Eneti announced  that it entered into a binding agreement for the construction of one Wind Turbine Installation Vessel (“WTIV” or the “Vessel”). In addition, the Company announced that it is in advanced discussions with American shipbuilders for the construction of a Jones Act-Compliant WTIV.

Newbuilding Contract

The Company has entered into a binding agreement with Daewoo Shipbuilding and Marine Engineering for the construction of one WTIV. The contract price is $330 million and the Vessel will be delivered in early Q3, 2024. In addition, the Company holds an option to construct an additional Vessel at the same price, net of currency adjustments.

The Vessel is an NG-16000X design by GustoMSC (a subsidiary of National Oilwell Varco – NYSE:NOV), and includes a 2,600 Ton Leg Encircling Crane from Huisman Equipment B.V. of the Netherlands. The Vessel is capable of installing up to 20 Megawatt turbines at depths of up to 65 meters of water, and it can be adapted to operate on the alternate fuels of LNG or Ammonia.

Jones Act Initiative

Separately, the Company announced it is in advanced discussions with several American shipbuilders for the construction of a Wind Turbine Installation Vessel. This vessel would be constructed, financed, and operated by American citizens in compliance with the Jones Act, in order to address the heightened demand for transportation and installation capacity on the Continental Shelf of the United States.

Emanuele A Lauro, Chairman and Chief Executive Officer, commented “Since last August, we have been unequivocal about our intention to enter the Wind Turbine Installation sector. This contract with Daewoo is a milestone for the Company, as it reflects months of customer engagement and collaboration with partners, both old and new. This Vessel will have the advanced lifting capabilities and energy efficiency that offshore wind developers require, not just today but well into the next decade.

In addition, we are laying the groundwork for a Jones-Act compliant WTIV to address the American mandate for offshore wind development. The growing calls for a safe, efficient, American-constructed and American-operated asset have been clear and loud. We are intent on providing a state-of-the-art solution to our customers so that they can comply with the Jones Act as they bring renewable energy to the U.S. consumer.”