Second shipbuilding deal for hybrid ocean energy construction vessel expands VARD’s orderbook

August 28, 2024, by Melisa Cavcic

Norway’s shipping group Island Offshore has taken steps to enlarge its fleet by placing a new order with VARD, a compatriot shipbuilder and a subsidiary of Italy’s Fincantieri, covering the design and construction of another hybrid power ocean energy construction vessel (OECV) three months after ordering the first one. As a result, the Norwegian shipping player has one more option left, which will add a third vessel to the newbuild list, if exercised.

After signing a contract with VARD in May 2024 for one firm OECVs with an option for two sister vessels, Island Offshore has now exercised the first option. The new ship will be based on the VARD 3 25 design and developed in close collaboration with the Norwegian shipping group, which operates a fleet of 19 vessels across the oil, gas, and renewable markets. The firm’s new fleet addition is scheduled for delivery in the first quarter of 2027.

The OECV will support multiple underwater operations, including inspection, maintenance, repair (IMR), pipe laying, underwater infrastructure construction, and dive support. Measuring 120 meters in length and 25 meters in width, the ship will feature a 250-ton offshore crane with active heave compensation and accommodations for 130 personnel, offering high-standard facilities for crew and clients. This deal builds on the relationship between Vard and Island Offshore, with 41 vessels already delivered to the Norwegian operator.

Morten Ulstein, Chairman of Island Offshore, commented: “We are happy to confirm this order, demonstrating our faith in the market outlook and our commitment to continue renewing our fleet. The vessel will further strengthen Island Offshore’s positioning in attractive market segments based on a fleet of versatile advanced offshore vessels.”

VARD’s high technology subsidiary, Vard Electro, is participating in the project with deliveries of SeaQ equipment and sustainable solutions, including SeaQ Power with energy storage systems and SeaQ shore connection, SeaQ Bridge with full integration and an extensive SeaQ Communication network that includes network and entertainment systems. Vard Interiors will deliver modern interior solutions and an energy-efficient HVAC R system to create a good living and working environment on board the vessel.

Moreover, the SeaQ Control system is due to have a new portable monitoring station, said to enhance the flexibility and accessibility for the operators to monitor and manage maritime operations, as it is seen as an integral part of the SeaQ IAS and SeaQ ePMS systems that enable digital solutions to be seamlessly shared within the cyber-proof network onboard and onshore.

Kristian Sætre, Senior Vice President for Sales and Marketing at VARD, noted: “The design of the first vessel has been carried out according to plan and in close dialogue with the customer, Island Offshore. It is gratifying that Island Offshore has decided to realize the first option, a signal of our good cooperation and of the belief in a future market for a future-oriented vessel.”

While the hull of the vessels will be built at one of VARD’s shipyards in Romania, the outfitting, commissioning, and delivery will be done at one of the shipyards in Norway. This also happened recently with a cable-laying vessel (CLV), which Norway’s shipbuilder is constructing for Denmark’s NCT Offshore.

Island Offshore’s second hybrid power OECV features entail a 1.7 MWh energy storage system for hybrid propulsion, a heat recovery system to enhance energy efficiency, and provisions for low-emission alternative fuels. The vessel will also be equipped with two launch and recovery systems (LARS) for ROV operations, and designed to work with a ‘walk-to-work’ gangway, making it highly versatile for renewable energy projects, such as cable laying and trenching.

Pierroberto Folgiero, CEO of Fincantieri, highlighted: “This new contract highlights our continued commitment to advancing maritime technology and sustainability. By expanding our partnership with Island Offshore, we are reinforcing our dedication to delivering innovative solutions for the evolving offshore energy market.”

Recently, VARD also inked a contract for an energy construction vessel (ECV) with Norway’s Wind Energy Construction. A few weeks ago, VARD held the steel cutting ceremony for a customized hybrid power cable lay and construction vessel it is building for the Japanese offshore wind market.