DECARBONISING MARITIME OPERATIONS in NORTH SEA OFFSHORE WIND O&M Innovation Roadmap Produced for the UK Government Dft and FCDO CONTENTS
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DECARBONISING MARITIME OPERATIONS IN NORTH SEA OFFSHORE WIND O&M Innovation Roadmap produced for the UK Government DfT and FCDO CONTENTS 1 Executive Summary 4 2 Introduction 10 3 Methodology and Quality Assurance 14 3.1 Market scenarios 15 3.2 Industry engagement 16 4 Vessel and Wind Farm Growth Scenarios 18 4.1 Offshore Wind Deployment Growth Scenarios 19 4.2 O&M Vessel Growth Scenarios 22 5 Current Landscape of Industry 29 5.1 Overview of Industry 30 5.2 Lifecycle of Offshore Wind Farm and Associated Vessels 31 5.3 O&M Vessels 32 5.4 New Technologies on the Horizon 44 5.5 Portside Infrastructure 65 5.6 Offshore Charging Infrastructure 81 5.7 Autonomous and Remote Operated Vessels 85 5.8 AI and Data Driven Solutions and Tools for Optimised O&M Planning and Marine Coordination 88 5.9 Supply Chain Capability and Potential Benefits 90 6 Identification of Risks and Barriers to Adoption for the Decarbonisation of the Sector 95 6.1 Methodology 96 6.2 Ratings 97 6.3 Economic 98 6.4 Policy/Regulatory 102 6.5 Structural 106 6.6 Organisational 111 6.7 Behavioural 113 6.8 Summary 114 7 Route MapA 115A 7.1 Track 1 – Assessment of Technologies Methodology 117 7.2 Track 1 – Technology Assessment Results 119 7.3 Track 2 – R&D Programme 122 7.4 Track 3–Demonstrations at Scale 123 7.5 Track 4– Enabling Actions 126 7.6 Summary 135 8 Conclusions 137 Appendix 1 - Model building and review quality assurance 149 Appendix 2 - O&M Vessels Model Assumptions 151 Appendix 3 - Emission Calculations 153 Appendix 4 - Technology readiness level scale 154 Appendix 5 - Engagement ReportA 155 List of Figures 189 List of TablesA 191 1 EXECUTIVE SUMMARY 1 EXECUTIVE SUMMARY The UK’s offshore wind industry has seen rapid growth in the past ten years with more than 10.4GW of installed capacity now in UK waters and a target of 40GW by 2030. Meanwhile the European Union has set a 300GW target for 2050. Currently, 79% of all European offshore wind (EU27 plus UK) is located in the North Sea and the region will remain one of the world’s largest economic geographies for the foreseeable future. During the Operations and Maintenance (O&M) phase of an offshore wind farm’s lifecycle (typically estimated at 25-30 years), wind farm operators rely on extensive marine logistics between shore and the wind farm. The majority of vessels using Marine Gas Oil (MGO) and currently responsible for an estimated 284 kt CO2e/ year. Engagement with wind farm owner operators suggests that there is a desire to reduce emissions associated with the Operations and Maintenance (O&M) of offshore wind through the adoption of clean maritime innovations. The offshore wind industry has the potential to act as a ‘springboard’ industry, providing early adoption of technologies and market models that can assist a broader maritime decarbonisation. Recognising this potential the Department for Transport (DfT) and the Foreign, Commonwealth & Development Office (FCDO) commissioned ORE Catapult in partnership with the Workboat Association to develop a comprehensive Innovation Roadmap detailing how to decarbonise offshore wind vessels, with a particular focus on the North Sea. The findings of the Roadmap are evidence-based and have been arrived at following desk based research, market scenario modelling and extensive industry engagement. The Roadmap, has been iteratively developed, drawing on insight gained from more than 25 in depth industry interviews and broader engagement and events involving more than 80 stakeholders from across the economic geography of the North Sea. A broad range of stakeholders were interviewed, both in terms of geography and function. Those interviewed included representatives from: Wind farm operators, turbine OEMs, vessel designers, shipyards and operators, class societies, port operators and alternative fuel and electrical charging infrastructure system designers, developers and operators This breadth of engagement has helped to ensure that the findings reflect challenges and opportunities commonly recognised throughout the industry rather than focussing on issues that affect only a smaller sub-section of offshore wind stakeholders. DECARBONISING MARITIME OPERATIONS IN NORTH SEA OFFSHORE WIND O&M 5 1 EXECUTIVE SUMMARY The Roadmap produced by ORE Catapult and the Workboat Association on behalf of the Department for Transport and the Foreign, Commonwealth & Development Office, provides:A • An overview of market growth scenarios, that outline the known and anticipated growth profiles for offshore wind, the associated maritime logistics and the number of O&M vessels. The model includes three potential decarbonisation scenarios, the status quo, moderate adoption and accelerated adoption. The ‘status quo’ scenario considers low levels of clean maritime adoption with 95% of vessels continuing to use conventional fuel by 2025. The "accelerated" scenario considers the other end of the spectrum and is based on one third of North Sea O&M vessels in offshore wind adopting greener technologies by 2025 rising to 90% by 2030 in order to deliver near to full decarbonisation. • A review of current and emergent technologies relevant to clean maritime operations in offshore wind O&M, including: Propulsion types - Hull types - Alternative fuel production - Distribution and storage - Electrification - Charging systems and batteries, offshore logistics, operational performance and - enabling infrastructure, and port logistics and enabling infrastructure. • Identification of the key barriers to adoption of clean maritime technology in offshore wind, including: Economic, policy/regulatory, structural, organisational and behavioural barriers, including: The cost differential between conventional marine fuels and alternative electrical or - clean maritime fuels. The high capital cost of emerging clean maritime technologies and the need for - demonstration support to break the ‘chicken and egg’ challenge. This describes the current situation wherein it is difficult for operators to invest in clean maritime vessels in the absence of clean maritime infrastructure and vice versa . A lack of clarity over future fuel pathways and the resulting lack of infrastructure and - investment security. The incentive support structures for offshore wind in many North Sea nations and the - downward cost pressures this places on the supply chain. Imperfect data concerning current emissions baselines and the performance of clean - maritime alternatives. Challenges concerning spatial and grid constraints in ports and the high capital costs - of infrastructure upgrades. The large numbers of existing vessels and the need to consider the challenge of - retrofitting vessels. The lack of any clear direction in terms of targets or deadlines for transition to clean - maritime in the industry. DECARBONISING MARITIME OPERATIONS IN NORTH SEA OFFSHORE WIND O&M 6 1 EXECUTIVE SUMMARY • Identification of a combination of measures designed to provide a roadmap to clean maritime operations. The roadmap includes proposals for four main areas of activity ranging from focused R&D, enhanced demonstration and the delivery of a number of potential enabling actions. By adopting the suggested enabling actions governments, industry and other stakeholders can address the key market, policy and regulatory barriers to transition. This would in turn enable the ‘accelerated’ maritime decarbonisation scenario for offshore wind in the North Sea. These enabling actions include: Greater support for clean maritime demonstration at scale, in order to help address - the chicken and egg challenge and build confidence in emerging clean maritime systems. A need for clarity as to the transition timeline and deadlines for decarbonising North - Sea OSW O&M in order to provide clarity to operators and investors and establish a ‘level playing field’ where first movers will not be ‘undercut’ by competitors. Support for port operators to deliver the infrastructure required to ensure ports are - equipped to support clean maritime operations. Approaches to address carbon pricing and the cost differential between high carbon - conventional fuels and low/zero carbon alternatives. Incentives to address the challenge of retrofitting existing vessel fleets. - A need for greater collaborative innovation, both horizontally between wind farm - operators, and vertically through the offshore wind and maritime supply chains. There is broad support for an accelerated transition to clean maritime operations in North Sea OSW O&M and much of the technology exists to deliver this vision. Nevertheless, many non- technical barriers remain and will need to be addressed in order to deliver the vision and unlock the social benefits and economic opportunity presented by the accelerated transition. There is common acceptance of the importance and need for targets in order to set clear expectations and establish a ‘level playing field’ among competitors. Though any drive toward targets and deadlines will require complementary financial support and incentives to enable the supply chain to rise to the challenge and make the necessary adjustments to transition. This will require concerted and strategic action from North Sea Governments and industry, and greater collaboration between offshore wind developers and the maritime supply chain. Table 1-1 summarises the barriers to decarbonising maritime operations in North Sea offshore wind O&M found in this report. For each barrier an enabling action is suggested with an identified actor(s) who is best placed to carry them out. DECARBONISING MARITIME