North Star Strikes Multi-Vessel Deal with RWE for Hybrid Offshore Wind Fleet

North Star has entered into a significant agreement with RWE to provide four hybrid-powered commissioning and service operation vessels for offshore wind projects in the United Kingdom and Germany. The deal encompasses two long-term charter contracts, as well as two reservation agreements for future newbuild vessels.

The timing of this contract is significant. The global shipping sector is grappling with structural challenges, and recent research reveals just how severe the situation has become. Around 60 liquefied natural gas carriers are currently idle worldwide, representing more than 11.36 billion dollars in stranded assets. Many of these ships were built without long-term transport contracts, leaving them idle as renewable energy continues to erode fossil fuel demand.

Under the new arrangement, North Star will deploy two existing vessels: the Grampian Eagle and the Grampian Kestrel. The Grampian Eagle will begin operations in 2026 at the Triton Knoll wind farm off the coast of the UK under a 12-year charter. The Grampian Kestrel is scheduled to start work in late 2025 at RWE’s German offshore wind sites north of Heligoland, supported by a 10-year contract. Both agreements include options for extensions of up to three years. While these vessels are being prepared, RWE will rely on two interim ships from Windward Offshore.

Both the Eagle and the Kestrel are equipped with hybrid battery systems and are capable of operating on methanol. This reflects an accelerating trend in ship design, where low-emission fuels and hybrid propulsion are becoming the standard. The other two vessels under this agreement will be newly built by VARD and are set for delivery in 2028 and 2029. Like the first pair, they will be capable of running on low-carbon fuels.

The push for cleaner vessels is not happening in isolation. Earlier this year, the International Maritime Organisation approved a global carbon pricing framework that will come into effect in 2028. The rules will require all ships over 5,000 gross tonnes to cut their emissions intensity by 30 per cent by 2035 and by 65 per cent by 2040 compared to 2008 levels. Non-compliance will carry hefty penalties, starting at $ 100 for every excess tonne of carbon dioxide and rising to $ 380 for more serious violations.

These measures are expected to have a profound effect on the economics of global shipping, reshaping cost structures and influencing where and how companies invest in new vessels.

RWE is one of the leading players in the offshore wind industry. It already operates 19 offshore wind farms and has four more under construction in the United Kingdom, Germany, Denmark and the Netherlands. The agreement with North Star is expected to create as many as 200 jobs, including about 100 new roles both at sea and onshore.