An outdated Australian floating production storage and offloading (FPSO) vessel, the Northern Endeavour, will be recycled in Denmark, sparking local criticism over the choice of a foreign contractor. After five years of managing the decommissioning process, the Australian government awarded the recycling contract to Danish firm Modern American Recycling Services Europe (MARS). The 274-meter-long FPSO will be transported to MARS’s facility in Frederikshavn using the semi-submersible heavy transport vessel, Hua Rui Long.
The Australian government argues that dry towing is the safest method for moving the massive 43,000-tonne vessel, which has been moored in the Timor Sea. However, unions and legislators have voiced concerns, advocating for an Australian company to handle the A$325 million dismantling contract. They argue that recycling the FPSO domestically would bolster local capabilities and align with the government’s “Future Made in Australia” agenda.
Despite these criticisms, the government maintains that no Australian facilities are equipped to handle such a large and complex vessel. MARS will manage the recycling process, prioritizing safety and environmental standards, in compliance with EU regulations. The Australian government emphasizes that the recycling costs are minimal compared to the overall decommissioning expenses, leaving significant opportunities for local companies in other aspects of the project.
