Morgan Stanley Infrastructure Partners, Crowley Advance U.S. Wind Energy
(NEW YORK) – Morgan Stanley Investment Management (“MSIM”), through Morgan Stanley Infrastructure Partners (“MSIP”), and U.S. maritime, energy and logistics solutions leader Crowley announced today the creation of a new joint venture to advance offshore wind energy solutions for the United States.
The joint venture will strategically combine Crowley’s end-to-end maritime and logistics capabilities through the newly created Crowley Wind Services Holdings, LLC (“Crowley Wind Services Holdings”), and the financial strength and expertise of MSIP, a leader in accelerating long-term, contracted growth infrastructure opportunities.
Investment funds managed by MSIP, a private infrastructure fund platform within MSIM, will hold a majority stake in Crowley Wind Services Holdings, while Crowley will operate the business.
MSIP and Crowley’s partnership will focus on repurposing and operating existing U.S. port facilities and leasing them under long-term contracts to offshore wind developers. The terminals will support manufacturing, assembly and storage of wind farm components as well as provide developers with maritime services such as Jones Act-compliant feedering vessels to transport components from ports to offshore wind installations.
“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. “We believe port infrastructure is essential to the build-out and long-term maintenance of offshore wind projects and we are excited to partner with Crowley to provide the foundational infrastructure that will enable the development of this important industry.”
Crowley provides wind energy solutions for the U.S. offshore wind industry, including port operations and terminaling, feedering vessels and operations, and project management. Through a public-private partnership with the Commonwealth of Massachusetts’ Clean Energy Center and the City of Salem, Massachusetts, Crowley plans to begin construction this fall on the Salem Wind Services Terminal, which will support the development and operation of offshore wind lease areas off the northeast U.S. coast. In addition, the company is pursuing the development of a U.S. West Coast terminal in Eureka, California, in a public-private partnership. Crowley also has a right-of-first refusal agreement to lease and potentially develop a wind services terminal at Port Fourchon, Louisiana.
“The partnership of our two companies will help lead the growth of the wind energy sector and provide clean, renewable energy for the U.S. through high-quality maritime and logistics operations and services. Our collaboration will help create not just more value as a business, but cleaner, more sustainable energy for our communities,” said Bob Karl, Senior Vice President and General Manager, Crowley Wind Services.
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.
Crowley is a privately held, U.S.-owned and -operated maritime, energy and logistics solutions company serving commercial and government sectors with $3.4 billion in annual revenues, over 170 vessels mostly in the Jones Act fleet and approximately 7,000 employees around the world – employing more U.S. mariners than any other company. The Crowley enterprise has invested more than $3.2 billion in maritime transport, which is the backbone of global trade and the global economy. As a global ship owner-operator and services provider with more than 130 years of innovation and a commitment to sustainability, the company serves customers in 36 nations and island territories through five business units: Crowley Logistics, Crowley Shipping, Crowley Government Solutions, Crowley Wind Services and Crowley Fuels. Additional information about Crowley, its business units and subsidiaries can be found at www.crowley.com.
About Morgan Stanley Infrastructure Partners
Morgan Stanley Infrastructure Partners (“MSIP”) is a leading global private infrastructure investment platform with approximately $16 billion in assets under management1. Founded in 2006, MSIP has invested in a diverse portfolio of over 35 investments across transport, digital infrastructure, energy transition and utilities. MSIP targets assets that provide essential public goods and services with the potential for value creation through active asset management. For further information about Morgan Stanley Infrastructure Partners, please visit www.morganstanley.com/im/infrastructurepartners.
About Morgan Stanley Investment Management
Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 1,300 investment professionals around the world and $1.4 trillion in assets under management or supervision as of June 30, 2023. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service, and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide. For further information about Morgan Stanley Investment Management, please visit www.morganstanley.com/im.
About Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com.
1. AUM reflects assets managed by MSIP platform since inception.