Vallianz Holdings Limited (“Vallianz” or the “Company”, and together with its subsidiaries, the “Group”) has entered into a memorandum of understanding (“MOU”) with Royal IHC, to collaborate on the design and construction of a next generation Service Operation Vessel (“SOV”) to support the operations and maintenance of offshore windfarms.

Designed by Royal IHC to meet the evolving needs of offshore windfarms, the battery hybrid SOV features advanced levels of integration and autonomy with high operational efficiency that will make the vessel the first of its kind in the industry. The state-of-the-art technology enables high levels of safety, reliability and workability from a low cost base with reduced emissions during operation. The SOV is also designed to be ready for true zero emission operations by using full battery offshore charging system and alternative fuels for propulsion without sacrificing operational functionality and yet allowing for a more sustainable performance. 

To ensure effective operations, the SOV will have a fully integrated service package that includes a dynamic positioning system, a motion compensated gangway and crane, an elevator tower as well as a daughter craft with step-less boat landing. Ample space will be available for warehousing, workshops, office spaces to cater to operations, and relaxation areas for passengers.

Under the terms of the MOU, the SOV will be constructed at PT. United Sindo Perkasa (“Vallianz PT USP”), which is the Group’s wholly owned subsidiary that operates a shipyard in Batam, Indonesia. 

To facilitate the building and future operations of the SOV, the Group has also inked a memorandum of understanding with Bernhard Schulte Shipmanagement (Deutschland) GmbH & Co. KG (“BSM Deutschland”) which will provide ship management services for the SOV. BSM Deutschland provides full range of ship management services globally for offshore windfarms. As part of this collaboration, BSM Deutschland will carry out ship management services during the operation of SOV including vessel operations, fleet management and crewing among others. In addition, BSM Deutschland will provide relevant ship management input to the design of the SOV to improve the vessel’s operations for offshore windfarms.

Said Mr Darren Yeo, Executive Vice Chairman of Vallianz, “We are excited to partner with Royal IHC and BSM Deutschland, to develop and launch a SOV that will be the first of its kind in the offshore windfarm industry. 

This project will serve as a springboard for Vallianz to advance our marine technology and capabilities, as well as strengthen our profile in the offshore windfarm industry. At the same time, it will allow Vallianz PT USP to further penetrate the Asia Pacific shipbuilding market where we have marked our entry into Taiwan with the award of newbuilding contracts last year.” 

During 2021, the Group secured contracts to design and construct three research vessels for the Fisheries Research Institute of Taiwan and a tugboat for TIPC Marine Corporation Ltd which is a Taiwan state-owned company.

“The highly autonomous and efficient SOV will showcase cutting edge technologies and dovetails with the growing sustainability and decarbonization trend in the global marine industry. Indeed, the SOV project also underscores our efforts to steer Vallianz’s strategic course towards accelerating digitalisation and adoption of marine technologies; building vessels that actively reduce carbon emissions; and extending our business into the renewable energy sector,” Mr Yeo added. 

Said Mr Kees van der Snel, Chief Operating Officer of Royal IHC, “We are very pleased to support Vallianz’s strategic move into the renewable energy sector. This fully aligns with Royal IHC’s mission to play a leading role in making the maritime industry more efficient and sustainable. The SOV project is an excellent example here due to the highly advance integrated design and innovative solutions for zero emission operation that can be implemented from today.” 

Vallianz’s partnership with Royal IHC is not expected to have any material impact on the net tangible assets or earnings per share of the Group for the current financial year ending 31 March 2022.