Fluor to take $400m hit on 'adverse' Greater Gabbard ruling

Fluor will swallow a $400m pre-tax hit in the fourth quarter after an arbitration panel ruled against it in a long-running dispute over the 500MW Greater Gabbard offshore wind farm off the southeastern coast of England.

US-based Fluor was hired as engineering, procurement and construction (EPC) contractor by Greater Gabbard Offshore Wind Limited (GGOWL) – a 50:50 joint venture between SSE and RWE Innogy-owned npower renewables.

Last autumn GGOWL notified Fluor that 52 transition pieces and 35 monopiles – worth some 93MW of capacity – did not meet the “contracted standards”.

Fluor subsequently claimed £300m ($477.5m) in damages from GGOWL as compensation for delays and other cost impacts arising from testing and repairs at the project, arguing that the faulty kit was “attributable…

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