Subsea 7's HKZ Wind Farm Installation Deal Confirmed as FID Made

June 5, 2020

Illustration only - Credit: Subsea 7
Illustration only - Credit: Subsea 7

Offshore installation contractor Subsea 7 has confirmed the award of "a substantial" contract by Vattenfall for the Hollandse Kust Zuid (HKZ) 1-4 offshore wind farm project in the Dutch North Sea.

The two companies had in April signed a conditional contract under which Subsea 7 was to transport and installation of approximately 140 wind turbine monopile foundations and 315km of 66kV inner array grid cables. 

The contract was conditional on Vattenfall making a final investment decision. The FID for the 1.5 GW offshore wind project - the world's largest and the first subsidy-free offshore wind project in the Netherlands - was announced Thursday.

Subsea 7 said Friday morning that offshore installation was scheduled for execution in 2021 and 2022 using Seaway 7's heavy lift, cable lay, and support vessels.

While it didn't provide the exact value of the contract, Subsea 7 said the contract value was "substantial." 

Subsea 7 defines a substantial contract as being between USD 150 million and USD 300 million.

Worth noting this is the second major wind farm development sanctioned in Europe this week, as the FID was made Wednesday by SSE on the 1,075MW, Seagreen 1 offshore wind farm project, which will be Scotland’s largest wind farm once complete.

While the Seagreen has a smaller capacity compared to HKZ, Subsea 7 has been awarded a larger contract there.

For the Seagreen project, Subsea 7 will manage the EPCI of the 114 wind turbine generator foundations and around 300km of associated inter-array cables.

Subsea 7's part did not say how much the deal would be worth exactly, however, it said it was a 'major contract." The company defines a major contract as being over USD 750 million.



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