Keppel wins $80 million offshore substation contract
Keppel Offshore & Marine Ltd’s (Keppel O&M) wholly-owned subsidiary Keppel FELS Ltd (Keppel FELS) has secured a contract from a renewable energy company for the construction of two offshore substations worth around $80 million.
Keppel O&M’s work scope comprises the engineering, procurement, construction, testing and commissioning for the topside modules of two substations. This excludes the substation foundations, as well as certain electrical components to be furnished by the client. It is scheduled to be completed in 2024 to be deployed in an offshore wind farm.
Mr Chris Ong, CEO of 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.”
In line with Keppel’s Vision 2030 which puts sustainability at the core of the Company’s strategy, Keppel O&M is strengthening its foothold across the value chain of offshore renewables. It recently completed two substations for Taiwan’s Greater Changhua 1 & 2a offshore wind farms and is currently building an HVDC converter station for offshore wind farms in the German sector of the North Sea as well as the first wind turbine installation vessel in the United States.
The above contract will be on progressive payment milestones and will have neutral project cashflow. It is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.
Source: Keppel Offshore & Marine