Offshore Renewables Presentation

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    The Crown Estate and Offshore

    Renewable Energy

    Olivia Burgess,Marine Policy & External Relations Advisor

    November 2011

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    The Crown Estate and Offshore

    Renewable Energy

    This presentation will cover:

    The Crown Estates remit and responsibilities with regards to offshore

    wind, wave and tidal, carbon capture and natural gas storage

    What the offshore wind, wave and tidal programmes look like the

    opportunity for development

    The future new technologies, need for Government support,generating new industries

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    The Marine Estate

    Energy sectors include offshore wind, wave and tidal, natural

    gas storage, CO2 transport and storage

    Traditional sectors include coastal assets, aquaculture,

    minerals, pipelines and cables

    The marine estate promotes the sustainable developmentof the marine environment in line with government policy

    COURTESYOFVESTASOFFS

    HORE

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    Wave and Tidal

    Offshore Wind

    Carbon CaptureStorage and NaturalGas Storage

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    Within the territorial limit (12nm)

    Owner of the seabed

    Property rights over surface and sub-surface

    On the UK continental shelf

    Renewable Energy Zone

    Vested rights under the Energy Act 2004

    Wave and Tidal and Offshore Wind: The

    Crown Estate Rights

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    Wave and Tidal

    Pelamis Wave Device

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    Introduction to wave and tidal energy

    Electricity can be generated from ocean waves and tides in several

    different ways

    Tidal

    Wave

    Waves acting on the seasurface (kinetic energy)

    Tidal stream

    Flowing tidal waters(kinetic energy)

    Tidal range

    Water impounded duringtides (potential energy)

    Pelamis Wave

    Power

    Marine Current

    Turbines

    EDF (La Rance)

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    Various estimates suggest wave and tidal could contribute significantly to

    global and UK electricity demands

    Global UK

    Wave energy resources hold

    potential for hundreds of GW

    projects, and tidal at least tens of

    GW

    Long term, potential market of tens

    $bn/year in project capital

    investments

    Potential to meet significant

    proportion of national electricity

    demand, e.g.

    Wave and tidal stream: Up to 20%UK demand across many UK sites

    Tidal range: 5% UK demand in

    one large Barrage scheme alone

    Introduction to wave and tidal energy

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    Wave and Tidal Programme

    The Crown Estate is interested in future deployment of wave and tidal

    projects at scale

    In future, wave and tidal projects could be of similar scale to offshore wind

    farms (100s of MW or more)

    At present, we are aiming to support growth of emerging wave and tidal

    industry, to further develop technologies and prepare for future commercial

    deployments

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    Our activities are aiming to attract investment and encourage industry

    growth

    Leasing areas of seabed for

    wave or tidal energy projects

    Supporting project

    development through

    coordination with developers

    and investment in enabling

    actions

    Engaging in policy discussions

    to facilitate project consents,

    grid access and financing

    Main activities

    Actively support growth of

    emerging industry

    Attract significant investment

    to sector

    Encourage major players to

    commit to development

    Key objectives

    Wave and Tidal Programme

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    Pentland Firth and Orkney waters

    We have leased 11 projects with 1,600 MW total potential capacity

    UK flagship portfolio of wave and

    tidal stream projects

    Located off Caithness, North

    Sutherland and around Orkney Isles

    11 projects with 1,600 MW totalpotential capacity

    Developer plans to install entire

    capacity by 2020, contingent on

    range of factors

    The Crown Estate is investing 5.7min enabling actions work to

    accelerate and de-risk development Pentland Firth and Orkney waterscommercial project sites

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    Ongoing activities

    We are currently leasing sites for demonstration projects, focusing on

    delivery of the Pentland Firth and planning future commercial leasing

    Short term

    Now

    Medium term

    Next five years

    Long term

    Next 10+ years

    Leasing sites around UK

    to support technology

    testing and

    demonstration activities

    Helping overcome key

    obstacles to project

    development

    Focusing on delivery of

    Pentland Firth portfolio,

    with developers making

    first phase installations

    Leasing and supporting

    development of further

    commercial sites

    Enabling large-scale

    developments in various

    parts of UK waters,

    comparable to offshore

    wind today, contingent

    on continuing market

    interest

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    Offshore Wind

    Gunfleet Sands Windfarm

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    Offshore Wind Programme

    Gunfleet Sands Windfarm

    Rounds 1&2 (and extensions)

    1.5 GW operational7.6 GW in development1.5 GW extensions

    Scottish Territorial Waters4.9 GW in pre-development

    Round 3

    32 GW in development

    Total: 47 GW

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    Health & Safety Planning & Consents Grid & Technology Supply Chain & SkillsProject Economics &

    Finance

    Zone Delivery

    Strategic Workstreams

    Programme to de-risk and accelerate development

    Round 3 Offshore Wind Programme

    Co-invest fundsAgreement with

    developers

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    Offshore Wind: The Future

    Round 4? - Round 3 is the future!

    New technologies: new capabilities....floatingwind?

    2009

    First floating wind turbine wastransported off the coast of Norway

    Flotation element stretches 100mbelow the surface

    Anchored to the seabed in 3 places

    It can be moored up to waters 700mdeep fixed turbines at present arebeing developed to sit in water depthsup to 60m

    BBC News Website

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    Carbon Capture and Natural Gas Storage

    COURTESY OF CENTRICA

    The Crown Estate has been leasing Natural Gas Storage

    at the Centrica Rough Field since 1983

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    Introduction into Carbon Capture and

    Natural Gas Storage

    Capture CO2 and transportto a storage site to injectunderground

    Unlike Natural Gas Storage,

    many of the components ofCCS have been around formany years but end-to-endprocess has yet to bedemonstrated all togetherThe Carbon Trust

    Natural Gas Storage: Similar to the process of storing CO2,but with other gases such as Methane

    Allows regulation of the Natural Gas market

    Commercially useful: store when prices are low, extract when

    prices are high

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    Within the territorial limit (12nm)

    Owner of the seabed

    Property rights over surface and sub-surface

    On the UK continental shelf

    UK Gas Importation and Storage Zone

    Vested rights under the Energy Act 2008

    Carbon Capture and Natural Gas Storage

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    The Crown Estates Objectives

    Work with government to facilitatedeployment of non-commercialdemonstration projects

    Prepare for competitive leasing andproject selection beyond the

    demonstration programme

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    The UK Demonstration Programme

    COURTESY OF SCOTTISH POWER

    Through 2010-11 The Crown Estate

    has been developing storage

    agreements for demonstration

    projects.

    Currently exclusive options and

    rights are only granted to winners

    of publicly funded and selected

    competitions.

    Competitions include UK Demo 1,EEPR, NER300, UK Demo 2-4

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    Possibilities Beyond CCS Demonstration

    Commercial Leasing

    Designing lease competitions

    Selecting projects

    Adding value to the sector

    Spatial planning

    Storage site portfolio Facilitating access to storage sites

    Infrastructure planning

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    The Crown Estate and Offshore

    Renewable Energy

    Thank you Any Questions?

    Olivia Burgess, Marine Policy & External

    Relations Advisor

    [email protected]

    mailto:[email protected]:[email protected]