Can do. Will do. ZITON AT A GLANCE ZITON is the market-leading service provider within offshore wind operations & maintenance. ZITON has carried out more than 900 service interventions at 54 wind farms across 7 countries.
ZITON’s business arises from owning and operating jack-up ves- ZITON operates a fleet of dedicated O&M jack-ups that pro- sels designed to carry out O&M services on turbines at offshore vides us with the flexibility and versatility to operate at almost wind farms. In recent years, the business model has evolved to every offshore wind farm in northern Europe, from 2.0 MW to include full-service and turnkey solutions. over 10.0 MW. The fleet consist of the following vessels: ZITON provides full-service solutions with maritime pro- • J/U WIND ENTERPRISE has been bareboat chartered from 28 ject planning & execution, lift planning & execution, specialised May 2019 to end March 2021. ZITON has an option to acquire tools & lifting equipment and technicians in addition to jack-ups the vessel. With the addition of J/U WIND ENTERPRISE to the manned by experienced crews. Full-service solutions are pro- fleet, ZITON can service customers on 6+ MW platforms; vided for major component replacements, including gearboxes, • J/U WIND SERVER is the first jack-up vessel purpose built to blades, generators, transformers, main bearings, main shafts etc. provide offshore wind operations & maintenance services; ZITON also offers turnkey solutions for blade campaigns. In • J/U WIND PIONEER is a converted jack-up vessel adapted to addition to full-service solutions, this also includes blade repair the offshore wind industry, and; and upgrades as well as facilities that meet the requirements for • J/U WIND has the longest proven track-record in the industry temperature and humidity, among other things. in terms of major component replacements. ZITON also offers turnkey solutions for decommissioning. In addition to a full-service solution, this also includes cutting, recy- ZITON has about 130 employees, is headquartered in Horsens, cling of waste materials, seabed inspections and other services. Denmark, and has subsidiaries in Germany, the UK and China. Our customers are leading wind turbine manufacturers and wind farm owners.
FOUR MAIN PHASES OF AN OFFSHORE WIND FARM Orange shading indicates services provided by ZITON.
SURVEY AND DEVELOPMENT CONSTRUCTION O&M DECOMMISSIONING (typically 2-5 years) (around 2 years) (20-25 years) (1-2 years)
Turbine Turbine Substation Major Met mast Environmental Geophysical Remote foundation foundation and cable component decom survey survey monitoring decom installation installation replacement missioning missioning
Turbine Substation SERVICES Geotechnical Installation of Turbine Installation O&M Blade decom decom survey met mast installation support routines repair missioning missioning
02 ZITON · Company profile 54 wind farms
FROM THE BALTIC TO THE IRISH SEA. DEEP TO SHALLOW – ANY SEABED 7 countries
PROVIDING OFFSHORE SERVICES ALL OVER EUROPE
The West of Duddon Sands blade 910 upgrade campaign is one of the key interventions made projects for NEME Service. At Siemens TURBINES, BLADES, Gamesa Renewable Energy, we GEAR BOXES, GENERATORS fully support ZITON in successfully TRANSFORMERS, SHAFTS, completing the project. Together with BEARINGS ZITON, we have gained tremendous experience from the WoDS blade campaign that will benefit us and our customers as we carry out more blade upgrade campaigns in the coming years.
Paulina Hobbs, CEO Service NEME, SGRE
ZITON · Company profile 03 HISTORY OF THE COMPANY
J/U WIND acquired J/U WIND initiated J/U WIND on first long- three-year charter with term charter with Vestas Siemens via third party
Vessels, operations and contracts 2007 2008 2011 Corporate
Jack-up operations carved out into separate entity
J/U WIND SERVER initiated 3-year charter with Siemens Gamesa J/U WIND SERVER Renewable Energy operational in March Framework agreement 2015 and 3-year charter signed for with Ørsted with J/U WIND PIONEER in J/U WIND SERVER with J/U WIND PIONEER duration to March 2019 September 2015 Siemens Wind Power acquired, and 3-year framework 2-year extension of 1-year framework J/U WIND SERVER agreement with agreement with agreement with ordered from Vattenfall MHI Vestas MHI Vestas Nordic Yards
2016 2015 2014 2012
DBB Jack-Up Services Issuance of Fresh equity and BWB Partners invested A/S changed its name to EUR 100 million bond issuance of in ZITON ZITON A/S EUR 40 million bond Joint venture with BWC to finance J/U WIND SERVER
Bareboat charter of J/U WIND ENTERPRISE New framework agreement with Ørsted. Duration to March 2022 Framework agreement with Vattenfall extended to November 2020 MHI Vestas framework agreement amended First full-service main and extended to component replacement December 2022 carried out Extension of agreement Turnkey solution for with MHI Vestas until First decommissioning of blade campaign at West further notice offshore wind farm of Duddon Sands
2017 2018 2019 2020
Foundation of Subsidiaries in Subsidiary in China Amendment of corporate ZITON Contractors A/S Germany and UK Hangout A/S established loans and new working capital facility improving Two bonds issued for a as a joint venture to liquidity by up to EUR total of EUR 125 million provide blade repair solutions 14.3 million Ownership in Jack-Up InvestCo 3 Plc. increased to 100% for EUR 23.7m
04 ZITON · Company profile ZITON’S SERVICE OFFERINGS
ZITON’s business arises from owning and operating jack-up vessels designed to carry out O&M services on turbines at offshore wind farms. The business model has evolved in recent years and now includes full-service and turnkey solutions.
FULL-SERVICE SOLUTIONS In a turnkey solution, ZITON takes full responsibility for ZITON’s core business is to own and operate jack-up vessels. In the solution and assumes the risks that we feel we are better recent years, we have expanded on this platform by introducing equipped to handle than our customers are, and that customers value-added services. are willing to pay for. ZITON has the experience to handle risks ZITON provides full-service solutions for major component better than anyone, including when it comes to weather risk, pro- replacements, including maritime project planning & execution, ject management, coordination with sub-suppliers, etc. lift planning & execution, specialised tools & lifting equipment ZITON is determined to remain an important player both in and technicians in addition to jack-ups with experienced crews. the blade campaign segment and in major component replace- Our expanded scope of a full-service solution is illustrated below. ment. As a result, ZITON offers a range of solutions for blade campaigns that meets the requirement of customers at the most cost-effective price, including: Onshore blade repair and upgrade solutions that specifically TECHNICIANS targets blades with deeper structural damages and upgrade of blade performance. Blades are transported from the offshore wind farm to an onshore blade repair facility, repaired, and then SPECIALISED TOOLS & LIFTING used to replace worn blades on the next turbine. EQUIPMENT On-deck blade repair and upgrade solutions that is similar to onshore in scope, but carried out on the deck of the vessel. LIFT PLANNING & E ECUTION HangOut tip repair that mainly involves basic repair of the tip and the leading edge of a blade. This solution is more limited in MARITIME scope, but also more cost effective than the others. “HangOut” is PROJECT PLANNING & an advanced container that is raised from the deck of the jack-up E ECUTION and lowered over the tip of the blade using vacuum suction cups. The HangOut contains all the necessary equipment to make the repairs, and it provides a safe and protected working zone for blade technicians. Also, it is operational at harsher weather than basic blade repair performed using rope or platforms, thus pro- viding significantly more working days per year. FOUNDATION All ZITON’s solutions mentioned above, enable a considerable A JACK-UP WITH A CRANE higher process quality than other blade access solutions like rope access or platform, due to improved work ergonomics and by providing climate-controlled habitats. All solutions are illustrated TURNKEY SOLUTIONS on the next pages. ZITON has expanded its scope further by offering turnkey solutions for blade campaigns and decommissioning. For blade campaigns, ZITON collaborates with sub-suppliers to repair and upgrade blades, provides facilities that offer temperature and humidity management and other compulsory requirements when it comes to blade repair. For decommissioning, ZITON A typical O&M setup collaborates with sub-suppliers where relevant, and provides a and ZITON’s solutions are turnkey solution for cutting, recycling of waste materials, seabed illustrated on the next pages inspection, etc.
ZITON · Company profile 05 OFFSHORE WIND FARMS TYPICAL O&M SETUP AND ZITON'S SOLUTIONS
CREW TRANSFER SUBSTATION VESSEL (CTV) The substation connects Used for near-shore wind the offshore wind farm farms for transporting to the onshore electricity technicians to the turbines network and converts and for everyday O&M routines. transmits the power.
ONSHORE BLADE REPAIR AND UPGRADE FACILITY Blades are transported from the offshore wind farm to the onshore blade repair and upgrade facility.
06 ZITON · Company profile MAJOR COMPONENT REPLACEMENT AND OFFSHORE BLADE REPAIR Occasionally, it is necessary to exchange a major component, such as a gearbox, blades, generators, etc. This requires a dedicated O&M jack-up positioned next to the turbine.
SERVICE OPERATION VESSEL (SOV) Used for far-offshore wind farms for transporting technicians to the turbines for everyday O&M routines.
MET MAST The met mast is erected prior to installation of the wind farm to provide actual measurement of weather conditions at the site.
HANGOUT BLADE REPAIR Advanced container that is raised from the deck of the jack-up and lowered over the tip of the blade to perform basic repair of the tip and leading edge.
ZITON · Company profile 07 DEDICATED O&M SERVICE PROVIDER
CLIMATE-RELATED RISKS DIFFERENCE BETWEEN DEDICATED O&M SERVICE PROVIDERS AND AND OPPORTUNITIES PROVIDERS OF INSTALLATION JACK-UPS
• Offshore wind There are certain important differences between a dedicated O&M provider ZITON operates within and a provider of installation jack-ups, such as: the offshore wind industry, which is expected to play and • Dedicated provider of O&M services important role in the transi- ZITON is the only dedicated provider of jack-ups dedicated to O&M assign- tion to a low-carbon and ments like major component replacement, blade campaigns and decommis- climate-resilient economy. sioning. Such vessels are not occupied by long-lasting installation assignments. For ZITON, the offshore wind industry provides • Coverage of all turbines from 2MW to 10MW and beyond important climate-related Our fleet of jack-ups provides us with the flexibility and versatility to operate opportunities for growth at offshore wind farms, from 2.0 MW to over 10.0 MW. Our fleet allows us to as the number of turbines offer our customers a cost-effective set-up for their particular needs. installed in northern Europe is expected to continue to • Lower carbon footprint increase in the foresee- Being lighter and smaller, O&M jack-ups consume less bunker fuel than their able future. In addition, as installation counterparts. Thus, our fleet allows customers to select the vessel the offshore wind industry that provides the industry’s lowest carbon footprint. becomes increasingly global, it will provide opportunities • Technical capability of the vessel for ZITON to expand its To carry out O&M assignments, our vessels do not require a large deck space global presence. and crane lifting capacity, and, smaller crews are required to operate them. This means significantly higher OPEX and CAPEX for installation jack-ups • Fuel consumption than for dedicated O&M jack-ups and, accordingly, a need to charge higher Operating vessels involves charter rates. fuel consumption. However, ZITON’s vessels are gener- • Experience of the crew ally lighter and smaller than Crews with 10 years of experience are rarely seen in this young industry, their installation counter- but that is what we can provide at ZITON. Our crews have experience from parts. Thus, our fleet enables working with a variety of wind turbine models, sites, ports and under various customers to select the operating conditions. Everyone knows exactly the sequence and details of vessel that provides the operations including the imperative of ‘safety first’ in all operations. The expe- industry’s lowest carbon rience of our crews enables us to execute major component replacement with footprint. However, ZITON’s unrivalled efficiency. operations are considered to have a very positive net • Organisation
effect on climate as CO2 ZITON has a lean organisation, geared towards completing efficient opera- emissions in 2019 merely tions in a matter of days, and often at short lead times. The costs of O&M amounted to the green- operations would simply be too high for large organisations geared towards house gas emissions equiva- the complexity of projects with a duration of six months and beyond. The lent avoided by 3.7 wind ZITON Portal enables us to cost-effectively deliver project documentation turbines running for a year. and to collaborate with our customers on operations.
08 ZITON · Company profile MARKET DEVELOPMENT OF OFFSHORE WIND
Expected growth in the number of turbines installed in Europe Turbines grid connected, end of period
8,0008,000
7,0007,000