Morgan Stanley, Crowley Team Up for Offshore Wind Port Venture

Morgan Stanley Investment Management (MSIM), through Morgan Stanley Infrastructure Partners (MSIP), and Crowley, a marine, energy, and logistics solutions provider, are collaborating to enhance offshore wind energy solutions in the United States.

The joint venture aims to prepare US ports for the upcoming offshore wind boom. The partners intend to reuse and run existing port facilities before leasing them to offshore wind developers under long-term contracts through their joint company Crowley Wind Services Holdings.

Funds managed by $16 billion MSIP will hold a majority stake, while Crowley will operate the business.

The aim is to make ports capable of supporting the manufacturing, assembly and storage of wind farm components. They also want to provide vessels that are compatible with the Jones Act, which requires vessels operating in US waters to be flagged in the US.

Crowley intends to begin building an offshore wind services port near Salem, MS in the fall. It is also looking into developing a port in Eureka, CA, and has a right-of-first-refusal agreement in place to lease and potentially develop a wind services facility in Port Fourchon, LA.

“In our view, the U.S. offshore wind industry is in its early stages with ambitious goals to develop 30 gigawatts of capacity from offshore wind by 2030 and unlock a pathway to 110 gigawatts by 2050,” said Daniel Sailors, Managing Director, MSIP.

Crédit Agricole Corporate and Investment Bank served as financial advisor to MSIP, and Kirkland & Ellis LLP served as its legal counsel. DNB Markets served as financial advisor to Crowley, and Vinson & Elkins LLP served as the company’s legal counsel.