Torgeir Ramstad Managing Director, Fred. Olsen United European projects: Being part of the global supply chain
European projects: being part of the global supply chain Torgeir Ramstad, Managing Director Southern North Sea Conference 2013-6th March, Norwich, UK
Fred. Olsen and the energy sector Building on 164 years experience from logistics, marine operations and installation 58% Bonheur (Listed OSE) 21% Ganger Rolf (Listed OSE) Renewable Energy Energy Services Shipping Fred. Olsen Renewables Fred. Olsen United Fred. Olsen Production (Listed OSE) Fred. Olsen Cruise Line Universal Foundation Fred. Olsen Energy (Listed OSE) Knock Tankers Fred. Olsen Windcarrier Harland and Wolff Global Wind Service 20 years 40-150 years 164 years
European market: the evolving picture Installed Capacity Cumulative Share by Country (MW) Sweden, 164, 3% Finland, 27, 1% UK, 2,948, 59% Netherlands, 247, 5% Portugal, 2, 0% Germany, 280, 6% Belgium, 380, 8% Denmark, 921, 18% Ireland, 25, 0% Norway, 2, 0% Source: EWEA The UK has been world leader in offshore wind since October 2008 Current installed capacity Consented projects in the pipeline more than double existing & under construction projects combined Offshore Wind Projects MW 20000 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 Online Under Construction Consented Source: EWEA
European market: long term outlook (mid case) European Offshore Wind Developments: Annual Growth¹ ) by Country Strong investments in offshore wind dominated by UK short term Germany becomes the key market post 2013 with round 3 delays 1) Contingent on start-up of round 3 projects in the UK 2) Accumulated installed capacity 3) Estimated CAPEX per year Source: Arkwright (EWEA, Morgan Stanley, Quest Offshore)
European market: looking to the future New Capacity in European¹ ) Offshore Wind Farms Will the industry continue to grow at such a fast rate? 1) Europe currently constitutes > 95% of global installed wind energy capacity Source: Arkwright (EWEA, Emerging energy research) And is that a wanted development?
Substantial cost reductions are required Costs have increased substantially; currently costing over the historical average of 140/MWh, driven by Move to deep water sites Longer distances to shore Reaching a threshold for yesterday s technologies and execution methods? DECC s target for offshore wind is 100/MWh by 2020 will be challenging, but is feasible
What the supply chain can contribute with Systematic sharing of experience New contracting forms New technologies Industrialization Focus on project execution and logistics
Fred. Olsen United: integrated value chain Taking a holistic approach to delivery through an integrated value chain Project Management Foundation Design, Procurement, Fabrication Logistics Suction Turbine Design and Manufacturing Installation Commis -sioning O&M Legend: Partners Fred. Olsen
Main contractor and single point of contact By controlling all main input factors, we can better manage and optimise the totality Client
Are current technologies at a threshold? Monopile: Industry standard May be cheaper in limited water depths Issues with grouting and scour Noisy installation Less suitable in deeper waters Turbine size limitations Steel jacket: Preferred concept for deeper waters and larger turbines Supply chain limitations Noisy installation Expensive to build and install Bucket Foundation Suitable for deeper waters and large turbines Cheaper than jacket to build Quiet and cost efficient installation Low life-cycle cost Easy removal
High expectations for the Bucket Foundation The Carbon Trust / Offshore Wind Accelerator Perspective Installation Reduced vessel requirements, fewer offshore operations No piling noise Fabrication Simple welds Commercial Fred Olsen end-to-end EPC model
The road to commercialisation OWA experts believe three projects required to commercialise Universal Foundation Project Forewind met mast Trial installation Demonstrate with turbine Focus Structural monitoring of dynamic loads Identification of design improvements Validate robustness of installation concept Prove in complex soils Demonstrate structural performance Strengthen investor confidence Ready for commercial projects
Vessels of the next generation Brave Tern & Bold Tern - primarily turbine installation vessels Length: 132m Hull Breadth: 39m Propulsion: Transit speed of 12 knots, DP2 Water depth range: 7.5-45m Crane: 800 tonnes at 24m Typical payload: 5300 tonnes Seven off Bayard-class crew/service vessels. Crew: Highly qualified and purpose-trained crew Passengers: 12 persons Sea keeping: Hull optimized for sea-keeping and fine positioning Speed: 25 knots Cargo: Capacity of 8 tonnes New, dedicated Foundation Installation Vessel on the drawing board Capacity to take up to 7 turbine bucket foundations Flexibility to install jackets & monopiles Installation in 2.5m Hs 1600 tonnes lifting capacity
On-going Projects Project Client Location UF H&W FOWIC Installation FOWIC Crew/Service GWS* Dogger Bank UK Firth of Forth UK Bard Germany Riffgat Germany London Array UK Meerwind Germany Anholt Denmark *Through Global Wind Service, we are working on most European offshore wind projects but we couldn t fit them all on.
Fred. Olsen United: committed to the UK Fred. Olsen United and related companies are truly global but we have deep roots in the UK: Fred Olsen United Ltd. & Fred. Olsen Windcarrier - Lowestoft (3 months) Global Wind Service Kings Lynn (4 years) Harland & Wolff Belfast (150 years) Natural Power National locations (16 years) SeaRoc Chichester (10 years) We are committed to working closely with the local supply chain for projects in the UK. If we can work together to reduce the cost of offshore wind, we also see export potential from the UK
But it can only happen if costs are reduced Development cost has to be lowered by 30% in the next 4-5 years. Quote: Fred. Olsen, Shipowner, FRED. OLSEN & Co.
Thank You Torgeir Ramstad Managing Director, Fred Olsen United Fred Olsen United Limited OrbisEnergy Lowestoft NR32 1XH Tel: 01502 509372