Offshore Wind Industrial Strategy: government and industry in partnership

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1 Offshore Wind Industrial Strategy: government and industry in partnership Carolyn Campbell 21 May #IndustrialStrategy

2 Industrial Strategy: government and industry in partnership Industrial Strategy: a long-term approach to support economic growth. Key principles: Long term; Partnership with business; and Whole of Government approach.

3 Five strands of Industrial Strategy: Supporting development of emerging technologies; Improving access to finance for businesses; Working with businesses to help develop the skills that they need; Creating a simpler and more transparent public sector procurement system and working with larger businesses to support their supply chains Providing a spectrum of support for all sectors and developing longterm, strategic partnerships in sectors where government and business working together can make most difference including offshore wind

4 Why an industrial strategy for offshore wind? Offshore wind is a growing sector UK has world leading position in offshore wind; considered most attractive location in the world for offshore wind investment, with large pipeline of future projects. That growth presents an industrial opportunity Government is determined to turn investment in offshore wind into UK jobs, by delivering greater opportunities for a competitive, UK-based supply chain.

5 A partnership between Government and industry Offshore Wind Industry Council (OWIC) Strategic partnership forum between Government and the offshore wind industry Brings together developers, supply chain, UK government, devolved administrations and The Crown Estate Role is to drive deployment; bring down costs; and build a successful, competitive UK-based industry Offshore Wind Programme Board (OWPB) Delivers actions, reporting to OWIC

6 Offshore wind industry now: some success stories Employment in UK offshore wind industry more than doubled between 2011 and Now more than 6,000 people directly employed, with similar number of indirect jobs in wider supply chain. Local areas benefiting from investment to build and operate wind farms, such as Belfast Harbour, north coast of Wales, east coast of England. Some UK companies winning contracts to produce components, such as JDR Cables in Harlepool, Burntisland Fabrications in Fife. Siemens and ABP jointly investing 310 million in turbine production and installation facilities in the Hull area.

7 An update on some key initiatives Supply Chain Plans Visibility of procurement requirements Support for the offshore wind supply chain including Offshore Wind Investment Organisation GROW:Offshore Wind Support for innovation Offshore Renewable Energy Catapult

8 Supply Chain Plans Projects of 300MW or more applying for a Contract for Difference (CfD) will be required to produce a Supply Chain Plan. The plan should demonstrate that the project will make a material contribution to the growth and viability of the low carbon supply chain, specifically showing how it will meet the three assessment criteria: Support the development of competition in supply chains Support innovation in supply chains Support the development of skills in supply chains

9 Supply Chain Plans: Assessment timetable Projects submitting supply chain plans should do so between 1 and 26 August 2014 to best ensure they are considered prior to the first CfD allocation round. DECC will endeavour to assess the plans within 30 working days. Note: Plans that are incomplete or are assessed to be borderline may take longer to process. 1 August - Final Guidance Document Published 1 August Window for submission opens 26 August Window for submission closes Plans are assessed August September If the supply chain plan is submitted with information or detail missing, DECC will request further information and the assessment process (and timeline) will only restart once the required information is provided. 14 October - CfD application window opens 27 October - CfD application window closes October DECC will notify the applicant of approval or rejection of the plan.

10 Supply Chain Plans Refer to the draft guidance document published on 29th April for further information on the assessment process. -chain-guidance You can contact us through:

11 Visibility of procurement requirements Developers and top tier suppliers are making their procurement requirements and timelines more visible to the supply chain, for example through: RenewableUK s industry project timelines publication, produced with input from developers Share Fairs and other events for potential suppliers

12 Support for offshore wind supply chain Sector-specific support schemes, to complement generic support for business, across the whole UK, including: Area UK-wide England Scotland Wales Northern Ireland Examples of support Offshore Wind Investment Organisation in UKTI GROW: Offshore Wind Centres for Offshore Renewable Engineering (CORE) partnership Support from the Scottish enterprise agencies including Offshore Wind Expert Support Support from the Welsh Government Support from Invest NI including Offshore Wind Support Programme

13 Offshore Wind Investment Organisation Aim: To significantly increase the level of UK content in the offshore wind supply chain in the UK and across the rest of the world. Approach: Informed by assessment of the market opportunity and UK supply chain capability, OWIO: identifies areas of the offshore wind and related energy supply chain where there is potential for new investment or growth; identifies specific companies to target; works with developers to support their supply chain plans. Immediate focus: to work with companies with significant potential for UK job creation in the near term, whether through inward investment or expansion of existing UK capacity. Contact:

14 Offshore Wind Investment Organisation: Priority sub-sectors Sector Turbine OEM Sub-stations Towers Foundations Reason to prioritise Government continues to work on landing turbine OEMs to deliver the major product from the UK and the component supply opportunity they would bring with them Historically UK has performed well in this balance of plant opportunity; work needed to ensure strong UK value in future Logistical cost advantages in delivering close to market; skills and experience offer; OEMs flexibility in purchasing Logistical and handling advantages of physically close to market solution; significant UK design capabilities

15 GROW: Offshore Wind Programme supported by 20m Regional Growth Fund grant to stimulate offshore wind manufacturing supply chain in England Focus on SMEs with some scope to support larger companies Support can include: Upfront assessment to identify routes to market (no cost) Targeted consultancy (50% of costs covered) Capital funding eg for plant and machinery (grant level depends on company size and location) Technology funding (25-50% of costs covered)

16 GROW: Offshore Wind Example project GROW provided grant to Abfad Limited in Sunderland to develop specialist coating applications for offshore wind turbine monopiles Accelerating innovation in operations & maintenance technologies Watch the GROW website this week for news of a call for proposals from GROW and Knowledge Transfer Network (KTN) growoffshorewind@mymas.org

17 Support for innovation: Offshore Renewable Energy Catapult A technology and innovation centre based in Glasgow One of 7 Catapults established and overseen by the Technology Strategy Board (TSB) TSB providing 46 million to support ORE Catapult s five year business plan

18 Support for innovation: Offshore Renewable Energy Catapult ORE Catapult will build a centre of deep technical expertise and will support Identification, development and commercialisation of innovative technology Collaboration between Government, industry and academia Market access for SMEs Recent merger with National Renewable Energy Centre at Blyth will bring together Narec s independent testing facilities with expertise of ORE Catapult

19 Information available Visit: to download Offshore Wind Industrial Strategy: Business and Government Action Overview of Support for the Offshore Wind Industry to be updated May or

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