The offshore wind industry has been on an upward trajectory over the last decade, driven by increasing global energy demands and ambitious renewable energy targets. A significant aspect of this evolution is the development of turbines that exceed 15MW in capacity. These next-generation turbines promise higher energy yields, making offshore wind farms more efficient and economically viable. However, this rapid growth introduces a range of new challenges, primarily related to the installation and maintenance infrastructure needed to support these massive structures.
One of the most pressing challenges is the shortage of specialized jack-up vessels capable of installing and maintaining these larger turbines. Historically, offshore wind projects have used jack-up vessels designed for turbines ranging from 6MW to 12MW. While these vessels were sufficient for earlier stages of the industry, they lack the necessary capacity, lifting height, and stability required for turbines that now reach and exceed 15MW. The new generation of wind turbine installation vessels (WTIVs) and service operation vessels (SOVs) must incorporate major technological upgrades to meet these increased demands. These upgrades include enhanced crane capacities and larger deck spaces to accommodate the significant size of turbine components.
Given the projected growth of the offshore wind sector, the demand for installation and maintenance solutions continues to rise. According to a report highlighted by OffshoreWind.biz, the global offshore wind market will need approximately 200 new vessels by 2030, requiring an investment of around $20 billion to support planned turbine installations.
According to the WindEurope report 'Offshore Wind Vessel Availability until 2030' , Europe alone will need an additional 20 to 25 high-capacity installation vessels, 45 to 55 Service Operation Vessels (SOVs), and over 170 Crew Transfer Vessels (CTVs) by 2030 to meet its ambitious offshore wind targets. This estimations underscores the massive scale of the challenge and suggests that relying solely on the expansion of the current fleet may be insufficient or financially impractical. The industry must therefore consider alternative solutions that bridge the gap until new vessels can be constructed and deployed.
Key offshore wind markets, such as the USA, Japan, and Korea, are particularly affected by these vessel shortages. The Jones Act in the USA, which restricts the use of foreign-built or foreign-owned vessels for transporting goods between domestic ports, exacerbates the problem. This regulation limits the number of vessels available for offshore wind installations, creating bottlenecks that increase costs and extend project timelines.
The Korean Market:
South Korea is positioning itself as a major player in the offshore wind sector, with ambitious plans to achieve approximately 12GW of offshore wind capacity by 2030. This expansion is part of the country's broader strategy to reduce reliance on fossil fuels and meet its net-zero emissions target by 2050. Korea's robust shipbuilding industry provides a solid foundation for developing the necessary vessels; however, challenges remain. The country's port infrastructure is not yet fully equipped to support the scale of development needed for such ambitious targets. Limited space in existing ports, coupled with the high demand for shipyard capacity, creates bottlenecks that could slow project timelines.
The Japanese Market:
Japan, with its extensive coastline and strong commitment to renewable energy, is also aggressively expanding its offshore wind sector. The Japanese government has set a target of achieving 10GW of offshore wind capacity by 2030 and further expanding to 30–45GW by 2040. However, Japan faces unique challenges that set it apart from other offshore wind markets. The country’s deep coastal waters limit the feasibility of traditional bottom-fixed wind turbines, making floating wind technology a critical focus for future developments.
Japan's vessel shortage is particularly acute due to the specialized needs of floating wind farms, which require different handling compared to bottom-fixed installations. The country’s existing fleet is not equipped to manage the complex logistics and dynamic installation processes of floating turbines. Collaboration with global shipbuilding leaders and international partnerships will be crucial for Japan to build or retrofit the necessary fleet to meet these needs. Additionally, Japan’s port infrastructure requires significant upgrades to accommodate larger vessels and facilitate the assembly and transportation of massive turbine components.
Addressing Vessel Shortages with Innovative Solutions:
One promising approach to mitigating the vessel shortage challenge is the use of innovative, adaptable platforms such as the ATOMS platform and Liftra.com Crane LT1500 commercialized by SOLVE Wind Services. Unlike traditional jack-up vessels, the ATOMS platform is designed to offer greater flexibility and scalability, enabling it to be deployed for both installation and maintenance operations. This adaptability is particularly beneficial for regions with infrastructure constraints or legislative limitations, such as those faced in the USA due to the Jones Act.
By using ATOMS, developers can tackle the logistical challenges posed by deep-water projects, such as those in Japan, which heavily rely on floating wind technology.
The platform’s capability to manage both bottom-fixed and floating wind installations provides the versatility needed as the industry shifts towards deeper and more complex offshore environments. This flexibility ensures that even as turbine sizes increase and floating wind farms become mainstream, developers can continue to meet project demands efficiently.
The Way Forward:
The reliance on retrofitted vessels and those not specifically designed for modern offshore wind installations presents further challenges. Using vessels not optimized for the scale and weight of next-generation turbines can lead to safety issues and operational inefficiencies. Maintenance operations, which are crucial for the long-term performance of offshore wind farms, also face significant obstacles. Larger turbines require vessels that can manage their substantial height and weight, and using inadequately equipped vessels for these tasks increases the risk of accidents, equipment damage, and extended downtime.
Investment in new WTIVs and SOVs is essential but comes with its own set of financial and logistical challenges. The cost of building a new vessel capable of installing 15MW+ turbines ranges between $300 million and $500 million, with lead times extending to several years. Even with current plans to expand the fleet, the projected number of vessels will likely fall short of what is needed by 2030. This shortfall poses a significant risk to the industry’s ability to meet its targets and could lead to a slowdown in project development, especially as more projects approach the construction phase.
The financial advantages of incorporating alternative solutions like the ATOMS platform into project strategies are significant. Building new vessels can place a considerable strain on project budgets, especially given the lead times and high capital expenditures involved. By deploying adaptable, cost-effective solutions, developers can maintain project profitability while still meeting the complex needs of modern offshore wind installations. Additionally, platforms like ATOMS can help operators minimize downtime and maintain the efficiency and cost-effectiveness of wind farms.
As the offshore wind industry looks to expand its global footprint, the pressure to overcome vessel shortages and infrastructure constraints will only grow. A dual approach that combines long-term investments in new vessel construction with strategic enhancements and solutions will be essential for maintaining momentum. This strategy will not only support immediate project needs but will also future-proof the industry against evolving challenges as turbine sizes continue to increase and new technologies like floating wind become mainstream.
Governments and industry stakeholders must collaborate to create supportive policy frameworks that encourage investment in both new builds and alternative solutions. Policies that incentivize vessel retrofitting, enhance port infrastructure, and promote international cooperation will be vital to ensuring a stable and sufficient supply of installation and maintenance vessels.
As the industry continues to evolve, embracing a mix of traditional and innovative approaches will be key to navigating the logistical and financial challenges that come with scaling up offshore wind capacity. By integrating these strategies into their project plans, developers can mitigate vessel shortages, enhance project timelines, and maintain the momentum needed to achieve global renewable energy targets.
The offshore wind sector stands at a crucial crossroads. While the construction of new high-capacity vessels is an indispensable part of long-term planning, it is clear that adaptive solutions and strategic investments will be equally important for addressing immediate and near-term challenges. This comprehensive approach, incorporating platforms like ATOMS, will ensure the industry can continue to expand, meet increasing energy demands, and contribute to a more sustainable future.
References:
- Clarksons Research – "Global Offshore Wind Vessel Market Report 2024" – https://www.clarksons.com/services/research/renewable-energy/
- AIIB – "Offshore Wind Farm Vessels Critical for Asia’s Energy Transition" – https://www.aiib.org
- GWEC – "Global Offshore Wind Report 2023" – https://www.gwec.net
- BloombergNEF – "Offshore Wind Market Trends and Projections" – https://about.bnef.com/
- IHS Markit – "Cost Analysis of Offshore Wind Installation Vessels"
- AIIB EFC Report on Offshore Wind Vessels, 2023
- GWEC – Global Offshore Wind Report 2023 PDF
- OffshoreWind.biz
- WindEurope report 'Offshore Wind Vessel Availability until 2030' (June 2022)