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SCA Weekly Report | August 29 - September 2, 2022

Shipbuilders Council of America

20 F Street NW, Suite 500

Washington, DC 20001




SCA Weekly Report | August 29 - September 2, 2022







Registration for the 2022 SCA Fall Membership Meeting is now open. The meeting will be held at the Warwick Rittenhouse Square in Philadelphia, PA on October 12-13, 2022. 





Download a schedule of events HERE.





The SCA has reserved rooms at the Warwick Rittenhouse Square at a preferred room rate of $349 per night. CLICK HERE TO BOOK YOUR ROOM




The exhibition hall encourages greater interaction between SCA shipyard and partner members, offering the opportunity for members to demonstrate their product or services directly to potential customers.


If you are interested in exhibiting at this event, please review the Exhibitor Packet HERE.




CNO Gilday: Industrial Capacity Largest Barrier to Growing the Fleet

The biggest barrier to adding more ships to the Navy is industrial base capacity, said Chief of Naval Operations Admiral Mike Gilday. The service’s top officer said shipbuilders need indicators from the service before they’re able to make the investments required to build, for example, three destroyers per year. “We have an industrial capacity that’s limited. In other words, we can only get so many ships off the production line a year. My goal would be to optimize those production lines for destroyers, for frigates, for amphibious ships, for the light amphibious ships, for supply ships.”


“We need to give a signal to industry that we need to get to three destroyers a year, instead of 1.5, that we need to maintain two submarines a year. And so part of this is on us to give them a clear set of – a clear aim point so they can plan a work force and infrastructure that’s going to be able to meet the demand. But again, no industry is going to make those kinds of investments unless we give them a higher degree of confidence.”


The Navy in its Fiscal Year 2023 budget submission projected buying two Arleigh Burke-class destroyers per year between FY 2023 and FY 2027. But Congress is pushing for a 10-ship buy across that same time period with options for five more destroyers, amounting to three destroyers per year.




Dominion May End $10B Offshore Wind Project Over Performance Clause

The utility giant, Dominion Energy, has found itself in a disagreement with state regulators over a proposed performance guarantee for its $10 billion Coastal Virginia Offshore Wind project, one of the largest planned wind farms in the U.S. development pipeline. The clause is enough of a concern for Dominion that it has threatened to scuttle CVOW altogether and walk away - a seismic shock for the budding U.S. offshore wind industry.


Dominion has historically been one of the most committed players in the U.S. offshore wind business. It was an early and enthusiastic entrant, beginning its planning for a small pilot project as early as 2012. The pilot stage was completed in 2020 and is one of only two (small) offshore wind farms operating in the U.S. today. To build the full-scale 2.6 GW facility, Dominion is buying the only U.S.-built wind turbine installation vessel on the market, the future Charybdis, at a price of half a billion dollars.


However, the Virginia State Corporation Commission (SCC) - a regulator with a broad mandate governing insurance, railroads and utilities - has made a decision that may make CVOW untenable, according to Dominion. The SCC will allow Dominion to bill the cost of CVOW's development to household ratepayers in the form of a miniscule rider fee - but only if its turbines perform at a 42 percent capacity factor or better in any three-year period. Any shortfalls would be Dominion's to cover. Dominion has appealed the decision, describing it as unprecedented and "unlawful."




Fincantieri Begins Construction of First Constellation-Class Frigate

Earlier this week, Fincantieri Marinette Marine officially started building the first Constellation-class frigate at its yard in Marinette, WI. The lead ship in the class is slated to be delivered to the Navy in 2026. The service’s requirement is 20 frigates and it has the option to bring in a second yard to build the small combatants. But Congress in Fiscal Year 2022 legislation mandated a pause on the second yard effort, arguing the Navy must mature the design before bringing in a second shipbuilder. The Navy previously planned to buy two frigates per year starting in FY 2023, but slowed down that effort in the most recent budget submission


Austal USA and Saildrone Partner to Build Autonomous Uncrewed Surface Vehicles

Shipbuilder, Austal USA, has entered into a strategic partnership with Saildrone, Inc. to build autonomous uncrewed surface vehicles. The new partnership combines Saildrone’s uncrewed surface vehicle technology with Austal USA’s advanced manufacturing capabilities. It will provide the U.S. Navy and other government customers with a cutting-edge solution for maritime domain awareness, hydrographic survey, and other missions requiring persistent wide area coverage. The partnership ensures that production of the Saildrone Surveyor will accelerate to meet the rapidly growing demand for the ground breaking technology. The Surveyor was developed and designed by Saildrone and will be manufactured exclusively by Austal USA in Mobile, AL.


US-based Atlantic Wind Transfers Orders Six Crew Transfer Vessels

Atlantic Wind Transfers (AWT), which was one of the first US-based companies to enter the market for crew transfer vessels (CTVs), has ordered six more vessels. All six new CTVs will be constructed by St. John’s Ship Building at its shipyard in Palatka, FL. The first two vessels are expected to be delivered mid-2023 and January 2024 respectively, with four further builds in the pipeline. By building Jones Act-compliant vessels certified under US Coast Guard Subchapter L, the CTVs will be able to operate on any windfarm in the US up to roughly 150 miles offshore.




If you have any questions, please do not hesitate to contact the SCA staff.