NMDC to invest USD 500 mn in offshore wind expansion: National Marine Dredging Company’s (NMDC) engineering, procurement, and construction (EPC) arm NMDC Energy plans to invest USD 500 mn in a dedicated offshore wind vessel, CEO Ahmed Al Dhaheri told The National. The investment covers the acquisition of jack-up barges for tower, blade, and turbine installation and a cable-laying vessel for offshore wind projects.

The rationale: NMDC Energy is bullish on offshore wind as a major revenue stream, with Al Dhaheri saying it has “potential” and could have “a good share of our business and of our revenue moving forward.” The company’s revenue rose 82% to AED 14.4 bn in 2024, while net income grew 80% y-o-y to AED 1.4 bn.

Looking abroad: The firm is also exploring partnerships with international energy giants TotalEnergies, EDF, RWE, and Iberdrola.

REMEMBER- The EPC unit has been busy, revealing plans in November to scale up its operations in the UAE, Saudi Arabia, India, and Taiwan, and entering new markets in Europe, North and West Africa, and Southeast Asia. Last month, NMDC Energy inaugurated an AED 200 mn fabrication yard in Saudi Arabia’s Ras Al Khair Special Economic Zone and secured a US 1.1 bn contract for an offshore pipeline project in Taiwan. The company currently holds an AED 58 bn project backlog, Al Dhaheri said.

Challenges ahead: Rising costs, supply chain constraints, and shifting political support for wind energy — with US President Donald Trump recently pausing new US offshore wind leases — pose industry risks. Still, Al Dhaheri remains optimistic, noting that “a number of projects are already sanctioned and lined up for execution.”

Tags: