1273056505 751
Developing UK Manufacturing Content in the Offshore Wind Supply Chain – A Turbine Manufacturers Perspective For the Offshore Supply Chain Conference at At-Bristol 9 March 2010
Richard Hatton Offshore Business Development Manager REpower Systems AG
SESSION CONTENT
1.
Context
2.
REpower manufacturing
3.
Key industry drivers v UK manufacturing
4.
Sub-supply chain
5.
Government support
6.
Bremerhaven model
1) CONTEXT - TURBINE SUPPLIER, BEATRICE
CONTEXT - TURBINE SUPPLIER, THORNTON BANK
CONTEXT – OFFSHORE SCOTTISH ROUND & ROUND 3
UK Manufacturing Content / UK Jobs 1. Government / Crown Estate pushing developers
3. Suppliers
TRI-PARTY
pushing Government
2. Developers pushing suppliers
2) REPOWER MANUFACTURING
Head Office Development Centres Subsidiary Offices Production & Logistics
EDINBURGH HUSUM RENDSBURG
SCOTLAND – 2006 / 2007 BREMERHAVEN
• REpower committed to tri-party solution for Scottish manufacturing
HAMBURG OSNABRÜCK
• Failed without forward commitment
TRAMPE
SCHLOSS HOLTE-STUKENBROCK
from Scottish Government to developers on consents • No contract confidence for REpower
PARIS
PORTUGAL – 2006 / 2007 • Successful tri-party solution
MILAN
• Government commitment on consents over several years • Real contracts for REpower • Onshore nacelle & blade production since 2008 and a supply base including tower, gearboxes, other
OLIVEIRA DE FRADES MADRID AVEIRO
major components
Need Government commitment on consents, real contracts, sustainable business
3) KEY INDUSTRY DRIVERS v UK MANUFACTURING
Lead Time Turbine contract signing New plant investment decision
Timing gap
Turbines, 18 - 24 mth New facility, 24 - 36 mth
2010
2011
2012
2013
2014
2015
Framework discussions help Need earlier consents
Price & Quality UK subsupply experience Project location
Cultural differences Shipment costs from continental supply
Financial incentives
Labour costs & experience
UK subsupply setup costs
4) SUB-SUPPLY SUB CHAIN - MANUFACTURE
Major Turbine Components: 1
Tower
2
Nacelle housing
3
Main and generator frame
4
Rotor shaft
5
Rotor hub
6
Rotor lock
7
Blade pitch bearings
8
Blade pitch control system
9
Blade pitch drive / motor
10
Yaw brakes
11
Yaw bearing
12
Yaw drives / motor
13
Rotor blades
14
Rotor bearings
15
Switch gear
16
SCADA control system
17
Converter
18
Transformer
19
Generator
20
Gearbox
Ease of UK Introduction:
Introduction Strategy:
Less complicated Basic components Heavy industry
Logistics savings € £
1. Initial focus. Ideal for local development / new suppliers
Auto / Aero industry relevance
More wind industry specific
Reliability / experience essential
Most difficult
2. Follow here. More suited to existing EU suppliers setting up locally
SUPPLY ECONOMICS DEPEND ON PROJECT LOCATION REpower offshore sub-supply Moray Firth
B) UK setup costs for local content or indirect installation more economically viable
Firth of Forth Dogger Bank
A) UK setup costs could outweigh direct installation costs from Germany
Hornsea Irish Sea
BREMERHAVEN Norfolk
Bristol Channel
Hastings West Isle of Wight
The sooner we know where we will win business the better – earlier consents!
5) GOVERNMENT SUPPORT
Recent Funding Announcements for Offshore Wind Turbine Suppliers: £30m
R&D development from Government's Strategic Investment Fund (SIF)
£4.4m
Blade development
£2.5m
Low Carbon Energy demonstration capital grant
£3.5m
Low Carbon Energy demonstration capital grant
£0.81m
Low Carbon Energy demonstration capital grant
£6m
R&D development
£1.1m
R&D development
???
Crown Estate purchase of a 7.5MW offshore turbine
• More than £48m so far, but all R&D related • Essential to have similar investment in ports and manufacturing centres
6) BREMERHAVEN MODEL
REpower facilities, Bremerhaven ● Offshore nacelle assembly factory ● Powerblades offshore blade facility - Both operational 2008 - 2011 capacity of 100 nacelles / blade sets ● Sustainable business (5 years or more) - Supply across Europe from Bremerhaven UK needs to provide similar sustainability
BREMERHAVEN MODEL
German Government Provided: 1) Single site - focussed centre of excellence, base to grow from 2) Entire infrastructure around existing port 3) SALES!! - Continuously canvassed, package too good to ignore
ROADS & SEWERAGE
DIRECT QUAY ACCESS EXPANSION POTENTIAL FOUNDATIONS FOR FACILITIES INDUSTRIAL SITE DESIGNATION
UK parallel: • Substantial groundwork needed if UK wants to compete • Coordinated effort needed to sell UK ports, skills, sub-suppliers, sub incentives……
RECAP & CONCLUSION
OFFSHORE:
ONSHORE (Lessons): Portugal
Right market conditions
Germany
Leading the way
UK
No commitment on consents
UK
Already playing catchup
UK NEEDS: 1. EARLIER CONSENTS ON SPECIFIC PROJECTS 2. SUSTAINABLE BUSINESS 3. SUB-SUPPLY CHAIN TO DEVELOP LOCALLY THEN ATTRACT EU SUPPLIERS 3. INVESTMENT IN PORTS & INFRASTRUCTURE 4. COORDINATED EFFORT TO SELL WHAT THE UK HAS TO OFFER
Thank you for your attention
Richard Hatton Offshore Business Development Manager REpower Systems AG
SESSION CONTENT
1.
Context
2.
REpower manufacturing
3.
Key industry drivers v UK manufacturing
4.
Sub-supply chain
5.
Government support
6.
Bremerhaven model
1) CONTEXT - TURBINE SUPPLIER, BEATRICE
CONTEXT - TURBINE SUPPLIER, THORNTON BANK
CONTEXT – OFFSHORE SCOTTISH ROUND & ROUND 3
UK Manufacturing Content / UK Jobs 1. Government / Crown Estate pushing developers
3. Suppliers
TRI-PARTY
pushing Government
2. Developers pushing suppliers
2) REPOWER MANUFACTURING
Head Office Development Centres Subsidiary Offices Production & Logistics
EDINBURGH HUSUM RENDSBURG
SCOTLAND – 2006 / 2007 BREMERHAVEN
• REpower committed to tri-party solution for Scottish manufacturing
HAMBURG OSNABRÜCK
• Failed without forward commitment
TRAMPE
SCHLOSS HOLTE-STUKENBROCK
from Scottish Government to developers on consents • No contract confidence for REpower
PARIS
PORTUGAL – 2006 / 2007 • Successful tri-party solution
MILAN
• Government commitment on consents over several years • Real contracts for REpower • Onshore nacelle & blade production since 2008 and a supply base including tower, gearboxes, other
OLIVEIRA DE FRADES MADRID AVEIRO
major components
Need Government commitment on consents, real contracts, sustainable business
3) KEY INDUSTRY DRIVERS v UK MANUFACTURING
Lead Time Turbine contract signing New plant investment decision
Timing gap
Turbines, 18 - 24 mth New facility, 24 - 36 mth
2010
2011
2012
2013
2014
2015
Framework discussions help Need earlier consents
Price & Quality UK subsupply experience Project location
Cultural differences Shipment costs from continental supply
Financial incentives
Labour costs & experience
UK subsupply setup costs
4) SUB-SUPPLY SUB CHAIN - MANUFACTURE
Major Turbine Components: 1
Tower
2
Nacelle housing
3
Main and generator frame
4
Rotor shaft
5
Rotor hub
6
Rotor lock
7
Blade pitch bearings
8
Blade pitch control system
9
Blade pitch drive / motor
10
Yaw brakes
11
Yaw bearing
12
Yaw drives / motor
13
Rotor blades
14
Rotor bearings
15
Switch gear
16
SCADA control system
17
Converter
18
Transformer
19
Generator
20
Gearbox
Ease of UK Introduction:
Introduction Strategy:
Less complicated Basic components Heavy industry
Logistics savings € £
1. Initial focus. Ideal for local development / new suppliers
Auto / Aero industry relevance
More wind industry specific
Reliability / experience essential
Most difficult
2. Follow here. More suited to existing EU suppliers setting up locally
SUPPLY ECONOMICS DEPEND ON PROJECT LOCATION REpower offshore sub-supply Moray Firth
B) UK setup costs for local content or indirect installation more economically viable
Firth of Forth Dogger Bank
A) UK setup costs could outweigh direct installation costs from Germany
Hornsea Irish Sea
BREMERHAVEN Norfolk
Bristol Channel
Hastings West Isle of Wight
The sooner we know where we will win business the better – earlier consents!
5) GOVERNMENT SUPPORT
Recent Funding Announcements for Offshore Wind Turbine Suppliers: £30m
R&D development from Government's Strategic Investment Fund (SIF)
£4.4m
Blade development
£2.5m
Low Carbon Energy demonstration capital grant
£3.5m
Low Carbon Energy demonstration capital grant
£0.81m
Low Carbon Energy demonstration capital grant
£6m
R&D development
£1.1m
R&D development
???
Crown Estate purchase of a 7.5MW offshore turbine
• More than £48m so far, but all R&D related • Essential to have similar investment in ports and manufacturing centres
6) BREMERHAVEN MODEL
REpower facilities, Bremerhaven ● Offshore nacelle assembly factory ● Powerblades offshore blade facility - Both operational 2008 - 2011 capacity of 100 nacelles / blade sets ● Sustainable business (5 years or more) - Supply across Europe from Bremerhaven UK needs to provide similar sustainability
BREMERHAVEN MODEL
German Government Provided: 1) Single site - focussed centre of excellence, base to grow from 2) Entire infrastructure around existing port 3) SALES!! - Continuously canvassed, package too good to ignore
ROADS & SEWERAGE
DIRECT QUAY ACCESS EXPANSION POTENTIAL FOUNDATIONS FOR FACILITIES INDUSTRIAL SITE DESIGNATION
UK parallel: • Substantial groundwork needed if UK wants to compete • Coordinated effort needed to sell UK ports, skills, sub-suppliers, sub incentives……
RECAP & CONCLUSION
OFFSHORE:
ONSHORE (Lessons): Portugal
Right market conditions
Germany
Leading the way
UK
No commitment on consents
UK
Already playing catchup
UK NEEDS: 1. EARLIER CONSENTS ON SPECIFIC PROJECTS 2. SUSTAINABLE BUSINESS 3. SUB-SUPPLY CHAIN TO DEVELOP LOCALLY THEN ATTRACT EU SUPPLIERS 3. INVESTMENT IN PORTS & INFRASTRUCTURE 4. COORDINATED EFFORT TO SELL WHAT THE UK HAS TO OFFER
Thank you for your attention
