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Off Shore Opportunities Presented by John A Foord Coordinator of Shortsea & Environment WG European Seminar 2012. Off Shore Opportunities. Why should we focus our attention to this sector of our industry?
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Off Shore Opportunities Presented by John A Foord Coordinator of Shortsea & Environment WG European Seminar 2012
Off Shore Opportunities • Why should we focus our attention to this sector of our industry? • Doom and gloom prevails over most Liner Trades at present, with no real prospects of a return to the ‘good old days’. • This crisis was entirely self inflicted by the dominant lines trying to force each other from the markets. • The tanker markets fare no better, as was succinctly shown during presentations in Sydney. • The bulk markets are also suffering depression, to some extent caused by the major container operators getting involved in traditional bulk markets. • The ‘off shore’ market does not in general suffer from these problems as it does not involve international trade. • This market is on our doorstep and is set to grow year on year for the foreseeable future. • We have established working & discussion groups for these other sectors, it’s time to put more focus ‘Off Shore’
Off Shore Opportunities • It’s not just oil & gas rigs. • It’s not just wind turbines. • It’s not just tidal & wave installations. • There is so much more to consider, each phase of operation has different requirements; research, oceanography, survey (subsea and environment), construction, installation, maintenance, accommodation and decommissioning. • All phases require a wide variety of vessel types including; tenders, support, dredgers, cable layers, heavy lift, survey, jack ups, semi-submersibles, floating accommodation, anchor handlers, platform supply, the list goes on. • All of these vessel will at some time need the support of a good agent, experienced, dedicated and professional. • Port calls are often very short and unpredictable, consequently the agent must be able to react and perform at short notice. • We should encourage membership to ‘specialise’ to these requirements, those that have are reaping the reward.
Off Shore Opportunities • The market continues to grow, a look at recent articles demonstrates accordingly. • ‘Energy’s copper bottom future’, a 5 company, 3 country consortium that plans to put a large amount of copper across the North Sea to form a high voltage D/C cable between Norway & UK. • ‘Record breaking North Sea Licensing Round’ referring to the latest licensing applications for oil & gas drilling. A total of 224 applications covering 418 blocks this year, compared to 187 applications last year. • ‘Salmond announces £70m wave & tidal fund’, Scotland’s First Minister shows his Governments commitment to renewable energies. • ‘Cameron to view revived Severn Barrage Plan’, The Prime Minister is briefed on plans for a £30bn 10 mile tidal barrage, which could provide 5% of UK’S electricity. • ‘Malta applies for Euro 30m Off Shore Wind Fund’, the Maltese Government commenced studies for the viability of installation of shallow water turbines.
Off Shore Opportunities • At present wind farms are the largest growing sector of all renewables. • There are 568 installed offshore turbines in UK waters, and a further 665 under construction, totalling 1,233 for an output of 4,217 MW. • Each turbine produces enough electricity annually to power 2,000 homes. • In the next 5 years there will be 8GW capacity installed, rising to 18GW by 2020, representing 17% of UK requirements. • At present the UK’s offshore wind capacity installed is as much as the rest of the world. • There are 15 operational wind farms in UK waters, with a further 7 in construction, and 6 more with planning consent. • The first project was built in Blyth Harbour in 2001, the largest currently operating is the London Array, producing 300MW, a considerable advance in just 11 years, which demonstrates the bright prospects ahead. • Technology is advancing daily, as turbines get much larger and more efficient.
Off Shore Opportunities • Some facts worth contemplation; • Offshore wind farms bring a new multi-billion Euro industry, creating thousands of jobs and providing clean, indigenous and cheaper electricity. • Renewable power installations accounted for 71% of all new installations in 2010. • More renewable power capacity installed in 2011 than any other year, 37% more than during 2010. • Wind power accounted for 21% of new installations in 2011, 3rd largest after Solar PV and gas. • There is enough wind around Europe’s coasts to power Europe seven times over. • Europe is the world leader in offshore wind with a cumulative capacity of 2,063 MW spread across 39 wind farms in nine European countries. • These produce 10% of the EU’s electricity and avoiding 200 million tonnes of CO2 emissions each year. • EWEA anticipate an average market growth of 28% over the next 12 years.
Off Shore Opportunities • As with any new technology, significant improvements still need to be made; • A Europe-wide offshore electricity grid needs to be put in place to bring more effective distribution. • This would smooth the variability of the wind power produced and improve the ability to trade electricity within Europe. • The supply chain needs to be improved to overcome bottlenecks, such as the lack of suitable vessels. • Maritime spatial planning should be implemented to give long term viability and forward planning. • Offshore research and development needs to be well funded to maintain Europe’s technological lead, and enable investment in the areas less developed such as tidal, ocean thermal and even algae. • The turbines are getting larger and in deeper waters offering further challenges.
Off Shore Opportunities • Let’s get a sense of proportion; • 2.5 MW ~ that is a blue whale at full speed • 81 MW ~ that is the Emma Maersk full ahead • 300 MW ~ Thanet, UK largest operational wind farm • 3,960 MW ~ Drax Power Station
Off Shore Opportunities • What are the challenges facing agents and brokers? • Do we need to be more proactive? • We need to demonstrate a greater level of understanding of specialist needs. • We are often dealing with people who have no maritime experience at all. • The agents role can be unduly complicated. • In recent times agency fees in offshore have been eroded. • We need to present a professional image to avoid further erosion and prove our worth to the industry. • Agents, as in liner trades, are now being asked to give extended credit putting strain on finances. • The offshore industry tend to view the agent as an extension of the procurement function, rather than providing essential services with professional standards. • However recent evidence shows some principals are now prepared to pay the agent for consultancy services, deserved in consideration of effort put in. • This industry presents a great opportunity for agents and brokers. Perhaps ECASBA/FONASBA can capitalise and expose our professional standards.
Off Shore Opportunities • It is important we continue to improve our standards of understanding and thereby the quality of services we are able to provide. • Education provides an essential part of that process and we should ensure those involved possess sufficient knowledge. • The Institute of Chartered Shipbrokers have recently launched their ‘Offshore Support Industry’ book. • We need to explore all avenues of education services available and ensure our membership is advised of what is available.
Off Shore Opportunities • Acknowledgements & resources; • Clarksons Port Services • B.W.E.A. – The British Wind Energy Association • Marico Marine • E.W.E.A. – European Wind Energy Association • Renewables UK • Oceanology International • The Institute of Chartered Shipbrokers. • Ocean Sp@ce • E.M.E.C. – European Marine Energy Centre • Energy Generation & Supply Knowledge Transfer Network.