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Mitsui O.S.K. Lines (MOL) is always looking ahead to the future and pursuing new initiatives. Most recently, MOL has been working to establish a presence in the value chain of offshore wind power generation, leveraging the deployment of Asia's first newly built Service Operation Vessel (SOV) to support offshore wind farms in Taiwan. While we are proud of our 140-year history in the domain of comprehensive maritime transport, we do not intend to limit ourselves there, pioneering into the unknown realm of offshore wind power generation.

SOV Business as a Stepping Stone for Entry into Offshore Wind Power Generation

1. Giant wind turbines standing over the sea harness the wind to generate electricity. That is offshore wind power generation. Europe was quick to adopt this system, anticipating clean and stable electricity supply. Particularly, the shallow seas of the North Sea, suitable for turbine installation, have seen numerous wind turbines since around 1990. With technological advancements, renewable energy sources have become a cornerstone, accelerating global adoption. According to a Global Wind Energy Council (GWEC) report, installation capacity, which was 5.3GW worldwide in 2012, multiplied over tenfold to 64.3GW in 2022. The market is expected to continue expanding, potentially reaching thirty times the current capacity by 2050.

Image of offshore wind power generation(photo provided by Ørsted)

Since joining the Self-Elevating Platform (SEP) vessel business in 2017, MOL has closely monitored developments in the offshore wind power sector. In 2021, we established the Wind Power Energy Business Division, rapidly increasing our presence in offshore wind power generation.

The project involving Asia's first newly built SOV, completed in 2022, was initiated in line with this trend. SOVs are large support vessels specialized in supporting the construction and maintenance of offshore wind power facilities built far from the shore. They feature comfortable living spaces for technicians, and gangways equipped to mitigate swaying at sea to safely transfer personnel to turbine platforms. In 2020, we established a joint venture, Ta San Shang Marine Co. Ltd. (TSSM), with Ta Tong Marine, a prominent shipowner in Taiwan and our long-term business partner. The joint venture commenced construction of the new build SOV "TSS PIONEER" at the Norwegian company VARD Group A/S's shipyard in Vietnam. Following completion, the ship was leased to the Taiwanese subsidiary of Denmark's Ørsted A/S, which has entered into a Time Charter Party contract, and is engaged in operational support services. (Ørsted A/S is the world's largest offshore wind power developer, responsible for developing the largest offshore wind farm in Taiwan, the "Greater Changhua Offshore Wind Farms")

Asia’s first newly built SOV “TSS PIONEER”

What We Must Do Now to Realize a Decarbonized Society

In the first place, why did MOL, a company primarily engaged in international maritime shipping, decide to enter the offshore wind power generation business? Fumiya Ito, who has been involved in this project since the bidding stage and relocated to Taiwan after the establishment of TSSM, where he serves as the project manager, explains:

"One reason is that amid the global call for a decarbonized society, our traditional work of transporting goods while burning fossil fuels has become less appreciated. There was a strong feeling that the company as a whole needed to reform its business, and one option that emerged was the promising offshore wind power generation business as a future renewable energy source. Another reason is that offshore wind power generation takes place on the sea, where ships are indispensable. We recognized this as a field where we could leverage the experience and expertise we have cultivated over 140 years as a maritime company, and decided to invest our efforts accordingly."

The total generating capacity of the Greater Changhua Offshore Wind Farms, where the newly built SOV TSS PIONEER has been deployed, is 900MW. This is approximately equivalent to one nuclear power plant, and according to Ørsted, this amount of electricity can sufficiently power one million average households in Taiwan.

"Taiwan, like Japan, experienced severe heatwaves in the summer of 2023. When I was a child, I could go out and play even in the middle of summer, but now it's becoming increasingly difficult. I feel this more and more in everyday life- are we drifting away from a sustainable society? In such times, as a member of this company and as a parent of a child who has a future to consider, I feel a profound significance in being involved in this renewable energy business," continues Mr. Ito.

Offshore Wind Power, Business Representative in MOL(Taiwan) (at the time of interview in January, 2024), Fumiya Ito

Meanwhile, Takeyasu Moriguchi, the head of the SOV business and a central figure in the Taiwan project alongside Mr. Ito, adds:

"Mr. Ito also mentioned the urgent need for business reform across the company, and I believe that there are many things that we can and must do, as the ones given the opportunity to be involved in a project like this. We are earnestly addressing the challenge of GHG reduction in our company's core business and also considering our contribution to reducing GHGs in society as a whole. To be honest, it's not an easy task, but through collaboration with partners from various countries, we eagerly adopt both information and technology and actively redistribute effective strategies to other business sectors. It is with this mindset that we approach our work daily."

General Manager of Wind Power and Offshore Projects, Wind Power Unit (at the time of interview in January, 2024), Takeyasu Moriguchi

A Special Vessel Crafted from Zero

The SOV TSS PIONEER is currently engaged in maintenance support for offshore wind farms off the coast of Changhua, Taiwan. It boasts meticulous design elements rarely seen in conventional commercial ships.

Mr. Ito explains, "One unique aspect is the design aimed at facilitating a single directional flow throughout the ship. For example, the workers wake up in the living quarters in the morning, get ready, and head downstairs for breakfast. After eating, they move to the changing room and change into their work clothes. Then, they stop by the warehouse area to pick up the necessary materials, and take the elevator to the upper floor where the gangway leading to the turbine is. The layout of the ship is designed so that all these movements of people flow in one direction. Moreover, meticulous attention has been paid to safety and efficiency in transporting goods, with stairs eliminated wherever possible, door sizes designed to accommodate four adults smoothly carrying a stretcher in emergencies, and careful consideration given to every aspect of the ship."

In addition to these hardware aspects, significant attention has been given to the taste of meals provided to the multinational crew members, which has also been well received on site.

However, MOL and our Taiwanese partner, Ta Tong Marine, were both newcomers to the SOV business. At the beginning, there was often insufficient understanding, and we began from a state of trial and error. If we had been able to visit Europe, we could have learned from leading examples. However, at that time, due to the peak season of COVID-19, we were unable to travel abroad. The team had to navigate with limited options and spent days experimenting and grappling with challenges.

"It was a mission in a completely unfamiliar territory, with no prior experience or knowledge. We approached everything with a mindset of learning and absorbing anew, always being open-minded without prejudice," reflects Mr. Ito on the situation at that time.

Amidst this, representatives from Ørsted, the client, emphasized, "Keep in mind that this ship is not just a ship; it is should first and foremost be a floating hotel and a comfortable office." This message, highlighting the difference from the usual commercial ships MOL operates, added another layer of pressure to the project team members.

TSS PIONEER's gym, which is more extensive than that of a regular commercial ship

Before You Know it, Headwinds Turn into Tailwinds

The past two years have been anything but ordinary due to the impact of the pandemic. It was in the spring of 2022 when both individuals first laid eyes on the TSS PIONEER upon its successful completion.

"Finally being able to travel to Taiwan, my initial impression upon seeing the ship was... it's surprisingly small. Typically, the vessels I'm accustomed to seeing have lengths ranging from 200~300m (656~984 ft), so the dimensions of 85.4m (280 ft) in length and 19.5m (64 ft) in width felt unfamiliar. In that sense, it was truly an endeavor into the unknown. After a while, memories of the hard work put in over the past two years gradually surfaced. When I looked at the ship again, I finally felt that everything had paid off," reflects Mr. Moriguchi on the situation at that time.

On the other hand, Mr. Ito shares, "Of course it was emotional, but I couldn't shake off the thought of not being able to visit the ship even once when it was being constructed. It wasn't until I relocated to Taiwan and the operation of the ship commenced that I truly felt the transition. From time to time, we receive praise from the client about the quality and stable operation of the TSS PIONEER, which has gradually brought about a sense of joy."

However, even after the completion of the ship, it took time for understanding to spread within the company. We understood that it was a natural reaction to the unknown, but that doesn't mean it wasn't painful.

"I repeatedly reminded myself that there was great significance in contributing to the global environment through this project, and that it was a challenging endeavor for the company. Since only we knew about this new type of vessel, I was determined to explain repeatedly until understanding was achieved, so I faced the project with conviction," says Mr. Moriguchi.
The direction of the wind will eventually change, even if they were once headwinds.

When MOL's new management plan "BLUE ACTION 2035" was established in 2023, it became apparent that the winds had shifted in our favor. The internal perception of renewable energy projects shifted, and the SOV business began to be treated as the vanguard of the renewable energy business.

"As mentioned earlier, offshore wind power generation is becoming increasingly promising as a market. In a sense, luck may have played a role, but I feel incredibly fortunate to be involved in such work now, as a result of persistent efforts," Mr. Moriguchi concludes with a smile.

Contributing to the Entire Offshore Wind Power Value Chain

The immediate goal of the SOV TSS PIONEER project is to continue supporting stable operations for at least the next 13 years, to completely fulfill the Time Charter Party contract with Ørsted.
A new SOV shipbuilding contract was signed with the Dutch company Damen Group through the joint venture TSSM, in November 2023. Construction of the second SOV is currently underway at a shipyard in Vietnam. After completion, this new SOV will also be deployed to support offshore wind farms in Taiwan.
Taiwan is currently transitioning from nuclear power to renewable energy, aiming to increase the share of renewable energy in its power mix to 20% by 2025 and 30% by 2030. As inferred from this project, expectations for offshore wind power, in particular, are high, and there is a high probability that the business in Taiwan will continue to expand.

Signing Ceremony, from left: MOL Senior Managing Executive Officer Hirofumi Kuwata, TSSM Chairman Hrong Nain Lin, Damen Director Jelle Brantsma

Mr. Moriguchi explains, "We anticipate demand for SOVs to emerge in other Asian regions as well, especially in areas where geographical location can be leveraged, such as our own home ground Japan, as well as South Korea. What we have learned from this experience is that the key to success in the SOV business lies in good teamwork with local partners, and establishing appropriate collaborative arrangements. This is something we have excelled at throughout our long history, so we are looking forward to future developments."

In addition, the Wind Power Energy Division aims to contribute to the entire offshore wind value chain, using existing Crew Transfer Vessels (CTV) and the current SOV project as a foundation. The goal is to nurture these initiatives into core businesses for MOL as a whole.

"SOVs are essentially the first step. Without stopping here, we aim to gradually introduce vessels for tasks such as laying power cables, heavy cargo ships for turbine components, and module ships, etc." says Mr. Ito.

Becoming Power Generators and Identifying Market Needs & Wants

Until recently, offshore wind power across the globe primarily used "bottom-fixed" installations, where foundations are anchored to the seabed. However, due to Japan's deep offshore waters, installation locations were limited, hindering progress. To achieve Japan's offshore wind power goals set by the government, we are now in a phase where excuses are no longer acceptable. It's evident that urgent technological advancements, including cost reductions for "floating" type installations, are necessary. On the other hand, once this challenge is overcome, the widespread adoption of "floating" platforms is highly probable.

Mr. Ito continues, "MOL has been actively involved in and thus has extensive experience in floating structures, such as Floating Production, Storage and Offloading (FPSO) units and Floating Storage and Regasification Units (FSRU). Thus, in such a scenario, we expect to expand into additional fields where we can further demonstrate our strengths. We feel a great potential for floating offshore wind power generation as a company, and are eager to deepen our commitment to this sector in the future."

Additionally, MOL has recently ventured into the power generation business in offshore wind energy. It might seem odd for a maritime shipping company to enter the power generation sector, but the company clarifies that it has no intention of taking on roles typically led by electric power companies or trading companies.

"Venturing into the new market of offshore wind power, as exemplified by this SOV project, highlighted our lack of familiarity with the offshore wind power market. As mentioned earlier, our aim is to provide vessels and services for this market. However, to achieve this, we believe it's crucial to deeply understand the challenges and needs of power generators. It may sound presumptuous, but by becoming power generators ourselves, we hope to view the market from a different perspective and better understand its needs and wants," Mr. Moriguchi explains.

At Mitsui O.S.K. Lines, the sea is our home. However, in the offshore wind power industry, which shares the same ocean stage, we aspire to seize the winds of the upcoming renewable energy era as challengers, and continue striving for the realization of a prosperous future society.