Keppel Offshore & Marine Ltd's (Keppel O&M) wholly-owned subsidiary Keppel FELS Ltd (Keppel FELS) has secured a contract from Ørsted, a Danish renewable energy company, for two offshore wind farm substations worth more than S$150 million, further strengthening Keppel O&M's foothold in the renewable energy sector.
The contract comprises detailed engineering, procurement, construction, testing and commissioning for two offshore wind farm 600MW substations. It excludes certain electrical components to be furnished by Ørsted.
Keppel's workscope is scheduled for completion in the third quarter of 2021. The substations will be deployed in Ørsted's Greater Changhua offshore wind sites in Taiwan, which have a total potential capacity of 2.4 GW.
Mr Tan Leong Peng, Executive Director (Offshore) of Keppel O&M, said, "This project bears testament to the trust and confidence that industry frontrunners such as Ørsted have in Keppel O&M's expertise and experience. We are glad to embark on this project for Ørsted, and are committed to ensure that the project is delivered safely, on time and to high customer satisfaction.
"Offshore wind energy continues to gain traction around the world, and a large number of wind farms are under planning and construction. We have been able to leverage and extend our capabilities in offshore engineering and construction to provide services and solutions for this fast-growing adjacent sector, supporting the evolving needs of the energy industry."
Taiwan has announced plans to achieve 5.5 GW of installed capacity for offshore wind by 2025. It has also set an indicative target of 10-17 GW by 2030.
Keppel O&M is able to tap on its offshore design, engineering and construction capabilities for developing solutions across the value chain of offshore wind farms, such as wind turbine foundations, substation platforms, as well as installation and support vessels.
The above contract 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.