Ørsted in the UK - Easyfairs · Ørsted in the UK 1 Installed Capacity 2 Wind farms in...

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Ørsted Wind Power, HOW02 Supply Chain Development

Ørsted in the UK

1

Installed Capacity

2Wind farms in construction

• Hornsea Project One• Hornsea Project Two

2.5 GW

2018

4.4 GW

2020

Walney ExtensionWest of Duddon Sands

Westermost Rough

Isle of Man

Walney 1 & 2

Barrow

Burbo Bank Ext.

Burbo BankGunfleet Sands 3

Gunfleet Sands 1 & 2

Lincs

London Array

Race Bank

Hornsea 1Hornsea 2

Hornsea 3 & 4

Under construction

In operation

Under development

Ørsted’s UK portfolio

• Over 900 employees (grown almost six times since 2010)

• Ørsted will invest GBP 12 billion in the UK by 2020

• Building the world’s largest offshore wind farm, Hornsea Project Two, at 1,386MW

• By 2020, our offshore wind projects will provide enough power for 4.4 million UK homes

5.8 GW

2022

11Operational wind farmsin the UK

2006Barrow

2007Burbo Bank

2010Gunfleet Sands

2012London Array

2012Lincs

2012Walney

2014West of Duddon Sands

2015Wester-most Rough

2017Burbo Bank Ext

2018Race Bank

2018WalneyExt

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… and is today the global leader

2

Global offshore wind capacity, GW

0.30.3

3.6

Ørsted Wind Power’s scale enables cluster synergies

28% 7% 10% 9% 2% 1% 0%

Source: Bloomberg New Energy Finance, August 2018, Ørsted analysis

2%

% share of global constructed capacity

Constructed

Under construction

3% 4% 2%

Operational offshore wind farms

Offshore wind farms under construction

Cluster

1

4

3

2

Synergies

✓ Lower logistics costs

✓ Fewer technician hours

✓ Fewer facilities needed

✓ Lower inventory levels

• UK West coast (East Irish Sea): Barrow, Burbo Bank, Burbo Bank Extension, West of Duddon Sands, Walney 1, Walney 2, Walney Extension

• East UK North: Westermost Rough, Lincs, Race Bank, Hornsea 1, Hornsea 2

• East UK South: London Array 1, Gunfleet Sands 1, Gunfleet Sands 2, Gunfleet Sands 3

• Germany: Borkum Riffgrund 1, Borkum Riffgrund 2, Gode Wind 1, GodeWind 2

• Danish waters: Anholt, Nysted, Horns Rev 2, Middelgrunden

Dutch waters: Borssele 1 & 2

1

2

4

5

3

Innogy

E.ONVattenfall

Iberdrola Northland

Power

Equinor

CIP

SSE

Shell

EnBW

6

WPD

1%

Van Oord

1%

5

5.1

1.31.9

1.6

0.4 0.30.6 0.8

0.4 0.3 0.3 0.40.2

3.8

0.8 0.4

0.7 0.6 0.30.3

0.30.5 0.2

0.2 0.1

0.5

0.1

0.4

01

0.40.60.9

8.9

2.21.9

0.7

2.0

1.1 0.9 0.8 0.50.2

6

UK 5.8 GW

Germany 1.4 GW

Denmark 1.0 GW

Netherlands 0.8 GW

China

LongyuanEneco

2% 1%

Note 1: London Array is operated by London Array Limited

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Ørsted Wind Power, HOW02 Supply Chain Development3

Develop Build Operate Own

Full-time employees~2,300Ørsted Wind Power core competencies

~200 ~1,300 ~700 ~100

Ability to design and optimise projects with a 'total life-cycle cost of wind farm' mindset✓

Experience and expertise along the entire value chain allow for better understanding and management of risks✓

End-to-end model reduces LCoE through fast feedback and learning across the entire organisation✓

Full-time employees

Northland

Power

Identify and mature projects

Manage construction, sourcing and supply

Conduct life-cycle maintenance

M&A, attract capital through partnerships, asset management

Equinor SSE WPD Innogy E.ON Vattenfall

40 70 75 100160

250 250

650

2,300

CIP

Ørsted built a strong integrated end-to-end business model

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At the forefront of making the industry cost competitive

Rapid technological developmentWind turbine rotor diameter, year of commissioning

Multiple levers to drive down cost in offshore wind

2002 2005 2007 2011 2014 2021 1

80 m90 m

107 m

120 m

154 m164 m

220 m

Boeing 747, 76m

Scale

✓

1

▪ Turbines and rotor size

▪ Sites

▪ Vessel size

▪ Cable capacity

Innovation

✓

2

▪ Foundation design (e.g. monopiles)

▪ Electrical

Industrialisation

✓

3

▪ Transition from single supply to multiple global suppliers

1. In Mar. 2018 GE unveiled a 12 MW turbine. Each Haliade-X unit, will be capable of powering 16,000 homes and producing 67 GW/h per year, based on wind conditions on a typical German North Sea site

2016

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Significant global & UK opportunity

Source: Bloomberg New Energy Finance

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6

DevexUp to 10%

Capex

50-60%

Opex25-35%

AbexUp to 5%

Consenting Turbines Vessels & helicopters Vessels & helicopters

Surveys Foundations (Monopile/Transition Piece)

Inspection Inspection

Inspection Array & export cables Survey Survey

Outline design & engineering Offshore substation & compensator station

Monitoring Monitoring

Monitoring Onshore substation Equipment & safety Offshore operations & removals

Contracting; legal, financial Electrical equipment Spare parts Onshore disassembly

Land agreements Onshore & offshore installation

Repair services Waste management & recycling

Vessels & helicopters Offshore exchange/ installation

Inspection/ survey/ monitoring

Consumables

*TOTEX breakdown for illustration only

Supply chain opportunities: Project phase as share of TOTEX*

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Supply chain opportunities; turbine blades

7

CAPEX• Blade design & manufacture

• Blade painting & logistics• Blade engineering, testing & inspection

• Materials & secondary items• resins, hardeners, & fillers• glass kits• core kits • sensors & LPS

• Manufacturing process & equipment (non-Tier 1), tools, & environmental control

OPEX• Inspections & surveys

• Repair & maintenance

• Blade replacement

Tier 1

Tier 2 (/3+)

Tier 2 (/3+)

Tier 1 / 2

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Ørsted UK supplier maps

8

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Common themes for successfully working with us

9

Safety

Schedule

Transparency

Adaptability

Competitive

Collaborative

Quality

Understanding the new business environment

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Indicative HOW02 timeline

10

2019 2020 2021 2022

Commissioning

Installation

O&M

Pre-assembly

Onshore Construction

Major capex contracts agreed (T1)

HOW02 Supplier Event(Rotherham, 14th November)

https://www.eventbrite.co.uk/e/hornsea-project-two-supply-chain-event-tickets-48906503669

https://www.eventbrite.co.uk/e/hornsea-project-two-supply-chain-event-tickets-48906503669

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Ørsted Wind Power, HOW02 Supply Chain Development 11

Offshore Wind Industry Council

SECTOR DEAL SUMMARY

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Offshore wind is already delivering

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Delivering a World Leading Offshore Wind Industry

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Regional roadshows

Actions so far and next steps

Launch of Sector Deal Vision and Sector Champion Baroness Brown

March – April 2018Industry proposals submitted to BEIS

Launch of Supply chain review and Supply Chain Champion Martin Whitmarsh

Early 2017 – March 2018Following Industrial Strategy, OWIC delivery team collaborated to produce prospects

Negotiations with Government

Sector Deal

July 2018BEIS announcement• Double UK offshore wind capacity

over next decade• Additional 2-4GW every year• CfD auctions every 2 years• Supported by budget of £557m

November/ DecemberOffshore wind industry prospectus sent to over 1000 UK suppliers

[email protected]

mailto:[email protected]

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Summary: Innovation driven offshore wind growth

Onshore

substationExport cablesArray cablesFoundationTurbine Offshore substation

1

2

3

4

5

6

National Grid

(TSO)

Taller turbine

Longer

Blades

Power Boost

Monopiles

Av. 8.4m dia

> 1000t

Higher voltage means

more turbines per

string enabling a

single sub-station

Boost export cable

capacity and optimise

ratings across the

windfarm

Onshore substation

within limited space

World’s largest

offshore wind farm

will be delivered at

lowest cost to UK

consumer

Single 1320MW OSS

Saving steel

RCS enables AC

transmission far from shore

66kV

Cables

1386MW

165 x D8.4 MW

UK Blades

7

8

9

10

Continued commitment

to delivering high UK

Local Content

Hornsea 2 Offshore Wind Farm

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