Establishing Offshore Wind Turbine Contract Standards: BIMCO

The international maritime organization BIMCO has formed a special subcommittee dedicated to creating a worldwide standard contract for the shipment and setup of offshore wind turbines. This initiative aims to address the unique challenges arising within this rapidly expanding field.

The development of the contract, named WINDSEACON, began after engaging with approximately 65 prominent figures in the market. This process led to the formation of a subcommittee and an extensive advisory group consisting of a diverse array of industry leaders.

Stinne Taiger Ivø, BIMCO's deputy secretary general responsible for contracts & clauses and support & advice, noted, “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. The consultations confirmed that there is a need for a targeted, balanced and commercially viable standard contractual framework for the offshore wind industry.”

BIMCO highlights that the WINDSEACON contract is set to provide the necessary framework to streamline and enhance the legal and commercial negotiations process. The primary focus is on the transport and installation of offshore wind turbines. Recognizing the varying requirements of the offshore wind turbine market in the United States, Europe, and Asia, the subcommittee is also assessing the need for additional provisions specific to the U.S. as their efforts advance.

Ivø further stated, "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. 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.”