Singapore offshore wind services outfit plans to spend $US1bn in Australian market

Singapore-based Cyan Renewables has committed to invest $US1 billion in Australia’s fledgling offshore wind industry after buying up Australian marine services provider MMA Offshore.

Cyan has splashed more than $A1 billion on the purchase of MMA in what it describes as the region’s “largest take-private deal” in the offshore wind services industry.

The acquisition of the ASX-listed company comes as the federal government hands out a second round of feasibility licences developers in Victoria’s Gippsland zone, moving Australia a step closer to building its first offshore wind farms.

Cyan Renewables was set up in 2022 with plans to invest in a specialised fleet of wind farm support vessels to facilitate the full lifecycle of offshore wind projects from installation to operations and maintenance.

“We deliver efficient, reliable, best-in-class services to our clients by integrating innovative designs and solutions with safety (for the people and the environment) and clients’ needs in mind,” the company’s website says.

The acquisition of MMA, with its fleet of 20 offshore vessels and operations in the Asia Pacific region, will strengthen Cyan’s regional presence, while MMA will benefit from Cyan’s extensive knowledge in offshore wind farms and proven track record in Europe.

On top of the purchase of MMA, Cyan says it is committed to investing $US1 billion – $A1.5 billion – to support offshore wind development in Australia, where supply chain issues remain a critical obstacle to progress.

“The acquisition of MMA is a significant milestone for our future as a leader in the renewable energy space,” said Cyan CEO Lee Keng Lin.

“This move strengthens our position in the Asia-Pacific region and solidifies our leadership in the offshore wind industry and energy transition.”

James Chern, managing partner and CIO of Seraya Partners, Cyan’s main investor, has described the new deal as “transformative.”

“[It] reflects our ability to build and create platforms from scratch, spanning from Asia to Europe,” Chern said in a statement this week.

“With Cyan’s acquisition of Sentinel in the UK and now MMA in Australia, we are rapidly establishing world-class leaders in new, fast-growing sectors.” 

David Ross, managing director of MMA, says becoming part of the Cyan Group will accelerate MMAs progress in achieving net zero goals in the maritime industry.

“Cyan’s expertise in offshore wind farms and investment capability, combined with our best-in-class maritime and offshore solutions, will foster innovation and operational excellence, accelerating the energy transition,” Ross says.

Cyan will retain MMA’s leadership and workforce.

The acquisition was supported by a group of co-investors, including the Alberta Investment Management Corporation (AIMCo). AIMCo, which opened its office in Singapore in September 2023, participated in the MMA acquisition through its investment in Cyan. 

Ben Hawkins, AIMCo’s executive managing director and global head of infrastructure, renewable resources and energy transition says the acquisition positions Cyan as an important catalyst in the “blue-to-green” transition of maritime industry. 

“As a clear market leader, Cyan is strategically positioned to benefit from the growing offshore wind and marine protection sectors,” Hawkins says.