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 $80 million to $100 million. Each feeder barge will have
the capacity to transport next-generation turbines of 15 megawatt
(“MW”) and higher as turbine technology advances. The capital
investment for the new vessels will be incurred through progress
payments over the 2023 to 2025 timeframe. Kirby’s offshore marine
facility in Staten Island, New York, as well as its marine
headquarters in Houston, Texas, will be the base of operations for
the Company’s offshore wind activities.
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.
Investor Relations Contact:
Eric Holcomb
713-435-1545
investor.relations@kirbycorp.com
Public Relations Contact:
Matt Woodruff
713-435-1542
public.affairs@kirbycorp.com
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