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The Supply Chain – The Demand SideThe Supply Chain – The Demand SideWolfe Island ShoalsWolfe Island Shoals

A Case Study in Offshore Wind Farm A Case Study in Offshore Wind Farm RequirementsRequirements

There Are No Insurmountable Problems There Are No Insurmountable Problems That Are Not Golden OpportunitiesThat Are Not Golden Opportunities

Presented by: Uwe Roeper / Andrew ChantPresented by: Uwe Roeper / Andrew Chant

CanWEA Supply Chain Conference CanWEA Supply Chain Conference

June 9 - 10, 2010June 9 - 10, 2010Toronto, OntarioToronto, Ontario

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What is Wolfe Island Shoals?What is Wolfe Island Shoals? • 300 MW Offshore Wind Facility under 300 MW Offshore Wind Facility under

development by Windstream Energy Inc.development by Windstream Energy Inc.• Approximate capital cost $1.5 BillionApproximate capital cost $1.5 Billion• Awarded PPA under Ontario’s Feed-in Tariff Awarded PPA under Ontario’s Feed-in Tariff

ProgramProgram• Located eastern end of Lake Ontario, south of Located eastern end of Lake Ontario, south of

Kingston, west of Wolfe Island Kingston, west of Wolfe Island • Scheduled Mandatory Commercial Operations Scheduled Mandatory Commercial Operations

Date – June 2014Date – June 2014

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Location of Wolfe Island Location of Wolfe Island ShoalsShoals

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HighlightsHighlights• 300 MW off-shore wind 300 MW off-shore wind

project with PPA, land & project with PPA, land & grid connectiongrid connection– Raising $25 million in Raising $25 million in

development financing development financing for permitting & designfor permitting & design

– Total Projected CapEx = Total Projected CapEx = $1.5 Billion$1.5 Billion

– Permitting & design in Permitting & design in 2010 / 20112010 / 2011

– Construction in 2012 / Construction in 2012 / 20132013

– Lake Ontario, Canada Lake Ontario, Canada

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ORTECH’s Role Who is ORTECH?• Multidisciplinary renewable energy and environmental

consulting firm• Active in renewable energy directly and through affiliates

for over 10 years• Over 30 years of experience in atmospheric sciences• Through a related company, the original developer of Wolfe

Island Wind facility completed by Canadian Hydro Developers, Inc., now TransAlta

• Client base consists of financial institutions, infrastructure investors and private developers

• Appointed Project Manager for Wolfe Island Shoals in May 2010

• Strong emphasis on advanced wind resource assessment, permitting, O & M planning and costs, financial and economic analysis

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Special Problems of Offshore Wind•Permitting•Engineering•Logistics•Turbine

Selection•Marine

Transport•Foundations

•O & M•Crew Training•Provincial

Content•Financing

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Permitting – More than the Usual SuspectsFederal Ministries & Agencies• Transport Canada• St Lawrence Seaway Authority• Coast Guard• Fisheries & Oceans Canada• RCMP• CBC• NRCan• Canadian Environmental Assessment Agency

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Permitting – More than the Usual Suspects - ContinuedProvincial Ministries•MNR•MOE•Ministry of Culture•Ministry of Transport

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Engineering•Soil Testing•Wind Data Collection•Foundation Design & Construction•Collector Systems & Underwater

Cabling•Transformer Station Location

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The Importance of Soil Testing

Photo Courtesy of Advanced Offshore Solution

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Conventional Off-shore Conventional Off-shore DesignDesign

• Conventional Turbine (eg. Siemens Conventional Turbine (eg. Siemens 2.3/93, GE 3.6/107 or Vestas 2.3/93, GE 3.6/107 or Vestas V90/3MW)V90/3MW)

• Wolfe Island shoals: 5m (15’) to 20m Wolfe Island shoals: 5m (15’) to 20m (60’) water depth (2 km to 10 km (60’) water depth (2 km to 10 km from shoreline) similar to existing from shoreline) similar to existing projectsprojects

• Limestone rock bottom suitable for Limestone rock bottom suitable for proven foundation design: Drilled proven foundation design: Drilled monopile (tentative)monopile (tentative)

• Conventional underwater cable (34.5 Conventional underwater cable (34.5 kW) with substation and on-shore kW) with substation and on-shore grid connection (230 kW)grid connection (230 kW)

• Proven Technology: Existing 200 MW Proven Technology: Existing 200 MW Wolfe Island on-shore wind farm also Wolfe Island on-shore wind farm also uses underwater cable (230 kW) to uses underwater cable (230 kW) to go from island to grid on mainland go from island to grid on mainland (installed 2009). Underwater cables (installed 2009). Underwater cables common for islands in Lake Ontario.common for islands in Lake Ontario.

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Turbine Selection• WTG Nameplate Capacity• Reliability

Logistics• Availability of Port Facilities• Transportation to Port• Access to On Shore Cranes• Scheduling• Size of Laydown Area• Shared Facilities

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Required Port Facilities

Photo Courtesy of Advanced Offshore Solutions

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O &M•Costs•Waterborne Access to Turbines•Planned Maintenance•Turbine Performance Monitoring•Parts and Component Inventories

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Marine Transport•Availability of Special Purpose

Vessels•Marine Crane Availability•Transportation of Partially Assembled

WTGs

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Marine Transport

Photo Courtesy of Advanced Offshore Solutions

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Crew Training• Safety Issues• Inclement Weather• Subcontractors• Housing

Provincial Content• European Expertise• Turbine Selection• Underwater Cabling

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Financing

•Comparison to On Shore•Capital Costs•PPA Pricing•Portfolio Financing•Use of Tax Benefits

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Summary • Difficult but not impossible• Requires careful planning and execution• Special problems give rise to market

opportunities for Ontario businesses• Possible opportunity to supply services to

neighbouring Great Lakes states• There are no insurmountable problems

that are not opportunities.• “Yes we can!”

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Thank You for Your AttentionThank You for Your Attention