US Offshore Wind Marine Logistics:

Transcription

1 US Offshore Wind Marine Logistics: First Jones Act compliant jack-up turbine installation vessel Andy Geissbuehler Managing Partner LLC VOWDA, Richmond VA, 12 September Van Oord s AEOLUS installing Gemini Windpark

2 Project pipeline drives investment Regulatory Driven Base pipeline: Bold, State driven energy policy - MA: Legislation for 1.6 GW - NY: Commitment for 2.4 GW, NYSERDA Masterplan, 5B$ CEF* - MD: OREC (OSW Renewable Energy Credit), ~1GW potential - NJ, RI, others NE: ~1 GW potential Conclusion: even without VA (2GW) and NC (2 GW), the project pipeline amounts to at least 5-6GW for the next 10 years. Secured, active pipeline: Deepwater Wind secured 90 MW PPA in NY (LIPA) Deepwater Wind secured 120 MW PPA in MD US Wind secured 248 MW PPA in MD MA RFQ bids due in December ( MW) Business opportunity for foundations: Realistic: 600 MW per year. Conservative: 400 MW per average turbine size of 8 MW ~50 turbines yearly, each requiring a foundation. Conservative calculation delivers an impressive yearly market volume of at least 250M$. This volume is sustainable over a period of 10 years and is very likely to be significantly higher. * Clean Energy Fund of New York State Energy Research and Development Authority 2

3 Key stakeholders, promoters & capturers BOEM DOE NYSERDA (NY State Energy Research and Development Authority) MassCEC (MA Clean Energy Center) Maryland Energy Administration Platforms for other States? 3

4 Focus is shifting Operation & Maintenance Business Development Project Execution Auctions PPAs Permitting Manufacturing Logistics Installation Production Diagnostics Maintenance 4

5 Triangle of project success EUROPEAN OSW LEARNING CURVE B$ MISSION Block Island, RI first commercial offshore windfarm in the US 5 US OFFSHORE OIL&GAS EXPERIENCE Marine logistics US EPC & RISK MANAGEMENT CAPABILITIES

6 Three compliance options Neptun Ship Design Fred Olsen / Deepwater Wind Zentech / European model: Build new Jones Act compliant installation vessel in the US substantial CAPEX while requirements of MW turbine generation still evolving. Current US project pipeline unlikely to absorb investment. Feeder barge model: Charter European installation vessel at substantial cost. Equipment delivery by costly and Jones Act compliant jack-up feeder barges currently unavailable in required size. Model successful at Block Island, but scalability is limited. US localization model: Convert existing, Jones Act compliant asset into installation vessel (CAPEX at a fraction of a new vessel). Apply US oil & gas experience, and consider some local conversion scope for the East Coast. Secured US vessel access for O&M. 6

7 Maximizing competitiveness through vessel conversion Predictable performance for windturbine & foundation installation and O&M applications Conversion of existing Jones Act asset for cost competitiveness (CAPEX ~100M$+crane upgrade) and leadtime (~18 months) Designed for 8-9 MW turbine generation upgradable for 10+ MW generations Safe passage of New Bedford MA hurricane barrier Newly built key components involving 4 legged jackup, DP2, outside hull, crane, etc. Fully customized for offshore wind, reasonably suitable for oil & gas decommissioning work as second revenue source. 7

8 Zentech / Renewable Resources partnership Committed and capable team: 38 years of global jack-up design and conversion experience Proven EPC execution - vessel conversion and new build Oil & Gas operational experience - only US operated and owned heavy duty rig designer Proven collaborative network oil & gas industry 25 years of global energy business experience Proven EPC project execution onshore and offshore US Offshore wind development, supply chain and installation experience Block Island. Access to European learning curve. Proven collaborative network with offshore wind decisionmakers Fred Olsen / Deepwater Wind 8

9 Foundations and O&M directly related to vessel strategy Integrated Equipment (CAPEX) Integrated O&M (OPEX) WTG Supply * Turbine, blade, tower supply * Mechanical & electrical completion * Commissioning Integrated Engineering Substructure Supply * Engineering design * Substructure manufacturing *Deliver to installer s barge WTG O&M * Predictive maintenance * Daily operations * Various systems support Integrated Operations management Substructure O&M * Predictive maintenance * Support vessel operation * Daily operations Integrated Logistics (CAPEX) Jones Act Feeder & Inst. Vessels * MARAD Title XI prog. * MARAD CCF program * Global ownership * US leased vessel operation Marine Transport & Installation *Turbine, blade, tower transport & installation * Substructure transport &installation Material handling & port logistics *Consolidated port operations * Logistics management, work-boat & material Cable Manufacturing & Installation * Cable manufacturing * Export and interarray cable installation *Horizontal drilling 9

10 Impacting vessel requirements supply chain strategy Denmark: Lindø Industripark, a former shipyard, has been added to Bladt Industries production facilities 10

11 Impacting vessel requirements choice of foundation Bladt Industries, Denmark 11

12 Impacting vessel requirements foundation technology Bladt Industries, Denmark 12

13 Impacting vessel requirements turbine technology MHI Vestas ~9 MW nacelle in Denmark 13

14 Gemini Wind Farm - Video by Van Oord Van Oord s AEOLUS installing Gemini Windpark 14

15 Takeaway for Virginia consistent with April 2017 conclusion Significant opportunity for industrial development Virginia well positioned - infrastructure, geography, capabilities Time is of the essence to secure position - market sustainable but limited Block Island, RI first commercial offshore windfarm in the US 15