve TenneT's three offshore wind farm projects -- the IJmuiden Ver Beta, IJmuiden Ver Gamma and Nederwiek 2 grid connections. The IJmuiden Ver projects are located about 62km off the coast of the Netherlands, while the Nederwiek project is approximately 95km off the coast.

The project will be handled by Sembmarine's wholly owned Britain-based subsidiary, Sembmarine SLP, and construction work on the offshore converter platforms will commence progressively from the third quarter of 2024 at Sembmarine's yards in Singapore and Batam.

Sembmarine SLP will then do the offshore hook-up and commissioning. This will include the provision of logistics and warranty support from its base in Britain, as well as the establishment of a European office in the Netherlands.

Sembmarine chief executive Chris Ong said: "We look forward to contributing to TenneT's vision and decarbonisation objectives and at the same time contributing to the global transition towards cleaner, greener and renewable energy.

"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."

Mr Philippe Piron, chief executive of GE Grid Solutions, said the awarding of the contracts "confirms that GE's voltage-sourced converter HVDC technology is now recognised as one of the most advanced in the world".

The offshore completion of the platforms is expected from the fourth quarter of 2029 to 2031.

Analysts believe that projects of this size could enable long-suffering Sembmarine to clamber back into profitability by the end of the next financial year.