Class contribution to US Offshore Wind Power industry International Work Boat Show - Conference 2017 New Orleans Sergio Garcia & Arnstein Eknes 28 November 2017 1 DNV GL 2015 28 November 2017 SAFER, SMARTER, GREENER
About DNV GL 153 year history Energy Maritime Oil & Gas Software Business Assurance 13,000 EMPLOYEES 400+ OFFICES 100+ COUNTRIES Maritime Services: o Ship & Offshore Classification o Maritime Advisory o Verification 5% Revenue devoted to R&I => Innovation & Standards Authorised for ACP 2
Complexity of offshore wind project REGULATORY FRAMEWORKS HARSH WEATHER CONDITIONS FURTHER OFFSHORE TECHNOLOGY MATURITY VARYING POWER PRICES PORT INFRASTRUCTURE GRID BOTTLENECKS INCREASING DEPTHS LARGER WINDFARMS VESSEL AVAILABILITY AND CAPABILITY RELIABILITY ENERGY YIELD SUPPLY CHAIN CHALLENGES Continuous pressure to reduce costs and manage risks
DNV GL Offshore Wind - Full Life Cycle Approach - Energy: Site selection, Project design optimization, Project development support, Construction management, Turbine planning - modeling - load analysis, Data collection - analysis management, Technology reviews - O&G Noble Denton Marine: Due diligence and bankability, Marine operations and offshore installation, Marine operational readiness and warranty surveys, Offshore operations and asset compliance, Offshore asset management - O&G Risk Management: Environmental Risk Management, Health and safety management plan, Oil Spill Response Plan, Navigational risk assessment to comply with U.S. Coast Guard NVIC 02-07 - Software: Engineering and strength assessment (Sesam), Structural integrity management (Synergi Structure), Risk & integrity management strategy (Synergi Life) - Business Assurance: Management Systems Certification ISO - OHSAS, Sustainability, Supply chain management - Maritime: Ship and Offshore Units - Classification, Technical and Management Advisory 4
Vessel & equipment market study 5
Wind Turbine Installation Vessel (WTIV) WTIV Pacific Orca Facts and figures: Operator: Swire 155 x 49 m, DP2, 13kn 111 compartments 75m water depth (with leg extension) 4300 m 2 deck area, 6 lattice legs, rack & pinion main crane 1.200t Source: Swire Blue Ocean AS WTIV Innovation Facts and figures: Operator: GeoSea 135 x 42 m, DP2, 12kn 120 compartments 50m water depth 4 lattice legs, rack & pinion jacking system main crane 1.500t 6
DNV GL WTIV FLEET 16 of the current global fleet of 34 WTIVs are DNV GL classed (47% market share). Typical Class Notation: Self-elevating Wind Turbine Installation Unit SPS Crane Unit OPP-F E0 DYNPOS-AUTR DPS2 NAUT-OSV(A) CLEAN DESIGN Some WTIV being upgraded (leg extension, crane higher capacity) due to trend for larger Turbines from 4 (2010) to 8 (2016) to 12MW (near future). Typical 5-6MW, 150m dia, 400T, 110m height. Unit name Build Year Flag Unit manager Yard name SEA CHALLENGER 2014 DNK A2SEA A/S COSCO (Nantong) Shipyard Co., Ltd. Aeolus 2014 NLD Van Oord Ship Management B.V. J.J. Sietas KG BOLD TERN 2013 MLT Fred. Olsen WIndcarrier AS Lamprell Energy Ltd. VIDAR 2013 DEU Hochtief Solutions AG CRIST S.A. BRAVE TERN 2012 MLT Fred. Olsen WIndcarrier AS Lamprell Energy Ltd. SEA INSTALLER 2012 DNK A2SEA A/S COSCO (Nantong) Shipyard Co., Ltd. Innovation 2012 DEU GeoSea S.A. Crist S.A. Pacific Orca 2012 CYP Swire Blue Ocean A/S Samsung Heavy Industries Pacific Osprey 2012 CYP Swire Blue Ocean A/S Samsung Heavy Industries MPI ADVENTURE 2011 NLD MPI Offshore Limited COSCO (Nantong) Shipyard Co., Ltd. MPI DISCOVERY 2011 NLD MPI Offshore Limited COSCO (Nantong) Shipyard Co., Ltd. MPI Enterprise 2011 NLD NSB Niederelbe Schiffahrtsgesellschaft DSME Okpo, Korea M/V Torben 2011 LBR GO Offshore Pty. Ltd DSME Okpo, Korea Wind Lift I 2010 DEU Maritime Management Cuxhaven GmbH Vakaru Laivu Gamykla AB Thor 2010 DEU GeoSea S.A. Stocznia Gdynia S.A. MPI RESOLUTION 2003 NLD MPI Offshore Limited Shanhaiguan Shipyard 7
Wind turbine installation vessels (WTIV) 2@1500t, 4@1200t, 4@1000t, 3@900t, 5@800t, 10 capable of installing 8MW turbines (and/or their foundations) Sea Installer with 8MW turbines at Burbo Extension 8
Global Newbuilding Contracting and Orderbook Newbuilding contracting (incl. conversions) 34 vessels in service worldwide # 12 delivered on order 13 10 7 ships currently on order 8 newbuilding to pick up due to demand for bigger vessels for next generation of WTG 6 4 2 1 3 4 4 3 5 4 1 1 2 4 0 1 year of contract signed Source: Clarksons 9
Many different concepts on drawing board 10
WTIV Class and Statutory Regime Class: fit for purpose Rules developed from Heavy Lift ships and Jack-ups Statutory: :? Jack-up? Cargo ship? Special Purpose ship? No mutual approach for certification amongst the Flag states Commonly MODU-Code and SPS-Code applied simultaneously 11
WTIV Classification Regime cont d Decision about slider position currently prerogative of the competent Flag State As clear IMO guidance is currently missing, early consultations between all involved parties required (owner, yard, class, flag) Meanwhile DNV GL supports owners / yards finding the most suitable regulatory approach for maximized availability of their particular vessel and obtaining flag state agreement of this approach 12
12m ~8m righting lever [m] Examples of Exemptions justified to Flag Challenges in applying SPS-Code to WTIS: WTIS Hull cross section Geometry of WTIS: WTIS relatively much wider than conventional vessel Solution: ``maxgz`` 40.00m PAX / SPS 2 1 ``Area 3040`` Hull cross section 32.20m 0 10 20 30 40 50 heel [ ] -1 13
12m 8m Examples of Exemptions justified to Flag cont d Challenges in applying SPS-Code to WTIS: WTIS PAX / SPS Hull cross section 40.00m Hull cross section Double bottom: h=b/20 required by SPS-Code Pan-max Cruise Ship (B=32.20m): h=1.61m WTIS (B=40m): h=2.00m WTIS higher DB-requirements despite lower speeds and much smaller length than pan-max cruise ship Problems for WTIS such as weight (jacking) space above double bottom Solution: 32.20m 14
WIND FARM SERVICE VESSELS or CREW TRANSFER VESSELS (CTV) Windfarm service vessels (typical smaller service crafts), are on the range 20m to 40m length. There is a large number of these vessels classed by DNV GL, ranging from catamarans over SWATHs to trimarans. Typically in aluminum, high speed. Typically used for day transfer or day service. 15
WIND FARM Service Operation Vessels (SOV) 16
WIND FARM SOV FLEET SOVs are recent trend in Europe for larger, dedicated, fit for purpose mother vessels to service wind farms w/ technicians living on board, using special gangway systems and some having helideck, typically 60+ people onboard (in addition to crew) All 6 current operating and 4 under construction Wind Farm SOVs are classed by DNV GL Typical Class Notation: Offshore service vessel SPS BIS BWM(T) Clean(Design) COMF(C-3, V-3) DK(+) DYNPOS(AUTR) E0 HELDK LCS(DC) NAUT(AW) Recyclable SF Unit name Build Year Unit manager Yard name Operator TBN 2018 Østensjø Rederi AS Astilleros Gondan (hull 470) DONG TBN 2017 Østensjø Rederi AS Astilleros Gondan (hull 471) DONG Bibby WaveMaster 1 2017 Bibby Marine Services Damen Shipyards Galati WINDEA Leibniz 2017 Bernhard Schulte Shipmanagement GmbH & Co. KG Ulstein Verft AS (hull 310) Siemens WINDEA La Cour 2016 Bernhard Schulte Shipmanagement GmbH & Co. KG Ulstein Verft AS (hull 309) Siemens ESVAGT Njord 2016 Esvagt A/S Havyard Ship Technology AS (hull 125) Statoil ESVAGT Froude 2015 Esvagt A/S Havyard Ship Technology AS (hull 118) ESVAGT Faraday 2015 Esvagt A/S Havyard Ship Technology AS (hull 119) SIEM Moxie 2014 Siem Offshore Poland SP. z o.o. Fjellstrand AS (hull 1697) SIEM Emerald 2009 Siem Offshore AS Kleven Verft AS (hull 329) 17
US Offshore Wind 18
NE States combined reports US Jones Act Compliant Offshore Wind Turbine Installation Vessel Study Northeast Offshore Wind Regional Market Characteri zation US Job Creation in Offshore Wind 19
Developments in the market 20
Change in primary energy demand 2016-40 (Mtoe) Source: IEA Nov 2017 (World Energy Outlook) 21
DNV GL The Energy Transition Outlook 2050 Energy Transition Outlook - Now available as a report here: https://eto.dnvgl.com/2017/ Global electricity production in 2050 22
From status in 2016 to predicted in 2020 23
What is the market doing? wind turbine development project pipeline HEALTHY INVESTMENT vessels & equipment 24
Offshore wind farm characteristics Turbine sizes Project locations Water depths Electrics Foundation types O&M North Hoyle (2004) 30 x 2 MW = 60 MW 9 km from shore Depth 7 to 11 m No offshore substation Monopiles 15m crew boats Hornsea One (2020) 174 x 7 MW = 1218 MW 115 km from shore Depth 23 to 37 m 3 offshore substations Monopiles Offshore base: 81m SOV 25
Cost of offshore wind has fallen faster than anyone was expecting External factors - reduced material prices Technology development larger and more reliable turbines Increased competition / Lower cost of capital Project learning & operational excellence 142 UK 100 97-32 %? LCOE ( /MWh) 2010/11 2020 Target 2015/2016 2017 Since 2010, over 9.5bn has been invested in offshore wind in the UK, another 18bn will be invested in projects by 2021, making offshore wind one of the biggest infrastructure programme in the UK.
Recent expression of optimism for offshore wind 27
WTG development 28
Big is relative size matters 2011: Vestas launches V164-7 MW turbine 29
Where does it end? Source: Global offshore wind power outlook 2017 30
Project Outlook 31
Over 2GW of installed capacity per year 32
Large turbines (9GW+) to make market entrance from 2020 Nacelle weight Hub height <4MW 100t 90 5-6MW 250t 100m 7-8MW 400t 105m 9+MW 600t 120+m 33
Larger share of deep water sites from 2020 34
Development pipeline for offshore wind globally Source: WindEurope 35
Total global wind exceeds 35GW by 2025 Source: WindEurope 36
Future concepts greater pre-assembly of turbines? Beatrice Demonstrator (5 MW) IHC installer concept Hywind floating turbine spar buoy concept More pre-assembly onshore But potentially more restrictive limits offshore
Vessel access: Work boats 38
Vessel access: Small vessel access systems Osbit MaXccess TAS: Turbine access system Many others See Carbon Trust Offshore Wind Accelerator concepts: http://www.carbontrust.com/our-clients/o/offshore-wind-accelerator 39
Vessel access: Large vessel access systems Motion compensated platform with walkway - examples: Ampelmann Uptime Walk to Work Van Aalst Safeway Vessel should have: DP2 or better Typically 70m+ LoA Ability to orient according to weather 40
Offshore O&M bases: Floatels, motherships and fixed platforms Chevalier Floatels DP Galyna Horns Rev 2 accommodation block Damen Walk 2 Work 41
DNV GL experience for the offshore wind industry 42
If one does not know to which port one is sailing, no wind is favourable. - Lucius Annaeus Seneca - Sergio Garcia Arnstein Eknes sergio.garcia@dnvgl.com arnstein.eknes@dnvgl.com +1 832 392 0030 +47 948 66 883 Houston Oslo 43 DNV GL GL 2017 2015 28 November 2017 SAFER, SMARTER, GREENER