Ian Anderson Head of Legal and Support Services

The Offshore Wind Farm Opportunity

SMT - Monday 24th May 2010

Potential Benefits

� ‘Utility’ scale

�Major role to play in delivering carbon reduction

in line with Government targets

�Excellent wind resource (UK best in Europe)

�Massive growth industry –supply, services, jobs

benefits

Why Offshore

Wind?

Challenges

•Costs & economics

•Weather and logistics (construction &

operations)

•Grid Connection

•Consents

1 2

419

18

35

8

6

11

13 15

16

1217

21

14

7

9

Onshore

Offshore

Biomass

10

Scroby Sands

(60MW)

18 Onshore Wind

Projects (140MW)

20

Blyth

(4MW)

Steven’s

Croft

Biomass

(44MW)

22

Out

Newton

(9MW)

Round 1: UK Regional

Sites - Blyth

Round 2: Humber Gateway –& Westernmost Rough– 240MW – Dong Energy

Round 2 ‘Greater Wash’ Zone

• 8 sites ~ 3.6 GW

• Up to 1000 turbines

• ~ £10Bn Capital investment

Round 3 – in this RegionDogger Bank/Hornsea/Norfolk• Lead by the Crown

Estates

• Running to time

• Environmental starting

• Engineering packages

• Negotiating for turbines

• Real work 2014 to 2022

Information:

• www.forewind.co.uk

Round 3 – Successful Tenderers

• Dogger – 9GW – Forewind (Statoil Statkraft

SSE, RWE)

• Hornsea – 4GW – Smartwind (Mainstream &

Siemens Prjts)

• Norfolk – 7GW – Scottish Power & Vattenfall

• Irish Sea – 4GW – Centrica

• Hastings – 0.6GW – E.On

• Firth Forth – 3GW – Sea Green (SSE & Flour)

• Bristol Channel – 1.5GW - RWE

1GW = 1000MW ~ £3bn investment

Wind TurbinesIndicative

Sizes

Approx.

Turbine

Size

(MW)

Rotor

diameter

(meter)

Revolutio

ns per

minute

Speed of

rotation at

blade tip

(km/h)

3.6 107 5 to 13 100 to 262

5 125 6.9 to 12.1 163 to 285

7 150 3.5 to 10 100 to 285

Turbine Dimensions

Sea Bed

Nacelle & Hub

Nacelle & Hub

Rotor Diameter

Minimum Hub Height

Air Draft

MHWS Sea Level

Parameter Size of turbine

3.6 MW 5 MW 7 MW

Indicative number of turbines 83 60 42

Rotor diameter (metres) 107 125 150

Minimum hub height at MHWS (metres) 76 85 97

Maximum tip height (metres) 120 140 164

Tower base diameter (metres) 4-5 5 5-6

Minimum air draft at MHWS (metres) 22 22 22

Turbine Installation

Total weight – approx 570 tonnes for 3.6MW model

Rotor - 95 tonnes / Nacelle - 125 tonnes / Tower - 350 tonnes of steel

Foundation Types

Scour protection

Skirt

Tower

Boat Landing

Intermediate Platform

Shaft

Internal J tubes

Work Platform

Central Column

Piles

Diagonal Braces

Sea Level

Sea Bed

Tower

Work Platform

Steel Monopile Concrete Gravity Base Tripod

FoundationsSelection dependent on:-

� Type/size of wind turbine

� Access/maintenance

requirements

� Sea depth and tide

� Dynamic wind and wave

loading

� Scour and global seabed

movements

� Geological conditions

� Transportation and logistics

� Material and manufacturing

costs

� Installation limits with respect to

crane and piling capacities

Cable Array33kV Wind farm array cable:

� 3 core sea armoured;

� Approx 60 km total length;

� 119 to 133 mm diameter.

Nominal 132kV Export Cable to shore:

� 3 core sea armoured;

� Approx 8 km x2 total length;

� Min 50m between cables;

� 190 to 280 mm diameter.

Main Vessels

Illustrative resource schedule –

Humber Offshore LogisticsDescription Number of barge

/ jackup rig /

installation

vessel

Approx total

vessel

movements to

site for 83

turbines

Turbines 3 27

Foundations 3 to 4 27

Scour 1 83

Offshore installation

platform

2 4

Array cables 2 10

Export cables 1 4

Total heavy vessel

movements to site

157

Description Approx number of

support vessel

movements

Comments

Anchor handling and

towage

157 Based on one support vessel round trip

per heavy construction vessel round trip

Commissioning 249 Based on six visits per turbines transfer

vessel carrying two turbine crews per visit

Guard vessels / security 48 Based on one round trip per week over two

6 month periods

Crew transfer

installation platform

365 Based on one round trip per day over

two 6 month periods

Total support vessel

movements to site

819 Based over two seasons

Support Vessels

Illustrative resource schedule –

Humber Offshore Logistics

‘OFTO’ Electricity

Transmission system275kv Tower Line

Cliff

Export Cables

Offshore wind farm

Offshore

Transformer(s)

Offshore Transmission System Operator

‘OFTO’National Grid

E.ON

£100m+ £700m+

Offshore Substation� 2 medium to high voltage transformers;

� Auxiliary transformers and low voltage switchboards;

� Reactive compensation banks;

� Batteries;

� High voltage (132 kV / 220 kV) switchgear;

� Medium voltage (33 kV) switchboard;

� Diesel generator and tank;

� Accommodation & Workshop.

Onshore Cables (indicative 132kV, 6

x 30km)

Connection into Grid

Substation

275kV Grid Substation

NG Compound

OFTO

Compound

The Opportunities

• What Jobs will be Created?

Supplier Services - pre

Consent work• e.g. Environmental Impact

Assessment

– Understand effects on

• Fishing, seabed life, birds

• Visual, radar, shipping

• Geophysics – vessels, geologists

• Met masts – engineering, fabrication

• Project Design – Management &

Engineering

Contract Packages - Indicative

14 June 2010, E.ON, Page 24

1

E.ON

Main Contract

Post Consent: Humber Gateway Reqment:

Illustration: Humber Gateway Requirements:

1. Vessel Charters e.g. Transport, Installation, Scour

protection, Survey, Guard Boats, Dive Support, Crew

Transfer

2. Foundation Design & Supply

3. Array Cable Procurement

4. Array Cable Installation including termination

5. OFTO

6. Wind Turbines

7. O&M Facility Design

8. O&M Facility Build & Fit Out

9. O&M Crew Boats

14 June 2010, E.ON, Page 25

VRW1

Slide 25

VRW1 Tim, what would be useful is a rough % breakdown of the capex by each category - probable someone will ask this questionVaughan Weighill, 25/01/10

1. Transformer, Switchgear & Electrical Component

Supply

2. Cable Supply (9km x 2 submarine cable, 30km x 6

onshore cables)

3. Other Supply – Ballast, Ducting

4. Civil works – access road, buildings, trenching,

drainage

5. Directional Drilling

6. Transport & Logistics

7. Electrical jointing & commissioning

8. Site Security

9. Facilities

14 June 2010, E.ON, Page 26

Illustration: Post Consent

(Humber Gateway Requirements):VRW2

Slide 26

VRW2 Check with Dave MoseleyVaughan Weighill, 25/01/10

Subcontract Examples

14 June 2010, E.ON, Page 27

Ongoing O&M Requirements

•Component Repair & Replacement

•Local Engineering e.g. Fabrication

•Vessel Maintenance & Repair Facilities

•Facilities Management e.g. Cleaning,

Security, Building Repair

•Accommodation

•PPE Cleaning

•Statutory Inspections

14 June 2010, E.ON, Page 28

VRW3

Slide 28

VRW3 Include OFTO system O&M elements alsoWhat about vessels, O&M technicians (OEM appointed), HV engineers etc..?Vaughan Weighill, 25/01/10

Development Contracts•Environmental Surveys Offshore & Onshore

•Environmental Impact Assessment & Consent

Applications

•Geophysical Surveys

•Geotechnical Investigations

•Metocean Monitoring Equipment / Services

•Commercial Fisheries – FLO, Guard Boats

•Land agent & Legal Services

•Outline Engineering Design

•Local Public Relations

14 June 2010, E.ON, Page 29

The Local Supply Market

Whitby Harbour

Harbour Facilities

• Up to 3000 tonnes DWT

• IOA – 85 metres

• Beam 14 metres

• Draft 5 to 6.5 metres (subject to tide)

Education Provision

Preparing the employees of the future

• Whitby Harbour at South Shields

• A. world class Marine Simulation Department containing two 360 degree full-mission bridges and 12 other integrated bridges.

• B. An integrated full-mission engine room and associated engine workstation rooms. The Department also houses an extensive VTS simulator system and fully equipped Navigation Aid Laboratory

Education ProvisionPreparing the

employees of the

future

• 6th Form Colleges

• University of Hull

• Whitby and District

Fishing Industry

Training School

Local Suppliers

• Skyclimber of Pickering

• designs, manufactures, installs and

maintains service lifts to allow quick, safe

and reliable access to the internal parts of

the wind turbine

Parkol Marine• Parkol Marine in Whitby offers a dry dock for all boat building requirements.

• The Dry dock offers a 5m draught and can accommodate vessels up to 42 m in length with a 10.5m beam

• An on site lift can manoeuvre vessels of up to 450 tons

Current Strategy• Raise Awareness:

– Liaison with Venn Management – a Yorkshire Forward Company (IA/JR)

– Attendance at Forewind Event and raising with industry(IA)

– Develop Logo (see below)

– Take stand at Renewables UK National event (NTaylor/Martin Willis)

– Establish Local Supplier Network (Whitby and Scarborough Off Shore Wind)

– Run Regional Stakeholder Event at Whitby Pavillion with National Speakers – 23 July 2010

– Create Brochure – Created, to go to print when appropriate advertising in place

– Place Newspaper articles (Yorkshire Post/SEN/National Media)

• Identify gaps in supply that need to be addressed– Professor Hardisty, University of Hull

– Visit to Grimsby Docks (currently involved with Phase 1)

• Maintain Information Supply– Create Website: www.whitbywind.co.uk

• Establish Whitby Harbour Pilot Board with requisite skills– Promoting the Board opportunity to possible Board members

– High Quality applicants

• Consider Partnership with Private Sector Provider– Tender opportunity

Future Challenge for major ports

• Changing Industry Requirements

Changing Industry requirements:

• Project logistics are changing…

• Likely development of ‘Super Logistics’

ports that are used to:

– feed many projects in a region

– Reduce need for project specific local ports

• Local ports only used for shelter and

resupply