Scandia Wind Offshore. Offshore Lake Michigan, The Aegir Project

Transcription

1 Scandia Wind Offshore Offshore Lake Michigan, The Aegir Project

2 Havgul s experience Andmyran wind park, 160 MW The Havsul project, 1500 MW Kvitfjell, 200 MW Siragrunnen, 200 MW Havøygavlen, 40 MW

3 Havsul I, Gamlemsveten 8 MW

4 Offshore foundations

5 Offshore turbine installation

6 Norwegian projects: Extensive studies performed 19 EIS subjects studied, including: Bird studies Underwater biology studies Wildlife studies Flora and fauna studies Socioeconomic studies Cultural heritage studies Ship navigation, drifting, search and rescue Extensive technical studies Wind measurements Water depth measurements Sea bed analysis Cost analysis Grid analysis

7 Scandia Wind Offshore s consultant consortium EMD International A/S Technical feasibility study Stoel Rives Legal Hoffman Brobst Finance proformas, project audit Havgul Clean Energy Project development Michigan public agencies Permitting, approvals, environmental data Natural Resource Group Environtmental and permitting consultant RnR Engineering HDR Cummins & Bard Grid consultants

8 Why the Aegir project Excellent wind conditions Feasible water depths Excellent grid capacity The Ludington pump storage facility, potentially working as a battery for the wind farm Close to major load centers reducing transfer losses Strong political drivers towards offshore Reduces CO2 emissions by 2,2 million tons yearly The Aegir project will reproduce all energy used to put it into operation appr 42 times The Aegir project will be carbon neutral after appr 7 months in operation

9 Feasibility study Grid study: o Estimate interconnection and transmission capacities, i.e. define wind farm size o Define interconnection points o Describe interconnection application processes Sea conditions: o Accurate electronic sea maps o Sea bed conditions o Wave heights Wind assessment study: o Micrositing o Production calculations o Preliminary visualizations Turbine foundations o Technical design o Production methods and facilities o Site identifications for production and installation o Installation methodology o Job creation EIS screening study: o List all studies to be conducted above water o List all studies to be conducted below water Lease application, describe the process: o Where to apply o How to apply o Permits and approvals: aviation, defense, ship traffic, etc First draft progress plan

10 The Aegir project sketch, approximately 1,000 MW * * 3.7 miles App 100 sq miles Proposed 1,000 MW 5 10 MW each turbines feet high $3-$4 billion investment 3.4 billion kwh per year Approx 9 m/s average wind speed **Source: Report of the Michigan Great Lakes Wind Council, September 1, 2009

11 Aegir land-based stakeholder area

12 View from Ludington Pump Storage Power Plant

13 View from Mears State Park, Pentwater

14 View from Silver Lake State Park

15 Noise from the wind farm in operation will not be heard from any shore location

16 Ludington Pumped Storage Plant, a potential battery?

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18 Wind Quality and Load Centers in the U.S. Michigan is situated near three large load centers Blue - high wind potential Brown - large demand centers Green - little wind and smaller demand centers.

19 Wind speeds on Lake Michigan

20 Concrete Foundation Features *A 1,000 Megawatt wind farm would require (approximately): o o o o 1 million tons of concrete 200,000 tons of steel 2 million manhours of labor for foundations Foundation Production Cost: >$200 million

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22 Concrete Foundation History

23 Large Turbine Technology REpower 5 MW Clipper 10 MW

24 Studies to be performed (for approvals by State and Federal agencies) Habitat/Biological (above water, below water) Avian Studies Bat Studies Fisheries Bethnic fauna and flora Cultural Resources Submerged transmission lines Disposal sites Large river mouths Shoreline (near- shore view buffer) National Park lakeshores Shoreline parks and wilderness State bottomland preserves Note: Additional studies may be required Cultural Heritage Shipwrecks Underwater archaeological sites Private Industry Commercial Fishing areas Transportation/navigation Recommended (shipping) course lines Aids to navigation Buoyed navigation channels Other transportation/operations Coastal airports Military operation areas Harbors/marinas Visual Impacts Tourism Property values Noise Impacts

25 Permits needed State MI Public Service Comission Department of Environmental Quality Great Lake Submerged Lands MI Endangered Species Law Water Quality Certification Federal US Army Core Of Engineers National Environmental Policy Act US Coast Guard Costal Zone Management Act Fish and Wildlife Service Eagles Protection Act Migratory Bird Treaty Act National Historic Pres Act Federal Aviation Agency

26 Counties, Twps, and Munis advice Grid access approvals Lease approval All permits issued Financial closure Commissioning The way forward, estimated time table Q Q2 10 Q3 10 Q1 12 Q1 11 Q1 13 Q3 13 Q years Local advice Define layout Comp model MISO application Lease application Environmental studies Non environmental studies Permits applications Wind measurements Financing Commercial agreements Construction

27 Next steps as we see it (subject to local authorities input) Discuss the options with the local authorities: Gauge interest in moving forward Modifications of the project Fixed distance from the shore Overall shape and size Discussions with State and Federal authorities Compensation model Presentations to the local boards Seek local authorities advice regarding stopping the project or moving it into the further studies

28 Compensation models Direct Compensation: Deliver local revenue an amount that is meaningful to the regional stakeholders via an annual payment; likely a per megawatt-based formula -- a fixed amount to a Community Trust; or a royalty payment based on production (or a combination thereof) A royalty payment to the State of Michigan a lease payment and/or royalty payment based on production Indirect Compensation: Job creation during construction and after commissioned (operations and maintenance) OEM facilities/operations; maintain project size and scope a large project could attract industry supply-chain, more jobs Regional power plant fleet is aging; replace and support growth in power consumption, while addressing Michigan s Renewable Portfolio Standard

29 Estimated job creation for the Aegir project Aggregated results from the Siragrunnen project: Approximately 3,500 man-years in the construction phase Approximately 100 direct man-years in the operational phase. In addition comes indirect jobs in the operational phase Separate analysis will be performed for the Aegir project

30 Support for Michigan s offshore wind energy production is growing an opportunity for Mason and Oceana counties?

31 Germany: hard push for offshore wind power

32 How to attract manufacturers to the region In order to stimulate manufacturing there is a strong need for a sizeable local market, one with a suitably priced power purchase agreement, and it is necessary for strong grid connection to be available to service the expansion of a large offshore project, according to a major US Original Equipment Manufacturer (OEM).

33 How to attract manufacturers to the region Important factors for a turbine manufacturer to consider in establishing manufacturing: Stable regional market including long-term renewable energy goals Suitable sites for wind farms with sufficient transmission capacity Strong power purchase agreements Test facilities Incentives to establish manufacturing facilities Support for training new staff Prepare and train existing industry for the criteria the wind industry demands Scandia Wind intends to give its contribution using its broad network and experience to diversify Michigan into the wind industry

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