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BIMCO Works on Wind Turbine Contract

[ February 21, 2024   //   ]

BIMCO, one of the largest international shipping association for shipowners, has established a subcommittee to work on a global standard contract for the transport and installation of offshore wind turbines.
The project aims to support the offshore wind industry as global demand for renewable sources of energy increases.
Work on the contract, WINDSEACON, was initiated through a series of consultations with about 65 key market players. A dedicated subcommittee was then established from a broad range of industry leaders from companies around the world.
“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,” said Stinne Taiger Ivø, deputy secretary general at BIMCO, heading Contracts and Clauses and Support and Advice. “The consultations confirmed that there is a need for a targeted, balanced and commercially viable standard contractual framework for the offshore wind industry.”
The BIMCO project focuses on tackling offshore wind industry challenges, ensuring flexibility in the contractual framework, and keeping pace with the industry’s continuous evolution. The WINDSEACON contract will provide the framework to make legal and commercial negotiations more effective and efficient, and the subcommittee is currently focusing on the transportation and installation aspects of offshore wind turbines, the shipowners association said.
As work progresses, the subcommittee plans to consult and obtain feedback from the sounding board. The subcommittee will also explore whether additional U.S.-specific provisions are needed, as the U.S. market has different requirements than Europe and Asia when it comes to offshore wind turbines.
“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,” Ivø said. “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.”

BIMCO’s subcommittee will also explore whether specific provisions are needed for U.S. market, which have different requirements than Europe and Asia. PHOTO: U.S. Department of Energy