Dry bulk carrier Scorpio Bulkers has announced plans to enter the renewables market. The Monaco-based carrier has signed a letter of intent for the construction of a new installation vessel with Daewoo Shipbuilding and Marine Engineering with options for more vessels in the future.

The company says it’s the first step towards a sustainable business in renewable energy. “Scorpio Bulkers is embarking on a new and exciting journey. The world urgently needs to reduce emissions and offshore wind will make a pivotal contribution. We appreciate the encouragement and assistance of multiple partners as we take a significant first step in transitioning the company towards a sustainable future”, says CEO Emanuele Lauro.

The initial vessel will be built by Daewoo Shipbuilding and Marine Engineering with delivery scheduled for 2023. It concerns an NG-16000X design of GustoMSC with a 1,500-tonne leg encircling crane from Huisman Equipment.

Total cost for the vessels will be somewhere between USD 265 to 290 million, subject to final design modifications. The final contract is expected to be signed in early Q4 2020 and will include options to construct up to an additional three units with similar specifications.

Scorpio is specifically targeting the installations of the wind turbine generators and not the foundations. According to the company, the vessel will be “one of the most sophisticated dedicated turbine installation vessels in the world.” It will be able to install the largest wind turbines currently designed onto pre-prepared foundations, at a height of over 185 meters above sea level and in water depth in excess of 65 meters.

Scorpio considers the market to be highly attractive as analysts expect an annual growth rate of over 15% for the next decade, while there’s also a growing shortage of vessels that can install and maintain the next-generation turbines. As such, Scorpio’s board of directors believe the company is in a good position to build an industry-leading presence. “Our transition has begun”, says Lauro.