International shipping organisation BIMCO has established a subcommittee to work on a global standard contract for the transport and installation of offshore wind turbines aimed at tackling the challenges faced by the growing sector.
Work on the contract called WINDSEACON was initiated through a series of consultations with about 65 key market players, leading to the establishment of a dedicated subcommittee and a large sounding board composed of a broad range of industry leaders.
“During our consultations with offshore wind experts, it became evident that the majority of the market was using contracts reflecting a blend of construction contracts and BIMCO’s SUPPLYTIME charter party. The consultations confirmed that there is a need for a targeted, balanced and commercially viable standard contractual framework for the offshore wind industry,” said Stinne Taiger Ivø, deputy secretary general at BIMCO, heading contracts & clauses and support & advice.
According to BIMCO, the WINDSEACON contract will offer the structure needed to improve the efficacy and efficiency of legal and commercial negotiations. The focus is currently on the transportation and installation aspects of offshore wind turbines. While the US market has different requirements than Europe and Asia when it comes to offshore wind turbines, the subcommittee is expected to explore whether additional US-specific provisions are necessary as the work progresses.
“The drafting team will bring their collective expertise to the table to develop a new standard contract that will help shape the future of offshore wind. The need for a targeted contract is growing and we are working on how it should be constructed to support the demand for renewable energy sources,” Ivø added.
