MHI Vestas, Boskalis announce firm orders for Moray East

MHI Vestas' V164 turbine. Image courtesy of MHI Vestas Offshore Wind.

December 6 (Renewables Now) - MHI Vestas Offshore Wind and Royal Boskalis Westminster NV (AMS:BOKA), previously named preferred turbine and inter-array cabling suppliers for the 950-MW Moray East offshore wind project in the UK, now have firm contracts in place.

MHI Vestas today said it will supply 100 pieces of its V164-9.5MW for the 950-MW Moray East offshore wind project in the UK under a firm turbine supply order. The joint venture between Denmark’s Vestas Wind Systems A/S (CPH:VWS) and Japan’s Mitsubishi Heavy Industries (TYO:7011) was selected as preferred turbine supplier for the project in October 2017, and then in August 2018 it announced a conditional order.

“We are pleased that Moray East has reached financial close. With the signing of the firm order, we can accelerate preparations for our company’s largest MW project to date,” Philippe Kavafyan, chief executive of MHI Vestas, said today.

The contract for MHI Vestas also includes a 15-year service agreement.

Dutch dredging and offshore contractor Royal Boskalis Westminster said it now has in place a binding contract, with a value of around EUR 110 million (USD 124.8m), to supply and install the inter-array cables for the Moray Offshore Windfarm East (MOWE). It will be in charge of the design, supply, installation and burial, as well as termination and testing, of 120 66-kV inter-array cables. Work under the contract is to take place in 2020 and 2021.

The Moray East project was awarded a contract for difference (CfD) in 2017 by the UK government at GBP 57.50 (USD 73.3/EUR 64.6) per MWh. Last week it was announced the project has secured billions of financing. EDP Renovaveis SA (ELI:EDPR) is leading the project with a 43.3% stake. Engie SA (EPA:ENGI) has 23.3% and Diamond Green holds 33.4%. Japan's Mitsubishi Corp (TOKYO:8058) recently said it has divested a 30% stake in Diamond to Kansai Electric Power Co Inc (TYO:9503) and 20% to Mitsubishi UFJ Lease & Finance Co Ltd (TYO:8593).

(EUR 1 = USD 1.13)

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