Floating Power Plant A/S POSEIDON project

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1 Floating Power Plant A/S POSEIDON project Report: D.2.2 Report on Potential Value Chain WP: WP2 Sub task: Task 2.2 & 2.3 Date: 29/09/2016 Revision: 1 Internal/External Public Lead: Chris McConville

2 Contents 1 Backgroud System Breakdown Overview Modules Cross bridge module Main hull module Bottom main module Turret system PTO module Wind turbine Supply Chain Categories Overview Description of Categories Supplier Management Supplier Database Supplier Identification and Initial Assessment Selection Process Potential Value Chain Summary Preferred Suppliers Current Agreements Potential Preferred Suppliers

3 1 Backgroud As Floating Power Plant develop their commercial system and offering it is necessary to ensure that the value chain (suppliers) that are essential for successful project delivery are identified and managed appropriately. The approach to this has been to carefully examine FPP s product, the P80, and provide and determine the categories of supplier and specific components and services required to deliver this. Potential suppliers for these services are then identified and assessed, with relationships being formed to prepare the value chain for delivery of the commercial projects. In identifying and assessing suppliers it was identified that a system of managing the relationships and information collected was required, which led to the development of a supplier database. This report outlines the process of developing the value chain through the breakdown of FPP s system, categorization of suppliers and management of supplier information. 3

4 2 System Breakdown 2.1 Overview The FPP floating hybrid platforms are designed to be built in a module based production flow. In this process main modules can be constructed at different construction facilities, where they are coated and outfitted with various subsystems. The main modules are shipped to an assembly site, preferably close to the installation site. At the assembly site main modules are assembled into the finished platform, subsystems such as cables and pipes in different modules are joined or installed. The goal of this modular design is to make the construction sites less dependent on installation sites. This will enable a cost effective (factory) production of modules at existing production facilities of the subcontractors. The modular concept also gives the possibility to have multiple preferred suppliers for different modules and subsystems. This will make project less susceptible to delays due to missing production capacity at a single supplier, and maintain competition between suppliers. The modular concept has the flowing system levels. Platform The finished hybrid platform ready for deployment from the assembly site Main module A finished module, coated and with installed subsystems, ready for shipment to assembly site. Sub module A module constructed and possibly fitted with subsystems at one supplier, which will be shipped to another supplier or site for integration with other sub modules to form a main module. E.g. A PTO house that will later be joined with an absorber to form a PTO module Sub system A functionally coherent system, serving a particular function. A subsystem is installed in one or more main modules or in the platform. E.g. ballast or HVAC system Components Raw materials or sub-assemblies used for the construction of the above mentioned levels. E.g. steel plates, bearings and cables. 4

5 2.2 Modules Cross bridge module The cross bridge is a steel plate box construction, with internal frames. The purpose of the cross bridge is to provide transverse stiffness for the platform, and to provide access between the main hull and the four side hulls / PTO modules. The cross bridge provides access for both fixed installations such as Cables, HVAC, and pipe systems, as well as service personnel and materials. Figure 1 - Principle drawing of cross bridge module Main Specifications Length: ~7,5 m Height: 3,15 m Width: 49,5 m Weight: ~105 tonnes Main Features / Systems Transverse gangway Transverse crane track / beam, with manual crane Cable ways, with cables installed where practical Aux power sockets and lighting Pipe system for PTO module cooling HVAC ducts Access openings towards main module (sealed for transport) Access hatches for access to bottom module towers Watertight doors towards PTO modules Anti-corrosion coating inside and outside 5

6 2.2.2 Main hull module The main hull module is the central module of the platform, serving multiple purposes. The main hull is constructed as a box construction / ship hull, with internal frames, webbing and decks for stiffness and strength. The module consists of a low aft section with an open deck, serving as boat landing and access area. A taller reinforced mid-section acting as foundation for the WTG, as interface for the cross bridge and bottom modules and furthermore houses power and control systems etc. The wave piercing front section is designed to reduce the wave impact forces and funnel the wave energy towards the wave absorbers and to accommodate the turret mooring system. Below the aft deck height is a longitudinal pipe and installation tunnel in the full length of the hull. Beneath this tunnel the hull is divided into individual ballast compartments. In the middle of the hull is a shaft leading to the ballast and cooling pump room placed low in the hull. The aft most section is extended downward to a heave plate. Figure 2 - Principle drawing of main hull module Main Specifications Length: 96 m Height: 37 m Width: 6m (heave plate 15.6m) Weight: ~900 tonnes Main Features / Systems WTG foundation with access to tower Boat landing Water tight entry door to aft deck Access openings towards cross bridge (sealed for transport) Internal rooms and stairwells as illustrated above Ballast system with pipes, pumps, valves and sea filters Water based cooling system for wave PTO (heat dissipated to ballast water Switch board room and cableways / cable installations Power distribution and control switchboard incl. wave PTO inverter Export transformer and export cable incl. export slip ring and subsea cable connector Emergency power generator and emergency lighting Cable ways, with cables installed where practical Aux power sockets and lighting Pipe system for PTO module cooling HVAC ducts Turret mooring system Watertight emergency escape hatch on foredeck Anti-corrosion coating inside and outside Anti-fouling coating on submerged parts 6

7 Figure 3 - Drawing showing various functions and subsystems Bottom main module The bottom main module is the transverse submerged part of the platform structure. The main module consists of the following sub modules. One, bottom plate module. The bottom plate module consists of steel plate box constructions with internal frames and webbing (pink in illustration below). The box constructions form a horizontal transverse bottom plate; a sloping back wall / spoiler; and two endplates / winglets. The bottom plate module can be ballasted with sea water and will be fully filled during normal operation. Two, inner side hulls. The inner side hulls connects the bottom plate and the cross bridge. The tapered forward end splits the wave and funnels it towards the wave absorber. The lower part of the backside is tapered, whereas the upper part is flat and acts as a bay to which the PTO module can be latched. The side hulls can be ballasted with sea water using the ballast system in the main hull, and will be partial filled during normal operation. Two, outer side hulls. The outer side hulls have a similar function and construction as the inner side hulls. However the outer hulls is longer and is extended downward below the bottom plate to a heave plate. 7

8 Main Specifications Length: 43.4 m Height: 32.4 m Width: 82.8 m Weight: ~1100 tonnes Bottom plate module Length: 24.2 m Height: 15.4 m Width: 82.8 m Inner side hulls Length: 18 m Height: 19.8 m Width: 4.2 m Outer side hulls Length: 25.2 m (heave plate 34.8 m) Height: 32.4 m Width: 4.4 m (heave plate 13.8 m) Main Features / Systems Ballast pipe system connecting to ballast pumps in main hull Ballast tank vents Anti-corrosion coating inside Anti-fouling coating on submerged parts outside Turret system The turret system is responsible for connecting the mooring lines and the subsea export cable with the platform, and ensuring that the platform can turn freely (weather vane). Several different design options for the turret system exist, and a specific design has not yet been selected. The general idea is that the part of the system connecting to the mooring lines and export cable is installed at the site prior to the deployment of the platform. And the turning part of the system is installed in the front of the main hull. When the platform is deployed and towed to the site the two parts are joined and the export cable is connected to the platform export cable with dry mate connectors. 8

9 Main Specifications (est) Main Features / Systems Diameter: ~5 / 12 m Detachable / mooring part Height: ~15-20 m o Connection to mooring lines Weight: ~140 tonnes o Integrated with subsea cable system incl. bend stiffener o Subsea cable terminated in dry mate connector with dummy plug o System for hoisting / joining with platform part o Buoyancy system for maintaining correct floating height before connection to platform o Equipment for measuring the force on the individual mooring lines o Anti-corrosion and anti-fouling coating (long life) Fixed / Platform part o System for fixing and releasing the detachable part o Rotating mechanism / bearing system o Equipment / solution for hoisting detachable part o Matching dry mate connector for export cable. o Slipring for export cable 33kV and fibbers for communication PTO module The PTO modules consist of the two sub modules wave absorber and PTO house. The purpose of the PTO modules is to capture the incoming wave energy and convert it into electrical energy. The absorber is constructed as a steel plate construction with internal frames. The interior of the absorber is divided into several individual ballast tanks. Several horizontal decks in the tanks provide additional stiffness and reduce ballast sloshing. The wave absorber is suspended in the PTO module in a pivot point, and is floating in the sea due to its buoyancy. The absorber is set in motion around the pivot point. The oscillating motion in the pivot point is transferred via a shaft system / hollow axel to a yoke in the PTO house. Inside the PTO house pistons connected to the yoke converts the motion to a flow of hydraulic fluid. This flow drives a hydraulic motor and an electric generator. The PTO house is constructed as a steel plate construction with internal frames and decks. The PTO house is mechanically latched to the main platform structure (Side hull and cross bridge). The PTO module can be released from the main platform to be docked out and towed to harbour for maintenance. 9

10 Main Specifications Wave absorber Length: 17.2 m Height: 8 m Width: 18.3 m Weight: ~150 tonnes PTO module Length: 10.8 m Height: 15 m Width: 4.2 m Weight: ~100 tonnes Main Features / Systems Cable ways, with cables installed where practical Aux power sockets and lighting Pipe system for PTO module cooling HVAC ducts Watertight door towards cross bridge Anti-corrosion coating inside and outside Anti-fouling coating on submerged parts System for latching an releasing from main platform Hydraulic system for PTO Generator and control system 1000VDC output power to main switchboard Shaft and bearing system for the wave absorber Shaft sealing system towards ambient sea and splash zone Ballast system for ballasting individual ballast compartments in the wave absorber Wind turbine The wind turbine is to be based on a standard offshore turbine. The turbine capacity can be between 2 and 5 MW. In order to be able to operate on a floating foundation, special design changes must be made by the wind turbine manufacturer. The changes will among other be Strength of individual components, especially the tower and the control system. The special changes must be made in close dialogue with FPP based on model tests and numerical simulations. Main Specifications (est) Power capacity: 3 8 MW Hub height: 80 m Rotor diameter: 125 m Weight: 700 tonnes Main Features / Systems 3 Blade upwind turbine 33kV AC output power Automatic nacelle yaw system Automatic blade pitching system Accessible from tower base Marinised for offshore use 10

11 3 Supply Chain Categories 3.1 Overview When considering the construct of FPP s potential supply chain it was decided to categorise suppliers according to the services they are capable of providing. This allows for a more efficient assessment process and recording of potential suppliers suitability as there are distinct requirements within each category. This approach is commonly referred to as procurement category management and allows FPP to focus procurement activities in a way that reflects the supply markets. As such FPP should be able to identify similar procurement activities that cross organizational functions, enabling procurement efficiencies and optimization. At this stage, the categories are focused on the delivery of FPP s product, the P80, and as such it does not allow for professional business services such as legal, financial and marketing services. The system can however be easily expanded in the future, or these services could simply be included in the Vendor category. 3.2 Description of Categories The categories used for FPP s value chain are described below with an example of the types of work package fulfilled by each. Category Environmental Consultancy Engineering Consultancy HSE and Risk Consultancy Description This category covers the provision of consultancy services with respect to conducting environmental survey, monitoring and reporting. This is primarily a project specific package relating to the provision of services such as site surveys, EIA and HRA reporting and mitigation strategies. As a project specific service this may have little relevance to FPP in the longer term, but is important in the first commercial project, in which FPP must take a more active developer position, and is of relevance as any data collected may inform FPP s system and array design work. Companies which provide these services may also be required by FPP in the future to provide impact assessment and monitoring services specific to the technology. Covering providers of technical engineering services related to FPP s technology or associated systems. This includes FEED and basic design engineering services as well as technical validation, certification and review services. This category may be served by both specialist engineering consultants and fabricators who have an in house engineering team. Consultancy services which are specific to HSE and risk issues are considered a specific category due to their importance in meeting legislative requirements and the nature in which they will be employed, in both technical design and projects. These services may also be required in a market specific basis as different countries will have different requirements which must be satisfied Example Work Packages EIA preparation Bird monitoring Sea mammal monitoring Seabed investigations Metocean data Semi-sub design Mooring design CFD modelling Design certification Marine systems design Safety case production Design safety review Emergency plans HSE Liaison 11

12 Detailed Design Fabrication Global Assembly System Integration Commissioning Support O&M Support OEM / Vendor This is distinct from Engineering Consultancy due to the nature of the service and type of providers. This category is most likely served by a fabricator providing a major fabrication package or an engineering consultant who provides yard management services for such a package. This category is critical in delivery of the system as it provides the detailed specifications required to fabricate, assemble and outfit the finished system (e.g. weld details, pump make and models, cable schedules etc.). The category can be further sub categorized into Structural, Mechanical and Electrical design Fabrication of major modules of the P80 structure, as detailed in section 2 of this report. This category is specifically focused on the fabrication of structural elements, although preferred fabricators will also have capabilities in System Integration and Assembly in order to outfit and (at least part) assemble the P80. Final assembly of the complete P80 device, requiring facilities with a large, high load bearing quayside with unrestricted access to open sea, and at least 7m draft. Preferably served by major fabricators however there may be suppliers who have suitable facilities close to project sites, allowing for efficient transport of multiple modules for final assembly. The integration of multiple systems within the P80, particularly in modules such as the PTO, is a critical service. This is expected to be fulfilled by fabricators however it is important to consider it separately as may fabricators have little or no electrical and mechanical service offering, which will limit the modules they are qualified to build. This will cover both in harbour and on site commissioning. Much of this work will be overseen by FPP staff but will require support from various OEMs and specialists. This is a wide category covering many aspects of O&M. FPP will ideally seek to work with suppliers who can cover a large number of packages within O&M and provide an fully managed service, such suppliers shall rank highly on criticality. This category will also cover vessel providers and port facilities, a database of which will be useful in establishing future project viability. This includes all OEMs and vendors of equipment and services which are utilized within, or are associated with the operation of, the P80 with no/minimal adaptation (i.e. off the shelf). Structural Detail Design o Weld/fixing detail o Sections Electrical Detail Design o Equipment layout o Cable routing diagrams o Cables schedules o Cabinet detail Mechanical Detail Design o Equipment layout o PID s o Equipment schedules Hull fabrication Cross bridge fabrication Absorber fabrication PTO housing fabrication Bottom module fabrication Turret fabrication Full assembly PTO outfitting Cable outfitting Piping outfitting WTG integration WTG commissioning PTO commissioning Systems commissioning O&M management WTG O&M PTO O&M Structural O&M Turret O&M Aux systems O&M Vessel provision Harbour provision WTG provision Export cable provision Mooring provision Nav aids provision 12

13 4 Supplier Management 4.1 Supplier Database Due to the number of potential suppliers and variety of categories for which they can supply, combined with the expansion of FPP, it was decided to establish a supplier database. This database serves two main purposes: Recording and storing relevant information on a range of suppliers across all FPP s procurement categories, which can be easily accessed by all relevant FPP staff. By assigning a FPP staff member as the main point of contact it also provides consistency in the relationship and will help identify potential efficiencies through the grouping of contracts Efficiently providing a list of potential tenderers for work packages, which can be filtered by their specific skills and suitability. This will help ensure that contracted work packages undergo a proper competitive tender process by illustrating suppliers suitability and providing a wider range of suppliers These points are particularly important as FPP grows as a company and knowledge of suppliers is spread among a number of staff. The database also helps ensure that FPP comply with the requirements of the data protection act by housing all data held on a company in a single location and ensuring that data is reviewed regularly and stored only as required. As FPP do not currently have a dedicated procurement manager the database will be ultimately managed by senior management, however it is expected that the FPP account manager for each supplier will manage their records. This will be easily managed by filtering the list to identify the records due to be updated for each member of staff. A copy of the template used for each supplier is shown below. 13

14 14

15 4.2 Supplier Identification and Initial Assessment Suppliers are identified in a number of ways including: Industry organisation (RUK and SR) directories Industry conferences and networking events Industry experience Direct contact from suppliers The suitability of suppliers is assessed directly by FPP staff based on the categories illustrated within the supplier database. The level of investigation into each supplier varies depending on the criticality of the service in terms of contract value, HSE impact, delivery time and availability of supply. Examples of the assessment process are provided below for the level of criticality. Criticality Score Action Low (<2) Medium (2-3.5) High (>3.5) In person meeting(s) with supplier O O X Phone meetings O X X correspondence X X X Facility tour (if applicable) - O X NDA completion O O X Sharing of FPP info prior to tender issue - O X Certification review O O X Project experience review X X X Discussion of partnering strategies - O X Collection of relevant information O X X Key: X = Required, O = Optional, - = Not required A supplier registration form, which is derived from the supplier database template, will also be made available on the website for completion by the supplier. This can then be sent to FPP for assessment by staff who will decide how best to follow up. The initial assessment process will only identify the key facts of the organization, workforce and facilities and whether it is feasible that they could provide suitable services. Suppliers should not be excluded at this stage unless there is a significant lack in their suitability to provide services required by FPP. This may, for example, include a wind turbine manufacturer who only provides onshore turbines or a supplier for global assembly whose facility has less than 5m clear draft to quayside. 4.3 Selection Process All discrete work packages will be awarded through a competitive tender process, with at least three suppliers (where possible) requested to provide a tender. An assessment of the tenders will be made on a range of weighted criteria specified internally at the outset of the tender process, with the most economically advantageous tender (according to the relevant criteria selected) being awarded the contract. Although an initial assessment of the suppliers is made at identification and prior to tender, as described previously, further assessment of the supplier s suitability to the specific work package will be made during the tender process. The level of this assessment will vary depending on the scope of the contract but may include: Investigating HSE stats for high risk work packages Reviewing specific staff CV s Requesting that Risk assessments ad method statements (RAMS) are prepared for review Reviewing full technical specifications of equipment to be supplied Review of warranty and guarantee provision Task specific experience and performance review For certain scopes, such as major fabrication, it may be preferable to work with preferred suppliers in a partnering approach, however extensive assessment will still be carried out prior to entering into such agreements. 15

16 5 Potential Value Chain 5.1 Summary The identification and assessment of potential suppliers is an ongoing business operation, with suppliers being continually added, assessed and reviewed. An outline of the number of suppliers identified in each procurement category is given below with a sample of the leading suppliers referenced. Please note that the list of suppliers in each category is not exhaustive. Category Current Number Example Suppliers Environmental Consultancy Engineering Consultancy HSE and Risk Consultancy Detailed Design Fabrication Global Assembly System Integration Commissioning Support O&M Support OEM / Vendor Aquatera Xodus RES RPS Group ERM Group Royal Haskoning DHV CEFRONT Technology IT Power Frazer Nash Consultancy Sgurr Energy Babcock E&MT BMT Group Risktec Sgurr Energy Marex CEFRONT technology Atkins Babcock E&MT Ramboll A&P Tyne Global Energy BiFab Babcock E&MS Cammell Laird OSB (Bladt) A&P Tyne BiFab Global Energy Cammell Laird A&P Tyne Global Energy Cammell Laird Babcock E&MS A&P Tyne Global Energy Babcock E&MS Wood Group Semco Maritime Wood Group Billfinger Salamis Babcock Siemens Wind MHI Vestas ABB Prysmian 16

17 5.2 Preferred Suppliers Current Agreements FPP has several existing agreements with suppliers for specific services and equipment. It is important to note that these agreements are not exclusive and, although they are intended to enable development of the value chain and value, FPP are not bound to these suppliers. Existing agreements include: OPES (CEFRONT Technology) this is an agreement to deliver naval architecture and marine engineering services for the global design of the P80 system Siemens Industry an agreement for the provision of electrical control equipment related to FPP s wave energy Power Take Off (PTO) system Fritz Schur Energy an agreement for the provision of hydraulic components and control systems related to FPP s wave energy Power Take Off (PTO) system Potential Preferred Suppliers FPP recognize the significance and importance of certain major contracts, particularly major fabrication and assembly and operation and maintenance contracts. As such, FPP have spent significant effort in identifying suppliers of these services (which are served by a limited number of suppliers) and intend to develop these relationships to achieve a partnering or preferred supplier agreement prior to contract award. Companies identified as being potential preferred suppliers for major fabrication and assembly contracts include: A&P Tyne A&P have a facility in Hebburn in north east England which includes a modern panel line system, well suited to constructing the P80. The facility also has suitable access to the North Sea so could provide complete assembly of the P80 or could transport multiple modules to an assembly site. A&P could then provide personnel to conduct and oversee the final assembly and commissioning activities. Global Energy Global Energy have several significant facilities throughout Scotland, in particular the Nigg site, which was designed for the construction and repair of offshore O&G rigs, including a 300x150m dry dock. Global Energy have a growing range of experience in offshore wind and would be well suited to projects in Scotland. Babcock Babcock have expressed an interest in working with FPP and have suitable facilities in Eastern Scotland for major fabrication packages. Babcock s strength would lie in their ability to provide detailed engineering services and manage fabrication and assembly at any facility, whether it is their own or 3 rd party. Companies identified as being potential preferred suppliers for O&M services include: Semco Maritime Semco Maritime are a Danish headquartered offshore service provider who are capable of providing a range of relevant offshore maintenance services. Wood Group Wood group are a major provider of O&M services to the offshore O&G market with skills relevant to FPP s requirements. Wood Group may be able to provide a complete management service covering all required O&M services and working with OEM s providing maintenance services. 17

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