North Star Secures £425m Investment to Enhance Offshore Wind Fleet – Scottish Business News

Aberdeen-based North Star, a leading offshore support vessel operator, has secured a £425 million debt investment to strengthen its position in the offshore wind sector. This significant funding will support the company’s plan to expand its fleet with 40 hybrid service operation vessels (SOVs) by 2040. The investment package includes term facilities from existing lender IFM Investors and working capital from various banks, reflecting strong confidence in North Star’s business model and commitment to sustainable energy.

Owned by Partners Group, North Star currently operates 41 vessels in the North Sea and has several SOVs under construction for major offshore wind projects. Fraser Dobbie, North Star’s CFO, emphasized the strategic importance of this investment, stating, “This £425m 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 capital infusion from institutional and bank investors ensures North Star’s continued growth and validates the company’s progress in building a sustainable, long-term business in the offshore wind market. This committed debt package provides certainty for potential clients regarding North Star’s ability to deliver vessels as promised, reducing financial risks and enhancing the company’s competitive edge.

Dobbie added, “This provides us with a competitive edge and a superior ability to turnaround high-quality SOV newbuild programmes more rapidly, ensuring the best value and service in the industry.”With this investment, North Star is well-positioned to accelerate its growth and solidify its leadership in the offshore wind sector, contributing to the broader energy transition goals.

About North Star:  

North Star is a 137-year-old business and leading UK provider of mission critical, offshore infrastructure support services to offshore wind and offshore oil and gas markets. 

The firm has bases in Aberdeen, Lowestoft and Newcastle and Hamburg, and has a workforce of 1,400 seafarers and onshore personnel. It has been supporting the energy sector for the past four decades. Its offshore infrastructure support vessel fleet boasts 41 assets and provides continuous around the clock support services to more than 50 North Sea installations. The company’s first three of four Service Operations Vessels (SOVs), the Grampian Tyne, Grampian Derwent and Grampian Tees have been delivered to support the Dogger Bank Wind Farm partners, all are under charter for a 10-year minimum. A fourth ship is due in early 2025 for the development. The business has also invested in its first two Commissioning SOVs to support the growing European offshore wind market.