North Star Secures £425 Million for European Offshore Wind Expansion

North Star has announced a significant financial boost with up to £425 million in new debt investment to expand its fleet and reinforce its leadership in Europe’s offshore wind sector. This funding will facilitate the addition of 40 hybrid service operation vessels (SOVs) by 2040, marking a substantial leap towards the company’s goal of becoming the foremost player in the industry.

North Star hybrid SOVs

The initial committed package of £225 million comes from a mix of existing lenders, including IFM Investors, and a consortium of banks such as ABN AMRO, AIB, NAB, Royal Bank of Scotland, and RBC. These facilities include an accordion feature, allowing North Star to access an additional £200 million, providing flexibility and minimizing financial risk.

North Star, headquartered in Aberdeen with bases in Lowestoft, Newcastle, and Hamburg, currently operates 41 multi-purpose ships in the North Sea. It has three of four new SOVs already in service at the Dogger Bank Wind Farm, with the fourth expected early next year. The firm is also constructing four additional SOVs for projects in Germany and the UK, including its first two larger Commissioning SOVs.

Fraser Dobbie, North Star’s CFO, emphasized that this investment underlines the strength of the company’s business model and its commitment to environmental, social, and governance (ESG) principles. He stated, “This strategic investment highlights the attraction of our robust business model and ESG transition journey as we push to become the leading player in Europe’s SOV sector. The infusion of capital from a combination of institutional and bank investors secures access to the capital required to support our continued growth.”

Dobbie added that this financial commitment offers potential clients assurance in North Star’s ability to deliver on its promises, enhancing the company’s competitive edge and capacity to rapidly execute high-quality SOV newbuild projects.

Operating for 137 years, North Star employs 1,400 people, including both onshore personnel and seafaring crew. The company’s SOV fleet features advanced designs and green technologies to support offshore wind operations efficiently and sustainably.