UAE’s NMDC Energy, formerly National Petroleum Construction Company (NPCC), is making a pivot to offshore wind, which is set to become a major revenue source for the company, and plans to invest about $500 million in an offshore vessel, its chief executive said.
“We are confident enough [about expanding] further in this important sector … we are now out in the market to shipyards to build a dedicated offshore vessel for wind, and this might be an investment of around $500 million,” Ahmed Al Dhaheri told The National.
Plans include investment in jack-up barges for tower, blade, and turbine installation, and subsequently, acquiring a vessel for laying interconnecting cables in offshore wind projects, he added.
NMDC Energy is also engaging with international energy companies such as TotalEnergies, EDF, RWE and, Iberdrola, Mr Al Dhaheri said, without elaborating.
“We see the potential in offshore wind, and this can in the future have a good share of our business and of our revenue moving forward,” he added.
This is a notable shift for the company, which mainly serves clients in the onshore and offshore oil and gas industries with engineering, procurement, and construction solutions.
NMDC Energy's only past involvement in wind energy was limited to installing monopiles – the most advanced type of foundation for offshore wind turbines – at the Yunlin offshore wind farm in Taiwan.
NMDC Energy, which its parent company NMDC listed on the Abu Dhabi Securities Exchange in September, reported full-year 2024 revenue of Dh14.44 billion ($3.93 billion), an 82 per cent increase from the previous year. Profit attributable to shareholders of the company surged by about 80 per cent year-over-year to Dh1.4 billion.
The company attributed its revenue growth to strong operational performance and expansion into new projects both domestically and abroad.
“We are trying to expand into other markets, so we are keeping an eye on developments in North Africa and West Africa as well as countries in South-east Asia. We are pursuing certain tenders, which will hopefully yield good results for the company,” Mr Al Dhaheri said.
NMDC Energy currently has a backlog of projects worth Dh 58 billion, he said.
Last month, the company won a $1 billion contract with a Taiwanese firm to build undersea gas pipelines, among other projects.
Macro troubles
Mr Al Dhaheri expects the world to move “aggressively” into offshore wind even as the industry currently faces rising costs, supply chain challenges, and planning delays.
Political support for wind energy is also waning, with US President Donald Trump recently pausing new federal offshore wind leasing for an environmental and economic review.
“I see that in the years to come, we'll be seeing many projects in this sector. Now, how this will change because of the political environment, this is something that we are yet to see,” Mr Al Dhaheri said.
“But today, there are a number of projects that are already sanctioned and they are lined up for execution.”
Nearly 40 per cent of the 380-gigawatt offshore wind pipeline expected to reach final investment decision between 2024 and 2030 is “risked,” leaving a significant portion vulnerable, Westwood Global Energy Group said in a report on Wednesday.
Norway-based consultancy Rystad Energy projects steady growth in the offshore wind sector, forecasting global installations – excluding mainland China – to surpass 520 gigawatts by 2040.
