Keppel Offshore & Marine (O&M) has secured a contract from a renewables developer to construct two offshore substations for S$110 million (£60 million).
The contract, secured by Keppel’s offshore subsidiary Keppel FELS, comprises the engineering, procurement, construction, testing and commissioning for the topside modules of two offshore substations for an unspecified client.
The work does not include the substation foundations, and some electrical components will be provided by Keppel’s client.
Work is scheduled to be completed in 2024, when the substations will be deployed to an undisclosed offshore wind farm.
Mr Chris Ong, CEO of Singapore-headquartered Keppel O&M, said, “We are pleased to secure this contract, which reflects Keppel O&M’s continuing pivot towards renewables and cleaner energy solutions. It is testament to Keppel O&M’s execution excellence, as well as our ability to deliver reliable, consistent, and quality solutions for the offshore wind industry.”
Keppel recently completed two OSS for Taiwan’s Greater Changhua 1 & 2a offshore wind farms on behalf of Ørsted.
It is currently building a HVDC converter station for offshore wind farms in the German North Sea, as well as the first wind turbine installation vessel in the United States.
In June, Keppel and Sembcorp Marine announced that they were in talks over a merger of their offshore and marine businesses. The companies said the tie-up would create a stronger combined entity and was in response to dramatic changes in the O&M engineering and energy sectors.
In a joint statement, Keppel and Sembcorp said a sustained reduction in oil exploration and development activities, exacerbated by Covid and the energy transition, had slashed trade.
Indeed, early 2021 saw Keppel O&M announce it would stop building rigs as it looks to make a move into the renewables market.
At the time, Keppel pledged to undergo a major restructuring as part of efforts to position itself as a developer and integrator of offshore energy and infrastructure assets.
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