Singapore-headquartered Seraya Partners has established an offshore wind farm vessel leasing business to support the installation and long-term service operations of offshore wind farms across Asia.
Speaking to Infrastructure Investor, the firm’s managing partner James Chern said the firm would look to invest $1 billion into the business – known as Cyan Renewables – over the next five years as it focuses on acquiring and operating assets across the offshore wind farm value chain. As part of its initial five-year plan, the business aims to acquire a minimum of 30 crew transfer vessels, 10 service operation vessels and one wind turbine installation vessel.
With the offshore wind farm sector expected to expand globally from a roughly 36GW industry to 386GW within the next 15 years, Chern said the new platform would help address the severe shortage of offshore wind farm service vessels in the region.
“We see more countries focusing on being independent [with regards to] their energy needs and at the same time wanting to be green… Wind farms are essentially the only viable large-scale renewable power production that countries can depend on,” Chern said.
“There’s tremendous growth coming in the offshore wind industry across all parts of the world and the biggest issue that we see is the supply-demand gap for the ships that will go out to build these wind farms and maintain them for the next 20 years.
“We’re fortunate that we’re the first in Asia to start this business… We have no competitors [in the region] so we’re right at the cutting edge of this industry.”
Cyan will primarily target offshore wind farms in Japan, South Korea, Taiwan and Australia and will be headquartered in Singapore. The business has also established an office in Denmark, which Chern said was necessary in order to draw on Europe’s industry expertise.
“[The offshore wind farm] industry really started in Europe – particularly Norway and Denmark – that’s where the history and the track record is for this industry. In order for Asia to be able to build, operate, and maintain wind farms [effectively], we need a lot of European track record expertise and technology,” Chern explained.
“Asia and Europe combined [represent] 82 percent of the offshore wind farm industry globally. While we’re focused in Asia and have a footprint in Europe, we can [access] that share of the market.”
The business is the third to be launched via Seraya Partners Fund I, following the establishment of the firm’s data centre development business, Empyrion DC, in August, and energy transition-focused company, Astrid Renew, which Seraya launched in April.