OFFSHORE OPPORTUNITIES - Regensw
OFFSHORE OPPORTUNITIES Ian McQuade 4th November 2010
Content • Background and Structure • Current Business • Energy Developments • A Renewable Future • Support • A Warning • Summary
BACKGROUND •
The waters of Portland Harbour have offered a safe haven for ships for hundreds of years sheltered from the prevailing winds by the Isle of Portland itself;
•
King Henry VIII built two castles to protect these important waters from invasion by the French;
•
Portland Port operated as a base for the Royal Navy for nearly 150 years from the mid 19th century;
•
After its closure as a naval base Portland Port was privatised in 1996;
•
Portland Harbour Authority took over from QHM as statutory Harbour Authority in 1998;
•
Now part of the Langham Industries Group Portland Port / Portland Harbour Authority has made the successful transition into the commercial sector.
BACKGROUND •
•
•
•
•
Portland Harbour offers easy access to the main English Channel shipping lanes The Harbour waters cover over 1,800 hectares (4,500 acres) in the inner and outer harbour areas; Water depths of up to 20m are available at the outer harbour anchorages; Within the inner harbour depths at anchor of up to 16m can be found; Alongside Portland Port offers over 2,000m of berthing with water depths of up to 11.6m.
STRUCTURE • As a Statutory body Portland Harbour Authority has a responsibility to manage and regulate the Harbour – Human & Environment; • As a commercial enterprise Portland Port has a regional and national economic contribution to make (e.g. Napoli & Portland Gas) • As a private venture Portland Port / Portland Harbour Authority is run as an independent, stand alone, self financing business, free from Government support or subsidy and open to market forces.
BUSINESS •
Portland port is a successful operation and is not reliant on any single business stream, operating a successful multimulti-sector business;
•
The focus is to ensure that we continue to attract a diverse mix of tenants, operators and businesses at the Port;
•
Diverse spread of business and nonnon-reliance on traditional port activities is an advantage in times of economic hardship. Business risk is spread over a number market sectors: MOD – Following its closure as a naval base Portland has maintained an onon-going contract to support Royal Fleet Auxiliary operations; Bunkers – Home to Portland Bunkers International, an Aegean Marine Petroleum company, Portland delivers growing volumes of bunker fuel to ships passing through the English Channel;
BUSINESS Global Marine – Portland is home port to Global’s cable laying and ROV operations; Vessel Services – Acting in co co--operation with a number of based companies Portland offers itself as the ideal base for all types of vessel services from in water repairs to underwater surveys, name changes, stores delivery and crew transfers;
Cruise – Portland is becoming increasing popular as a cruise destination offering access to the UNESCO World Heritage sites of Bath and Stonehenge along with the beautiful countryside, castles and attractions of Dorset.
ENERGY - PORTLAND GAS • Portland Port’s first energy project; • The geology under the Isle of Portland make it ideal for the storage of natural gas; • 14 Caverns will be created nearly 2.5km underground each approximately the size of the London Eye. • On a typical midwinter day, Portland will be able to export gas to the market at 20 million cubic metres a day, providing 5% of the UK’s daily gas supply; • Hope to see the start of construction in 2011.
RENEWABLES - W4BRE • Portland Port’s first venture into renewable energy is the development of the 17.5mw Biofuel power plant by W4BRE; • Planning permissions all in place; • Commercial agreements in place with National Grid; • Final confirmation of ROC status pending; • Construction planned to commence 2011; • The experience gained during the negotiation and planning of both the Portland Gas and W4BRE projects beneficial as the focus moves offshore.
A RENEWABLE FUTURE • After taking our first steps with onshore renewables what role can Portland Harbour Authority play in developments offshore? • Under the UK’s Renewables Obligations renewable energy has to make an ever increasing contribution to our national energy requirements; • The Energy sector, and specifically the area of renewable energy, represents a key opportunity for Portland; • For Portland Harbour Authority renewable energy will be a key strategic sector for our business going forward; • Renewable prospects for Ports can be found both onshore and offshore but our location makes offshore renewables of particular interest; • Our vision is to make Portland Port “The Hub for Offshore Renewables Renewables”” in Southern England.
PORTLAND PORT – THE HUB FOR OFFSHORE RENEWABLES
WHY PORTLAND PORT? • South West Ports: – Over 80 ports/ harbours/ terminals – Approximately 25% has the potential to support the offshore wind industry in one way or another • Ability to handle large and small vessels; • Large water area providing opportunity for on water storage; • Land availability at quayside and inland; • HRO permission for the development of stand alone facility; • 24 / 7 operations; • Towage capability; • A flexible approach; • Port can look to shape deal to best suit needs of the customer; • Port as facilitator.
PORTLAND HARBOUR REVISION ORDER 2010
THE FUTURE?
THE FUTURE?
SUPPORT • The Port alone cannot offer everything that is needed; • The importance of getting local, regional and national support cannot be underestimated; • The success of Portland Port in supporting the offshore renewables industry will have a direct impact on the economy of the region; • The support of local and regional government essential in many ways: – Sourcing of any potential development funding; – Planning policy and approvals; – Manpower supply and employment for the short and long terms; – Development of appropriate skills through training programmes and educational development; – Local government incentives; – Design capability e.g. improved broadband access.
SUPPORT • The support of Weymouth and Portland Borough Council and Dorset County Council is proven with the approvals of the Portland Gas and W4BRE projects. They are fully committed to support offshore renewables renewables;; • At a national level Portland Harbour Authority is receiving strong support from its local MP. • Support is not just required at a governmental level; • Support from local business and the supply chain; • Existing, transferable skills already on site; • Important that Ports in turn support suppliers; • But what about Financial Support?
THE NEED TO SUPPORT UK PORTS 12th October 2010 Dear Sir The Coalition Government is committed to building a low low--carbon economy economy.. A significant part of this over the next ten years will be the replacement of our older power stations with new cleaner energy sources. sources. The wind resource around our coasts will have an important role in providing that, and a new domestic large large--scale wind turbine manufacturing industry has the potential to create up to 50 50,,000 UK based green collar jobs jobs.. To attract the private investment necessary to make this happen, it is vital that appropriate facilities are available to manufacturers who wish to build new factories here here.. The previous Government earmarked £60 million to upgrade infrastructure in and around our ports, and the announcement of this funding led to several manufacturers expressing their intent to invest in the UK UK.. This funding will be debated in Parliament today, which represents an ideal opportunity for the Government to clarify its position. position. We the undersigned therefore call on the Government to retain this funding following the Spending Review, in order that UK ports can do their part in creating a new green industry and the thousands of jobs that will follow. follow. Cutting the funding would play into the hands of more farfar-sighted competitors and condemn the UK to become an importer of one the fastest growing low low--carbon technologies technologies.. Your sincerely
PRIME MINISTER CONFIRMS OFFSHORE WIND ENERGY FUND 25th October 2010 David Cameron said said:: “We need thousands of offshore turbines in the next decade and beyond beyond… … To help secure private sector investment in this technology, we’re providing up to £60 million to meet the needs of offshore wind infrastructure at our ports ports.. And to help move things forward, the Crown Estate will also work with interested ports and manufacturers to realise the potential of their sites sites.. It’s a triple win win.. It will help secure our energy supplies, protect our planet and the Carbon Trust says it could create 70 70,,000 jobs jobs..” RenewableUK said said:: “This is a great day for the UK’s wind industry. industry. We are set to realise the full potential of offshore wind both in terms of energy and job creation, and are happy that the Government has shown vision and drive over this particular issue issue..”
A WARNING • Why is it so important that we have full local and regional support from both Government and business? • History shows that without it the benefits will go elsewhere; • Much of the offshore construction work currently undertaken off the East coast has been carried out from mainland Europe; • The skills and experience in the offshore wind sector already exist in mainland Europe; • The key turbine manufacturers and suppliers are all based in mainland Europe; • The threat from France; • It is essential that Port’s play their part in ensuring that support for future offshore wind, wave and tidal developments comes from the UK; • Looking further ahead it is essential lessons are learned so that we do not find ourselves in the same situation with the development of wave and tidal solutions.
A WARNING Bain & Company Industry Brief, October 2008 • The UK wind industry is poised for extraordinary growth growth;; • For that to be fully realised, numerous obstacles must be overcome overcome;; • There are many specific actions that the government and companies must take to overcome these obstacles obstacles;; • If that can be achieved, and the sector is promoted in the right way, then 50 50,,000 new jobs could potentially be created in the wind industry in the UK UK.. • Wind Industry is the highest growth industry in Europe; Europe; • Germany, Spain & Denmark have secured the majority of the benefits from that growth !
SUMMARY • Ports have a key role to play in the development of offshore renewables renewables;; • Ports need to be flexible and offer tailor made solutions to developers to ensure that the business is not lost overseas overseas;; • Ports can only succeed in attracting these major developments with the full co co--operation and support of local, regional and national Government and business business;; • Ports will be at the heart of the growth and success of offshore renewable energy whether it is wind, wave or tidal – we have to ensure that it is UK Ports Ports..
THANK YOU
Content • Background and Structure • Current Business • Energy Developments • A Renewable Future • Support • A Warning • Summary
BACKGROUND •
The waters of Portland Harbour have offered a safe haven for ships for hundreds of years sheltered from the prevailing winds by the Isle of Portland itself;
•
King Henry VIII built two castles to protect these important waters from invasion by the French;
•
Portland Port operated as a base for the Royal Navy for nearly 150 years from the mid 19th century;
•
After its closure as a naval base Portland Port was privatised in 1996;
•
Portland Harbour Authority took over from QHM as statutory Harbour Authority in 1998;
•
Now part of the Langham Industries Group Portland Port / Portland Harbour Authority has made the successful transition into the commercial sector.
BACKGROUND •
•
•
•
•
Portland Harbour offers easy access to the main English Channel shipping lanes The Harbour waters cover over 1,800 hectares (4,500 acres) in the inner and outer harbour areas; Water depths of up to 20m are available at the outer harbour anchorages; Within the inner harbour depths at anchor of up to 16m can be found; Alongside Portland Port offers over 2,000m of berthing with water depths of up to 11.6m.
STRUCTURE • As a Statutory body Portland Harbour Authority has a responsibility to manage and regulate the Harbour – Human & Environment; • As a commercial enterprise Portland Port has a regional and national economic contribution to make (e.g. Napoli & Portland Gas) • As a private venture Portland Port / Portland Harbour Authority is run as an independent, stand alone, self financing business, free from Government support or subsidy and open to market forces.
BUSINESS •
Portland port is a successful operation and is not reliant on any single business stream, operating a successful multimulti-sector business;
•
The focus is to ensure that we continue to attract a diverse mix of tenants, operators and businesses at the Port;
•
Diverse spread of business and nonnon-reliance on traditional port activities is an advantage in times of economic hardship. Business risk is spread over a number market sectors: MOD – Following its closure as a naval base Portland has maintained an onon-going contract to support Royal Fleet Auxiliary operations; Bunkers – Home to Portland Bunkers International, an Aegean Marine Petroleum company, Portland delivers growing volumes of bunker fuel to ships passing through the English Channel;
BUSINESS Global Marine – Portland is home port to Global’s cable laying and ROV operations; Vessel Services – Acting in co co--operation with a number of based companies Portland offers itself as the ideal base for all types of vessel services from in water repairs to underwater surveys, name changes, stores delivery and crew transfers;
Cruise – Portland is becoming increasing popular as a cruise destination offering access to the UNESCO World Heritage sites of Bath and Stonehenge along with the beautiful countryside, castles and attractions of Dorset.
ENERGY - PORTLAND GAS • Portland Port’s first energy project; • The geology under the Isle of Portland make it ideal for the storage of natural gas; • 14 Caverns will be created nearly 2.5km underground each approximately the size of the London Eye. • On a typical midwinter day, Portland will be able to export gas to the market at 20 million cubic metres a day, providing 5% of the UK’s daily gas supply; • Hope to see the start of construction in 2011.
RENEWABLES - W4BRE • Portland Port’s first venture into renewable energy is the development of the 17.5mw Biofuel power plant by W4BRE; • Planning permissions all in place; • Commercial agreements in place with National Grid; • Final confirmation of ROC status pending; • Construction planned to commence 2011; • The experience gained during the negotiation and planning of both the Portland Gas and W4BRE projects beneficial as the focus moves offshore.
A RENEWABLE FUTURE • After taking our first steps with onshore renewables what role can Portland Harbour Authority play in developments offshore? • Under the UK’s Renewables Obligations renewable energy has to make an ever increasing contribution to our national energy requirements; • The Energy sector, and specifically the area of renewable energy, represents a key opportunity for Portland; • For Portland Harbour Authority renewable energy will be a key strategic sector for our business going forward; • Renewable prospects for Ports can be found both onshore and offshore but our location makes offshore renewables of particular interest; • Our vision is to make Portland Port “The Hub for Offshore Renewables Renewables”” in Southern England.
PORTLAND PORT – THE HUB FOR OFFSHORE RENEWABLES
WHY PORTLAND PORT? • South West Ports: – Over 80 ports/ harbours/ terminals – Approximately 25% has the potential to support the offshore wind industry in one way or another • Ability to handle large and small vessels; • Large water area providing opportunity for on water storage; • Land availability at quayside and inland; • HRO permission for the development of stand alone facility; • 24 / 7 operations; • Towage capability; • A flexible approach; • Port can look to shape deal to best suit needs of the customer; • Port as facilitator.
PORTLAND HARBOUR REVISION ORDER 2010
THE FUTURE?
THE FUTURE?
SUPPORT • The Port alone cannot offer everything that is needed; • The importance of getting local, regional and national support cannot be underestimated; • The success of Portland Port in supporting the offshore renewables industry will have a direct impact on the economy of the region; • The support of local and regional government essential in many ways: – Sourcing of any potential development funding; – Planning policy and approvals; – Manpower supply and employment for the short and long terms; – Development of appropriate skills through training programmes and educational development; – Local government incentives; – Design capability e.g. improved broadband access.
SUPPORT • The support of Weymouth and Portland Borough Council and Dorset County Council is proven with the approvals of the Portland Gas and W4BRE projects. They are fully committed to support offshore renewables renewables;; • At a national level Portland Harbour Authority is receiving strong support from its local MP. • Support is not just required at a governmental level; • Support from local business and the supply chain; • Existing, transferable skills already on site; • Important that Ports in turn support suppliers; • But what about Financial Support?
THE NEED TO SUPPORT UK PORTS 12th October 2010 Dear Sir The Coalition Government is committed to building a low low--carbon economy economy.. A significant part of this over the next ten years will be the replacement of our older power stations with new cleaner energy sources. sources. The wind resource around our coasts will have an important role in providing that, and a new domestic large large--scale wind turbine manufacturing industry has the potential to create up to 50 50,,000 UK based green collar jobs jobs.. To attract the private investment necessary to make this happen, it is vital that appropriate facilities are available to manufacturers who wish to build new factories here here.. The previous Government earmarked £60 million to upgrade infrastructure in and around our ports, and the announcement of this funding led to several manufacturers expressing their intent to invest in the UK UK.. This funding will be debated in Parliament today, which represents an ideal opportunity for the Government to clarify its position. position. We the undersigned therefore call on the Government to retain this funding following the Spending Review, in order that UK ports can do their part in creating a new green industry and the thousands of jobs that will follow. follow. Cutting the funding would play into the hands of more farfar-sighted competitors and condemn the UK to become an importer of one the fastest growing low low--carbon technologies technologies.. Your sincerely
PRIME MINISTER CONFIRMS OFFSHORE WIND ENERGY FUND 25th October 2010 David Cameron said said:: “We need thousands of offshore turbines in the next decade and beyond beyond… … To help secure private sector investment in this technology, we’re providing up to £60 million to meet the needs of offshore wind infrastructure at our ports ports.. And to help move things forward, the Crown Estate will also work with interested ports and manufacturers to realise the potential of their sites sites.. It’s a triple win win.. It will help secure our energy supplies, protect our planet and the Carbon Trust says it could create 70 70,,000 jobs jobs..” RenewableUK said said:: “This is a great day for the UK’s wind industry. industry. We are set to realise the full potential of offshore wind both in terms of energy and job creation, and are happy that the Government has shown vision and drive over this particular issue issue..”
A WARNING • Why is it so important that we have full local and regional support from both Government and business? • History shows that without it the benefits will go elsewhere; • Much of the offshore construction work currently undertaken off the East coast has been carried out from mainland Europe; • The skills and experience in the offshore wind sector already exist in mainland Europe; • The key turbine manufacturers and suppliers are all based in mainland Europe; • The threat from France; • It is essential that Port’s play their part in ensuring that support for future offshore wind, wave and tidal developments comes from the UK; • Looking further ahead it is essential lessons are learned so that we do not find ourselves in the same situation with the development of wave and tidal solutions.
A WARNING Bain & Company Industry Brief, October 2008 • The UK wind industry is poised for extraordinary growth growth;; • For that to be fully realised, numerous obstacles must be overcome overcome;; • There are many specific actions that the government and companies must take to overcome these obstacles obstacles;; • If that can be achieved, and the sector is promoted in the right way, then 50 50,,000 new jobs could potentially be created in the wind industry in the UK UK.. • Wind Industry is the highest growth industry in Europe; Europe; • Germany, Spain & Denmark have secured the majority of the benefits from that growth !
SUMMARY • Ports have a key role to play in the development of offshore renewables renewables;; • Ports need to be flexible and offer tailor made solutions to developers to ensure that the business is not lost overseas overseas;; • Ports can only succeed in attracting these major developments with the full co co--operation and support of local, regional and national Government and business business;; • Ports will be at the heart of the growth and success of offshore renewable energy whether it is wind, wave or tidal – we have to ensure that it is UK Ports Ports..
THANK YOU
