Europort 2025 is gearing up for conversations around ship finance for specialized vessels, at a time when rapid change and widespread uncertainty in the offshore wind market are undermining the case for the newbuildings the industry needs to fulfill its current commitments.
An undersupply of purpose-built vessels has driven demand for new builds in specialized parts of maritime and offshore energy industries in recent years. In the offshore wind sector in particular, the expansion of wind farm installations and the growing scale of components have created a need for a new breed of advanced – and expensive – offshore support vessels (OSVs) capable of undertaking more complex projects.
OSVs are expected to remain in service for 20 years or more, and the case for new vessels has been underpinned by a consistently stable outlook of growing demand for offshore wind power, set against the backdrop of long-term policy frameworks the investors favor.
The topic is likely to inspire lively conversations at Europort’s Ship Finance Pavilion this year, where public and private financiers, bankers, and consultants will be available to offer valuable insights, general guidance, tailored advice, and instant answers to visitors questions on funding.
Market volatility adds to investor uncertainty
In the United States, the presidential executive order suspending new offshore wind projects across the US Outer Continental Shelf represents an existential threat to the local sector. In fact, uncertainty in the US regulatory environment led Norwegian-based energy company Equinor to book an €820-million impairment on its Empire Wind project off the New York coast.
Ørsted recently also said it would discontinue an existing plan for the UK’s Hornsea 4 offshore wind farm, although a subsequent announcement that Equinor will invest nearly $1bn into the Danish renewable energy company offers a welcome boost to confidence. The Norwegian firm’s commitment will allow it to maintain its 10% share after Ørsted completes its new rights issue – announced in July.
In more sobering news for the industry, a recent zero-subsidy offshore wind auction in Germany failed to receive a single bid. The news called into question the country’s current auction design, which, according to Stefan Thimm, managing director of the German Offshore Wind Energy Association, “forces developers to bear risks beyond their control without any protection”.
Looking beyond traditional financing methods
The uncertainty may also call for innovation beyond traditional financing methods that are based on predictable income and commercial risk, which are already when innovative vessels serve relatively niche roles and lack a proven track record. They may be even less suitable for higher-risk assets whose lifespan, resale value, and employment prospects are uncertain.
A recent statement from the International Marine Contractors Association highlighted the offshore construction fleet’s “essential role in building, installing, and maintaining the infrastructure powering the clean energy transition." According to IMCA, if Europe is to realize its ambition of installing 300–400 gigawatts of offshore wind by 2050, it will need to provide the marine contracting sector with investment certainty.
Join the discussion on Ship Finance
The Europort conference and activity program is designed to encourage meaningful dialogue between capital providers, ship owners, shipbuilders and suppliers. Europort will also play host to Mare Forum Ship Finance, which returns to Rotterdam for its 24th edition on November 5 and is now open for registration.
