Floating Offshore Wind UK 2017Sonja Chirico IndrebøVice President Strategy & Innovation, New Energy Solutions

Statoil in the UK

• Gas supplier to UK since 1978

• Investments in offshore wind

− Sheringham Shoal

− Dudgeon

− Dogger Bank

− Hywind

• Step-change as UKCS operator

− Mariner

• Exploration to build materiality

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O f f s h o re w i n dproviding 1m European homes by 2019

S o l a r starting in Brazil

S t o ra ge introducing Batwind

Ve n t u re s :one of the world’s largest renewable focused venture fund

Building a profitable low carbon portfolio

4

Potential for offshore wind

Vast potential for floating wind• Virtually unlimited resources

• Site flexibility

• Standardized foundations

• Environmental benefits

UTILITIES BIG CITIES ISLANDS OIL AND GAS

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Strategic beliefs for floating offshore wind market

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Value

Time

Cost

Market

Technology

Pilot Commercial Industrial scale

+40 concepts Consolidations / Industrialisation Customisation

Pilot farms (<50 MW) +100 MW farms +400 MW farms

Onshore Wind

Bottom Fixed Offshore WindFloating Offshore Wind

2010

20302020

LCOE

MaturityGrowthPilot

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Statoil – global leader in floating offshore wind

Hywind – the most cost competitive concept…

…leading floating wind to

industrial scale

Leverage three pillars for Hywind cost reduction

Extract and systemise learnings from projects

Hywind Factory- a systematic approach to Hywind industrialisation

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Fabrication Transportation Upending Mating Tow to site Installation

1

2

Optimise Hywind

substructure

1) Low cost materials

2) Robust fabricationprocesses

3) Production-friendlydesign

Establish industry

standards for floating

wind

1) Mooring and anchoring

2) Cables and substations

3) Marine operations

Build on bottom fixed

industry

1) Larger turbines

2) Standardised vessels

3) Operations and maintenance

Capture wind overshoots Ability to store excess electricity for sale when capacity is free

1 Reduce balancing costCounter impact of wind forecasting errors

2 Increase power market value Capture price peaks through arbitrage

3 Deliver power system services Provide frequency reserve response and other ancillary services

4

Piloting Batwind concept for HywindFloating Wind + Storage + Grid

✓ Increase the value of floating wind

✓ Start developing new business models

around storage in Statoil

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