Offshore Wind Vessels Steven Kopits Douglas-Westwood LLC Offshore Wind: Removing Market Barriers DOE Webinar July 25, 2012 1
www.dw-1.com Our business History and Office Locations Established 1990 Aberdeen, Canterbury, London, New York & Singapore offshore Activities & Service Lines Business strategy & advisory Commercial due-diligence Market research & analysis Published market studies power onshore Large, Diversified Client Base 750 projects, 70 countries Leading global corporates Energy majors and their suppliers Investment banks & PE firms Government agencies LNG Spanning the Energy Sectors 10 years in offshore renewable energy downstream Douglas-Westwood Limited 2011 renewables 2
3
Project Team The Project Preliminary Findings 4
The DOE Project U.S. Offshore Wind: Removing Market Barriers Offshore Wind: Optimized Vessel Assessment Wind Supply Chain Navigant Ports Garrad Hassan Vessels Douglas-Westwood 5
DW databases span the energy industries Continually updated A unique resource the core of our global information & forecasting processes We do not sell the data but use it in our work for clients and our published studies Our databases form the key input to our market forecasting models Douglas-Westwood Limited 2011 6
Clients: Private Sector Siemens A major player in electronics and electrical engineering, and a major turbine supplier Vestas The world s leading supplier of wind turbines Hochtief One of the world s largest construction groups Sif Group Major manufacturer of offshore wind turbines and towers WeserWind Manufacturer of tripod and jacket style offshore wind foundations Bechtel A global leader in engineering, construction & project management Seawind Offshore wind installation contractor Smit Major maritime services provider Ethemba Capital Private equity firm specializing in emerging markets Oceanlinx Australian wave energy device developer Swan Turbines UK tidal current stream device developer 7
Clients: Public Sector UK Government Major studies completed for BERR/DTI on renewable energy. Strategy, forecasting, economic benefit, employment, supply chain. British Wind Energy Association Market forecasting for study in response to UK Renewables Obligation changes Scottish Enterprise Market appraisal and economic benefit Aberdeen Renewable Energy Group Facilitation of strategy sessions in relation to the Aberdeen Offshore Wind Farm Renewables East Regional offshore renewable energy supply chain analysis South East of England Development Agency Assessment of the regional opportunities from the London Array offshore wind farm East of England Dev. Agency Establishment of an offshore renewable energy centre South West of England Development Agency Assessment of the regional opportunities from the Atlantic Array offshore wind farm Suffolk County Council POWER project regional offshore wind supply chain development analysis East of England Energy Group Supply chain classifications, business plan development, cluster mapping 8
Project Partners Great Lakes Wind Colloborative Clean Energy Group Knud E. Hansen US Offshore Wind Collaborative 9
Project Team The Project Preliminary Findings Conclusions 10
The Project Roll-out scenarios European and Asian experience Current vessels Gaps Supply chain Jones Act Strategy Policy Outreach 11
Outreach Partnering with USOWC and other infrastructure studies Conference Presentations Webinars Regional Workshops Policy makers Maritime industry 12
Project Team The Project Findings Conclusions 13
Vessel Types Offshore Wind Vessels Indicative Specifications Vessel Type Min Length Length Range Breadth Range Draught Range Deadweight Range Speed Range Max Length Average Min Beam Max Beam Average Min Draught Max Draught Average Min DWT Max DWT Average [m] [m] [m] [m] [m] [m] [m] [m] [m] [MT] [MT] [m] [kn] [kn] [kn] New generation purpose built vessels (TIVs) 81 161 134 38 68 44 4.0 7.0 5 3350 8000 5733 9 14 12 New build Jack- Ups 44 102 71 23 40 35 3.0 5.0 4 1000 3300 1175 8 Heavy Lift Vessels 143 156 150 27 32 7.0 10.0 21541 11350 15268 16 17 Offshore Supply Vessels 50 90 74 17 2.5 4.5 2000 4000 16 26 Transport Vessels / PTV 24 69 6 13 0.9 10.8 11 681 16 36 Cable Layers 27 152 121 9 30 19 2.0 9.0 7 877 10569 7118 8 18 14 Tug Boats 24 46 10 15 3.2 6.3 204 1075 11 16 Barges 50 75 25 40 3.6 3000 <10 Survey Vessels 18 163 7 29 7.9 6446 21 Min Speed Max Speed Averag e Notes 1) This is an indicative list 2) The results from the vessel search have been filtered to reduce the overall amount of data down to a workable fleet list representing the most suitable assists for use in offshore wind installation and operation. Only ships with an IMO number are included in the results (This applies to all passenger vessels >100 GRT,a dn all cargo vessels > 300 GRT.) Largely complete vessel list Determined characteristics of typical installation vessels 3) For each vessel type we have calculated the min, max, and average values from the available fleet list. 4) New Generation Purpose Built Vessels: 6 leg jackup vessels that have been designed and built for offshore wind construction. Ex: MPI Resolution 5) New Build jack-ups: 4 leg jack-up barges that have been built in the last 10 years, and have been primarily used for offshore wind construction, but they are not purpose built. Some are self-powered and some units are towed units. Ex: Thor & Bard Windlift 14
Early Generation Installation Vessels Variety of jack-ups, heavy lift vessels, and purpose built TIVs Earlier vessels 40-80 m length 1500 DWT No propulsion - 8 knots Crane load: 500 mt at 20 m 900 sq m deck space 40 m water depth Seajacks Kraken Source: Shipspotters 15
Newbuild Installation Vessels Purpose-built vessels 130-160 m length 6000 DWT 12 knots Crane load: 1200 mt at 26 m 3600 m2 cargo area 75 m water depth Helipad 120 accommodation MPI Adventurer Source: Shipspotters 16
Indicative Vessel Functions and Costs 100 MW Project Vessel Type Weeks Day Rate (000) Environmental Survey 15-20 $10-20 Geophysical Survey 12-20 $15-18 Geotechnical Survey 8-20 $50-80 Logistics 20-40 $150-320 Foundation 30-40 $150-350 Turbine 20-30 $150-350 Cable lay 8-14 $100-200 Substation installation 5-8 $300 17
Three Installation Strategies Purpose-built US TIV Costly Risky without revenue stream More likely modification of existing vessel or smaller unit Use European TIV Believed viable for Jones Act if no goods transport Costly to mobilize, especially for demo projects Requires barges or tugs for logistics Use existing US vessel Jack-up, jack-up barge May require modifications to equipment (crane) Efficiency may be lower More problematic for larger turbines 18
Installation Strategies - Three Offshore Wind Projects Cape Wind, Massachusetts 77% of capacity sold Company believes project viable in current form Currently assembling financing 3.6 MW turbines, 468 MW Commissioning 2015? Deepwater Wind, Block Island, Rhode Island 5 6 MW turbines Capacity sold Project currently under assembly Commissioning 2014/2015 Fishermen s Energy, Atlantic City, New Jersey Equipment under review, in regulatory process Received Army Corps of Engineering building permit 19
Construction Strategies Cape Wind, Massachusetts (130, 3.6 MW turbines) Very shallow, highly tidal waters US vessels Jack-up barges, crane barges May require modifications Block Island, Rhode Island (6 MW turbines, jackets, 154 m rotor) European TIVs Mobilization costs Jones Act considerations Barges or tugs to ferry components US jack-ups, jack-up barges Will require modification 20
Government Support for Vessel Supply Chain - Early Findings Supply chain needs revenue visibility to invest. Scale will be key. 3 year revenue stream Near break-even on capex Revenue-matched hard obligations New Jersey in front 21
Project Team The Project Preliminary Findings Conclusions 22
Summary Purpose-built installation vessels are not necessary to begin construction Opportunities for a large variety of vessels seismic, cable lay, environmental assessment vessels, tugs, jack-ups, barges, heavy lift, offshore construction, offshore supply, personnel transfer vessels, maintenance vessels and purpose-built turbine installation vessels (TIVs) States need to focus on scale and revenue visibility for supply chain. 23
Thank you Steven.Kopits@dw-1.com 24