Keppel Offshore & Marine’s wholly owned subsidiary Keppel FELS has obtained an around S$110 million contract from a renewable energy company to build two offshore substations (OSS), the company said in a filing to SGX Monday.
The contract involves the engineering, procurement, construction and testing for the topside modules of two offshore substations, excluding the foundations, Keppel said.
“We are pleased to secure this contract, which reflects Keppel O&M’s continuing pivot towards renewables and cleaner energy solutions,” Chris Ong, CEO of Keppel O&M, said in the statement.
The project is expected to be completed in 2024, the filing said.
Keppel said the contract is in line with its Vision 2030 strategy, which aims to pivot the company to sustainability focused projects.
“Keppel O&M is strengthening its foothold across the value chain of offshore renewables,” the filing said, noting the company had recently completed two offshore substations for Taiwan’s Greater Changhua 1 & 2a offshore wind farms.
The company noted it is currently working on a HVDC converter station for offshore wind farms in the German sector of the North Sea and the first wind turbine installation vessel in the U.S.
In 2020, Keppel secured the U.S. wind turbine installation vessel contract, which was around S$600 million, from U.S. energy company Dominion Energy; it is scheduled for delivery in 2023.
In its 2020 annual report, Keppel said Vision 2030 includes shifting its work portfolio toward sustainable urbanisation services, as well as reducing the company’s carbon, waste and water intensity.
The strategy has four key areas: energy and environment, urban development, connectivity and asset management.