State-owned Cochin Shipyard Limited (CSL) announced on Monday that it has secured another prestigious international order from the UK-based offshore renewable operator, North Star Shipping. The contract involves the construction of hybrid Service Operation Vessels (SOVs) to be deployed at the Scottish Power Renewables East Anglia THREE offshore wind farm off the Suffolk coast. This agreement also includes an option for North Star to commission two additional vessels. Earlier this year, North Star had already contracted CSL for another hybrid SOV.
CSL highlighted the significance of this order in a statement: “With attention turning towards sustainable and green energy solutions, there is a large global focus on the development of the offshore renewable energy segment. The hybrid Service Operation Vessels (SOVs) are the workhorses of the growing, highly specialized renewables segment, in which CSL is actively looking forward with their proven track-record in the offshore support vessels.”
The 85-meter Hybrid SOVs are designed by VARD AS, a Norway-based company, based on the proven 4 19 design, tailored for the service, maintenance, and operational needs of the offshore wind industry. These vessels will feature a fully electric azimuth propulsion system and a 3D motion-compensated gangway system (walk2work), essential for their mission. The vessels will be classed with DNV Norway, ensuring high standards of safety and performance.
The hybrid electric propulsion system will be powered by four diesel generator sets complemented by a large lithium battery pack, significantly reducing emissions. The vessels will also boast high-standard interiors to accommodate 80 technicians and crew, with DNV comfort ratings and a Dynamic Positioning System.
The shares of CSL have seen a substantial increase, rising by 47.32% in the last month and 248% over the past six months. On Monday, the shares surged nearly 10%, reaching a new 52-week high of Rs 2,100.
North Star Shipping, known for its long-term contracted infrastructure support in challenging marine environments, brings over 135 years of experience to the table. James Bradford, North Star’s Chief Technology Officer, praised CSL: “We have chosen Cochin Shipyard Ltd to undertake this second SOV newbuild project due to their exceptional track record of delivering high-quality vessels on time and within budget. Their expertise and proven capabilities align perfectly with our vision for advancing sustainable maritime solutions, ensuring that we continue to meet the evolving needs of our clients and contribute positively to a greener future.”
Madhu Nair, Chairman and Managing Director of CSL, expressed enthusiasm about the partnership: “Cochin Shipyard Ltd (CSL) is extremely happy to be chosen again as the preferred partner for North Star and is participating to achieve its goals of North Star in the offshore renewable segment. CSL is committed to building high-quality products with a focused interest in sustainable solutions to serve the evolving maritime markets.”
Last week, CSL reported a significant increase in its consolidated net profit, which soared to Rs 258.88 crore for the March 2024 quarter, up from Rs 39.33 crore in the same period last year. The company’s total income also rose to Rs 1,366.16 crore from Rs 671.32 crore in January-March FY23.