Advanced Offshore Solutions ApS

1. Advanced Offshore Solutions ApS Optimisation of the offshore wind energy installation process Aidan Cronin Merchant Green Replacing Mr. Johnny Lykke EOWC Stockholm September 2009

2. Agenda • Where we are now in offshore installation? • What do we need to achieve? • What can the offshore installation environment look like in 15 years time?

3. Status European Offshore • Still primarily driven by the UK • Projects have been installed in a stop & go process • Experts are spread widely across a spectrum in many small companies • Not enough critical mass • Biggest network opportunity in wind ! - A new team every time • Great lack of fit for purpose vessels • Projects are still in pilot form • Difficult to assess risk and cost

4. Some lessons learned • Offshore installation can be done efficiently but never cheaply • Offshore installation can be done efficiently and sometimes quickly • Offshore routines should not be deviated from unless new routines are well tried and tested • Changing project teams kills lessons learned • If it does not work take it down

5. The regatta model has worked ! • A regatta is an informal boat race for all sorts of sailing craft. • The market has encouraged great talent and innovation until now However • We have been lucky until now • Few accidents • Fewer fatalities • Minimum delays But much too much re-inventing of the wheel

6. We need a convoy model • Proper training of staff • Well trained offshore people • Manufacturers need to ship from harbour manufacturing units • Manufacturers need to boost delivery capacity • Need a fixation of project teams to get synergy from lessons learned and to avoid duplication of mistakes. • Need 4 to 6 projects a year to professionalise the industry.

7. Convoy Installation • A Professional installation and O&M industry • Can grow organically if the market is sufficiently big • M&A will also drive professionalism • Remote condition and visual monitoring • (Out of sight – ought of mind will not be a reality for a long time) • Common guidelines for offshore installation and construction in the EU

8. Convoy Harbours • Need minimum 5 ports with offshore wind facilities in Northern Europe by 2015 • Need to be able to marshall large TIV ships • Need offshore harbour(s) at sea (sail in from the right sail out from the left) to speed up large scale delivery. • Need a lot of easily accessed space at a reasonable price. • Harbours need to support ”freight to high speed rail”

9. Installation vessels by 2025 Need a minimum of 25 to 30 large TIV´s by 2025 We will have 5 new by 2012 Vessels need to be cleaner and greener Higher O&G activity can again put pressure on the turbine installation market Need to narrow down installation concepts to 2-3 streamlined operations

10. A wind farm by 2025 • May have 3 different models at 3 different heights • May be optimised in a discordant array to optimise output instead of linear array today. • May be again planned closer to shore than now

11. WTG by 2015 • Size of turbine should stabilise at the most dependable level. • Currently looks like a 5 to 6.5 MW size • 6 – 8 mainstream WTG suppliers capable of minimum 1GW offshore delivery per year. • Could see our first 10MW machines by then

12. In summary • We need to get bigger to get better at installation • We need a 4 to 6 offshore projects per annum to professionalise • The talent is there it just needs scale and focus We need to learn from lessons learned.

13. Hungs Law of offshore wind ” If anything can go wrong it will go wrong At least twice !!! but never on the same project”

14. Questions Have a safe journey home