SeaEnergy’s SERL unit to develop steel structures for offshore windfarms with Chinese partner

SeaEnergy’s (LON:SEA) 80%-owned subsidiary SeaEnergy Renewables (SERL) has signed a Strategic Cooperation Agreement (SCA) with state-backed Chinese group Nantong COSCO Ship Steel Structure Co Ltd (NCSC) to develop and market steel structures for the offshore wind industry. 

The company expects the SCA to lead to a definitive agreement to develop and market turbine jacket substructures, towers and access systems for offshore wind farms. "We are delighted to be working with one of China's premier state-owned enterprises and directing our efforts at the critical supply chain need for offshore structures,” SERL chief executive Joel Staadecker commented.
 
“The combination of our proven skills in delivering offshore infrastructure and turbines in deeper water and NCSC's expertise in design and manufacture of steel structures for marine applications provides the ideal platform to serve the growing global offshore wind industry as it moves into deeper waters."

SeaEnergy highlighted that the deal represents the first agreement in offshore wind between a Scottish company and a major state-owned Chinese enterprise. The agreement was signed in Shanghai, in the presence of Scotland's First Minister Alex Salmond and representatives of the British and Chinese governments.
SERL said it will now work with NCSC over the coming months to develop a detailed business plan and commercial framework which will form the basis of their relationship.

"The signing of this strategic cooperation agreement with SeaEnergy Renewables is an important milestone in NCSC's expansion into the European market.  Partnership with SeaEnergy will combine NCSC's fabrication infrastructure with SeaEnergy's outstanding expertise in the offshore environment.  Together, both companies will be excellently positioned to move forward in this industry," NCSC’s General Manager Wang Zhihua said.

SeaEnergy is currently marketing its 80% stake in SERL, after a re-evaluation of its strategy and a decision to focus the business on the wind-farm servicing business, rather than developing wind-farms itself. In June, in its final results statement, SeaEnergy announced the plan to concentrate on marine services for the offshore wind power industry, after an assessment of the equity markets, investor sentiment and the funding environment.

Last week, the company hired Ernst & Young’s Renewable Energy arm  as an adviser to coordinate the sale of its 80%-interest in the SERL subsidiary.

"In an equity market which does not yet appreciate the huge opportunities afforded by offshore wind, we have chosen to create our own equity for future investments in the sector by crystallising the value we have created in our SERL subsidiary," SeaEnergy MD Steven Bertram commented. According to SeaEnergy, the SERL business provides a unique growth platform in the offshore wind sector, with an experienced management team and net interests of 781MW, in three separate offshore wind farm sites in the UK and the potential for a further 425MW in the Far East.

SERL has partnerships with EDPR, Scottish and Southern Energy and Taiwan Generations Corp.

SeaEnergy has conducted a review of opportunities for its marine service business, and a detailed feasibility assessment into the best prospects is being finalised. According to SeaEnergy, this new business direction builds on the company’s experience in the oil & gas industry and "specific lessons learned" while constructing the Beatrice Demonstrator turbines.

In terms of its new marine services business, SeaEnergy is already making progress, with a recent deal to design and built specialist vessels specifically for the offshore wind-power industry. The company reported the signing of a letter of intent (LOI) with Norwegian shipbuilder Ulstein Group to co-develop new service vessels for the offshore wind-power industry. The company highlighted that as the offshore wind industry moves further away from the coastline, new strategies are required to make the offshore wind-farms more cost-effective.

The companies have been working together over the last months to develop a design that will “excel in operational characteristics”. According to SeaEnergy, by signing the LOI both companies want to tighten their relationship and underline that this will be a first step in jointly realizing the needs of the industry.

SeaEnergy seeks to design vessels which can perform both the commissioning and maintenance works of wind turbines. Based on the proven Ulstein X-bow technology, two vessel designs are currently being developed in which operational and vessel systems will be fully integrated with each other.