A7: Offshore Asset Management

Jonathan ReynoldsBusiness Development, OrbisEnergy

www.xodusgroup.com

Independent,

integrated

thinking

6th November 2013

Offshore Asset Management: Stable Operation at Lower Cost

John Taylor

The “big question” What is asset management?

> What are we seeking through asset management?

- Safe operation

- Profit

- Achieving targets (KPI’s / contractual)

- Maximising production levels

Offshore Asset Management

> Offshore Asset Management: Stable Operation at Lower Cost

- Safety

- Environment

- People

- Process

- Plant and Equipment

- Regulatory requirements

Minimum Acceptable Standards (MAS)

Offshore Wind and Offshore Oil & Gas

Common Factors

Knowledge Sharing

> Adopting best practice and knowledge from other industries

Point for Discussion

> Does one model fit all?

Goal Setting ApproachSetting Minimum Acceptable

Standards

Continuous Improvement Philosophy

Aspiring to Operational Excellence

Thank you

Cost of Wind Farm Operation Cut, Whilst

Availability Increased

Mark Spring / Andrew Martin

Lloyd’s Register

6 November 2013

Lloyd’s Register Today – A Group Overview

• Celebrated our 250 year anniversary in 2010

• Some 8,000 employees serving 50,000 clients

• Offices in 245 cities and towns globally

• Over 100 companies

• Four business divisions:

• Marine

• Energy

• Management Systems

• Transportation

• 2012/13 turnover £920m

• A Registered Charity

• Supports the Lloyd’s Register Educational Trust (LRET)

Renewables

Example applications:

• Off-shore wind

• Wave and tidal / marine renewables

• Carbon capture and storage

Example services:

• IEC 61400 – 22 certification

• Project certification

• Wind turbine type certification

• Manufacturing surveillance

• PAS 55, HSE and IV&V

• Measurement and failure investigation

Knowledge Based Asset Integrity (KBAITM)

The 4th Generation Approach

15

Data

Information

Knowledge

Reactive

• Fix it when it

breaks

Preventive• Maintain it before

it breaks

• Regular, time-

based

maintenance

routines

• Used by majority

of organisations

Proactive

• RCM

• Expert judgment

• Systematically

monitor KPIs

• Condition

monitoring

• Enterprise

systems/CMMS

Risk Based

• Knowledge codified in

web-based system

• Data linked directly to

existing CMMS

• Feedback of key

maintenance data

• Database analysis to

update component

reliability tables

• Workers managing

knowledge, not

knowledge retained by

workers

Dynamic software for reliability improvement

Picture box here

Why this approach?

• Optimise maintenance costs

• Improve critical asset availability

• Analyse future risks and

maintenance costs

• Provide justification for equipment

renewal and repairs

• Promotes regulatory compliance,

where appropriate

Decision-making based on knowledge

knowledge

Decision-making based on knowledge

?

database of historical

reliability statistics

Decision-making based on knowledge

knowledgeCMS

SHM

experience of

manufacturer, O&M

technicians, wind

farm owner

• technicians’ logs

• maintenance tasks feedback

• remedial action undertaken

• spare parts inventory

Knowledge Based Asset Integrity (KBAITM)

Likelihood of Failure(events per year)

• Equipment type and items used

• Age, usage, environment, etc

• Equipment condition (based on

visual inspection, past

maintenance, failure causes and

condition monitoring, etc)

Consequence of Failure (impact per event)

• Disruption to business

• Environmental + Health and Safety impacts

• Reputation – Public/Political

Consequence Ranking

ABCDE

HIGH

MED HIGH

MEDIUM

LOW

1

2

3

4

5

Pro

babili

ty R

ankin

g Maintenance and Inspection

Task Plan optimised to the asset

and the business (£ impact per event)

• Includes industry best practices

• May increase or decrease current

maintenance

Risk matrices – common basis for comparison of risk

Risk matrices – common basis for comparison of risk

Example wind turbine – risk unitswind turbine

rotorbladeblade root bearinghubpitch system – hydraulic pitch assembliespitch system – hydraulic power packpitch system – hydraulic accumulatorpitch system – hydraulic pipeworkslip ringspitch gear lubrication systempitch bearing seals

drivetrainrotor lock system – rotor lock pinsrotor lock system – electro-mechanical actuator(s)gearbox – gearbox casing/ structuregearbox – lubrication systemgearbox – mountshigh speed shaftgenerator couplingmechanical shaft brakegenerator

electrical systempower converter

switchgeartransformer

yaw systemelectro-mechanical yaw drive assemblieselectrical drives (power electronics)slewing ring/ ring-gear assemblieshydraulic yaw brake assemblies – brake calipershydraulic yaw brake assemblies – hydraulic pipeworkhydraulic yaw brake assemblies – hydraulic power pack

control systemsensorselectrical cabinets

nacelleanemometerwind vaneaccess: platforms, ladders, safety systems

towercylindrical or conical sectionsboltsbrackets, cables, platforms, ladders, lift assembly

substructuretransition piecemonopile foundation

Risk profile of offshore wind farm

substation offshore substations array cabling and

interconnectorswind turbines

Case study – Port Cranes

• Breakdown duration reduced

• Quay Side crane (QS) ‐24%;

• Rubber Tyred Gantry cranes (RTG) ‐12%

• Maintenance cost savings: QS 17%; RTG

32%

• Significant commercial operational

benefits:

• Crane efficiency enhanced

• Containers handled and related safety all

improved

• Equals: Reduced ship delays

Case study – Oil refinery piping

• Pilot study on fixed equipment on eight process units led to $1.5m in turnaround cost savings and $7m in risk reduction

• Rolled out to 6 further refineries resulting in over $160m in risk reduction and on-going savings in turnaround plans. Achieved within 3 years.

• Key lesson learned is the need to continually audit and manage the system to ensure the alignment of people processes and technology

The small branch connection on the line was found to be corroded nearly through-

wall. Continued operation without finding and repairing the damaged connection

would have resulted in a failure with potentially serious effect.

Risk-matrix based approach

0.0199

Risk-matrix based approach

0.0219

Software based approach

• Provides immediate update of risk profile

• Risk will change with equipment risk units’

age / use / operating experience

• Manage1000s of items

• Captures relevant data to make informed

decisions

Proposed pilot study – wind farm O&M planning

• actively seeking partner to run a pilot project

Summary• use various elements of information, data and operational experience alongside

known relationships/ algorithms to derive “knowledge” of the system and build up

a database

• use “knowledge” to make more informed maintenance decisions including pre-

emptive change out of components

• software helps manage the process especially with large volumes of disparate

data

• provide effective management of operation and maintenance in response to

changing equipment condition

• common basis for decision-making, even amongst large staff-team and complex

electro-mechanical system

• operating knowledge is retained even if staff change

• consistent with requirements of PAS 55 (ISO 55000)

more information: http://www.lrenergy.org/Software/Arivu.aspx

Services are provided by members of the Lloyd's Register Group.

For further information visit www.lr.org/entities

Thank you – Any questions?

Mark SpringSenior Loads Analysis Engineer

Lloyd’s Register Group Services Ltd

St Catherine’s Court, Berkley Place

Bristol, BS8 1BQ

T +44 (0)7539 209256

E Mark.Spring@lr.org

w www.lr.org/energy

Putting reliability at the

heart of the wind turbine

development process:

lowering lifetime cost

Birmingham, 6 November 2013

Bruce Valpy

© BVG Associates 2013

2/18

• Why focus on reliability

• Cost of energy

• Health and safety

• Reliability focussed approach

• 10 steps to success

Agenda

Justification

Turbine reliability: greater certainty and lower lifetime costIntroduction

© BVG Associates 2013

• BAV add

Selected clients

BVG Associates

• Market analysis and business development

• Supply chain development

• Economic impact assessment

• Support to industrialisation

• Project implementation

• FIT project development (UK only)

• SCADA & condition monitoring

• O&M technical support

• Technical innovation & engineering analysis

• Support to investment in technology

• R&D programme management

• Design and engineering services

37/18

• Why focus on reliability

• Cost of energy

• Health and safety

• Reliability focussed approach

• 10 steps to success

Agenda

Justification

Reliability focussed approach during wind turbine developmentIntroduction

© BVG Associates 2013

• BAV add

Selected clients

BVG Associates

• Market analysis and business development

• Supply chain development

• Economic impact assessment

• Support to industrialisation

• Project implementation

• FIT project development (UK only)

• SCADA & condition monitoring

• O&M technical support

• Technical innovation & engineering analysis

• Support to investment in technology

• R&D programme management

• Design and engineering services

• Need to understand the past before talking about cost reduction in the future

• Between 2003 and 2010, CAPEX increased (blue bars)

• Much can be explained by change of site conditions

• Much of the rest can be explained by market conditions

• Due to increases in site wind speeds and use of larger turbines, LCOE decreased during period

despite CAPEX increase

• CAPEX stabilised 2010-12

Cost of energyHealth warning

© BVG Associates 2013

CAPEX has been going up, not down

4/18

• Given right external conditions, industry

can meet target:

• Confidence in market size to beyond 2020

• Smooth and timely transition under EMR

• Planning consent timelines reliably met

• Clear and predictable offshore grid

regulatory framework

• Facilitation of new technology introduction

• To deliver, industry also needs to work together:

• Best practice, standardisation,

risk management, accessing new finance

4 Dimensional cost model: Time, types of wind farm site, turbine sizes,

industry scenarios

6 Industry day-long workshops (in UK, DK, DE)

20 Deep industry interviews (4 hours +)

125 Industry individuals directly involved

215 Pages – available for download from our website

Methodology in numbers: technology work stream

Cost reduction pathways studyOverview

• 2011 UK Government Energy white paper:

• Central scenario 13GW by 2020

• Minded to support to 18GW if cost of energy

reduced – target £100/MWh

• The Crown Estate cost reduction pathways study established to evidence what industry thinks

could be done

• Supply chain, finance and technology work streams

= + +

• Published summer 2012

Context

© BVG Associates 2013

Cost reduction pathways study: results

5/18

Why focus on reliabilityThe case for focus on wind turbine reliability

OPEX is already 1/3 of LCOE and growing

© BVG Associates 2013

0%

20%

40%

60%

80%

100%

4-A

-11

8-D

-20

Co

ntr

ibut

ion

to L

CO

E

Wind farm development Turbine Support structure Array cablesInstallation OPEX Decommissioning

Source: BVG Associates

6/18

Why focus on reliabilityThe case for focus on wind turbine reliability

Summary

© BVG Associates 2013

OPEX

~35% of LCOE

Wind farm operations

~50%

Unplanned Service

~75%

Turbine

~90%Array cables Foundation

Operations and Planned Maintenance

Transmission charges

Fixed costs

If...

• If turbines were 100% reliable, so just

needed visits for planned maintenance...

• Wind farm operations cost down by 68%

• OPEX down by 34%

• Lifetime expenditure down by 12%

• Lost energy down by 90%

• LCOE down by almost by 15%

• Turbine visits down by 70%

• Health and safety incidents down 80%

• Increased confidence in new products

increases competition in the supply of

turbines

• Increased revenue certainty increases pool

of investors and decreases cost of capital

7/18

Lots good

Few components / systems tested thoroughly

Poor justification for component survival (beyond

calculations)

Main component exchange not designed in / tested

Not possible to easily replace wear parts

Poor / incomplete manuals and troubleshooting guides

Track record of unreliable systems / repeat faults

Training strategies not implemented

Site work records incomplete

SCADA report errors

Significant inefficiencies on site

Type Certificate (does not consider the above)

Why focus on reliabilityThe case for focus on wind turbine reliability

Where our experience comes from

© BVG Associates 2013

Due diligence - experience

8/18

Reliability focussed approach during wind turbine developmentImportant ingredients of a reliability focussed approach

1 Reliability and OPEX budgets

© BVG Associates 2013

Turbine MTBF* = 3 months

(90 days)

Rotor365 days

Blade

900days

Hub Assembly600 days

Blade bearing3650 days

Pitch System450 days

Other3650 days

Nacelle200 days

Drive TrainMTBF = 700

days

GearboxMTBF = 3650

days

GeneratorMTBF = 3650

days

ConverterMTBF = 2000

days

OtherMTBF = 2700

days

Yaw systemMTBF = 900

days

Control systemMTBF = 700

days

Auxiliary systems

MTBF = 900 days

Tower &Transition Piece

300 days

10 Steps to success

1. Reliability and OPEX

budgets (and model) * MTBF (large vessel intervention, small

vessel intervention & remote reset)

9/18

• FMEA – hard to do well,

balanced across range of

components

• Logic and probalistic FTA

• Six sigma

Important ingredients of a reliability focussed approach

2 ‘Rules of thumb’

© BVG Associates 2013

• A ‘small boat’ intervention

costs average €15,000

• Worth spending €1k CAPEX if

can save €X OPEX per year

• Downtime costs average

€8k/day (€20k for windy day)

3 Component reliability reviews10 Steps to success

2. ‘Rules of thumb’

1. Reliability and OPEX

budgets (and model)

3. Component reliability

reviews

10/18

Reliability focussed approach during wind turbine development

Important ingredients of a reliability focussed approach

4 Test and verification

© BVG Associates 2013

10 Steps to success

2. ‘Rules of thumb’

1. Reliability and OPEX

budgets (and model)

4. Test and verification

3. Component reliability

reviews

11/18

Reliability focussed approach during wind turbine development

Important ingredients of a reliability focussed approach

5 Demonstration of maintenance procedures

© BVG Associates 2013

10 Steps to success

2. ‘Rules of thumb’

1. Reliability and OPEX

budgets (and model)

4. Test and verification

3. Component reliability

reviews

5.Demonstration of

maintenance procedures

12/18

Reliability focussed approach during wind turbine development

Important ingredients of a reliability focussed approach

6 Joined up SCADA/control/CM

© BVG Associates 2013

10 Steps to success

2. ‘Rules of thumb’

1. Reliability and OPEX

budgets (and model)

4. Test and verification

3. Component reliability

reviews

6.Joined up SCADA/

control/CM

5.Demonstration of

maintenance procedures

Holistic

decisions

CMSEngineering

13/18

Reliability focussed approach during wind turbine development

Important ingredients of a reliability focussed approach

7 Feedback from site

© BVG Associates 2013

10 Steps to success

2. ‘Rules of thumb’

1. Reliability and OPEX

budgets (and model)

4. Test and verification

3. Component reliability

reviews

7. Feedback from site

6.Joined up SCADA/

control/CM

5.Demonstration of

maintenance procedures

14/18

Reliability focussed approach during wind turbine development

Important ingredients of a reliability focussed approach

8 Useful, accurate data

© BVG Associates 2013

10 Steps to success

2. ‘Rules of thumb’

1. Reliability and OPEX

budgets (and model)

4. Test and verification

3. Component reliability

reviews

8. Useful, accurate data

7. Feedback from site

6.Joined up SCADA/

control/CM

5.Demonstration of

maintenance procedures

15/18

Reliability focussed approach during wind turbine development

Important ingredients of a reliability focussed approach

9 Fix first time approach

© BVG Associates 2013

10 Steps to success

2. ‘Rules of thumb’

1. Reliability and OPEX

budgets (and model)

4. Test and verification

3. Component reliability

reviews

9. Fix first time approach

8. Useful, accurate data

7. Feedback from site

6.Joined up SCADA/

control/CM

5.Demonstration of

maintenance procedures

16/18

Reliability focussed approach during wind turbine development

Important ingredients of a reliability focussed approach

10 Reliability champion

© BVG Associates 2013

10 Steps to success

2. ‘Rules of thumb’

1. Reliability and OPEX

budgets (and model)

4. Test and verification

3. Component reliability

reviews

10. Reliability champion

9. Fix first time approach

8. Useful, accurate data

7. Feedback from site

6.Joined up SCADA/

control/CM

5.Demonstration of

maintenance procedures

Bill Shankly, Liverpool Football Club

17/18

Reliability focussed approach during wind turbine development

Reliability focussed approach during wind turbine developmentImportant ingredients of a reliability focussed approach

Beautiful, happy offshore wind farms...

Want to challenge?

Want to discuss as a turbine manufacturer?

As an asset owner?

Call us on +44 1793752308 or email reliability@bvgassociates.co.uk

18/18

... are born in messy places

Let’s talk...

Wot no Reliability

Certification?

Watch this space

Remote Structural Monitoring of

OWT Foundations

Renewable UK 2013

Author: Duncan TalbertPrincipal Consultant

MMI Engineering

Rev 0154

Overview

The problem – detecting degradation of

offshore renewable energy jacket

structures

55

Common monitoring solutions

Alternative monitoring solution

The Problem Offshore jacket structures, will degrade over time and potentially fail within

their design life through:– Design, Manufacturing or Installation defects

– Overload

– Fatigue

Consequences

– Asset Loss

– Harm to Personnel

Current monitoring techniques, i.e. inspection– Time consuming

– Expensive

– Intermittent

57

Conventional Monitoring Solutions

Close Visual Inspection

– Time consuming

– May involve cleaning in preparation

Flooded Member Detection

– Requires good close access

Both techniques:

– Require the use of ROVs or divers,

– Identify failures at the time of inspection, not the time of occurrence

59

Alternative Solution

Structural Frequency Monitoring

– Monitors structural response to forces from waves; wind; &

operational loads

– Employs accelerometers to measure the frequency of the resultant

structural motion

– Structural failures cause detectable changes in the motion of the

structure

– Telemetry transmits data or alarms to an onshore monitoring point

– Once installed; Provides continuous monitoring and doesn’t require

personnel to attend the site,

60

Accelerometers

Power

SupplyData Processor

Telemetry

System

Monitoring

Centre

OFFSHORE ONSHORE

Hardware

61

Accelerometers

62

Data Processor

Output

63, Hz

, Hz

Data collected from

undamaged platform

Data from

damaged

platform

, Hz

, Hz

Data collected from

undamaged platform

Data from

damaged

platform

Data from

undamaged structure

Data from

damaged

structure

Failure Location

The system can be calibrated to indicate failure location,

– Build computer model of structure,

– Use the model to predict structure’s response with no failures,

– Use measured results from offshore to tune the model,

– Use the model to develop a library of responses to failures in

specific locations,

– Compare results from offshore with the library to ascertain failure

location.

64

Summary

Structural frequency monitoring has the following advantages over

CVI and FMD techniques;

– Continuous, rather than intermittent, monitoring

– Doesn’t require personnel on site

– Indicates failure location

The technique is proven on offshore oil and gas structures, and

The technology has been used for similar applications in offshore

renewable energy,

For more information: dtalbert@mmiengineering.com

65

Author: David Sanderson

Date: 01 January 2011

MMI Engineering provides scientific, engineering, safety, and risk management

technical services

(i) Safety & Risk Management (ii) Major Hazards Engineering

(iii) Structural Integrity, Analysis and Design (iv) Fluid System Modelling and Design

UK Operations:

– Currently 90 employees

2012 turnover: £5.6 M

– Warrington, Bristol, London

Aberdeen, Northern Ireland, York

Worldwide:

– US: Oakland (CA), Houston (TX), Huntington Beach (CA); Western Australia (Perth);

Malaysia.

www.mmiengineering.com

MMI Engineering