$500 million? CIMC Raffles wins Havfram's second WTIV order

Following the recent acquisition of multiple wind farm operation contracts, the Norwegian company Havfram has returned to CIMC Raffles to place an additional order for a second next-generation wind turbine installation vessel.

Recently, CIMC Raffles and the Norwegian company Havfram confirmed and signed an EPC general contracting construction contract for a second global next-generation series of wind power installation vessels. After delivery, it will be used for European wind farm transportation, installation, and construction services. This project is another series of wind power installation vessels for CIMC Raffles as a major global wind power equipment manufacturer, continuing to promote the "Green Practitioner" approach and making continuous contributions to global "carbon neutrality."

This project is a global next-generation wind power installation vessel, based on the NG20000X design provided by GustoMSC of the Netherlands. The relevant basic design was jointly completed by GustoMSC and CIMC Raffles. This design has a lifting capacity of 3250 tons and can install offshore wind turbines with a rotor diameter exceeding 300 meters at water depths of up to 70 meters, as well as XXL monopiles weighing up to 3000 tons. The vessel's capacity has been optimized for high variable deck loads and extreme lifting heights expected over the next decade; it also uses a state-of-the-art battery hybrid power transmission system. Compared to the first GustoMSC NG20000X self-elevating installation vessel currently under construction, carbon emissions per MW installed have been reduced by more than 70%, making it the most urgently needed core equipment in the global renewable energy supply chain and one of the most advanced offshore wind power installation vessels in the world.

Havfram initially reached a letter of intent with CIMC Raffles in November 2021 to order a series of next-generation WTIVs. In December last year, the company disclosed that it had signed a formal construction contract with CIMC Raffles for 1+3 WTIVs, with the first vessel already under construction and expected to be delivered and put into operation in the third quarter of 2025.

Although Havfram did not disclose the specific price, industry estimates suggest that the unit price of its WTIVs could be as high as US$500 million, meaning that if all optional orders are confirmed and take effect, the total value of the four vessels would reach US$2 billion (approximately RMB 13.755 billion).

Even Larsen, CEO of Havfram Wind, commented: "We are very pleased to continue our cooperation with CIMC Raffles. The decision to order a second NG20000X self-elevating wind power installation vessel from CIMC Raffles is based on the good cooperative relationship established with the shipyard and the commitment to multiple contracts with major offshore wind power developers. As previously announced, we have signed a contract with Orsted to carry out turbine installation work on its Hornsea 3 project starting in the fall of 2026. Vattenfall has designated Havfram as its preferred supplier for its Norfolk project starting in the spring of 2027. Last week, Havfram signed a preferred supplier agreement with RWE to provide turbine installation support services for its Nordseecluster project starting in the summer of 2026."

Martin Degen, Commercial Director and Vice President of Havfram Wind, said: "Globally, the demand for offshore wind power is steadily increasing. At the same time, the development of wind turbine technology has resulted in larger wind turbine components, thus requiring larger wind turbine installation vessels. Our fleet will be able to meet the requirements and challenges of the rapidly growing offshore wind power market, and we believe that our experienced team will provide the highest level of service to global customers."

“We are pleased to confirm this important agreement with Havfram and sign the contract for the second wind power installation vessel, and we are proud to be a joint force in the development of Havfram’s offshore wind power business. As a leading global marine engineering equipment EPC contractor, with our capabilities, reliable offshore experience, and ONE team work, we are confident in meeting the needs of Havfram and its customers for high-end offshore wind power T&I equipment, and promoting Havfram’s market position by delivering projects to expected high standards. In addition, I believe that the joint efforts of both parties will surely contribute to the offshore wind power industry and help promote the global energy transition, creating a more sustainable and greener world,” said Wang Jianzhong, CEO and President of CIMC Raffles Group.

  It is understood that Havfram, formerly known as Ocean Installer, was formerly a well-known offshore oil and gas service provider in Norway. In December 2020, it announced a name change to reflect the company’s increasing focus on the offshore wind power market. Havfram hopes to transition from the traditional oil and gas sector to renewable energy, with the goal of having most of its revenue come from the renewable energy market by 2025.

Havfram is headquartered in Oslo, Norway, and has a tradition of executing complex oil and gas subsea construction projects in the harsh conditions of the North Sea. The Havfram Wind offshore wind team has a long history in offshore wind construction, with most of the team joining the industry more than a decade ago during the early industrialization of offshore wind power. With the increase in global wind power business, accompanied by larger turbines and more GW-level projects, Havfram is in a prime position to become a trusted and reliable partner for project execution in the global offshore wind power market.
  
CIMC Raffles is a leading domestic provider of marine engineering equipment, and has been cultivating the offshore wind power sector for several years, possessing leading advantages in offshore wind power equipment manufacturing, wind farm resource development, transportation and installation, and operation and maintenance services. In the first half of 2021, CIMC Raffles and its partners jointly launched the "Green Practitioner" initiative, aiming to jointly build a new order of cooperation in the offshore wind power industry with upstream and downstream partners in the industrial chain, and to promote the faster achievement of grid parity in offshore wind power through concrete actions, contributing to the early realization of the "3060" goal.