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Enhancing the energy transition

NOVEMBER 2019 The energy transition is one of the largest global challenges that societies are presently facing. It demands stewardship from Van Oord. Our ambition is to decarbonise societies and make them more sustainable, creating a better for future generations. That is why we have launched our game-changing S.E.A. programme.

Our S.E.A. programme consists of three mutually reinforcing themes: Accelerating climate initiatives, Enhancing the energy transition and Empowering nature and communities. In this white paper, we focus on Enhancing the energy transition. We highlight the scale and scope of the energy transition and we propose eight key elements to account for. We advocate making use of integrated solutions. These include innovative solutions and accounting for environmental and social impact.

Accelerating Enhancing Empowering climate initiatives the energy transition nature and communities | 2 Enhancing the energy transition

Energy is essential for all life on Earth. Society’s energy choices and decisions impact the earth’s natural sources. In order to be sustainable, we need to choose our energy sources carefully. Our current energy production and consumption are responsible for a substantial part of climate change. Therefore, the true cost of energy goes beyond money. Economic, political and social factors also play an essential role, because these factors have an enormous influence on the pace and process of the energy transition.

For Van Oord, this demands undergoing two transitions: at company level and at global level. Our ambition is to enhance the decarbonisation of ’s energy supply. Topics such as system integration, energy storage, stakeholder engagement and partnerships play a crucial role in enhancing the transition towards a decarbonised energy system.

| 3 Closer look at the energy system

To obtain more insight in the worldwide energy transition, we have to take a closer look at what’s happening in the energy system. Both world energy demand and supply are gradually shifting towards renewables. Energy efficiency is also being given increased attention. For this analysis, DNV GL (2018) has been used as the main source.

World energy demand The world’s energy demand increased by 35% over the past 15 years (see the graph below). For the coming 15 years, energy demand is expected to increase by just 15%, and thereafter level off and start to decline. This demand downshift is based on the presumed deceleration in population and productivity growth, and on an accelerating increase in energy efficiency.

Increased energy demand

transport buildings manufacturing

Last 15 years Coming 15 years 35% • 15% •

Graphic 1: Energy demand | 4 Transition from fossil to renewables for application. Moreover, maintenance costs of tidal energy systems are The energy transition transforms the present energy system into a more sustainable a major issue due to the aggressive offshore environment. one based on renewable energy sources. Several renewable options are needed to achieve this. The main challenge is to realise this transition at the lowest Bridge fuel possible cost without compromising the system’s reliability. Since the biggest Natural gas as such is not a renewable energy source. However, we expect renewable sources (in 2050 solar and wind energy) produce electricity, the energy this to be a bridge fuel as gas is still needed for ensuring a stable power transition must first be incorporated into the existing electrical power system. baseload and associated energy system reliability.

Scale and scope of the worldwide energy transition Natural gas has significant environmental advantages over coal and oil, both Figure 1 presents DNV GL’s energy supply forecast, based on the categorization in terms of GHG and particulate matter emissions. It is therefore increasingly fossil fuels, renewables and nuclear energy. It shows that the share of being used by power plants and the maritime sector. Meanwhile, natural gas renewables will increase dramatically at the expense of the share of fossil production can generate earning capacity for developing countries where sources, while the nuclear share remains more or less the same. DNV GL natural gas is found and will hopefully help them to build sufficient financial further expects that as regards fossil, the absolute and relative shares of coal resources for investing in their own energy transition. But certainly in the and oil will decrease in time, but that those of natural gas will more or less long term, natural gas will encounter increasing competition from other ‘real’ stabilize after a relatively small increase. renewables such as e-fuels (e.g. hydrogen). In addition, oil is not just a fuel, but also an important resource for producing products such as plastics. Renewable options for offshore energy Substitutes will be developed simultaneously for these applications. Within the scope of offshore energy, there are several renewable options available: Primary energy supply by source (1018 joules per year) - Wind - Solar 2016 2030 2050 - Tidal - Bio (from algae) % - Waves - Hydrogen 5% 6% 5 14% 20% The options offshore wind, solar and tidal energy are technologically the most mature. Western , for instance, focusses strongly on offshore wind energy, 45% 50% resulting in a competitive offshore wind market with strong innovation efforts 81% 74% FOSSIL FUELS

and substantial cost reductions. Although tidal energy is very interesting with RENEWABLES

a view to predictive availability, only a limited number of locations are suitable NUCLEAR

Figure 1: DNV GL’s (2018) energy supply forecast | 5 The challenges we are facing …

Time is running out. It’s time to act now!

In the next 15 years, the world’s Today’s mitigation measures In 2010, the energy supply To comply with the Paris energy demand will increase are not enough to keep global sector was responsible for Climate Agreement, renewable by 1% per annum warming well below approximately energy would need to supply years C % % % • 15 2.0° 35 of total 70 -85 • % a more likely outcome is anthropogenic of electricity by 2050 1 C GHG emissions. (14% at present). 3.0° (DNV GL, 2018) (Paris Agreement, 2015) (IPCC, 2014)

The central objective of the The route towards a By 2050, global shipping In 2019, Van Oord signed Dutch National Climate sustainable future demands will have to emit an the Green Deal Maritime and Agreement is to reduce national immediate action, given the average of Shipping with the aim of achieving GHG emissions by state of the energy system • % • % % by 2030 and the urgency of 50 70 • climate change warnings. 49 less CO2 than reduction by compared with 1990 in 2008. 2050 compared (Dutch National Climate (World Economic Forum, Fostering with 2008. Agreement, 2019) Effective Energy Transition, 2019) (IMO, 2014) | 6 OUR VISION

Key elements System integration Continuous roll out of projects for Enhancing This represents smart pairing of fossil and The transition of energy supply has largely renewable energy networks. The presence been stimulated by policy, particularly direct the energy transition of (offshore) infrastructure for fossil subsidies. We observe that governments 8 1energy production and transportation may 2are turning towards competitive auctions. This means Enhancing the energy transition represents a provide opportunities to facilitate the transition that the energy (electricity) cost price is driven by challenging journey towards a decarbonised energy to renewable energy sources such as offshore competition. Offshore wind is therefore widely system. Apart from energy efficiency measures, wind. Smart pairing of offshore wind farms and expected to expand on a unsubsidized or - preferably - there are many options for making this journey gas infrastructure leads to optimal use of existing lightly subsidized basis (Equinor, 2019). Cost price as cost-effectively and as fast as possible. Below, infrastructure (e.g. second life). It makes the costs reduction is however also driven by economies of we indicate key elements that we think should be socially acceptable and it is possible to maintain scale requiring a continuous roll out of new projects accounted for in Enhancing the energy transition. a stable energy production during the transition based on clarity of policy and a long-term vision on period. (TNO, 2018) energy policy. This should lead to price certainty.

Implementing energy storage Using Carbon Capture and Storage Empowering nature and smart grid (CCS) as interim solution Renewable options such as wind and solar Energy production from renewable Part of the interim solution when we are typically need substantial surface areas. sources such as wind and solar is more moving towards fully renewable energy This requires careful spatial planning, variable3 in time (intermittency) and location is4 CCS. It comprises technologies that capture 5particularly in regions with space scarcity. Due to

specific than energy production based on fossil carbon dioxide (CO2) emissions produced from the designation of marine protected areas and fuels and nuclear. Implementing energy storage, the use of fossil fuels in electricity generation and the construction of offshore wind farms, areas with using a wide variety of storage options (e.g. e-fuels industrial processes, preventing the carbon dioxide undisturbed seafloor are increasing. This provides such as Power-to-X and hydrogen), and smart grid from entering the atmosphere. In our view, CCS multifunctional use opportunities for restoring in which energy is automatically used at the time is crucial in mitigating climate change and achieving biodiversity and establishing nurseries for marine of production can temporarily cushion volatilities the Paris climate targets. life and fishing. Van Oord applies these opportunities in energy demand and supply. in initiatives like the Rich North Sea and our Ecoscour research programme.

| 7 Experimentation space Innovations at Borssele Wind Farm Site V Accelerating digitalisation Digital technologies enable energy systems to connect and to match energy supply and demand more efficiently. A new sustainable energy zone is under construction some 20 kilometres off the Dutch Future digitalised energy systems, including smart grids, coast: Borssele Wind Farm Site V. This site has been designated as an innovation site. may6 be able to identify who needs energy and to deliver it at the The Two Towers consortium, consisting of Van Oord, Investri Offshore and Green Giraffe, right time, in the right place and at the lowest cost. (IEA, 2017) has been awarded the concession and has therefore been given a unique opportunity to test and demonstrate advanced technologies.

Slip Joint: To connect the monopile and transition piece, the innovative Slip Joint technology Providing experimentation space will be applied. This technology has two major advantages: it is maintenance-free and it In physical terms, this means offering locations for reduces installation time, resulting in potential major cost savings. testing, for instance, new offshore wind turbines, innovative foundation methods, e-fuel production and restoring7 biodiversity. In addition, experimentation space should ICCP optimisation: Scientific research is being carried out to improve the understanding of the relation between Impressed Current Cathodic Protection (ICCP) performance, the forming also be provided in contractual terms in order to have sufficient of hazardous gases and water replenishment in the foundation. legal opportunities for applying innovations without being charged for experiments that fail.

TSA Coating: Development of an automated and controlled system to apply Thermal Sprayed Aluminium (TSA), a cost-effective alternative to conventional paint-based corrosion protection system for foundations. Stimulating demand for electrification The main driver of the energy transition is increasing Oval cable entry hole: Adjusting the cable entry hole in a monopile from round to oval. demand for electricity. After all, without (sufficient) This reduces the stress concentration in the monopile. This allows for reduction of steel. demand there cannot be supply. So, to enhance the energy8 transition, electrification should be stimulated. For example, Eco-friendly scour: Testing outplacement strategies for flat oysters on scour protection to determine industries as well as consumers can be encouraged to electrify which method works best for long-term establishment of oyster reefs on scour protection. through further roll out of fiscal measures. Another option is carbon pricing, an instrument that captures the external costs of greenhouse gas (GHG) emissions, usually in the form of a price on the carbon dioxide emitted. It provides an economic signal to emitters, stimulates them to electrify, and the revenues can be used

Slip Joint ICCP optimisation TSA Coating Oval cable entry hole Eco-friendly scour to mobilize further investments in innovation and clean technology.

Borssele V - Web series | 8 OUR AMBITION To provide integrated and innovative marine solutions

“ The ambition of Van Oord is to act as an initiator for accelerating the energy transition while also creating societal value. We are fully committed to enhancing the energy transition by enabling the large scale roll out of offshore wind. Sector-wide collaboration and innovations are key in making this transition a success.

Pieter van Oord, Chief Executive Officer, Van Oord

United Nations United Nations Sustainable Sustainable Development Goal 7: Development Affordable and clean energy Goal 13: Climate Action Ensure access to affordable, Take urgent action to combat reliable, sustainable and climate change and its modern energy for all impacts

Flexible fall pipe vessel Stornes sailing the Sognefjord in Norway | 9 “ We invest in initiatives and partnerships that contribute to the sustainable implementation of our projects. Our aim is to achieve a significant reduction in emissions. This partnership with Shell is an important step in this process.

Ronald Schinagl, Director Business Unit at Van Oord

Van Oord and Shell partnering in biofuel pilot for vessels Van Oord and Shell are partnering in the development of new and affordable biofuels for the shipping industry. The use of

biofuels allows a significant CO2 reduction on vessels, without any modifications. A successful biofuel campaign in

demonstrated an affordable 45% CO2 reduction on an existing vessel without any adjustments to the actual dredging operations. We will continue to develop new marine biofuel solutions which do not compete with the feedstock for land-based solutions and are scaling up the use of biofuel in our fleet.

The first biofuel pilot took place on Van Oord’s trailing suction hopper dredger HAM 316

| 10 Offshore Windpark Track Record

EXPERIENCE Offshore wind projects related to Enhancing the energy transition Horns Rev 2

Horns Rev 1 Sandbank Sprogø

Dan Tysk Kriegers Flak Wind Farm

Arkona Becken Südost Robin Rigg Teesside Amrumbank Nysted 2 Deutsche Bucht Merkur

Gemini Walney Extension Horns Rev 1 Barrow Borkum West 2 Burbo Bank Extension Nordergründe Humber Gateway Borkum Riffgrund 2 Burbo Bank

Rhyl Flats North Hoyle Lincs

Lynn and Inner Dowsing Windpark Fryslân

Arklow Bank Westermeerwind Scroby Sands Prinses Amaliawindpark

East Anglia Luchterduinen

STATISTICS Borssele III & IV LEGEND London Array Northwind Borssele V Innovation Project FOUNDATIONS Belwind Borssele I & II PROECT CAPACIT (MW) 20

Norther Kentish flats Thanet

YEARS OF EXPERIENCE 0-200 201-400 401+ Greater Changhua* 2,761 FOUNDATIONS ROLES RESPONSIBILITIES TAIWAN T&I BoP Rampion WIND TURBINE GENERATORS 1,596 EPCI Developer 11,885 TOTAL LENGTH OF CABLE TOTAL GIGAWATTS 777 KM In progress (status 2019) * Not included in statistics, as not yet installed

| 11 Timeline

In early 2000s, Van Oord responded to the energy transition by entering the developed as well and integration with the existing fossil energy system should offshore wind business. Offshore wind in the North Sea slowly got underway and be effected to meet the demand for energy during the transition period up to we learned a lot based on our offshore experience. Due to the Paris Agreement at least 2050. Innovations must help to further reduce the cost so that prices and national policy responses, offshore wind now shows a huge scale become competitive and socially acceptable. We call for a set of integrated magnification. But we’re not there yet. Other offshore renewables should be solutions to enhance the energy transition.

Early 2000s 2008 December 2015 2016 2018 Van Oord entering the Prinses Amaliawindpark, At the Paris Climate Completion of offshore Launch first LNG 2019 offshore wind industry. the first large Dutch Conference (COP21) in wind park Gemini. powered vessel, the Van Oord launches offshore wind farm. December 2015, the Werkendam. Launch S.E.A. Sustainable Earth participating countries of new subsea rock Actions programme. agreed that global installation (SRI) warming should remain vessel Bravenes. well below 2 degrees Celsius. | 12 Our market & approach “The world’s reliance on fossils is excessive, but that is In the past two decades, Van Oord has devoted itself to developing unlikely to change overnight. To meet the growing and building offshore wind farms, thereby leveraging its offshore demand for energy the world still needs oil & gas. expertise. Van Oord is at the forefront of work that contributes to That’s why Van Oord will continue to install, stabilise global, European and Dutch goals to combat the consequences of and protect oil and gas infrastructure. We do this climate change and reduce carbon emissions. while leading the way in the energy transition

In more than fifteen years, Van Oord has completed several prominent towards renewable energy by constructing offshore projects as an EPC contractor, being responsible for the offshore wind projects. engineering, procurement and construction. Construction activities Maurits den Broeder, Managing Director Offshore include offshore installation (of foundations for offshore wind turbine generators (WTGs), substations and shallow water pipes), subsea rock installation and cable laying. When appropriate, Van Oord also participates in project development and financing. Innovation contributes to making offshore energy more competitive and resolving environmental challenges such as underwater noise production. Furthermore, Van Oord operates dedicated and advanced equipment including state-of-the-art vessels. The flexible fall pipe vessel Bravenes for subsea rock installation and the offshore installation vessel Aeolus are examples.

Although a strong shift has been made towards wind energy, oil & gas is still relevant to Van Oord’s business. For the western world, shifting away from oil and gas might be a relevant topic, but many parts of the world cannot yet afford it. The contribution of oil and gas to the socio-economic growth of developing countries cannot be ignored. In these countries, oil and particularly gas are a welcome substitute for more polluting fuels such as wood and coal.

Offshore installation vessel Aeolus installing turbines at the Deutsche Bucht offshore wind farm | 13 Furthermore, the world’s dependence on oil and gas goes beyond the production The North Sea of energy. About half of the global oil and gas production goes towards the The energy transition has triggered an intensive debate regarding the petrochemical industry fabricating products such as: furniture, medicine, coffee pots, spatial use of the North Sea. To solve this issue, we must focus on efficient toothpaste tubes, alarm clocks, rugs, etc. The world’s dependence on oil and gas and effective use of the space to accommodate the energy transition. is excessive, but the effect of abruptly stopping could be too immense for society. As the North Sea is our “backyard” and has been the source of a large That said, we at Van Oord believe the world needs to urgently eliminate the amount of our business over our 150-year history; it seems apt to start adverse effect of fossil energy: GHG emissions. As a society, we should therefore the debate here about the infrastructure needed to accommodate the move away from using fossil fuels, but the pace at which we do so is key. energy transition in the coming decades. In line with our sustainability Van Oord will continue to work for the oil and gas industry as well as to invest in strategy and the hearts of our people, we would also like to work in a our impact in enhancing the energy transition. business that supports the stakeholders and the environment.

On the one hand, we are running an accelerator programme to translate our out-of-the-box ideas for sustainable business in the North Sea into reality. On the other hand, we are participating in the North Sea Energy programme to ensure that research is supporting the direction of our business. This approach allows us to lead and be proactive. We can play to our strengths as an established company that provides a safe pair of hands for the future.

However, this approach doesn’t come without its challenges. We are working hard to drive the right mindset and use the right tools and skills to translate these opportunities into sustainable business. In addition, we find that we cannot take a leading role without the right partners and collaborations.

But…without taking risks we will not achieve the energy transition and the sustainable horizon for future generations.

Flexible fall pipe vessel Nordnes at SNS pipeline project in Norway

| 14 WHAT WE OFFER Integrated solutions

Van Oord prefers to get involved at an early stage based on our capabilities in the field of design, construction, maintenance, finance, environmental engineering and stakeholder engagement. We offer offshore wind farms, offshore oil and gas solutions, eco design, and building with nature solutions. We acknowledge that our responsibility also includes continuous investment in state-of- the-art vessels equipped with the latest energy-saving and fuel technology.

We ask our business partners to commit themselves to the highest standards in safety and sustainability. In return, we offer more than 150 years of expertise and access to our global network of partnerships with clients, subcontractors, research institutes, engineering firms and NGOs. All this results in integrated solutions with social, economic and environmental spin-off.

Cable laying vessel Nexus at work at Gemini Offshore Wind Park

| 15 CASE 43 Number of turbines Offshore Wind farm Luchterduinen 23 km off the coast of Zandvoort An example of integrated solutions As the EPC contractor, Van Oord was responsible for the engineering, 531,000,000 procurement, and construction of the foundations, the electrical Annual yield (kWh) infrastructure, including the offshore transformer station, and the installation of the turbines. Van Oord was the main contractor for 150,000 this EPC project, which was carried out for joint venture partners Households Eneco and Mitsubishi Corporation.

275,000 In November 2018 Van Oord installed, in cooperation with the CO reduction per year (tonnes) 2 North Sea Foundation, the Natuur & Milieu organisation and Eneco, reef balls and cages containing flat oysters within offshore wind farm. The ‘Rich North Sea’ project will investigate how nature conservation and sustainable energy generation can reinforce one another. This project will provide know-how and contribute to a blueprint for underwater nature restoration at all offshore wind farms, so that this can soon become standard when constructing new wind farms.

Cages containing adult oysters | 16 CASE Contributes to the following UN SDG’s

Offshore Wind farm SDG 7 Affordable and clean energy Luchterduinen Offshore wind farm Luchterduinen supplies sustainable energy.

SDG 8 decent work and economic growth Van Oord’s say YES to safety programme expects everyone to take responsibility and deal with safety issues proactively. “ Collaborating with Van Oord has made it possible to fulfil our dream of strengthening SDG 9 Industry Innovation and infrastructure nature within offshore wind farms. Offshore wind farm Luchterduinen was our first scalable wind farm project that led to cost reduction. Floris van Hest, Managing Director, The North Sea Foundation

SDG 11 Sustainable cities and communities Offshore wind farm Luchterduinen has a capacity of 129 megawatts In July 2019, the first results of the monitoring expedition indicated and supplies sustainable energy to 150,000 households. that the current oyster cage design is not fit for the prevailing conditions at the offshore wind farm Luchterduinen test site. SDG 13 Climate action Several cages had become partly buried in sand, causing the death This wind farm contributes to the fulfilment of the Dutch of oysters. Both the surviving and deceased oysters showed signs Energy Agreement. of growth, indicating that under more favourable design conditions, oysters can survive and grow well in offshore wind farms. SDG 14 Life below water In addition, larvae were found in the oysters and in the water, During construction, we used the FaunaGuard. An acoustic device that safely and temporarily deters various marine fauna species, which shows that the oysters reproduced. using specialised underwater acoustics. Furthermore, we initiated the Rich North Sea. A project that investigates how nature conservation and sustainable energy generation can reinforce one another.

SDG 17 Partnership for the goals On the one hand, Van Oord worked with Eneco and Mitsubishi for the construction of the wind farm. On the other hand, we worked with Natuur & Milieu and Stichting de Noordzee in order to preserve underwater life.

| 17 CASE

“ The installation of the 150th and Gemini Offshore Wind Park final turbine at the wind park is a magnificent achievement. We are proud Social, environmental and economic spin-off of everyone who contributed to The technology already exists to build a cleaner energy system the safe construction of Gemini. that mitigates the worst impacts of climate change, while generating enough energy to power economies in years to come. The energy Matthias Haag, CEO Gemini transition has the potential to bring great benefits from social, environmental and economic perspectives.

For Gemini Offshore Wind Park, Van Oord was both co-investor and contractor. This project consisted of the installation of 150 4-megawatt Siemens wind turbines. These supply a total of 600 megawatt of renewable energy to 785,000 households. With a value of more than EUR 1.3 billion, it was one of the largest EPC contracts in Van Oord’s history. Given its key role in the Gemini project, Van Oord has set out to understand and measure the value its work on Gemini creates for society. For this purpose, Van Oord applied KPMG’s True Value methodology. The results of the analysis are shown on page 19 in figure 2.

Such analyses highlight opportunities for marine contractor such as Van Oord to substantiate the societal value created by offshore wind to its stakeholders. Major spin-offs of renewable energy investments in general include employment and the significant amount spent on suppliers and equipment purchase. This boosts confidence in renewable energy and transforming it into a strong and mature market in which key players such as Van Oord dare to invest. Consequently, energy transition drives technological as well as economic factors.

Van Oord’s offshore installation vessel Aeolus constructing Gemini Offshore Wind park | 18 CASE Gemini Offshore Wind Park Enhancing energy transition 1.25 million tonnes less CO Gemini Offshore Wind Park emissions per year Health and safety incidents, which Van Oord contributes to the occurred during the installation, Dutch energy agreement by: have an estimated cost to society of:  3.6 million euros 437 jobs creating employment created within Van Oord innovation

knowledge development

150 turbines Preventing the exhaustion of fossil fuels provides social benefits:  422 million euros

600 MW energy for

The Gemini project creates an actual 780,000 social value (true value) of households Economic spin-off 367 million in the Netherlands € € 877 million Economic spin-off abroad € 562 million Total economic spin-off € 929 million

Figure 2: Socio-economic spin-off Gemini offshore wind park

| 19 Energy investment

In 2018, according to the International Energy Agency

(IEA, 2019), global energy investment remained relatively 1000 -1% stable, at over USD 1.8 trillion, following three years of decline. 900 +1%

More spending in upstream oil and gas and coal supply was 800 offset by lower spending on fossil-fuel-based generation and Battery USD (2018) billion 700 storage renewable power. Investment in energy efficiency was relatively Downstream 600 Networks midstream & stable. The World Economic Forum (WEF, 2019) argues that refining 500 the slower growth in renewable energy investment can be 400 attributed mainly to falling costs in solar and wind globally, Renewable Upstream Stable 300 power and to the change in market conditions with reduced subsidies +2% 200 Industry in many countries. Enhancing the energy transition requires Transport -1% Nuclear 100 societies to keep on track with investing in sufficient renewable Fossil -fuel Buildings power power generation and innovation. In the future, we expect that 0 Power sector Oil & gas supply Energy efficiency Coal supply Renewables for far more will be invested in renewable energy. We observe transport and heat that the financial sector is already anticipating this. Figure 3: Global energy investment in 2018 and change compared to 2017 (Source: IEA, 2019)

| 20 How a marine contractor This software allows our inhouse calculations and towing tests during engineers to generate a number of the design phase. Contrary to most deals with energy efficiency project execution plans and prepare vessels, the propulsion of a hopper our crew prior to arrival on site with dredger has to be optimized for sailing Enhancing the energy transition is not only a market driver, but affects the best possible solution. conditions as well as for trailing at also business operations and business models. low speeds. For example, approximately 95% of Van Oord’s carbon footprint is linked to Ship design its fleet, consisting of numerous specialized working vessels (hopper dredgers, Operating vessels near shore One of the key features of a hopper offshore installation vessels, etc.). Various technologies are available to reduce and in shallow water will dredger is the ability to discharge its its carbon footprint and thus transform it into a more energy-efficient fleet. require special focus on cargo underneath the ship through However, many of these technologies are developed for main stream phenomena2 such as squat and so-called bottom doors, primarily (long-distance) shipping, and are not applicable to Van Oord’s fleet operating manoeuvrability, in addition to the using gravity, and thus energy in a niche market near shore. Therefore, we have to develop our own conflict of minimizing resistance and efficient. These large openings solutions and distinguish four options for dealing with energy efficiency. maximizing load capacity. Therefore, require special attention with regard a great deal of effort is put in CFD to the structural integrity of the hull.

Increased operational control and continuously uses field efficiency data and experience to improve our Sailing at economic speed, knowledge and control principles. also known as slow steaming, As such, we are able to design tailor- 1is a common practise to reduce overall made dredging equipment with enough fuel consumption. This principle is used built-in flexibility and process control, when sailing from project to project, allowing best operational efficiency over but can also be used within a dredging a wide range of soils, water depths project or during the construction of and other project-specific parameters. an offshore wind farm. Combining operational experience, Van Oord has devoted a lot of effort in-depth knowledge of equipment over the last decades to developing capabilities has led to the inhouse Van Oord’s latest ordered LNG trailing suction hopper dredgers inhouse technology on process development of Digital Twin software.

| 21 Alternative fuels a MGO price wise competitive Therefore, our new sustainable and In order to reduce emissions, “drop-in” fuel, capable of achieving global operating working vessels will

and especially the carbon 45% CO2 reduction, was held in 2019. have the ability to handle the best footprint, a fuel switch Furthermore, Van Oord is also actively (locally) available alternatives to towards3 hydrogen-based (synthetic) participating in a Green Maritime existing hydrocarbon based fuels. fuels such as methanol is inevitable. Methanol initiative and investigating LNG will be used as a transition fuel in the possibility of bio LNG refined Engine technology the meantime, but global availability from seaweed, a so-called third The operational profile of Van Oord’s first LNG vessel the Werkendam is still a major constraint. generation biofuel. our working vessels requires a large and dynamic power The use of second generation biofuels The transition of marine fuels will take plant,4 historically a medium-speed (waste oil, etc.) is a short-term option place over the coming decades and diesel engine. Efficiency boosters, with regard to the automotive industry for existing vessels and a test with as of now, there is no “silver bullet”. such as waste heat recovery systems and our current new buildings include and battery packs are implemented SCR and DPF technology. in current new buildings and retrofit initiatives for the existing fleet are An unconventional approach to in progress. reduce the carbon footprint is the marinization of carbon capture and Special attention is given to the base storage technology. This mature land- load of vessels, such as HVAC. Use of based technology could in some cases frequency-driven cooling water pumps, be a viable road towards achieving ventilation, etc. is an effective manner of ambitious short-term targets without reducing the power demand. The new dependency on availability of new LNG-driven vessels will use the latent fuels and relating machinery. heat of LNG for the ship’s air conditioning systems, thus reducing the electrical In conclusion, a significant increase load of cooling compressors. in energy efficiency and simultaneous decrease of emissions can be achieved The shipping industry is catching up by combining the four options Offshore installation vessel Aeolus loading turbines for the Deutsche Bucht offshore wind farm on after treatment of exhaust gases mentioned above.

| 22 Abbreviations

CCS: Carbon Capture and Storage. CCS is the process procurement, construction, to commissioning and Unlike Heavy Fuel Oil (HFO), MGO does not have of capturing waste carbon dioxide usually from large handover of the project to the client. to be heated during storage. point sources, such as a factory or power plant, transporting it to a storage site, and depositing it GHG: GreenHouse Gas. GHGs (e.g. carbon dioxide) SCR: Selective Catalytic Reduction. SCR is an where it cannot enter the atmosphere, normally cause the greenhouse effect. advanced active emissions control technology system an underground geological formation. that injects a liquid-reductant agent through a special HVAC: Heating, Ventilation and Air Conditioning. catalyst into the exhaust stream of a diesel engine. CFD: Computational Fluid Dynamics. CFD is an HVAC is the technology of indoor and vehicular The reductant source is usually automotive-grade important tool for obtaining a better understanding environmental comfort. HVAC system design is a urea, otherwise known as Diesel Exhaust Fluid (DEF). of the flow around ships and offshore structures. subdiscipline of mechanical engineering, based on the principles of thermodynamics, fluid mechanics, SRI: Subsea rock installation. SRI vessels stabilise DPF: Diesel Particulate Filter. A DPF is a device and heat transfer. and protect subsea pipelines, cables and other designed to remove diesel particulate matter or structures at depths down to 1,500 metres. soot from the exhaust gas of a diesel engine. IMO: International Maritime Organization.

E-fuels: synthetic fuels generated with renewable LNG: Liquefied Natural Gas. LNG is a natural gas energy. An example of such a synthetic fuel is (predominantly methane (CH4) with some mixture hydrogen, which is produced using renewable of ethane (C2H6) that has been cooled down to electricity and then combined with carbon dioxide liquid form for ease and safety of non-pressurized to form a hydrocarbon with zero net greenhouse storage or transport. gas emissions. This procedure is commonly known by Power-to-X (PtX), Power-to-Liquids (PtL) and MGO: Marine Gas Oil. MGO describes marine fuels Power-to-Gas (PtG). that consist exclusively of distillates. Distillates are all those components of crude oil that evaporate in EPC: Engineering, Procurement and Construction. fractional distillation and are then condensed from A prominent form of contracting agreement in the gas phase into liquid fractions. MGO usually the construction industry. An EPC contractor is consists of a blend of various distillates and is similar The Van Oord Kite Team surfing the Brazilian coastline responsible for all the activities from detailed design, to diesel fuel, but has a higher density.

| 23 References

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https://www.ipcc.ch/report/ar5/wg3/

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https://www.portofrotterdam.com/nl/nieuws-en-persberichten/de-rol-van-transport-bij-co2-reductie

The Economist (2019). Climate change is a remorseless threat to the world’s coasts. Retrieved from

https://www.economist.com/briefing/2019/08/17/climate-change-is-a-remorseless-threat-to-the--coasts?frsc=dg%7Ce

TNO (2018). Offshore Systeemintegratie als Transitieversneller op de Noordzee (Whitepaper). Delft, Netherlands: TNO. (in Dutch)

World Economic Forum (2019), Fostering Effective Energy Transition 2019,

http://reports.weforum.org/fostering-effective-energy-transition-2019/?doing_wp_cron=1570458855.2607140541076660156250 | 24 Hondsbossche and Pettemer Sea Defence project Flexible fall pipe vessel Stornes sailing The Afsluitdijk: An icon of innovation Innovations at Borssele Wind Farm Site V in the Netherlands the Sognefjord in Norway

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