Kvaerner contract for Hywind Tampen is a vital strategic break through

31 October 2019

Kvaerner today signs a contract with Equinor to deliver 11 floating concrete hulls for offshore wind power turbines and in addition execute marine operations services for the Hywind Tampen project. This will be the world’s largest floating offshore wind farm and is vital for industrialising solutions and reducing costs for future offshore wind power projects. Kvaerner’s contract is worth about NOK 1.5 billion.

The Hywind Tampen project will be installed offshore Norway, west of the city Bergen and will supply electrical power to the nearby oil and gas platforms Gullfaks A, B, C and Snorre A and B. The combined effect from the 11 turbines will be 88 megawatts and will replace about 35 percent of the five platforms’ energy demand. Today, the energy required to run these platforms is supplied by gas turbines.

The project will reduce Norwegian CO2 emissions with more than 200 000 tonnes per year, which is equivalent to the emissions from 100 000 cars. In addition, analysis confirm that the hulls made of concrete have a favourable CO2 footprint compared to several other solutions. Kvaerner will also leverage Hywind Tampen to further reduce the CO2 footprint in concrete construction for future projects.

“Kvaerner aims to contribute to sustainable and value creating solutions for the environment and society. It is vital that Norway does what is possible to reduce emissions, also within oil and gas production. When such improvements are combined with reducing the emissions from oil and gas consumption in each country around the globe, we progress towards the globally agreed climate objectives. The Hywind Tampen project paves the way for more wind power farms both in Norway and internationally. Today’s new contract is a very important step in Kvaerner’s strategy to grow within renewable business, in addition to our existing business within oil and gas”, says Karl-Petter Løken, Kvaerner’s President & CEO.

Kvaerner’s scope comprises engineering, procurement, and construction of the floating concrete hulls which will carry the wind turbines. In addition, Kvaerner`s contract includes delivery of the marine operations phase. This includes the full project management, engineering, assembly site management, mooring system installation, units tow-to-field and installation of the floating wind turbine units at the Tampen area. Marine operations will be performed as an integrated subcontract to the main contract, executed in a 50/50 joint venture between Kvaerner and DOF Subsea.

Kvaerner is recognised as the world’s undisputed leader for solutions and execution of advanced concrete structures for marine projects. The company have delivered concrete structures worldwide which many deem among world wonders, such as Troll A or Hebron, and the corporation has some of the world’s best experts on concrete technology.

“It was an important milestone for us when we in spring of 2019 were asked to participate in early phase engineering for Hywind Tampen, and thus contribute to develop the solution which we will now start to construct. This year, we have also started to recruit new concrete specialists, because we see more opportunities for Kvaerner to participate in important projects globally”, says Løken.

The initial phase of constructing the 11 concrete hulls will start in the drydock at Kvaerner’s specialised facility at Stord in Norway. The bottom sections will thereafter be floated to the site at Dommersnes in the Vindafjord where the construction will be completed. Finally, the wind turbines will be installed on top of the concrete hulls in Gulen, a bit further north. The project will start immediately and be completed during the autumn 2022. The project will involve about 250 man-years for Kvaerner employees. Including additional ripple effects for among others suppliers and public sector, the project will in total involve about 800 man-years.

“When Kvaerner is a main contractor to a project, we have many subcontractors and local society’s that benefit from our activities. When we are now growing our business into renewable markets, we aim to build new industries and new value creation around us”, says Løken.

The contract signing will take place today at 10:00 am CET at Equinor’s offices at Fornebu outside Oslo. There will simultaneously be a press briefing, and Kvaerner’s Karl-Petter Løken will be available for comments.

ENDS

For further information, please contact:

Media inquiries:

Torbjørn Andersen, Head of IR & Communications, Kvaerner, Mob: +47 928 85 542, email: torbjorn.andersen@kvaerner.com

Investor inquiries:

Idar Eikrem, EVP & CFO, Kvaerner, Mob: +47 950 28 363, email: ir@kvaerner.com

About Kvaerner:

Kvaerner is a project execution specialist and a trusted advisor for our clients. We provide engineering, procurement and construction (EPC) services and deliver advanced offshore and onshore installations around the world.

We have offices in seven countries and approximately 2 800 employees. Health, Safety, Security and Environment (HSSE) has the highest priority in our work, and we aim to deliver technology and solutions in a safe and sustainable way. Our passion, experience and expertise realise values for clients and societies. Kværner ASA, through its subsidiaries and affiliates (“Kvaerner”), is an international contractor and preferred partner for operators and contractors within oil and gas, renewable energy and in the field of engineering and fabrication.

In 2018, Kvaerner’s Field Development segment had consolidated annual revenues of NOK 7.3 billion and the company reported an order backlog at 30 September 2019 of NOK 8.3 billion. Kvaerner is publicly listed with the ticker “KVAER” at the Oslo Stock Exchange. For further information, please visit www.kvaerner.com (http://www.kvaerner.com).

To subscribe or unsubscribe to our press releases, please see our web page: https://www.kvaerner.com/investors/news-and-stock-exchange-announcements/subscribe-to-releases/

Related Articles

REMINDER Invitation to Kværner ASA’s Capital Market Update 12 December 2019

06 December 2019

Kværner ASA (KVAER) has the pleasure of inviting you to attend Kvaerner`s Capital Market Update which will take place in Oslo, Norway on Thursday 12 December 2019 from 09:00 to approximately 11:00 CET. Registration opens at 08:45 and a lunch buffet will be served following the last session. Date: Thursday 12 December 2019Registration: 08:45 CETPresentations: […]

CORRECTION | Kvaerner sells 1 430 429 shares to employees

05 December 2019

The 26 November 2019 Nordea Markets sold on behalf of Kværner ASA 1 430 429 shares in relation with the company’s share purchase programme for employees. Following the transaction, Kværner ASA holds a total of 1 093 77 own shares. The price was based on the average volume weighted share price on Oslo stock exchange […]

Kvaerner sells 1 430 429 shares to employees

27 November 2019

Today, Nordea Markets has on behalf of Kværner ASA sold 1 430 429 shares in relation with the company’s share purchase programme for employees. Following the transaction, Kværner ASA holds a total of 1 093 77 own shares. The price was based on the average volume weighted share price on Oslo stock exchange over the […]