Keppel Corp unit clinches offshore wind farm project

Keppel FELS, a unit of Keppel Offshore & Marine (Keppel O&M) which in turn is owned by Keppel Corp announced on Nov 22 it had secured a contract from a renewable energy company for the construction of two offshore substations (OSS) worth around $110 million. Keppel FELS work scope comprises the engineering, procurement, construction, testing and commissioning for the topside modules of two OSS.
The substations are scheduled to be completed in 2024 and to be deployed in an offshore wind farm.
In line with Keppel’s Vision 2030 which puts sustainability at the core of the Company’s strategy, Keppel O&M is strengthening its foothold across the value chain of offshore renewables. It recently completed two OSS for Taiwan’s Greater Changhua 1 & 2a offshore wind farms, and is currently building a HVDC converter station for offshore wind farms in the German sector of the North Sea as well as the first wind turbine installation vessel in the United States.
The new contract will be on progressive payment milestones and will have neutral project cashflow. It is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corp for the current financial year.