WinFloat Project Update - EU Sustainable Energy Week...• Final projectconfiguration: 3 turbines...

WindPlus

European leadership in renewables — funding innovationBrussels, 22nd June of 2017

The WindFloat Project

WindPlus 2

• General Project Overview

• Value Proposition

• Project Status and Next Steps

• Challenges

Agenda

WindPlus

WindFloat - Project Overview

WindFloat 1 outstanding performance has encouraged Windplus to launch Phase 2:

WindFloat (Atlantic) Pre-Commercial Project

• TOTAL CAPACITY: 25 MW capacity, using 3 MVOW’s V164 turbines

(8MW) with a total investment of ~125M€

• LOCATION: 20 km off the coast of Viana do Castelo (North of

Portugal), in water depth of 85-100m, in an area of sand and

sediments, suitable for mooring

• INTERCONNECTION: to be constructed by REN, allowing a direct

connection at 60kV with no onshore of offshore substation

• CONSTRUCTION: several shipyards options available close to final

location. Turbine installation quayside

• FLOATING STRUCTURE CERTIFICATION: designed for 25 years, certified

throughout design, construction and installation by ABS, an

independent Verification Body

• STRONG INSTITUTIONAL SUPPORT:- EU: NER 300

- Portugal: Feed-in Tariff, APA

3

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Project location was selected based on feasibility and maximizing production

• 150kV, AC cable, initially operated at 60kV (no need

for either onshore or offshore substation)

• To be constructed by REN

• Length: ~17-20km

• Buried in most sensitive areas

~20Km

• Final project configuration:

3 turbines

• Located in a sand area with

~85m water depth


WindPlus5

19,4% 20% 20% 20%

WindPlus, S.A.

19,4%

1,2%

WFA concluded an equity raising process with 5 shareholders


WindPlus

Description of the support mechanisms in place for the project

6

NER300

Feed-in tariff

• Equivalent to 168€/MWh during 20 years

• Composed of different support mechanisms, including

Portuguese Carbon Fund

• Part of this support is upfront to help development

• Support program for proven technologies to help commercialization

• ~30M€ in total, 30% payable in 2015 and 30% in 2017, rest in 5 years

• Subject to reaching 75% of planned production in 5 years

• Several requirements in terms of deadlines of permitting and

information sharing

Export cable• New infrastructure, part of the national grid

• Financed, developed and implemented by REN (National Grid Operator)


WindPlus

Engineering

(+O&M) FabricationTurbine supply/

installation (+O&M)

Offshore

installation

• Contract value: ~5,5M€

• Organized in phases:

‒ Pre-FEED

‒ FEED

‒ Detailed design

‒ Engineering support during

fabrication

• Includes a joint work with

MVOW to develop a

coupled model analysis

• Detailed design fully

finalized before Fabrication

contract award to minimize

change orders

• Platform certified by ABS

(certification currently

ongoing with positive

outlook)

• Engineering work with

MVOW certified by DNV-GL

(ongoing with positive

outlook)

• Contract value: ~38M€

• Scope of work (following

ABS-certified design and

specifications from PPI):

‒ Supply of steel

‒ Fabrication/supply of

structural elements

‒ Procurement of auxiliary

equipment*

‒ Final assembly (incl. dry dock

rental at Lisnave)

‒ Coating and cathodic

protection

‒ Offload

‒ Towing to port of Sines

• Part of the work will be

subcontracted

• Strict quality control and

supervision

• Fabrication process certified

by ABS


• Scope of work:

‒ Supply and delivery of

mooring & anchor

equipment and

interarray cables

following ABS-certified

design and specifications

from PPI

‒ Supply of anchor-

handling tug vessel and

other auxiliary vessels

(e.g., tugs)

‒ Anchor pre-lay

‒ Towing of structure to

final location

‒ Hook-up and connection

of hardware

‒ All associated services

like port rental, local

tugs, navigation permits,

etc.

• Offshore installation

process certified by ABS


(excl. O&M)

• Scope of work:

‒ Supply and transport of

wind turbines and towers

‒ Installation and pre-

commissioning at port

(Port of Sines and crane to

be supplied by Windplus)

‒ Final commissioning after

installation

‒ Turbine O&M

• Turbine will be site-

specific and designed

through the DNV-certified

process with PPI

• Will include all

adjustments of turbine to

a floating structure

(tower and control

software)

• DNV-GL verification of

design, loads and

expected lifetime

* Certain minor components may be procured directly by Windplus (e.g., communications) 7

Procurement strategy – minimize interfaces and clearly define responsibilities

Inter-array

cable supply

• Contract value: ~3,5M€

• Scope of work:

‒ Supply and delivery of

inter-array cables

‒ Monitoring cable

installation

‒ Specific cable

termination work


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Mooring and

interarray cables are

designed for a simple

release and hook-up

1

Towing is conduted

by local regular tugs

(already identified

and open for lease on

short-term call)

Transport time is 1-2

days

2

~100km

Quays already

identified with

sufficient draft for

O&M work quayside

Large component

replacements are conducted

quayside in the port using

standard onshore cranes.

Port of Vigo has confirmed

its availability for these

activities.

Windplus already has quotes

for suitable onshore cranes

3

Total downtime can be lower than 15 days with a

total cost of less than 500k€

WindFloat – Operation & Maintenance

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• Challenges

Agenda

WindPlus

Bankability

Technology

LCOE

WindFloat Technology Roadmap

10

Three Strategic Areas for Successful Implementation

Bringing the technology to be cost

competitive with other Renewable

Energy Sources

Reduce the risk to ensure the

finance ability of the commercial

projects

Develop a reliable and full scale tested solution

11

• larger turbines (x3-4)

• design life extension (x5)

• global sizing – “smaller” platform

• structural optimizations

• equipment improvement

• accessibility

• mooring improvements

• installation improvements

11

WF1 WFA

WindFloat – Competitive LCOEScale and technical/technology innovations are already delivering important savings

• Capacity:

• Production:

• Unit cost:

x4

X4,5

x1.75

• larger turbines (x 3-4)

• design life extension (x 5)

• global sizing – “smaller” platform

• structural optimizations

• equipment improvement

• accessibility

• mooring improvements

• installation improvements

WindPlus 12




• Challenges

Agenda

WindPlus 13

• Approval of export cable

• Export cable geotech (TBC)

• Export cable tender process

• REN contracting export cable

• LBI signature + FID by Windplus

• Permitting:

‒ Ponto de receção

‒ Licencia de produção

• Release APA funds

• BoD decision on FID

• Engineering:

‒ Detailed engineering design

‒ MVOW engineering (tower

and control)

‒ Tower certification (DNV)

• Main project contracts

‒ Fabrication tender

‒ Offshore installation

‒ Turbine TSA/MSA

• Financing

‒ Head of terms

‒ Kick-off meeting with lenders

‒ Due Diligence

‒ Financial close

• Funding commitment by

partners

• Notice to proceed /Steel order

• FC Kick-off platform fabrication

Jan Feb Mar

1Q17Oct Nov Dec

4Q16Apr May Jun

2Q17Jul Ago Sep

3Q17

17th December

15th December

14th December

16th December

10th December

4Q17Oct Nov Dec

Updated Project Planning until Financial Close

Project Status and Next Steps

WindPlus

Project construction

(CAPEX)

14

Current Status negotiation main project contracts

Platform

engineering

Preferred bidder

selected?

Term sheet

signed?

First contract

draft?

Advanced

contract draft?

Contract signed?

Platform

fabrication

Turbine supply

WTG installation

(crane)

Project operation

(OPEX)

Turbine O&M

Platform O&M

Platform

installation

5%

35%

44%

14%

1%

18%

54%

% of total

Capex/Opex

WindPlus

Commercial Bank 1 Commercial Bank 2

FIRST FLOATING WIND FARM EVER

FINANCED WITH NON-RECOURSE

DEBT

Consortium approved, due diligence undergoing

15

WindFloat bankabilityWFA is progressing well to achieve the first project financing of a floating structure

WindPlus

16

Project Schedule / Next Steps

NON-EXHAUSTIVE

• Project permitting

• Procurement processes

• Project financing

• Financial closing

• Export cable fabrication

• Export cable installation

• Steel order

• Fabrication 1st structure

• Assembly in dry dock

• Winter storage 1st structure

• Fabrication 2nd and 3rd

structures

• Assembly of 2nd and 3rd

structure in dry dock

• Turbine assembly in Sines

• Pre-lay of mooring systems

• Offshore installation

• Windfarm commissioning

2018 2019

J F M A M JJ F M A M J J A S O N D

2017

J F M A M J J A S O N D

2016

J J A S O N D J A S O N D

?

WindPlus 17




• Challenges

Agenda

WindPlus18

Fabrication

Sea bed

Installation

Large

correctives

Decommis-

sioning

• Fully conducted onshore

• All structures are alike

• Certification: strict guidelines from oil & gas industry

Description Implications

• Lower design risk

• Lower execution risk

• Anchoring technology with >60 year experience

• Big flexibility on soil conditions

• Lower need of geotechnical studies

• Lower geotechnical costs

and risk

• Shorter weather windows required

• Fewer and simpler operations

• No use of special installation vessels

• Lower execution costs and risk

• Lower weather risk

• Shorter weather windows required

• Fewer and simpler operations to be conducted offshore

• No use of special O&M vessels

• Lower execution costs and risks

• Lower weather risk

• Simple operation

• Minimal impact on the site

• All works done onshore

• Lower execution risk

• Lower third party risk

Floating presents significant risk advantage vs. fixed structures

WindFloat – Bankability

WindPlus

Commercial Bank 1 Commercial Bank 2

FIRST FLOATING WIND FARM EVER

FINANCED WITH NON-RECOURSE

DEBT

19

WFA is progressing well to achieve the first project financing of a floating structure

WindFloat – Bankability

WindPlus 20

Other ChallengesWindFloat

• Uncertain or inexistent legal framework (for offshore energy projects)

• Lack of offshore wind background (and industry) in the south of Europ makes it difficult to have

supply chain to perform several offshore works while the project is in development

• Wind Turbine manufacturers still need to be (technically) convinced about floating

• Contractual T&C are hard to standby during contractual negotiations (pre-commercial project

still seen as a R&D project by the supply chain)

• Fundamentally Lender’s Advisors tend to assess the project as a conventional offshore wind

project

THANK YOU!

WindPlus

WinFloat Project Update - EU Sustainable Energy Week...• Final projectconfiguration: 3 turbines...

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