Thursday, 22 April 2010

1. Understanding the Future Challenges and Requirements for Installation Vessels to Install Larger Offshore Turbines and Foundations in Deeper Water Thursday, 22 April 2010

3. Format of Presentation • 1. Overview of the growth in the offshore wind farm installation market. • 2. Trends in capital costs of offshore wind farms. • 3. Overview of current vessels in use and future vessels being planned. • 4. Challenges in deeper water and installing larger turbines. • 5. Commercial implications and technological challenges.

4. Predicted Future Growth in the Offshore Wind Farm Market

5. Predicted Future Growth in the UK Offshore Wind Farm Market

6. North Hoyle Offshore Wind Farm

7. North Hoyle Offshore Wind Farm • 1. First major offshore UK wind farm. • 2. Installed using “first generation” installation vessels, including the Excalibur. • 3. The project also utilised the concept of floated monopiles delivered to site. • 4. Very successful project - but challenges of Round 2.5 and Round 3 projects will be significantly different as the industry matures. • 5. Industry now moving into a completely different phase – with new technical and commercial challenges.

8. WTG EBIT Shift Vessels Crunch Commodities Peak Early Competition (and losses) EPC Withdrawal GE Withdrawal Sterling Collapse V90 Sales Suspension Strengthening onshore demand NEG Micon Merger Capital CostsLearning from the past

9. Current and Future Installation Vessels • There are a number of vessels which are now commonly used by the offshore wind farm industry. These vessels such as the Seajack the MPI Resolution and others have established a good track record and now have consistent utilisations. However, this was not always the case in the early days. • There are now a significant number of new build vessels under construction. Some will be delivered in months, other in two years time. The market is reacting to demand. • However – will these vessels be capable of meeting the challenges of the new developments or will they be under specified??

10. Offshore Wind Farm Construction Vessels

11. Challenges for Future Projects • Projects are moving further offshore - 30 km - 120 km is possible in the future • Distances from support ports are increasing • Water depths are increasing - up to 75 m • Environmental conditions are becoming more challenging in deeper water • Offshore sites are being approved even where there are difficult geotechnical and environmental conditions

12. Challenges for Future Projects Project Size

13. Predicted Future Depth of Water for Installations in the UK Offshore Wind Farm Market

14. Challenges in Deeper Water • Larger vessels which must be more tolerant of more extreme environmental conditions • Supply logistics to the offshore site becomes even more critical • More service vessels required • Any delays or operational problems have even more impact on the project

15. Estimated Changing Trends in the Supply of Offshore Wind Turbines

16. Impact from Increasing Turbine Sizes and Weights

17. Implications for Change in Turbine Type and Size to the Installation Market • Dominated by 3MW class turbines in first half of decade; with 5MW offerings anticipated from all players by 2015, 5MW becomes primary turbine class • The implication is less turbine numbers on fixed development projects • Larger and heavier turbines and support structures all needing to be installed in deeper water

18. Foundation Types • There are four common foundations types currently in use: • Monopile (the dominant type in the current market) • Gravity Base • Jacket • Tripod • In the future alternatives may be introduced: • Floating Jackets • Tension Leg Platform Structures • Suction Pile Foundation • Spar Type Structures • Plus many others on the drawing board

19. Monopile Foundation

20. Gravity Base Type Foundation

21. Tripod Structure Foundation

22. Jacket Type Foundation

23. Changes in Foundation Types • The monopile has been the foundation of choice for the offshore wind farm industry to date. • The position will change in 5 to 6 years time with jacket foundations becoming the more important foundation for the industry. This will be a commercial driven decision.

24. Changes in Foundation Types – Estimated Profile for UK Developments

25. Commercial Implications & Technological Challenges • The following challenges will have to be met by the new installation vessels: • The vessels must have the capability to work in much deeper water • The vessels will have to be capable of installing a variety of different foundation types and larger turbines • The vessels will have to have significantly more lift capacity than those currently deployed on the markets. 1200 lift capacity cranes are likely to be required • The vessels will have to be more efficient when working offshore – larger deck space, efficient supply and handling of components and accommodation for larger crews • The vessels will have to maintain or improve upon the cost installation element as part of the overall cost per MW of the development

26. Construction at Thanet – The World’s Largest Offshore Wind Farm MV Resolution in the Foreground and Seajack in the Distance

27. Any Questions Please