Aker Solutions has been granted a limited notice to proceed contract by Vattenfall for the development of the 1400MW Norfolk Vanguard West Offshore Wind Farm, situated off the coast of Norfolk, UK. This strategic contract is characterized by a balanced risk-reward profile, aligning with the principles of long-term collaboration.
The Norfolk Vanguard West Offshore Wind Farm will be part of Vattenfall's larger Norfolk Offshore Wind Zone, encompassing the Norfolk Vanguard East and Norfolk Boreas developments. Once fully operational, the Norfolk Offshore Wind Zone is expected to generate a substantial amount of renewable electricity, capable of powering over four million homes.
The successful realization of the Norfolk Vanguard West Offshore Wind Farm is contingent upon regulatory approvals and Vattenfall's final investment decision.
Aker Solutions will undertake the engineering, procurement, construction, and installation (EPCI) of the high voltage direct current (HVDC) offshore platform. The fabrication of the topside will be carried out in collaboration with Drydocks World Dubai, while the substructure will be produced at Aker Solutions' facility in Verdal, Norway.
Sturla Magnus, Executive Vice President of New Build at Aker Solutions, highlighted the potential for the entire Norfolk Offshore Wind Zone to require up to three HVDC platforms in succession. This approach could enhance long-term predictability, foster positive repeat effects, and promote standardization within the supplier industry.
At this stage, Aker Solutions will record a contract value of approximately NOK 4 billion (€0.3 billion) in the fourth quarter of 2023 in the Renewables and Field Development segment. This value reflects the compensated work scheduled to be executed until the expected final investment decision.
Following the formal award of the contract, the total contract value for Aker Solutions is projected to reach approximately NOK 6 billion (€0.5 billion). The contract structure emphasizes a balanced risk-reward profile and incentives geared toward efficient and secure project delivery.