SINGAPORE (May 13): Keppel Offshore & Marine’s (Keppel O&M) wholly-owned subsidiary Keppel FELS has secured a contract from Danish renewable energy company Ørsted for two offshore wind farm substations worth more than $150 million.

The contract comprises detailed engineering, procurement, construction, testing and commissioning for two offshore wind farm 600MW substations but excludes certain electrical components to be furnished by Ørsted.

Keppel's workscope is scheduled for completion in the third quarter of 2021. The substations will be deployed in Ørsted's Greater Changhua offshore wind sites in Taiwan, which have a total potential capacity of 2.4 GW.

Tan Leong Peng, Executive Director (Offshore) of Keppel O&M, says, "Offshore wind energy continues to gain traction around the world, and a large number of wind farms are under planning and construction. We have been able to leverage and extend our capabilities in offshore engineering and construction to provide services and solutions for this fast-growing adjacent sector, supporting the evolving needs of the energy industry."

Taiwan has announced plans to achieve 5.5 GW of installed capacity for offshore wind by 2025. It has also set an indicative target of 10-17 GW by 2030.

Keppel O&M is able to tap on its offshore design, engineering and construction capabilities for developing solutions across the value chain of offshore wind farms, such as wind turbine foundations, substation platforms, as well as installation and support vessels.

The above contract is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation for the current financial year.

Keppel Offshore & Marine is a division of Keppel Corp whose shares closed 2 cents lower at $6.51 on Friday.