Press Article: Renewables driving offshore market
News & Insights 22 September 2020
Sian Dinnadge, Underwriting Director of Standard Club's Offshore division, reviews offshore wind energy and P&I cover for offshore contractors, in Maritime Risk International.
The offshore wind energy market is growing against a backdrop of an increasing demand for alternative energy sources and political pressure for nations to transition to cleaner energies. However, currently offshore wind energy contributes just 0.5% to overall global energy production as against 17% from offshore oil and gas and just 7% of overall wind energy was produced offshore last year. The overriding reason is the relative infancy of offshore wind as an energy source, but it is anticipated that it will grow substantially between now and 2035 and Asia will be key to the industry’s progression.
Operators engaged in the installation of offshore wind farms will require the support of P&I Clubs to respond to their third-party liabilities assumed at law or under specific contracts. This article addresses how P&I cover can respond when a vessel is engaged in offshore wind farm construction, but first looks at the current offshore wind market and the potential areas for growth which may present good business opportunities for the Club’s offshore contractor membership.
The full article is available in Maritime Risk International's September issue, page 16-17, linked on the right.