Offshore Wind - Regensw
UK Offshore Wind Supply Chain Conference Developers’ Update
.................................................................................................
Navitus Bay Wind Park UK Offshore Wind Supply Chain Conference 31 May 2012 – NEC Birmingham Chris Sherrington – Project Director
Who are we? ................................................................................................. Navitus Bay is a joint venture between Eneco and EDF Energy created to develop the Navitus Bay Offshore Wind Park.
4
•
Eneco is a Dutch utility owned by 60 municipalities with over 2 million customers in the Netherlands. The company has a strong focus on sustainable generation with interests in onshore and offshore wind, solar, hydro and geothermal.
•
EDF Energy is the UK subsidiary of EDF, with over 5 million customers in the UK. EDF Energy have 20 onshore wind farms in operation and are currently constructing the Teesside Offshore Wind Farm, due for completion at the end of 2012.
........................................................................
Offshore wind experience
.................................................................................................
• Eneco have one operational offshore wind park, Prinses Amalia WindPark, a 120MW scheme off the Dutch coast operational since 2008. • EDF Energy are currently constructing the 62MW Teesside Offshore Wind Farm, 1.5km off the North East coast. EDF Energies Nouvelles participates in the C-Power consortium for the Thornton Bank offshore project with 325MW installed capacity off the Belgian coast.
5
• Both companies are developing further offshore wind projects: – EDF in consortium have recently been awarded three sites in the French offshore wind tender with a total capacity of 1.5GW. – Eneco is taking forward the 150MW Q10 project in the Netherlands and the up to 450MW Norther Wind Park in Belgium.
........................................................................
Zone Overview ................................................................................................. • Eneco awarded Zone 7 (West Isle of Wight) January 2010 • Minimum target capacity of 900MW • 270 sq. miles of which approximately 1/3 was considered developable • 10.4 miles from Bournemouth / 8.4 miles from Isle of Wight coast • Water depths 30-50m • 900MW can supply power to equivalent of 615,000 homes (Dorset, Poole, Bournemouth, New Forest, Isle of Wight, Southampton and Portsmouth)
• Zone Appraisal & constraints analysis identified Development Area
6
........................................................................
Navitus Bay •
................................................................................................. Up to 1200 MW (power for up to 820,000 homes annually
•
Est. 3 x 400 MW blocks, 3 x OHVS
•
133 x 9 MW - 333 x 3.6 MW turbines
•
Water depths 30–50 metres – ave 38m
•
Foundations options include gravity base & space frame structures (jacket, tripod.
• Closest point 8.2 miles from Swanage, 10.4 miles from Bournemouth and 8.4 miles ........................................................................ 7 from the Needles
Examples of Zone Constraints ................................................................................................. • Access to Poole Harbour
• Water depths – south & south west (>50 metres) • MOD Buffer & practice areas • Seabed Conditions – e.g. slopes, chalk areas • Conservation areas and potential reefs • Final design informed by consultation, further surveys and EIA iterations 8
•
........................................................................
Onshore Cable corridor .................................................................................................
9
• Grid connection at Mannington (north of Ferndown) • Ca 35 km underground cable to new substation
........................................................................
Supply Chain opportunities
Construction Phase 2017 - 2021 .................................................................................................
• Recent case studies est. UK Content: 25% - 35% but ….
• Outlook brighter (depending on EMR and orders) in turbines also fabrication, BoP and installation • Examples of opportunities include: – Project Management – Onshore works –cabling, substations – Vessels – Fabrication – Installation & commissioning – Ports and Services
10
........................................................................
O&M Ports - Candidates .................................................................................................
11
........................................................................
Supply Chain Engagement .................................................................................................
• Offshore 2.0 (2011) – market survey focused on opportunities to reduce cost of energy • Identify lessons from Navitus Bay shareholders
• Early stage local engagement through supply chain workshops involving LEPs & Local Councils – Dorset & Solent, Isle of Wight (end of June) • Capturing supplier details on website to share with major suppliers • Identify opportunities for UK and local companies
12
........................................................................
High Level Schedule ................................................................................................. • Environmental Impact Assessment (EIA) & Consultation 2012 - 2013 • Development Consent Order (DCO) Application Q4 2013. Consent decision expected Q2 2015
• Financial Close Tender / award contracts 2015 - 17 • Construction proposed to commence 2017 •
Commence Operations
• 2018 • Operational 2020/21
13
........................................................................
.................................................................................................
Thank You www.navitusbay.com
14
........................................................................
UK Offshore Wind Supply Chain Conference Developers’ Update
UK Offshore Wind Supply Chain Conference and Exhibition Offshore projects in development: Spotlight on Atlantic Array Offshore Wind Farm 31st May 2012
PAGE 16
RWE and Offshore Wind >RWE has 20 million customers throughout Europe, 70,000 employees worldwide
>Manage investment of €1 Billion per annum
> RWE Innogy established in 2008 to unify all RWE renewable activities
>Offshore business has 250+ employees
Overview Business Area
Focus and Strategy
Focus on Wind, Hydro and Biomass while also supporting new technologies Wind Onshore
Wind Offshore
Hydro Power
Biomass
New Technologies
Driving innovative renewable technologies towards commercial stage through Venture Capital and R&D and proving large scale commercial feasibility by operating demonstration plants
Key technology for capacity growth
Key technology for capacity growth
Run-of-river projects and storage plants
Development of biomass plants
Focus on organic growth
Organic growth strategy leveraging strong position in UK
Development of hydro power projects
Regional focus on RWE core markets and Central- and SouthEastern Europe
Focus markets include Germany, UK, Spain, Italy, The Netherlands, France and Central- and South-Eastern Europe
Focus markets include UK, Germany and The Netherlands
Focus areas are SouthEastern Europe and Turkey
Department 6/1/2012
PAGE 17
RWE Innogy Offshore Wind Portfolio
Triton Knoll 1,200MW North Hoyle 60MW Gwynt y Mor 576MW Rhyl Flats 90MW
Dogger Bank 9,000MW
Nordsee Ost 295MW
Innogy Nordsee 1 1,000MW Tromp Binnen (Phase 1) 300MW
Atlantic Array 1,500MW Greater Gabbard 504MW Galloper 500MW
Thornton Bank (Phase 1) 30MW
Thornton Bank (Phase 2+3) 295MW
Projects in operation or under construction Department 6/1/2012
Projects consented or in development
PAGE 18
The Atlantic Array Project Revised project area – 414km2 to 238km2 Up to 1500 MW – reduced capacity with: 3.6MW – 1000MW
5MW – 1390MW Number of turbines ranging from 188 to 278 Turbine size – 3.6MW to 8MW Av. depth 45m 14 km from Devon and 23km from Wales at closest points To be connected at Alverdiscott, Devon Supply 1.1 million households - equivalent to 40% of south west England's domestic consumption Department 6/1/2012
PAGE 19
The Atlantic Array Project
High & consistent wind speeds Good availability of grid
Good infrastructure Proximity to shore Geographical diversity Regional support & opportunity for synergies with future renewables
Department 6/1/2012
PAGE 20
Project timeline Zone Award
Q4 2009
IPC Draft ES for Public Scoping report consultation consultation Submission
April 2010
Q3 2011
Q2 2012
Q4 2012
Consent Decision
Q1 2014
Geophysical surveys
Reconnaissance site investigation
Design & Engineering phases
Start of construction
Q2 2010
Q4 2010
2011- 2015
Q1 2015
Grid connection
Full generation
Q4 2016
Q4 2019
Department 6/1/2012
PAGE 21
Potential foundation concepts
Concrete gravity foundation
6 MW WTG
Steel Jacket/tripod foundation
6 MW WTG
Indicative diameter of gravity base (m)
43
Height (m)
70
Indicative thickness of base slab (m)
7.5
Pile depth (m)
50
Indicative diameter of main shaft
9
Base (m)
35
Department 6/1/2012
PAGE 22
Opportunities through the Project lifecycle – Development (2009- 2014) Development budget 40m+ Majority of the spend in the UK
Development work areas include Environmental Impact Assessment work as well as Engineering – EIA: specialist consultants, marine ecology, archaeology, marine traffic, radar, bird studies, land purchase, planning, legal, PR, fisheries
– Project Design: site investigation and survey, civil, mechanical and electrical engineering .Zero Carbon Marine, Boston Consulting, RegenSW, GEMs, Bond Pearce, Smith Gore, Fishing vessels for survey work
Department 6/1/2012
PAGE 23
Opportunities through the Project lifecycle –Construction (2015 – 2019) Turbines, foundations and electrical equipment historically sourced largely from outside UK Round 3 is an opportunity to re-invigorate Welsh and UK manufacturing. Local skills used: – Design and civil works for offshore and onshore infrastructure – Secondary services & components – vessels, paints, bespoke fabrication – Tertiary services – fuel and lubes, catering, professional services, local accommodation Approx value of UK contracts awarded for Gwynt y Môr circa 200m Estimated circa 3000 people employed during the construction phase Department 6/1/2012
PAGE 24
Construction Ports Port options work has progressed alongside our development and engineering work since 2010 Construction approach, foundation type and turbine selection key to making a decision on construction port Key criteria in considering ports for construction include: – Sufficient lay down area – Sufficient quay length/strength – 24/7 access Likely that construction will be serviced from more than one facility Currently working with existing operators to identify route to preparing facilities.
Department 6/1/2012
PAGE 25
Opportunities through the Project lifecycle – Operations Long term opportunity (25yrs+) Estimated up to 200 full time jobs for the Atlantic Array project
Key criteria in considering ports for O&M include similar to construction port: – Sufficient quay length/strength & laydown – 24/7 access
– Sufficient engineering & support services (fabrication, craneage, marine coordination, offices, drying rooms, stores etc Working with NDC and North Devon + to explore potential opportunities for Ilfracombe to support O&M phase.
Port of Mostyn O&M base for Gywnt y Môr expected to bring 50m in to surrounding the local economy over project lifetime.
Department 6/1/2012
PAGE 26
Multi-contract procurement envisaged RWE RWE
Tier 1
1 WTG
2 FDN’s
3 Cables
Tier 2
Design
Fabric’n
Install
Tier 3
Steel tube supply
Steel plate supply
Balance of plant
4 Vessels
5 Offshore Sub stations
6 Onshore Sub station
7 Export cables
8, 9, 10 etc
Department 6/1/2012
PAGE 27
Supply Chain - Methods of engagement RWE’s Objectives
Examples of methods to be employed
Inform
- Supply chain website database development (launch Feb 2011), - Ongoing supply chain education working with local partners, such as The Crown Estate, Welsh Assembly Government, local councils - Attendance at a series of targeted supply chain events
Facilitate
- Provide tier 1 suppliers with local supplier information RWE has compiled prior to them bidding - Ask tier 1 suppliers to provide evidence that they have considered local content as part of their bid - emphasising our interest
Evaluate
- Introduce terms which require suppliers to provide RWE with a breakdown of spend so we can understand local content - Introduce contract management to collect information at regular intervals during the life of the contract - Produce an evaluation report with provide and accurate picture on local spend
Department 6/1/2012
PAGE 28
Thank you for listening
Department 6/1/2012
PAGE 29
UK Offshore Wind Supply Chain Conference Developers’ Update
CAPEX procurement in DONG Energy Wind – Development of UK supply chain Renewables Procurement CAPEX – Birmingham 31st May 2012
DONG Energy is the global leader within offshore wind power
Leading market participants within European offshore wind
1,058
Within offshore wind, DONG Energy is an established world leader as the energy company in the world having developed, constructed an operated the most offshore wind projects
150
189 634
707
705 467 342
135
142
118 5
Under construction
Operational assets
Source: Companies' annual accounts 2009, Emerging Energy Research, DONG Energy. All figures are in MW
32
DONG Energy's offshore wind portfolio
33
Procurement plays a key role
Building relationships with capable, competitive and innovative suppliers is essential to delivering new projects successfully.
Wherever we operate, we seek a positive engagement with the local community. This has helped development of local economy and supply chain.
We buy certain supplies and services in the global market, increasingly through framework agreements. Our approach of selecting key suppliers of specific supplies and services brings mutual benefits including cost reductions due to economies of scale.
In general, we conduct our procurement based on our basic principles: Best Value, Competition, Fair Treatment of Potential Suppliers and Responsible Sourcing including Code of Conduct and QHSE. We seek to award contracts against pre-determined criterion which determines shortlists of tenderers and the economically most advantageous tender response.
34
DONG Energy Wind – Development of the UK Supply Chain
We confirm our support of the DECC Vision*, where the UK Supply Chain will play an ever increasingly significant part in the development and delivery of the UK renewables power industry.
We are committed to delivering a low cost and robust sourcing basis and where commercially advantageous will look to engaging directly with the UK supply chain.
Where it is not commercially advantageous we will be working with our current supply chain to identify new opportunities. This will be done through a number of areas: We will encourage 1st tier suppliers to utilise local suppliers in the development and delivery of the renewables solution. We will endeavour to establish contact between local suppliers and 1st tier suppliers to enable possibilities to establish business relationships. We will host regular supply chain forums, giving an opportunity to UK suppliers to understand our business plans and approach.
We will endeavour to create more transparency in our sourcing approach including use of open qualification system(s), minimum requirements for becoming part of such system(s) and visible procurement calendars.
* http://www.decc.gov.uk/en/content/cms/news/pn12_007/pn12_007.aspx 35
DONG Energy Wind – Supplier registration CAPEX
To find out more about how to become a potential supplier to DONG Energy Wind:
As a supplier you can send us your request for registration including company presentation and key information to: [email protected]
For more information: Please refer to our web site: www.dongenergy.com, or Please contact – Wind Procurement CAPEX International:
Contract Manager Tim Johnson -0207 811 5440 [email protected]
Contract Manager Raymond Cravitz - 0207 811 5434 [email protected]
36
UK Offshore Wind Supply Chain Conference
Rampion Offshore Wind Farm Toby Lee Friday, 01 June 2012
Rampion Project Overview • Under development since January 2010 • Part of The Crown Estate’s ‘Round 3’ • One of 9 strategic Zones • 13km from Sussex coast • 20-50m water depths • Capacity up to 700MW
• Equivalent to 450,000 homes annual electricity consumption • Major contribution to CO2 reduction • Includes 28km onshore cable infrastructure 01 June 2012, E.ON, Page 39
Friday, 01 June 2012
Current Status • 12 weeks Consultation ran up to 6 May • Opportunity for public to comment on, and help shape, the proposals • Intention to lodge application for consent late Summer 2012 • Consent sought for range of possible technical configurations (so-called ‘Rochdale Envelope’) • Likely Consent decision timeframe towards end of 2013 • Final detailed design and procurement 2013/14 • Raise early the opportunity to local/regional contractors, to give time to be prepared to make bids 01 June 2012, E.ON, Page 41
Maximising Value to UK and Region • Independent study by BVG Associates on our last offshore project Robin Rigg showed 32% of capital value was retained in the UK, 12% in the region • This was despite the fact that turbines (typically) representing around half of the cost of construction, could not be UK-sourced at that time (some major suppliers now setting up in UK, e.g. Vestas in Sheerness, Siemens in Humberside) • Estimated cost of construction of Rampion in region of £2bn • Marine South East supply chain study to map at an early stage company capability and interest in Sussex/SE • We’re starting earlier than on previous projects – to give best chance for contractors to gear up/adapt their offering to be able to bid for work (whether directly to E.ON or as subcontractors to the Tier 1’s, 2’s etc...) 01 June 2012, E.ON, Page 42
Our Contracting Approach • Multi- contract approach with typically 15 main Tier 1 contracts • Tier 1 examples – Turbines, foundation, cables, vessels, substations etc... • Once scope of project is more refined, we undertake ‘Meet the Buyer’ events (probably 2013) • Facilitate Tier 2/3 suppliers to understand the contract opportunities and where they fit into the Supply Chain (i.e. who their customer is likely to be)
• Key action for NOW if you are interested:• Register your interest and company’s capabilities with Marine South East • Speak to us directly if you believe you could be a Tier 1 contractor, so we can Pre-Qualify you on our system
01 June 2012, E.ON, Page 43
Marine South East
[email protected] 02380 111 591 07882 007 811 www.marinesoutheast.co.uk
01 June 2012, E.ON, Page 44
Indicative Timetable 2012 • Formal consultation • Submit consent application • Met mast installation
2013 • Meet the Buyer event • Consent decision • Commence procurement
2014 - 2017 (subject to consent) • Final Board Approval Decision • Construction/Delivery 01 June 2012, E.ON, Page 45
01 June 2012, E.ON, Page 46
UK Offshore Wind Supply Chain Conference
Developer Update:
SMart Wind & Hornsea Zone (4)
Presentation at TCE Offshore Wind England Supply Chain Event Gallery Suite, NEC Birmingham 31st May 2012
An Introduction to Mainstream ● Founded in February 2008 by Eddie O’Connor (former Airtricity CEO) and Fintan Whelan (former Airtricity Head of Corporate Finance) ● Airtricity delivered 2,000 MW of onshore wind to construction and developed 16,000 MW of onshore and offshore wind capacity ● Pioneered offshore wind projects like Greater Gabbard, Arklow Banks and Butendiek ● Sold to E.ON and Scottish & Southern for a total of €1.8bn in 2007/08
● Mainstream is focused on sourcing, developing and constructing large-scale electricity generation plants globally, principally offshore / onshore wind and solar projects ● The Company has secured c.16,000MW development pipeline, focused on ● Offshore Wind: 5,650 MW ● North America Onshore Wind: 1,600MW ● Emerging Markets Onshore Wind: 5,000MW
● Shareholders: Eddie O’Connor, staff/management, HNWI, Barclays Capital ● Raised over €125m equity and €26 debt ● 130+ employees
SMart Wind Ltd. 50:50 Supply Chain-led, Joint Venture Consortium
• • • •
The world’s leading environmental company with total revenue in 2008 €19bn from its environmental portfolio To maintain its Number 1 position in UK offshore wind energy A leading developer of large scale renewable energy projects that accelerate global progress towards a sustainable future To make the UK the powerhouse of Europe by accelerating and maximising offshore wind delivery and realising the Supergrid
World Leading Companies with Complementary Objectives
Introducing the Hornsea Offshore Wind Farm The Crown Estate Round 3, Zone 4
4,735 km2 31 to 190km from coastline of Yorkshire Maximum water depth of 70m Water depths predominantly 30 to 40m 280km from Neart na Gaoithe (STW) 240km from Horizont (GTW) Target capacity for Zone of 4GW Enough to meet 4% UK electricity demand
Enough power for three million homes*
*Using today’s energy consumption numbers, the RenewableUK number of 4,700 kwh/household and net capacity factor of 41%
Example: Zone Level Approach to Risk Reduction Modular Approach to Development •
500 to 600MW Blocks – currently optimising around transmission asset
•
Approx. 1GW Project –
including on and offshore infrastructure •
Modularisation and standardisation facilitates supply chain visibility, stakeholder buy-in, continuity for planning bodies and confidence for investors
Project One HVDC Schematic
HVAC Schematic
Hornsea Programme Project no. 1
Name 2010 Heron Wind Njord
2
Optimus Wind Breesea
3
2011
2012
2013
Consenting
2014
RTB
2015
2016
2018
2019
2020
2021
Construction Construction
RTB
Consenting
2017
Consenting
RTB
Consenting
Construction RTB
Construction
5 Consenting
Construction
RTB
6 Consenting 4
RTB
Construction
RTB
Construction
7 Consenting 8 Consenting
Detailed Geotech
Met Mast Installation
RTB
Construction
Progress on Industry Building Humber Strategic Relevance to Round 3 Dogger
ABP, Green Port Hull
Hornsea
Able UK, Marine Energy Park Norfolk
River Humber Estuary
GreenPort Hull – Associated British Ports & Siemens Unanimous Approval at Planning on 9th May 2012
Marine Energy Park – Able UK Application Submitted to, and accepted by the Planning Inspectorate
SMart Wind Ltd 11th Floor 140 London Wall London EC2Y 5DN
UK Offshore Wind Supply Chain Conference
.................................................................................................
Navitus Bay Wind Park UK Offshore Wind Supply Chain Conference 31 May 2012 – NEC Birmingham Chris Sherrington – Project Director
Who are we? ................................................................................................. Navitus Bay is a joint venture between Eneco and EDF Energy created to develop the Navitus Bay Offshore Wind Park.
4
•
Eneco is a Dutch utility owned by 60 municipalities with over 2 million customers in the Netherlands. The company has a strong focus on sustainable generation with interests in onshore and offshore wind, solar, hydro and geothermal.
•
EDF Energy is the UK subsidiary of EDF, with over 5 million customers in the UK. EDF Energy have 20 onshore wind farms in operation and are currently constructing the Teesside Offshore Wind Farm, due for completion at the end of 2012.
........................................................................
Offshore wind experience
.................................................................................................
• Eneco have one operational offshore wind park, Prinses Amalia WindPark, a 120MW scheme off the Dutch coast operational since 2008. • EDF Energy are currently constructing the 62MW Teesside Offshore Wind Farm, 1.5km off the North East coast. EDF Energies Nouvelles participates in the C-Power consortium for the Thornton Bank offshore project with 325MW installed capacity off the Belgian coast.
5
• Both companies are developing further offshore wind projects: – EDF in consortium have recently been awarded three sites in the French offshore wind tender with a total capacity of 1.5GW. – Eneco is taking forward the 150MW Q10 project in the Netherlands and the up to 450MW Norther Wind Park in Belgium.
........................................................................
Zone Overview ................................................................................................. • Eneco awarded Zone 7 (West Isle of Wight) January 2010 • Minimum target capacity of 900MW • 270 sq. miles of which approximately 1/3 was considered developable • 10.4 miles from Bournemouth / 8.4 miles from Isle of Wight coast • Water depths 30-50m • 900MW can supply power to equivalent of 615,000 homes (Dorset, Poole, Bournemouth, New Forest, Isle of Wight, Southampton and Portsmouth)
• Zone Appraisal & constraints analysis identified Development Area
6
........................................................................
Navitus Bay •
................................................................................................. Up to 1200 MW (power for up to 820,000 homes annually
•
Est. 3 x 400 MW blocks, 3 x OHVS
•
133 x 9 MW - 333 x 3.6 MW turbines
•
Water depths 30–50 metres – ave 38m
•
Foundations options include gravity base & space frame structures (jacket, tripod.
• Closest point 8.2 miles from Swanage, 10.4 miles from Bournemouth and 8.4 miles ........................................................................ 7 from the Needles
Examples of Zone Constraints ................................................................................................. • Access to Poole Harbour
• Water depths – south & south west (>50 metres) • MOD Buffer & practice areas • Seabed Conditions – e.g. slopes, chalk areas • Conservation areas and potential reefs • Final design informed by consultation, further surveys and EIA iterations 8
•
........................................................................
Onshore Cable corridor .................................................................................................
9
• Grid connection at Mannington (north of Ferndown) • Ca 35 km underground cable to new substation
........................................................................
Supply Chain opportunities
Construction Phase 2017 - 2021 .................................................................................................
• Recent case studies est. UK Content: 25% - 35% but ….
• Outlook brighter (depending on EMR and orders) in turbines also fabrication, BoP and installation • Examples of opportunities include: – Project Management – Onshore works –cabling, substations – Vessels – Fabrication – Installation & commissioning – Ports and Services
10
........................................................................
O&M Ports - Candidates .................................................................................................
11
........................................................................
Supply Chain Engagement .................................................................................................
• Offshore 2.0 (2011) – market survey focused on opportunities to reduce cost of energy • Identify lessons from Navitus Bay shareholders
• Early stage local engagement through supply chain workshops involving LEPs & Local Councils – Dorset & Solent, Isle of Wight (end of June) • Capturing supplier details on website to share with major suppliers • Identify opportunities for UK and local companies
12
........................................................................
High Level Schedule ................................................................................................. • Environmental Impact Assessment (EIA) & Consultation 2012 - 2013 • Development Consent Order (DCO) Application Q4 2013. Consent decision expected Q2 2015
• Financial Close Tender / award contracts 2015 - 17 • Construction proposed to commence 2017 •
Commence Operations
• 2018 • Operational 2020/21
13
........................................................................
.................................................................................................
Thank You www.navitusbay.com
14
........................................................................
UK Offshore Wind Supply Chain Conference Developers’ Update
UK Offshore Wind Supply Chain Conference and Exhibition Offshore projects in development: Spotlight on Atlantic Array Offshore Wind Farm 31st May 2012
PAGE 16
RWE and Offshore Wind >RWE has 20 million customers throughout Europe, 70,000 employees worldwide
>Manage investment of €1 Billion per annum
> RWE Innogy established in 2008 to unify all RWE renewable activities
>Offshore business has 250+ employees
Overview Business Area
Focus and Strategy
Focus on Wind, Hydro and Biomass while also supporting new technologies Wind Onshore
Wind Offshore
Hydro Power
Biomass
New Technologies
Driving innovative renewable technologies towards commercial stage through Venture Capital and R&D and proving large scale commercial feasibility by operating demonstration plants
Key technology for capacity growth
Key technology for capacity growth
Run-of-river projects and storage plants
Development of biomass plants
Focus on organic growth
Organic growth strategy leveraging strong position in UK
Development of hydro power projects
Regional focus on RWE core markets and Central- and SouthEastern Europe
Focus markets include Germany, UK, Spain, Italy, The Netherlands, France and Central- and South-Eastern Europe
Focus markets include UK, Germany and The Netherlands
Focus areas are SouthEastern Europe and Turkey
Department 6/1/2012
PAGE 17
RWE Innogy Offshore Wind Portfolio
Triton Knoll 1,200MW North Hoyle 60MW Gwynt y Mor 576MW Rhyl Flats 90MW
Dogger Bank 9,000MW
Nordsee Ost 295MW
Innogy Nordsee 1 1,000MW Tromp Binnen (Phase 1) 300MW
Atlantic Array 1,500MW Greater Gabbard 504MW Galloper 500MW
Thornton Bank (Phase 1) 30MW
Thornton Bank (Phase 2+3) 295MW
Projects in operation or under construction Department 6/1/2012
Projects consented or in development
PAGE 18
The Atlantic Array Project Revised project area – 414km2 to 238km2 Up to 1500 MW – reduced capacity with: 3.6MW – 1000MW
5MW – 1390MW Number of turbines ranging from 188 to 278 Turbine size – 3.6MW to 8MW Av. depth 45m 14 km from Devon and 23km from Wales at closest points To be connected at Alverdiscott, Devon Supply 1.1 million households - equivalent to 40% of south west England's domestic consumption Department 6/1/2012
PAGE 19
The Atlantic Array Project
High & consistent wind speeds Good availability of grid
Good infrastructure Proximity to shore Geographical diversity Regional support & opportunity for synergies with future renewables
Department 6/1/2012
PAGE 20
Project timeline Zone Award
Q4 2009
IPC Draft ES for Public Scoping report consultation consultation Submission
April 2010
Q3 2011
Q2 2012
Q4 2012
Consent Decision
Q1 2014
Geophysical surveys
Reconnaissance site investigation
Design & Engineering phases
Start of construction
Q2 2010
Q4 2010
2011- 2015
Q1 2015
Grid connection
Full generation
Q4 2016
Q4 2019
Department 6/1/2012
PAGE 21
Potential foundation concepts
Concrete gravity foundation
6 MW WTG
Steel Jacket/tripod foundation
6 MW WTG
Indicative diameter of gravity base (m)
43
Height (m)
70
Indicative thickness of base slab (m)
7.5
Pile depth (m)
50
Indicative diameter of main shaft
9
Base (m)
35
Department 6/1/2012
PAGE 22
Opportunities through the Project lifecycle – Development (2009- 2014) Development budget 40m+ Majority of the spend in the UK
Development work areas include Environmental Impact Assessment work as well as Engineering – EIA: specialist consultants, marine ecology, archaeology, marine traffic, radar, bird studies, land purchase, planning, legal, PR, fisheries
– Project Design: site investigation and survey, civil, mechanical and electrical engineering .Zero Carbon Marine, Boston Consulting, RegenSW, GEMs, Bond Pearce, Smith Gore, Fishing vessels for survey work
Department 6/1/2012
PAGE 23
Opportunities through the Project lifecycle –Construction (2015 – 2019) Turbines, foundations and electrical equipment historically sourced largely from outside UK Round 3 is an opportunity to re-invigorate Welsh and UK manufacturing. Local skills used: – Design and civil works for offshore and onshore infrastructure – Secondary services & components – vessels, paints, bespoke fabrication – Tertiary services – fuel and lubes, catering, professional services, local accommodation Approx value of UK contracts awarded for Gwynt y Môr circa 200m Estimated circa 3000 people employed during the construction phase Department 6/1/2012
PAGE 24
Construction Ports Port options work has progressed alongside our development and engineering work since 2010 Construction approach, foundation type and turbine selection key to making a decision on construction port Key criteria in considering ports for construction include: – Sufficient lay down area – Sufficient quay length/strength – 24/7 access Likely that construction will be serviced from more than one facility Currently working with existing operators to identify route to preparing facilities.
Department 6/1/2012
PAGE 25
Opportunities through the Project lifecycle – Operations Long term opportunity (25yrs+) Estimated up to 200 full time jobs for the Atlantic Array project
Key criteria in considering ports for O&M include similar to construction port: – Sufficient quay length/strength & laydown – 24/7 access
– Sufficient engineering & support services (fabrication, craneage, marine coordination, offices, drying rooms, stores etc Working with NDC and North Devon + to explore potential opportunities for Ilfracombe to support O&M phase.
Port of Mostyn O&M base for Gywnt y Môr expected to bring 50m in to surrounding the local economy over project lifetime.
Department 6/1/2012
PAGE 26
Multi-contract procurement envisaged RWE RWE
Tier 1
1 WTG
2 FDN’s
3 Cables
Tier 2
Design
Fabric’n
Install
Tier 3
Steel tube supply
Steel plate supply
Balance of plant
4 Vessels
5 Offshore Sub stations
6 Onshore Sub station
7 Export cables
8, 9, 10 etc
Department 6/1/2012
PAGE 27
Supply Chain - Methods of engagement RWE’s Objectives
Examples of methods to be employed
Inform
- Supply chain website database development (launch Feb 2011), - Ongoing supply chain education working with local partners, such as The Crown Estate, Welsh Assembly Government, local councils - Attendance at a series of targeted supply chain events
Facilitate
- Provide tier 1 suppliers with local supplier information RWE has compiled prior to them bidding - Ask tier 1 suppliers to provide evidence that they have considered local content as part of their bid - emphasising our interest
Evaluate
- Introduce terms which require suppliers to provide RWE with a breakdown of spend so we can understand local content - Introduce contract management to collect information at regular intervals during the life of the contract - Produce an evaluation report with provide and accurate picture on local spend
Department 6/1/2012
PAGE 28
Thank you for listening
Department 6/1/2012
PAGE 29
UK Offshore Wind Supply Chain Conference Developers’ Update
CAPEX procurement in DONG Energy Wind – Development of UK supply chain Renewables Procurement CAPEX – Birmingham 31st May 2012
DONG Energy is the global leader within offshore wind power
Leading market participants within European offshore wind
1,058
Within offshore wind, DONG Energy is an established world leader as the energy company in the world having developed, constructed an operated the most offshore wind projects
150
189 634
707
705 467 342
135
142
118 5
Under construction
Operational assets
Source: Companies' annual accounts 2009, Emerging Energy Research, DONG Energy. All figures are in MW
32
DONG Energy's offshore wind portfolio
33
Procurement plays a key role
Building relationships with capable, competitive and innovative suppliers is essential to delivering new projects successfully.
Wherever we operate, we seek a positive engagement with the local community. This has helped development of local economy and supply chain.
We buy certain supplies and services in the global market, increasingly through framework agreements. Our approach of selecting key suppliers of specific supplies and services brings mutual benefits including cost reductions due to economies of scale.
In general, we conduct our procurement based on our basic principles: Best Value, Competition, Fair Treatment of Potential Suppliers and Responsible Sourcing including Code of Conduct and QHSE. We seek to award contracts against pre-determined criterion which determines shortlists of tenderers and the economically most advantageous tender response.
34
DONG Energy Wind – Development of the UK Supply Chain
We confirm our support of the DECC Vision*, where the UK Supply Chain will play an ever increasingly significant part in the development and delivery of the UK renewables power industry.
We are committed to delivering a low cost and robust sourcing basis and where commercially advantageous will look to engaging directly with the UK supply chain.
Where it is not commercially advantageous we will be working with our current supply chain to identify new opportunities. This will be done through a number of areas: We will encourage 1st tier suppliers to utilise local suppliers in the development and delivery of the renewables solution. We will endeavour to establish contact between local suppliers and 1st tier suppliers to enable possibilities to establish business relationships. We will host regular supply chain forums, giving an opportunity to UK suppliers to understand our business plans and approach.
We will endeavour to create more transparency in our sourcing approach including use of open qualification system(s), minimum requirements for becoming part of such system(s) and visible procurement calendars.
* http://www.decc.gov.uk/en/content/cms/news/pn12_007/pn12_007.aspx 35
DONG Energy Wind – Supplier registration CAPEX
To find out more about how to become a potential supplier to DONG Energy Wind:
As a supplier you can send us your request for registration including company presentation and key information to: [email protected]
For more information: Please refer to our web site: www.dongenergy.com, or Please contact – Wind Procurement CAPEX International:
Contract Manager Tim Johnson -0207 811 5440 [email protected]
Contract Manager Raymond Cravitz - 0207 811 5434 [email protected]
36
UK Offshore Wind Supply Chain Conference
Rampion Offshore Wind Farm Toby Lee Friday, 01 June 2012
Rampion Project Overview • Under development since January 2010 • Part of The Crown Estate’s ‘Round 3’ • One of 9 strategic Zones • 13km from Sussex coast • 20-50m water depths • Capacity up to 700MW
• Equivalent to 450,000 homes annual electricity consumption • Major contribution to CO2 reduction • Includes 28km onshore cable infrastructure 01 June 2012, E.ON, Page 39
Friday, 01 June 2012
Current Status • 12 weeks Consultation ran up to 6 May • Opportunity for public to comment on, and help shape, the proposals • Intention to lodge application for consent late Summer 2012 • Consent sought for range of possible technical configurations (so-called ‘Rochdale Envelope’) • Likely Consent decision timeframe towards end of 2013 • Final detailed design and procurement 2013/14 • Raise early the opportunity to local/regional contractors, to give time to be prepared to make bids 01 June 2012, E.ON, Page 41
Maximising Value to UK and Region • Independent study by BVG Associates on our last offshore project Robin Rigg showed 32% of capital value was retained in the UK, 12% in the region • This was despite the fact that turbines (typically) representing around half of the cost of construction, could not be UK-sourced at that time (some major suppliers now setting up in UK, e.g. Vestas in Sheerness, Siemens in Humberside) • Estimated cost of construction of Rampion in region of £2bn • Marine South East supply chain study to map at an early stage company capability and interest in Sussex/SE • We’re starting earlier than on previous projects – to give best chance for contractors to gear up/adapt their offering to be able to bid for work (whether directly to E.ON or as subcontractors to the Tier 1’s, 2’s etc...) 01 June 2012, E.ON, Page 42
Our Contracting Approach • Multi- contract approach with typically 15 main Tier 1 contracts • Tier 1 examples – Turbines, foundation, cables, vessels, substations etc... • Once scope of project is more refined, we undertake ‘Meet the Buyer’ events (probably 2013) • Facilitate Tier 2/3 suppliers to understand the contract opportunities and where they fit into the Supply Chain (i.e. who their customer is likely to be)
• Key action for NOW if you are interested:• Register your interest and company’s capabilities with Marine South East • Speak to us directly if you believe you could be a Tier 1 contractor, so we can Pre-Qualify you on our system
01 June 2012, E.ON, Page 43
Marine South East
[email protected] 02380 111 591 07882 007 811 www.marinesoutheast.co.uk
01 June 2012, E.ON, Page 44
Indicative Timetable 2012 • Formal consultation • Submit consent application • Met mast installation
2013 • Meet the Buyer event • Consent decision • Commence procurement
2014 - 2017 (subject to consent) • Final Board Approval Decision • Construction/Delivery 01 June 2012, E.ON, Page 45
01 June 2012, E.ON, Page 46
UK Offshore Wind Supply Chain Conference
Developer Update:
SMart Wind & Hornsea Zone (4)
Presentation at TCE Offshore Wind England Supply Chain Event Gallery Suite, NEC Birmingham 31st May 2012
An Introduction to Mainstream ● Founded in February 2008 by Eddie O’Connor (former Airtricity CEO) and Fintan Whelan (former Airtricity Head of Corporate Finance) ● Airtricity delivered 2,000 MW of onshore wind to construction and developed 16,000 MW of onshore and offshore wind capacity ● Pioneered offshore wind projects like Greater Gabbard, Arklow Banks and Butendiek ● Sold to E.ON and Scottish & Southern for a total of €1.8bn in 2007/08
● Mainstream is focused on sourcing, developing and constructing large-scale electricity generation plants globally, principally offshore / onshore wind and solar projects ● The Company has secured c.16,000MW development pipeline, focused on ● Offshore Wind: 5,650 MW ● North America Onshore Wind: 1,600MW ● Emerging Markets Onshore Wind: 5,000MW
● Shareholders: Eddie O’Connor, staff/management, HNWI, Barclays Capital ● Raised over €125m equity and €26 debt ● 130+ employees
SMart Wind Ltd. 50:50 Supply Chain-led, Joint Venture Consortium
• • • •
The world’s leading environmental company with total revenue in 2008 €19bn from its environmental portfolio To maintain its Number 1 position in UK offshore wind energy A leading developer of large scale renewable energy projects that accelerate global progress towards a sustainable future To make the UK the powerhouse of Europe by accelerating and maximising offshore wind delivery and realising the Supergrid
World Leading Companies with Complementary Objectives
Introducing the Hornsea Offshore Wind Farm The Crown Estate Round 3, Zone 4
4,735 km2 31 to 190km from coastline of Yorkshire Maximum water depth of 70m Water depths predominantly 30 to 40m 280km from Neart na Gaoithe (STW) 240km from Horizont (GTW) Target capacity for Zone of 4GW Enough to meet 4% UK electricity demand
Enough power for three million homes*
*Using today’s energy consumption numbers, the RenewableUK number of 4,700 kwh/household and net capacity factor of 41%
Example: Zone Level Approach to Risk Reduction Modular Approach to Development •
500 to 600MW Blocks – currently optimising around transmission asset
•
Approx. 1GW Project –
including on and offshore infrastructure •
Modularisation and standardisation facilitates supply chain visibility, stakeholder buy-in, continuity for planning bodies and confidence for investors
Project One HVDC Schematic
HVAC Schematic
Hornsea Programme Project no. 1
Name 2010 Heron Wind Njord
2
Optimus Wind Breesea
3
2011
2012
2013
Consenting
2014
RTB
2015
2016
2018
2019
2020
2021
Construction Construction
RTB
Consenting
2017
Consenting
RTB
Consenting
Construction RTB
Construction
5 Consenting
Construction
RTB
6 Consenting 4
RTB
Construction
RTB
Construction
7 Consenting 8 Consenting
Detailed Geotech
Met Mast Installation
RTB
Construction
Progress on Industry Building Humber Strategic Relevance to Round 3 Dogger
ABP, Green Port Hull
Hornsea
Able UK, Marine Energy Park Norfolk
River Humber Estuary
GreenPort Hull – Associated British Ports & Siemens Unanimous Approval at Planning on 9th May 2012
Marine Energy Park – Able UK Application Submitted to, and accepted by the Planning Inspectorate
SMart Wind Ltd 11th Floor 140 London Wall London EC2Y 5DN
UK Offshore Wind Supply Chain Conference
