Marine contracting in offshore wind is “increasingly unsustainable” with global growth targets at peril unless changes are made to a system “loaded with uncovered risks” for vessel operators, claimed a maritime industry body.
The International Marine Contractor’s Association (IMCA) slammed what it called “progressively poor market conditions created by unrealistic expectations of the capital costs and risks of developing offshore wind energy” as it issued an updated set of principles for its members.
The body claims that marine contractors are being left exposed to a raft of downsides in an industry where developers and investors have seen their own margins slashed to the bone.
“Offshore construction is essentially a niche business with high capital investments in ships and equipment and often involves the development of novel technological solutions.
“It is represented by a limited number of Tier 1 specialist contractors with the necessary specialist ships and equipment supported by the engineering and project management capabilities to conduct large offshore projects around the world often in harsh environments,” IMCA said.
“Marine contractors are an essential link in the overall supply chain. However, the risk allocation by developers has become increasingly unsustainable, which in turn places the long-term sustainability of the industry at risk.”
IMCA quoted examples including adverse weather impacts on projects, unexpected soil conditions and inadequate insurance as areas where it believes project developers aren’t getting a fair deal.
The body urged the global offshore wind industry to adopt a spirit of “mutual trust and cooperation” to overcome the problems, a leap it said had been achieved by the offshore oil & gas sector when it ran into similar issues.
IMCA said: “This situation can only be reversed with a fairer allocation of risks and the shared alignment of project goals between government, investors, developers, and the supply chain.”
The contractors’ broadside comes ahead of a period of unprecedented global expansion by the offshore wind sector.
The International Renewable Energy Agency and Global Wind Energy Council last year formed an alliance seeking to boost offshore wind from 57GW in 2021 to 380GW in 2030.
Shortage of vessels – particularly those able to install the massive next generation of turbines – is regularly cited as a major bottleneck to achieving those ambitions.
