The offshore wind sector continues to grow globally, with Service Operation Vessels (SOVs) and Construction Service Operation Vessels (CSOVs) playing increasingly important roles. Phil Lewis, Director of Research at New York-based Intelatus, provides expert insights into the evolving landscape, addressing both emerging opportunities and challenges within these markets in light of recent political developments.
Interest in purpose-built SOVs and CSOVs has surged due to the expansion of offshore wind farms, particularly across Europe.
According to Mr. Lewis, the current fleet of approximately 60 vessels is projected to double by 2028, reflecting growing demand for vessels capable of supporting large-scale, further from shore offshore operations.
While Crew Transfer Vessels (CTVs) remain effective for near shore and/or smaller wind farms, the increasing size and complexity of offshore projects underscore the need for specialized SOVs and CSOVs.
“The offshore wind industry is evolving rapidly,” said Mr. Lewis. “SOVs are typically built against long-term charters, ensuring balanced supply-demand dynamics. In contrast, CSOVs, often constructed speculatively, cater to shorter duration construction and commissioning projects. Aggressive investment in CSOVs is likely to lead to oversupply in the short- to mid-term and impact day rates.”
Impact of the New Trump Administration
The recent change in U.S. political leadership introduces new uncertainties for the offshore wind sector in the USA. The Trump administration’s emphasis on hydrocarbons over renewables has resulted in policy reviews and slowed some offshore wind projects. Despite these challenges, Lewis remains generally optimistic about the industry’s resilience.
“While key projects may face delays and some investments will be re-evaluated, the U.S. offshore wind industry is far from stalled,” Mr. Lewis noted. “The market’s reliance on robust European supply chains and its inherent growth potential support longer-term prospects, despite the current headwinds.”
Interplay Between Offshore Wind and Traditional Energy Markets
Mr. Lewis also highlights the ongoing interplay between the offshore wind and traditional oil and gas markets. Many early offshore wind walk-to-work vessels were adapted from oil and gas service vessels. With increased activity in the oil & gas segment, many of these vessels are finding utilization in their traditional markets. In fact, there is some interest in purpose-built offshore wind CSOVs being deployed to support oil & gas projects.
(Dreamstime photo of Netherlands offshore windmill park)