Kirby Corporation Announces Offshore Wind Partnership with Maersk
Kirby Corporation (NYSE: KEX) announced a significant 20-year commercial agreement for its Kirby Offshore Wind subsidiary to provide barge services for offshore wind projects to Maersk Supply Service, chosen by Empire Offshore Wind. Kirby will invest $80 million to $100 million in two new feeder barges and hybrid tugboats, enhancing its renewable energy capabilities. The project is expected to create jobs and utilize U.S. shipyards. Operations are projected to start in late 2025 or early 2026, marking Kirby's strategic entry into the U.S. offshore wind market.
- 20-year contract with Maersk for offshore wind projects enhances long-term revenue potential.
- Investment of $80 million to $100 million in new vessels expands Kirby’s operational capabilities in the renewable energy sector.
- Project expected to create new American jobs during construction and operation phases.
- None.
HOUSTON, March 29, 2022 (GLOBE NEWSWIRE) -- Kirby Corporation ("Kirby" or the “Company”) (NYSE: KEX) today announced the signing of a commercial agreement for its wholly owned subsidiary, Kirby Offshore Wind, to provide barge transportation services for offshore wind towers and turbines to Maersk Supply Service (“Maersk”), which has been selected by Empire Offshore Wind, a joint venture between Equinor and bp, as the installation contractor for the project off the coast of New York. Kirby’s contract with Maersk represents a 20-year framework agreement with the Empire Wind projects being the first.
Kirby Offshore Wind will provide the Jones Act compliant feeder barges and tugboats which will transport the wind towers and turbines from the South Brooklyn Marine Terminal to a specialized Maersk wind turbine installation vessel (“WTIV”). Kirby will be investing in two new American Bureau of Shipping (“ABS”) classed feeder barge and diesel-electric hybrid tugboat units which will be constructed in U.S. shipyards for a total combined cost of between
David Grzebinski, Kirby’s President and Chief Executive Officer, commented, “We are excited to announce Kirby’s participation in the offshore wind market through our newest business division, Kirby Offshore Wind. We have been carefully evaluating opportunities to enter the offshore wind industry for several years, and we are very pleased to partner with world-class operators such as Maersk, Equinor, and bp on a critical foundational project with a multi-year transportation agreement. Kirby’s participation in this renewable energy space will not only grow Company earnings and returns, but will also greatly enhance our ESG product and service offerings in the coming years. Our commitment to build two next-generation feeder barges and emissions friendly diesel-electric hybrid tugboats, which could have the ability to substitute diesel for alternative fuels, is not only important for Kirby’s ESG journey, but also for the U.S. maritime sector. These vessels will create new American jobs, both during the construction phase at two U.S. shipyards, as well as for U.S. mariners once operations commence.”
Christian O’Neil, Kirby’s President of Marine Transportation, also commented, “Offshore wind in the U.S. has tremendous potential for significant growth during this decade and beyond. As a leading provider of Jones Act compliant barge services in the U.S. coastal trade, Kirby’s participation in the development and support of the offshore wind industry is critical to our future. These new vessels will complement the ABS classed Maersk WTIV and support achievement of project efficiency gains.”
“Maersk’s wind turbine installation vessel is the first of its kind and will set a new standard for the efficiency of windfarm installations. The efficiency gains are made possible as the installation vessel can stay on location at the wind farm, while only the tugs and barges transport equipment to and from the port. With Kirby Offshore Wind, Maersk has found a solid U.S. partner, who shares the same values and vison to support the development of the U.S. wind market long-term,” said Jonas Munch Agerskov, Chief Commercial Officer at Maersk Supply Service.
Christopher J. Wiernicki, ABS Chairman, President, and CEO, commented, "ABS and Kirby have a long and proud history of working together. We are pleased to be able to support them once again on these vessels with Maersk, as they come together to play an important role in delivering to the U.S. offshore wind market."
Kirby and Maersk expect wind turbine installations and the associated feeder barge services to commence beginning in late 2025 or early 2026 once the construction of Maersk’s new WTIV is completed.
For more information about Kirby Offshore Wind, please visit www.kirbycorp.com/kirby-offshore-wind.
About the Empire Wind Projects
The Empire Offshore Wind project is a joint venture between Equinor and bp through their 50/50 strategic partnership in the U.S. The project is comprised of two windfarm sites, Empire Wind 1 and Empire Wind 2, which are located 15-30 miles southeast of Long Island, New York, and span a combined 80,000 acres with water depths between 75 and 135 feet. The Empire Wind 1 and 2 projects are expected to generate more than 2 gigawatts (“GW”) of renewable power for the State of New York. Equinor will serve as the operator through the development, construction, and operations phases.
About Maersk Supply Service
Maersk Supply Service, headquartered in Lyngby, Denmark, is a leading provider of marine services and integrated solutions to the energy sector worldwide with a large fleet of anchor handling tug supply vessels and subsea support vessels. The company provides solutions to the oil and gas industry in areas such as towing and mooring installation and subsea construction, and supports industries such as offshore wind and ocean cleaning. Maersk brings more than 50 years of experience and a diverse fleet of modern vessels to support offshore wind operators in both the bottom-fixed and floating sectors. Maersk’s range of services include installation of wind turbines, walk-to-work and accommodation services, project management, and engineering.
About Kirby Corporation
Kirby Corporation, based in Houston, Texas, is the nation’s largest domestic tank barge operator transporting bulk liquid products throughout the Mississippi River System, on the Gulf Intracoastal Waterway, and coastwise along all three United States coasts. Kirby transports petrochemicals, black oil, refined petroleum products and agricultural chemicals by tank barge. In addition, Kirby participates in the transportation of dry-bulk commodities in United States coastwise trade. Through the distribution and services segment, Kirby provides after-market service and genuine replacement parts for engines, transmissions, reduction gears, electric motors, drives, and controls, specialized electrical distribution and control systems, energy storage battery systems, and related equipment used in oilfield services, marine, power generation, on-highway, and other industrial applications. Kirby also rents equipment including generators, industrial compressors, high capacity lift trucks, and refrigeration trailers for use in a variety of industrial markets. For the oil and gas market, Kirby manufactures and remanufactures oilfield service equipment, including pressure pumping units, and manufactures electric power generation equipment, specialized electrical distribution and control equipment, and high capacity energy storage/battery systems for oilfield customers.
FAQ
What is the significance of Kirby's contract with Maersk Supply Service?
How much is Kirby Corporation investing in new vessels for the offshore wind project?
When are operations for Kirby’s offshore wind services expected to commence?
What renewable energy capabilities is Kirby enhancing with this agreement?
