Precious Cargo

In August, Northern Offshore Services (N-O-S) unveiled its unique I-Class Crew Transfer Vessel (CTV), powered by the first commercial application of Volvo Penta’s IPS Professional Platform. In the cutting-edge IMPRESSER, N-O-S designed a flexible, future-proof CTV that will adapt to and accommodate new technologies and energy solutions over the next 25 years, all of which is targeted to exceed the needs of their most important cargo: the offshore engineers that they serve.

“The offshore wind industry is relatively young and has grown tremendously during the last 15 years. Since we began N-O-S in 2008, we have seen wind turbines become significantly larger, which results in more maintenance, increased downtime and more technicians at sea,” said David Kristensson, N-O-S Group CEO and Owner. He adds, “These are just some of the challenges that are catalyzing innovation and driving the design and manufacture of our vessels in house to meet the customer demands of tomorrow.”

Operating globally in over 90 wind farms, N-O-S vessels completed 118,000 successful cargo and/or personnel transfers in 2023 alone. The young firm has quickly become one of the world’s most recognizable providers of CTV’s. With 67 vessels, operating mostly in CTV markets, Donsö-based N-O-S also found the CapEx to fund 24 newbuild deliveries during the same timeframe. That would be heady stuff for most companies, but as Mr. Kristensson often says, a forwarding thinking firm “should not just sit on its hands, rather, it should stand on its toes.”

The lion’s share of business takes place in UK and Denmark offshore waters, but N-O-S has its eyes on a bigger prize. The wind farm market, a wild card for investors trying to figure out which way the winds are blowing, creates uncertainties that swirl everywhere; in particular, the American markets. N-O-S has nevertheless plunged ahead there, as well. Their Providence, RI-based fledgling joint venture subsidiary group, American Offshore Services (A-O-S), should have four Jones Act-qualified vessels in operation by yearend. The five-year goal is 6-10 more.

Two Kinds of Green: Quality Trumps Quantity

N-O-S has no intention of expanding only in terms of fleet numbers. This means focusing on converting the existing fleet to one which not only anticipates, but both satisfies and exceeds regulatory and environmental requirements, with an eye on electric and hybrid solutions. That comes at a cost. Some estimates might put the cost of the fully integrated Volvo Penta IPS propulsion system with all the bells and whistles at a 20% premium to another solution. According to N-O-S, that’s just smart business.

Johan Inden, President of Volvo Penta Marine, explains why. “It is our partners who, in part, drive our innovation. We are creating something the customer doesn’t need today, but will likely want tomorrow.”

Looking ahead, a hybrid battery equipped IPS allows longer tours at sea. The diesel engines provide safety and speed enroute, but once on station at a windfarm, the vessel can operate on electric only. These IPS equipped vessels can operate in electric, hybrid or diesel modes. Recharging the batteries can take place underway. But if not, then it can be done using Volvo Penta’s modular containerized portable battery charging units at the dock of your choice.

“Green” is a moving target. What was green previously may not qualify in the future. That creates serious risk for financiers, operators, and wind farm operators alike. N-O-S has addressed, if not embraced some of that risk. This longer-term vision will deliver what David Kristensson characterizes as “future proof” vessels – hulls that can be upgraded in terms of propulsion and environmental solutions – is just the ticket.

N-O-S looks forward to the day that greener vessels will provide better day rates. In the meantime, that involves risk – financial risk. Kristensson explains, “I would say that we have difficulties to cover our costs where we’ve been building greener vessels today. The economics are not there yet. So, we are building our platforms so that you can convert it later when the commercial sense or the right project might demand it. Then, you don’t need to build a new vessel, you can upgrade the existing platform. Of course, there are benefits to having a green platform today, as compared to conventional vessels.”

Comfort & Safety, too

As industry moves towards having permanent offshore crews on board, and moving away from dayshift work for larger fields, bigger and more capable vessels will be required. Today, there are 7,000 turbines on the water, but matching vessel size to the size of turbines is a big challenge, especially as wind moves further offshore. Newer, bigger turbines demanding bigger, more robust boats that can perform in harsher conditions, for longer periods of time. Summer work may not be a luxury any longer. It is no accident that N-O-S finds itself at the leading edge of this transition.

A forwarding thinking firm should not just sit on its hands, rather, it should stand on its toes. - N-O-S CEO David Kristensson

Offshore engineers – typically non-mariners – need to get offshore safely and in real comfort. Workers who arrive at the worksite seasick, battered by rough seas, cannot provide professional service, assuming they are in any condition to work at all. N-O-S is mindful that these personnel are their most important cargo. The modern CTV boasts maximum comfort for wind technicians in transit. On the CTV IMPRESSER, they arrive offshore ready to work, free from motion sickness. In an industry where it is a struggle to find and keep qualified technicians for challenging work environments, this operational philosophy is an attractive value-added plus for offshore energy firms.

The ongoing modernization of N-O-S tonnage takes many forms. Take their proprietary, in-house designed “high grip fender,” for example. Vexed continually by the short life span of traditional, low-tech bow fendering equipment, N-O-S set out to develop their own five-piece system, which involves different materials for each segment, all of which can be replaced or serviced individually. The innovative fix allows CTVs to push at wind towers using less fuel and energy. Combining an omnidirectional propulsion system and the High Grip Fender, N-O-S operators leverage the versatile I-Class CTV to make longer, safer journeys and safely offload and onboard technicians in any sea condition.

Balancing Act: Operational Integrity & Financial Realities

It is no accident that N-O-S executives David Kristensson and Martin Landstrom are both professional mariners and bring career experience from the tanker side of the equation. Kristensson told OE, “We look at things from an operational point of view. This is important to us because we have been mariners ourselves. Perhaps if you are from the capital side, your focus is more economics. We look at things more from the operational side, and this is one of the benefits of our experience, as we gain our success.”

Veterans of the well-established and sometimes tedious and redundant oil major SIRE (OCIMF) inspection protocols, Kristensson and Landstrom understand the demands that these requirements imposed on the tanker sector. And, for good reason. A similar inspection scheme has evolved in the CTV sector. N-O-S executives, mindful of their roots, have embraced the concept and are determined to not only be in compliance, but to lead from the outset.

Kristensson explains, “We didn’t bring safety inspections to wind, but we brought experience with how it works. We used that knowledge in our company when the wind industry started to increase the quality inspections. The industry has come very far, and today is very much up to date with quality inspections, and safety management systems. And, some of the [energy] customers are the same because the oil firms are starting to work in wind, as well.”

Kristensson continues, “For us, it is very important to be one of the quality leaders because that is what we believe in and also, it helps us to gain work. Our customers look and both quality and performance. But, not just for us; the whole industry needs to be safer, because accidents can impact future work offshore.”

The Future is Now

N-O-S envisions a 25-year lifespan for all their tonnage – whether achieved through re-power or newbuild. This means anticipating and penetrating new offshore markets – wherever they emerge, embracing new technologies that advance a greener footprint, emphasizing safety, while also creating free space on board for core operations. Eco-friendly fuels and new propulsion solutions lessen the carbon footprint of not only N-O-S, but also the industries that they serve. That’s not happening tomorrow. The future is now.

What has been primarily a northern Europe industry is now starting to go global. Taiwan and China were the first to start outside Europe, and now we see it taking off in the US, but maybe going a bit slower there than expected. The outlook in the next five years is for huge growth in the offshore wind industry. Certainly in Europe, but also globally. – David Kristensson, CEO and Owner of N-O-S Group

Kristensson looks ahead, opining, “What has been primarily a northern Europe industry is now starting to go global. Taiwan and China were the first to start outside Europe, and now we see it taking off in the US, but maybe going a bit slower there than expected. The outlook in the next five years is for huge growth in the offshore wind industry. Certainly in Europe, but also globally.”

Just as offshore wind can take lessons learned from oil tanker safety protocols, so too can the fledgling North American wind markets benefit from experience – and yes, mistakes – that the European markets have seen. Kristensson explains, “What can the US do today? Exactly what you are doing: looking at Europe and try to learn from our experiences. You are also starting from a higher perspective because the turbines you are starting with are already quite big, and in Europe, we started with much smaller turbines.”

“It is not easy to be first in any market or endeavor. This requires close collaboration with Flag and Class,” says Kristensson. As N-O-S looks ahead to a second, cutting-edge I-Class vessel, it will come bringing ‘lessons learned’ as they grow their nascent U.S. subsidiary, American Offshore Services. In an uncertain world and an unpredictable offshore energy environment, that’s a safe bet.