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Accelerating the energy transition

The power of Van Oord creates a societal value of EUR 877 million by its activities for Gemini, one of the ’s largest

offshore wind offshore wind projects.

vanoord.com Dredging Offshore oil & gas Offshore wind Reducing fossil fuel dependence About and combatting climate change are Van Oord Van Oord is a leading critical for the future of our planet. international contractor specialising in dredging, marine engineering and The technology already exists to build a cleaner energy system that offshore projects (oil, gas and mitigates the worst impacts of climate change, while generating enough wind). We are at the forefront energy to power economies in years to come. The energy transition has the of work that contributes to global, European and Dutch potential to bring great benefi ts from both an environmental and economic goals to combat climate change perspective. and reduce carbon emissions. As such, Van Oord acts as an agent of change to accelerate The potential of offshore wind energy transition while also The development of sustainable alternatives such as solar and wind power creating economic benefi ts and is forging ahead. The use of wind energy is increasing rapidly, particularly societal value. in North-Western , driven by concerns about global warming, recently Gemini highlighted by the climate agreements in Paris, together with the long-term It’s one of the largest offshore aim of reducing our consumption of fossil fuels. wind projects in : the Gemini Offshore Wind Park. Van Oord was both co-investor and contractor. This challenging project consisted of the The approach: installation of 150 x 4 megawatt Siemens wind turbines. How to calculate societal value This will supply a total of 600 megawatt of renewable energy to 785,000 households Van Oord and KPMG carried out an impact analysis which identifi ed by 2017. With a value of more the environmental, social and economic externalities to be than EUR 1.3 billion, it’s one of quantifi ed in fi nancial terms. This analysis focuses on the the largest EPC contracts in externalities created by Van Oord and its suppliers. Van Oord’s history. Scope True Value: Van Oord’s role in the construction demonstrating societal value of the Gemini Offshore Wind Park Given its key role in the Gemini includes the design and installation project, Van Oord has set out to of turbine foundations, monopiles, understand and measure the substations and laying of cables. value its work on Gemini As well as the procurement of creates for the environment foundations, cables and substations and for society. For this together with the installation of purpose Van Oord and KPMG turbines. Externalities linked to these applied KPMG’s True Value activities are included in this analysis. methodology. The analysis also includes impacts related to Van Oord’s procurement spend. Where possible, the analysis includes upstream externalities such as those created in the production of the raw materials used in the project. The following externalities are identifi ed as material and suitable for analysis for Van Oord and its suppliers in relation to Gemini:

Environmental externalities Looking closer Avoided Greenhouse Gas Greenhouse Gas Emissions, Emissions, Air Pollution & Fossil Resource and Energy Use, Resource Depletion: the result of Air Pollution, Water Pollution: FaunaGuard leads to positive impact avoiding emissoins from the Dutch impact of the production and Van Oord’s Environmental Engineers electricity grid by generating installation of foundation, renewable wind energy with zero monopiles, substations and developed the FaunaGuard: an acoustic device emissions during operating phase. cables. that safely and temporarily deters various Biodiversity: positive impact as marine fauna species using specialised a result of refuge function for fi sh underwater acoustics. During pile-driving and decreased fi shery. operations, we proactively used this device to prevent potential hearing loss to porpoises. Economic value-add The result is positive environmental impact on Taxes and social contributions Subsidies biodiversity of EUR 0.4 million. Economic impact: indirect and induced economic multiplier effects Economic spin-off effect (inside and outside the ) Van Oord creates an economic spin-off effect resulting from tax, salary and in the Netherlands and surrounding North procurement spend Innovations: reduced steel usage, Sea countries through the signifi cant earlier electricity production, more amount spent by Van Oord on suppliers effi cient way of cable laying, reduced and equipment purchase. fossil fuel usage, and more. The positive economic impact is EUR 929 million, of which EUR 367 million is created inside the Netherlands, and EUR 562 million Social externalities outside the Netherlands. Knowledge development and Health & safety: incidents training: received by employees experienced by employees

The result: EUR 877 million of societal value

1,800 Construction and installation Operations +227.8 1,600

1,400 +454.4

1,200

1,000 +562.3 +1.7 +25.3 +877.2

million 800 -3.6 -712.7 R U

E 600

400 +366.8

200 +76.1 0 +0.4 -21.3 -22.2 -200 -77.9 GHG Other Air Biodiversity Taxes and Estimated Estimated Health and Knowledge Innovation Avoided Avoided Subsidies Total -400 emissions environmental emissions (Van Oord) social economic economic safety development (Van Oord) emissions resource from from & fuel contributions impact NL impact (Van Oord) and training renewable depletion construction construction depletion (Van Oord) (Van Oord) outside NL (Van Oord) energy materials materials (Van Oord) (Van Oord) Trailing suction hopper dredgers Flexible fallpipe vessels Cutter suction dredgers

The Gemini project creates Economic spin-off: EUR 929 a True Value for society of million. Van Oord creates an EUR 877 million. economic spin-off effect in The Netherlands of EUR 367 million and EUR 562 million outside The Netherlands.

437 direct jobs at Van Oord Van Oord contributes to the Dutch and an estimated 2,750 Energy Agreement on the following person years through indicators: emissions reduction, supply chain spend. (local) job creation, innovation and knowledge development.

Avoided emissions: EUR 454 million. Because of the Gemini project, 19 million tonnes of CO are saved. Van Oord enables the energy 2 transition in The Netherlands with its Gemini project.

The CO2 resulting from constructing all the materials and installation of the Gemini wind farm is gained back in 8 months.

Subsidy: EUR 713 million Governmental subsidies to support large scale offshore Avoiding fossil fuel wind lower the True Value depletion benefi ts society: of Van Oord. EUR 228 million.

How will Van Oord build upon this analysis? Accelerating the energy transition What’s next? The power of Van Oord

The analysis has highlighted opportunities for Van Oord to In more than ten years, we have completed several prominent substantiate societal value created by offshore wind to its projects as an EPC contractor, being responsible for the stakeholders. Offshore wind becomes an even stronger story engineering, procurement and construction. Our innovative to tell; not only in the public debate around bringing solutions contribute signifi cantly to making this form of renewables to scale, but also in materialising business sustainable energy more competitive. It’s our ambition to add opportunities in a promising market. value and to act as an agent of change to accelerate the energy transition while also creating economic benefi ts and societal value. Current developments boost confi dence in offshore wind and transforming it into a strong and mature market in Our track record consist of several impressive offshore wind which key players such as Van Oord dare to invest. projects, such as: The results in place will be shared widely to provide fact - Gemini Offshore Wind Park based insights to stakeholders on the societal benefi ts of - Wind Park Westermeerwind offshore wind in order to enhance and accelerate the - Eneco Luchterduinen wind farm offshore wind sector to reach scale. - Teesside Offshore Wind Farm - Belwind Phase 1 Offshore Wind Farm More information on this True Value analysis is to be - Prinses Amalia Wind Park found on our website vanoord.com/news/publications. Or contact Sander Dekker, Manager Sustainability of In-house expertise and state-of-the-art equipment Van Oord, [email protected]. Information Van Oord is proud to have over 300 experts working on offshore about the True Value methodology is to be found on wind projects. By sharing knowledge, we ensure expertise will kpmg.com/truevalue. be passed on to future generations. We are eager to tackle our clients’ marine challenges. We can only do this by having the best people working with the latest technology. We operate the Building a cleaner world’s most advanced equipment with state-of-the-art vessels. energy system The advanced offshore installation vessel Aeolus is an excellent example of our innovative strength. The Nexus is Van Oord’s brings environmental cable-laying vessel and one of the latest editions of it fl eet. and economic benefi ts Learn more about our track record, our partnerships and more on how we create value for society and stakeholders: vanoord.com.

Dredging Offshore oil & gas Offshore wind