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DAY THREE

Offshore wind ‘needs to be grown up about merchant power’

ANDREW LEE

The offshore wind industry needs to have a “grown up conversation” about the “inevitable” shift towards merchant sale of power from its projects, said a top executive from one of the sector’s biggest backers. Ed Northam, Europe head for the Macquarie-owned Green Investment Group (GIG), told WindEurope Vattenfall wind Offshore yesterday that the industry’s boss Gunnar Groebler (left) and direction of travel is towards a SGRE offshore greater share of merchant sales in wind chief executive Andreas future revenue streams. Nauen at the “I spend a large amount of time signing ceremony at WindEurope thinking about how we’re going to Offshore yesterday finance and support projects in what it is inevitably becoming much more of a merchant model,” Northam told a panel discussion on future industry ’s 11MW turbine financing. While continued subsidy support “would of course be useful”, Northam set for 1.5GW zero-subsidy project said: “The simple facts are, anything that looks or feels like a subsidy BERND RADOWITZ offshore wind industry,” said Gunnar The switch to the larger turbine will increasingly be politically Groebler, senior vice-president and model — which Recharge revealed unsustainable.” attenfall will use 140 of head of the wind business area at exclusively on Tuesday — will The GIG executive said even Siemens Gamesa’s new Vattenfall. reduce installation, operations and where support models remain, they V11MW SG11.0 193 DD The order is still conditional on a maintenance costs, and thereby are attached to auctions, with the Flex offshore wind turbines for the final investment decision — soon contribute to further lower the commercial rewards driven down by Hollandse Kust South 1-4 projects off to be taken after final approval project’s levelised cost of energy. competition. the Netherlands, the two companies from the Dutch authorities, which “The newest version of our largest “We’re going to have to have said at WindEurope Offshore is necessary due to the switch to the offshore direct-drive machine is now a grown-up conversation with yesterday. 11MW model. setting the benchmark for turbines ourselves as market participants” The zero-subsidy projects, totalling Siemens Gamesa was already the in subsidy-free offshore over merchant exposure, more than 1.5GW, are Vattenfall’s preferred supplier for the projects, projects,” said Siemens Gamesa added Northam, who said the largest offshore wind development. but Vattenfall previously had offshore wind chief executive European industry’s big strides in “By deploying one of the largest announced it would use 76 of the Andreas Nauen. CONTINUED on Page 4 and most efficient turbines ever for OEM’s 10MW model at Hollandse Vattenfall plans to install the the first subsidy-free offshore wind Kust South 1 & 2, and a further 76 Hollandse Kust South projects in VISIT RECHARGE farm to date, Vattenfall is underlining of the machines at Hollandse Kust 2022, and expects them to be fully at Stand E-D20 Photograph | Siemens Gamesa Photograph its position as a leader in the 3 & 4. operational in 2023.

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BERND RADOWITZ

estern turbine makers Philippe Kavafyan, could have more speaking at success in the Chinese WindEurope W Offshore on MHI boss: offshore sector than onshore Tuesday because of the greater reliability of their turbines, MHI Vestas chief Western OEMs should executive Philippe Kavafyan tells Recharge. have an advantage in Onshore wind tenders in China usually have the cost of the turbine as the determining factor, Chinese offshore rather than the cost of energy, as is the norm in the West — encouraging developers to install cheap turbines and then fix them when required. Such a strategy will not work in offshore wind, he explained at WindEurope Offshore yesterday. “The emphasis of [offshore] developers in China will be to secure reliable technology upfront,” he said. “It is easy to fix a machine onshore. But if you start having to fix technology that is not robust offshore... well, I hope you don’t have to sail too far.” China’s preference for domestic turbines that have a shorter track record offshore may hold back the “This idea that [the Chinese to deliver very cost effectively. we have to do in China.” sector in the short term, Kavafyan market] is 40GW and it will “Saying the UK is not going to MHI Vestas so far is not present added. outpace the UK [in offshore wind stay [as] the first market in the in China, but Kavafyan said: He also said that only part of the capacity], I am very sceptical about world, in my view, is a very strong “There is no reason that five years 40GW-plus of offshore projects that. extrapolation. from now, we don’t see one [MHI vying to be completed by the end- “The UK is increasing its targets, “People are talking about China, Vestas turbine] in Chinese waters. 2021 feed-in tariff deadline are and that’s a place where we can but there is much more to do in We don’t plan to stay out of China likely to be built in time. deliver more, and we know how the UK and over in Europe than forever.”

New no-legs crane vessel to install supersize turbine foundations

DARIUS SNIECKUS deck able to handle 61,000-tonne for the coming generation of but two offshore installation cargo loads, making it well-suited ultra-large wind turbines. vessels that will be able to install Dutch contractor Jan De Nul has to transporting batches of the “By ordering Les Alizés today, the newest generation of offshore moved ahead with plans to build heavier jacket foundations needed from 2022 we will have not one, wind farms,” said Philippe a new supersize floating crane Hutse, Jan De Nul’s offshore

vessel, Les Alizés, in its second A computer director, adding that “similar to major investment in an offshore rendering of Jan the Voltaire, we have financed wind installation unit in the past de Nul’s Les Alizés. this investment by means of a Images | Jason Bickley/WindEurope | Jan de Nul six months. Announcement of green loan thanks to the green the new vessel, which follows the emissions reduction technology decision to construct the giant on board the vessel”. Voltaire jack-up — to be used at Peter De Pooter, the company’s the UK’s 3.6GW Dogger Bank manager for offshore renewables complex, will be built by China added: “The order of the Voltaire Merchants Industry Holdings’ was a first step in our strategy shipyard in Haimen, China, for to install the newest generation launch in 2022. of offshore wind turbines. With Named after the French word Les Alizés we want to further for “trade winds”, Les Alizés strengthen our vision and our will have a 5,000-tonne lifting belief in the future of offshore capacity and 9,300-square-metre wind energy.”

2 rechargenews.com Siemens Gamesa senior vice- First offshore wind to president Kasper be installed in Korea Yttesen in 3-5 years: SGRE

BERND RADOWITZ independent of that.” South Korea has said it aims to iemens Gamesa is in talks develop 13GW of offshore wind with developers in South by 2030 to drive toward a target SKorea, and expects to of having at least 30% renewable see the industry’s first projects energy in its national mix by in the country’s waters within 2040. the next three to five years, a Unfortunately, winds off South senior executive told Recharge at Korea are not as strong as, for WindEurope Offshore yesterday. example, in the Taiwan Strait, To compensate for the more Yttesen said first projects may be “We are in dialogues with where they can reach 9.5 to difficult conditions, South Korea awarded in about a year’s time. different developers in Korea. 10 metres per second (m/s) — offers future offshore wind “We expect a tender coming up So we are actively monitoring similar to wind speeds in the operators higher feed-in tariffs early next year. And then, I guess the market,” said Kasper Yttesen, North Sea in Europe — Yttesen than those granted by Taiwan, it takes six to eight months for the senior vice-president for said. he added. “That is also needed to processing of that. Maybe, within offshore strategy and regional “Wind speeds are around 6-7 have a business case that flies.” a year’s time, it would be fantastic development. “We have the same m/s off Korea,” he explained. Siemens Gamesa already has to see the first big commercial situation as with Taiwan. Korea is “And you also have some soil more than 2GW of offshore projects being awarded in Japan.” similar in its needs of energy, and conditions that are not that suited turbine orders in Taiwan, and also Japan’s upcoming offshore wind has a very high dependency on for fixed foundations. That creates sees Japan as one of the coming tender could be “in the magnitude

Photograph | Siemens Gamesa Photograph gas and nuclear. Both want to be some challenges.” offshore wind markets, where of” 500MW and 1GW, he said.

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Polish offshore Outgoing Polish energy minister Krzysztof developer eyes Tchórzewski green hydrogen

BERND RADOWITZ

PKN Orlen, one of Poland’s offshore wind developers, is considering producing green hydrogen once its projects are up and running, Jarosław Dybowski, executive director for energy at the state-owned oil refiner and petrol retailer said. “We think that hydrogen is the future, not only of energy, but also the future of mobility,” he told WindEurope Offshore yesterday. “Today, PKN Orlen produces about 30 tonnes of hydrogen per hour, just for our processes. I would like to see our offshore farms also be used for the production of hydrogen during the time when energy is cheap, or when we are producing surplus energy.” PKN Orlen in September signed a letter of intent with Polish state-controlled utility PGE to cooperate in the development of their combined 3.7GW of Concern as Poland reveals plan offshore wind projects in the Baltic Sea. to cut 2040 offshore wind target

Inevitable rise of BERND RADOWITZ have ambitious plans in order even a scaled-down 8GW goal is to become a leader in offshore still a significant amount. merchant power he offshore wind sector wind, he added. Polish offshore “It is about us investors is worried Poland’s wind executives at the conference delivering the first few projects on FROM Front Page Tgovernment may waver were appalled by the planned time, on budget, cost-efficiently, competitiveness, and track on its previous offshore wind downscaling of the offshore to really show and demonstrate records of delivering projects ambition after the outgoing target. that we can do it in Poland.” on time and on budget, will in energy minister, Krzysztof “Was I disappointed, or even PWEA will cooperate with any case help it build confidence Tchórzewski, released a new angry at the publication [of governmental bodies and with

among investors. draft of the country’s energy the help of its member Photography | Chancellery of the Prime Minister of Poland The role of merchant power strategy that lowers Poland’s companies to try to sales is a live issue in the industry, 2040 offshore wind target from I was angry enough to convince the incoming with the availability of support 10.3GW to 8GW. government — which diminishing, and the emergence “We are a bit concerned as [an] cancel some meetings will be run by the already of projects won on a zero-subsidy industry that the last version of ruling populist Law and basis in countries such as the the Polish energy policy is not the new draft]? I actually was Justice Party following the recent Netherlands and Germany. increasing the capacity, but is angry enough to cancel some election — to increase the future In the world’s largest offshore [instead] lowering it a bit,” Janusz meetings when I learned about capacity of offshore wind again, wind market, the UK, developers Gajowiecki, president of the it,” said Monika Morawiecka, Gajowiecki said. are openly exploring merchant Polish Wind Energy Association chief executive of PGE Baltica, a A final draft of the country’s sales as part of the revenue (PWEA), said at WindEurope subsidiary of Polish state-owned energy strategy is slated to be mix of large projects, possibly Offshore yesterday. utility PGE, which is in talks with published in two or three weeks, in conjunction with corporate With an offshore wind potential Ørsted to sell half of its 2.5GW followed by three or four power-purchase agreements or of some 28GW by 2050 in Elektrownia Wiatrowa Baltica 2 months of public consultations government-backed contract-for- Polish waters, according to and 3 projects. and parliamentary votes, he difference (CfD) deals. WindEurope, the country should But Morawiecka stressed that estimated.

4 rechargenews.com CHRISTOPHER HOPSON Energy secretary Andrea Leadsom he UK could launch a leaving 10 review into the onshore Downing Street Timpact of offshore wind farms in the east of England, after local Members of Parliament (MPs) backed the idea of an “offshore ring main” as an alternative to multiple power links and called for a freeze on planning while the matter is settled, Recharge has learned. Andrea Leadsom, secretary of state for business, energy and industrial strategy under the current Conservative government, has promised a group of local Norfolk and Suffolk MPs to look at the environmental impact of onshore infrastructure if her party wins the general election on 12 December. George Freeman, MP for Mid-Norfolk, confirmed he has secured such a commitment from Leadsom. UK could freeze offshore planning “We hope this development will call into question whether ScottishPower Renewables (SPR) to consider ‘ring-main’ power link onshore planning applications can proceed in the light of an where wind farms connect at sea, main contributing factor directing overall cost of individual projects. expected review,” he said. with a single link bringing power these projects and associated “However to do this would Iberdrola-owned SPR is ashore. onshore infrastructure to specific involve changing the regulatory developing the 3.1GW East Freeman claimed that SPR’s areas in Norfolk and Suffolk.” process that currently exists, Anglia Hub offshore wind project onshore infrastructure would Jonathan Cole, managing and would involve multiple off eastern England, which it set the precedent for more of the director for Iberdrola’s global stakeholders in order to achieve expects to complete by 2026. same along the Suffolk coast. offshore wind business, told something which would take Instead of multiple connections “A review has to look at Recharge that a strategically several years to implement,” he making landfall, the MPs claim National Grid’s effectiveness as planned offshore grid link “makes said, adding that the East Anglia future planning should be based network operator. They provide a huge amount of sense” due to projects should not be disrupted around a “ring main” approach the grid connection offers, are the synergies that would reduce the in the meantime.

First tests of new-look Saitec floater due off Spain ‘in early 2020’ DARIUS SNIECKUS version in the Cantabrian Sea off “Additionally, the variables lifecycle can be appropriately Santander. which better predict damage on forecasted through a series of Spanish floating wind pioneer “The BlueSATH project different structure elements would sensors. Saitec’s plans to develop a [is] an important stepping be identified so the structural Learnings from the 10MW version of its innovative stone to the ultimate goal of demonstrator will be used to

BlueSATH concept have moved providing a bankable solution A computer improve the 10MW floater, to be ahead with confirmation that a for the upcoming commercial rendering of installed on the Basque Marine Saitec’s BlueSath “medium-scale” prototype will be floating wind farms,“ Saitec floating wind unit Energy Platform in 2021. installed off northeast Spain early chief technology officer David Analysts range widely in next year for trials. Carrascosa told Recharge. their 2030 forecasts for floating The 2MW 1:6 demonstrator — “The main objectives of [the] wind, with estimates spreading based on a design using joined BlueSATH project cover SATH from 6GW to almost 19GW, cylindrical pre-stressed concrete platform validation of its response all influenced by how quickly hulls anchored to the seabed via a and dynamic behavior. The aim levelised cost of energy can be single-point mooring system that is to obtain models that allow for brought down to below €50/MWh allows the unit to ‘weathervane’ structural optimisation, enabling ($55/MWh) — perceived as the to face the wind — will undergo cost reduction and validating benchmark for competitiveness

Images | Getty Saitec a 12-month testing programme structural turbine integrity. with conventional offshore wind.

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The second coming of Aqua Ventus, a US floating first

DARIUS SNIECKUS

The first US floating wind project, the New England Aqua Ventus 1 pilot off Maine, almost sank without a trace after anti- renewables former governor Paul LePage spiked an agreed power- purchase agreement (PPA) for the 12MW development. But with the political tide having Illustration of the 88MW Hywind turned in the Northeast state, the Tampen project reborn University of Maine-led demonstrator is now fast taking shape, with expectations it will be in the water and turning before 2023 — clearing a path for a Siemens Gamesa wins order for 100MW array to follow. Last month’s sign-off of a Hywind Tampen floating project 20-year PPA by Maine’s Public Utilities Commission (PUC) ended long-running uncertainties CHRISTOPHER HOPSON that the oil and gas industry is power farms both in Norway and for a floating wind technology also competitive for renewables internationally,” said Kværner that had already been tested Siemens Gamesa will supply projects. The awarded contracts president and chief executive as a grid-connected part-scale 8MW turbines to a landmark will generate considerable spin- Karl-Petter Loken. “Today’s new prototype offshore in 2013-14. 88MW floating that offs in Norway.” contract is a very important step “Aqua Ventus would have been is set to part-power five oil & gas The 11 SG8.0-167DD turbines in [our] strategy to grow within built by now if for the PPA had platforms off Norway. will be built at several European the renewables business, in been issued as anticipated,” said The contract led off five major locations before transportation to addition to our existing business Habib Dagher, executive director deals worth a total of about the Gulen industrial harbour for within oil & gas.” of the UMaine Composites NKr3.3bn (€327m) signed by final assembly, with the floating Construction of the concrete Center, the driving force behind Norwegian energy giant Equinor project due to be completed in the hulls will begin at a drydock the project. for its Hywind Tampen project, at Kværner’s specialised yard “We will be hoping now to which will supply about 35% of at Stord, with completion at get back as close as possible to the electricity used at the Gullfaks its Dommersnes site. the original project schedule”, and Snorre offshore oil & gas The electrical cables will be he told Recharge, adding that fields near Bergen. delivered by JDR and fabricated construction of the flagship unit The platforms currently get at Hartlepool in the UK. Subsea 7 is now targeted for 2021-22 and all their power from on-site gas will be responsible for installation “hardware in the water a year or turbines, and Equinor expects of cables and connection to the so after that”. The original 6MW Tampen to reduce their carbon Snorre and Gullfaks platforms. turbines are now due to replaced emissions by 200,000 tonnes per The final Hywind Tampen by 10-12MW models. year. investment is expected to be close Key project contracts were also Anders to NKr5bn ($575m). All contracts Opedal The VolturnUS signed with construction firm are subject to final approval of 1:8 scale Kværner, cable supplier JDR and the plan for development and prototype underwater services provider autumn of 2022. operation by the Norwegian Subsea 7. The turbines’ floating concrete authorities. “The signing of five major substructures will be designed, The Gullfaks field is co-owned

contracts is a key milestone in constructed and installed by by Equinor (51%) Petoro Images | Equinor | UMaine realising the Hywind Tampen Kværner under the NKr1.5bn AS (30%) and OMV (19%), pioneer project,” said Equinor’s contract, which will also see the while Snorre is co-owned by executive vice president for company performing the tow-out Equinor (33.3%), Petoro (30%), technology, projects & drilling and installation of the completed ExxonMobil E&P Norway Anders Opedal. turbines atop the foundations. (17.5%), Idemitsu Petroluem “Won in international “The Hywind Tampen project Norge (9.6%), DEA Norge (8.6%), competition, the contracts prove paves the way for more wind and (Var Energi 1.1%).

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RICHARD A KESSLER Ocean City, Maryland, where talian-owned developer US Wind officials are is confident of advancing its objecting to the nearby offshore IMarwind project off Maryland, project, Marwind despite objections over its plans to use turbines of up to 12MW and wider delays in the market caused by the federal government’s review of Vineyard Wind. US Wind, a unit of Italian group Renexia, expects to lodge a Construction and Operations Plan (COP) for 1.3GW with the federal Bureau of Ocean Energy Management (BOEM) in the first quarter of next year, country manager Salvo Vitale told Recharge. US Wind plans to develop Marwind in a zone east of Ocean City, starting with an initial 248MW phase that has already been awarded Offshore Renewable Energy Credits (ORECs) by Maryland at a price of $131.94/MWh over 20 years. Current plans envisage a 2023 ‘Objections will not hold back commercial start for the $1.5- 1.6bn first stage. Vitale said he expects BOEM 1.3GW US offshore project’ will accept its COP — which encompasses all issues relating to Ocean City officials, who are the US. Things are already too Vitale, making the project a more a project’s construction, operation concerned over the visual impact developed to stop now,” said attractive financing proposition to and decommissioning under a of the 8-12MW turbines US Wind Vitale, who added that Renexia lenders. commercial lease — and doesn’t is proposing to deploy, claiming will harness the experience of The developer expects to work expect the delays caused by a they are excessive compared to its wider Italian parent group, with a major US EPC contractor federal review of the 800MW the 4MW machines approved Toto Holdings, as developers to build out its offshore wind Vineyard Wind, the first large US by the state Public Service and constructors of large-scale zone, but is not looking to bring project, to last long or seriously Commission (PSC) when it infrastructure projects such as an equity partner on board. affect Marwind. awarded ORECs. aqueducts, bridges and tunnels. “We think we have wide enough Analysts believe the developer “I am a sincere optimist about “This matters a lot in reducing shoulders to do this project can overcome objections from the future of offshore wind in the risk of construction,” said ourselves,” said Vitale.

First 20MW generator ready ‘within three years’, with no rare earths DARIUS SNIECKUS power rating roughly twice that of target of designing a 12MW-plus Replacing high-price rare- the biggest PMGs in service today. concept for offshore turbine earth materials with ferrites — a Rare-earth-free permanent “It was our intention from created by “stacking” three 4MW waste material by-product of magnet generators (PMG) the outset to design a generator units in parallel. steelmaking — would cut the cost for offshore wind turbines that could be scaled for the next of PMG magnets from £40 (€47) with nameplates of 20MW are generation of offshore wind The 250kW per kg to around £1/kg, according expected to be a reality “within turbines,” said Hugh-Peter Kelly, test unit to GreenSpur calculations, three years”, following trials of a GreenSpur’s head of technology. meaning the design could carve new-generation concept at the “The feedback that we’ve around 33% out of the capital cost UK Offshore Renewable Energy received is that current designs of direct-drive generators, and (ORE) Catapult facility. have known limitations and new so almost 5% off the price of a

GreenSpur Wind | GreenSpur A 250kW version of the axial- concepts will be needed to deliver turbine. flux design being developed by next-generation 20MW offshore Discussions to use the PMG tock tock

​ iS GreenSpur Wind, which uses wind turbines.” are “under way” with a number ferrites — an iron-rich ceramic GreenSpur is now moving of OEMs, Hine confirmed to — for its magnets, would be part forward with modelling for Recharge recently, but Greenspur of a four-module 1MW unit that “significantly bigger, multi- was “unable to disclose names at

Photography | Photography is foreseen to be scaleable to a megawatt generators”, with the the moment”.

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HIGHLIGHTS OF THE DAY THURSDAY, 28 NOVEMBER #offshore2019 HIGHLIGHTS OF THE DAY THURSDAY, 28 NOVEMBER #offshore2019 → Individual session ti ckets are available at the registrati on desk! Social events

WindEurope Electric City 2021 Programme overview Poster award ceremony official launch party 10:00 – 10:45 13:30 – 14:30 Poster area (Auditorium Foyer) WindEurope Stand E-D21 Meet the prize-wining poster presenters and The world is changing. So are our events. In network at this light recepti on. 2021 WindEurope welcomes you to Electric City.

Side events Wind Harmony Health Offshore wind farm visits & Safety Workshop 12:15 – 16:00 9:00 – 15:15 Departure from Bella Center, Reception Desk Meeting room 20, Level 1 Please note the bus will depart from Bella Center Join us for the second editi on of the Wind Harmony project. at 12:15, and the boat departs at 13:00.

North Sea Offshore Network Training future wind energy 14:00 – 17:00 maintenance professionals Meeting room 19, level 1 SIMULWIND virtual reality simulator A 2-part workshop designed for stakeholders and 10:00 – 12:00 academia working towards an effi cient transmission system in the North Sea Region. Safety, Skills & Training Zone, Hall E Find out more about the EU-funded project New Wind Energy Report: presented by developing a virtual reality simulator for training professionals on the maintenance of KPMG & Siemens Gamesa Renewable Energy wind farms. 12:00 – 14:00 Meeting room 6, level 1 The socioeconomic impacts of wind energy in the context of the energy transiti on

Exhibition halls (HALL E)

Brought to you by Powered by In association with See the programme online: Global Markets Innovation Safety, Skills & windeurope.org/programme Theatre Park Training Zone 09:30 – 16:00 09:30 – 18:00 10:00 – 13:15

What’s happening in the key global The Innovation Park is where you’ll find A unique 200m² area showcasing the Visit the WindEurope Stand E-D21 to meet the WindEurope team, pick up markets for offshore wind? Our the start-ups and innovative projects industry’s commitment to an injury-free your copy of our industry-leading reports, try out our market intelligence expert presenters will tell you transforming how wind works. working environment in offshore wind. everything you need to know. tools and book your stand for WindEurope Electric City 2021. 8 rechargenews.com windeurope.org/globalmarkets windeurope.org/innovati onpark windeurope.org/trainingzone Our energy, our future

HIGHLIGHTS OF THE DAY THURSDAY, 28 NOVEMBER #offshore2019 HIGHLIGHTS OF THE DAY THURSDAY, 28 NOVEMBER #offshore2019 → Individual session ti ckets are available at the registrati on desk! Social events

WindEurope Electric City 2021 Programme overview Poster award ceremony official launch party 10:00 – 10:45 13:30 – 14:30 Poster area (Auditorium Foyer) WindEurope Stand E-D21 Meet the prize-wining poster presenters and The world is changing. So are our events. In network at this light recepti on. 2021 WindEurope welcomes you to Electric City.

Side events Wind Harmony Health Offshore wind farm visits & Safety Workshop 12:15 – 16:00 9:00 – 15:15 Departure from Bella Center, Reception Desk Meeting room 20, Level 1 Please note the bus will depart from Bella Center Join us for the second editi on of the Wind Harmony project. at 12:15, and the boat departs at 13:00.

North Sea Offshore Network Training future wind energy 14:00 – 17:00 maintenance professionals Meeting room 19, level 1 SIMULWIND virtual reality simulator A 2-part workshop designed for stakeholders and 10:00 – 12:00 academia working towards an effi cient transmission system in the North Sea Region. Safety, Skills & Training Zone, Hall E Find out more about the EU-funded project New Wind Energy Report: presented by developing a virtual reality simulator for training professionals on the maintenance of KPMG & Siemens Gamesa Renewable Energy wind farms. 12:00 – 14:00 Meeting room 6, level 1 The socioeconomic impacts of wind energy in the context of the energy transiti on

Exhibition halls (HALL E)

Brought to you by Powered by In association with See the programme online: Global Markets Innovation Safety, Skills & windeurope.org/programme Theatre Park Training Zone 09:30 – 16:00 09:30 – 18:00 10:00 – 13:15

What’s happening in the key global The Innovation Park is where you’ll find A unique 200m² area showcasing the Visit the WindEurope Stand E-D21 to meet the WindEurope team, pick up markets for offshore wind? Our the start-ups and innovative projects industry’s commitment to an injury-free your copy of our industry-leading reports, try out our market intelligence expert presenters will tell you transforming how wind works. working environment in offshore wind. everything you need to know. tools and book your stand for WindEurope Electric City 2021. rechargenews.com 9 windeurope.org/globalmarkets windeurope.org/innovati onpark windeurope.org/trainingzone RECHARGE | OFFICIAL EVENT DAILY

DARIUS SNIECKUS A rendering of an Eolfi wind il supermajor Shell farm with Naval Energies floating has taken over French platforms Ofloating wind developer Eolfi, in the latest sign of the fossil-fuel industry’s intention to broaden its focus in the offshore energy space. The acquisition, which is subject to regulatory and ministerial approvals and is expected to be completed next month, is seen by Shell as “enhancing [the company’s] existing wind team... and [providing] an opportunity to leverage [Shell’s] offshore experience and project management expertise”. “Eolfi has been a pioneer of floating wind development. We believe the union of Eolfi’s expertise and portfolio with Shell’s resources and ability to scale- up will help make electricity a significant business for Shell,” said Dorine Bosman, vice-president for offshore wind at Shell. Eolfi chief executive Vincent Oil giant Shell buys French Fromont told Recharge that the ambition of the acquisition was to create “a number one with a floating wind pioneer Eolfi global footprint for floating [wind power]”. market, which to this point has Paris, Lorient, Marseilles and line off France by 2021, as well as “There are pioneers in floating, been led by the utilities. These Montpellier, has developed more having plans to develop 2.5GW of course, but there is no true [oil & gas companies] know how than 200 onshore and offshore off Taiwan, via a deal with Spain’s market leader. [Shell acquiring to work globally, know how to renewable energy projects in five ACS Cobra, developer of the Eolfi] we see as a tipping point,” work in international industrial countries, and since 2012 has Kincardine project in the UK he said. partnerships, they have strong focused on floating wind power. North Sea. “Oil & gas companies are political connections around the Eolfi is leading one of four Upon completion of the entering the market because they w or l d .” developer consortia building acquisition, Eolfi will be a wholly need to accelerate their energy Eolfi, which is staffed by 25MW floating wind array owned subsidiary of Shell and be transition. This will change the 65 personnel in offices in projects that are slated to be on fully integrated.

BP and Shell: ‘We’ve got the balance sheets for no-subsidy offshore wind

ANDREW LEE Gainsborough and Nick Wayth, colleague, Wayth said: “The trend the capabilities a company like chief development officer for towards subsidy-free and more BP has — the balance sheet, the Oil supermajors Shell and BP said Alternative Energy at BP, told a merchant generation is a dynamic trading capability.” their huge balance sheets will help recent industry conference. that in our view plays to some of Shell has been among the busiest them become major renewable Gainsborough told a session at of the big oil groups in entering energy players as subsidies fall the BNEF Summit in London that Mark renewables and associated sectors, away and wind and solar plants his company will “have an even Gainsborough with stakes in offshore wind rely on merchant power sales, stronger role to play in a subsidy- projects, the purchase of German leaving existing developers free world”. battery group Sonnen and struggling. “In reality, as the market shifts investments in several cutting- The global move away from more away from subsidies edge technologies. subsidies for large renewable and revenue certainty, for sure BP’s renewable expansion has Image | Naval Energies energy projects — especially there will be challenges. A lot so far mainly focused on its offshore wind — plays to the of the existing developers will LightSource BP joint venture, but strengths of new entrants from oil struggle in that world where you the UK-based oil group has a US & gas with ambitions in the clean need a bigger balance sheet,” onshore wind fleet and is heavily power sector, Shell New Energies Gainsborough predicted. tipped to enter the offshore wind executive vice president Mark Echoing his supermajor sector soon.

10 rechargenews.com RICHARD A KESSLER The Brant Point lighthouse on ayflower Wind Energy — the island of Nantucket, a joint venture between Massachusets, MShell New Energies close to where the Mayflower project and Portuguese utility EDPR — will be built scored a key breakthrough in the fast-moving US offshore wind market after it was selected by Massachusetts in its second tender to supply 804MW capacity. Mayflower will build an array, sited in a zone about 32km from the state’s southern coast, which it expects to enter commercial operation in 2025. Last December, the developer paid a record $135m in a competitive lease round for development rights and site control in federal waters. Mayflower anticipates that the project will provide various economic benefits for ratepayers and the state economy. These include long-term prices below the original price cap of $84.23 (€76.52) per MWh, $3.7bn in electricity rate reduction over the contract term; creation of up to 10,000 jobs in Massachusetts in both offshore jobs and onshore supply-chain opportunities; and the elimination of 1.7 million tonnes of CO2 emissions annually. The developer said it would draw on the “deep skills” of its parent companies and Shell and EDPR’s 804MW US also their experience with developing, permitting, financing, constructing and operating both offshore project wins approval offshore wind facilities in Europe and those onshore in the US. of Energy and Environmental “With today’s announcement of 1.6GW capacity — if found cost- EDPR is a leading US onshore Affairs said in a statement. additional, cost-effective offshore effective at the time of solicitation. wind capacity owner. Criteria used in the evaluation wind energy, the Commonwealth Liz Burdock, chief executive Mayflower’s bid won over of bids included an economic continues to be a national of industry body the Business those submitted by Bay State evaluation of the benefits for leader in this industry,” said Network for Offshore Wind, said: Wind — owned by Orsted and ratepayers; the “Major oil & gas companies and Eversource, the largest energy project’s ability to utilities understand the future of supplier in New England — foster employment electricity generation along the and Vineyard Wind, a joint and economic This team will bring US Coast is offshore wind. venture between Avangrid and development in regulatory expertise and “The selection of Mayflower Copenhagen Infrastructure Massachusetts; Wind, a joint project between Partners, which won the state’s the project’s utilise a supply chain that oil & gas giant Shell New first offshore tender and whose environmental will expand across America Energies and the Portuguese eponymous 800MW under- impacts, and the utility EDP Renewables, truly development project is the extent to which a demonstrates the rush to fuel nation’s first at commercial scale. project demonstrates that it avoids Massachusetts Governor Charlie supply diversification. This team “During the bid process, or mitigates impacts to regional Baker in a statement. will bring regulatory expertise Mayflower Wind proposed wind commercial fisheries. As directed by the state and utilise a supply chain that will energy at a more competitive The distribution companies legislature, the Department expand across America.” price with greater economic and Mayflower will now of Energy Resources released In June, Shell took the plunge development opportunities negotiate supply contracts by a an offshore wind study that in the US market by partnering for the Commonwealth [of 13 December deadline and those recommended the distribution with France’s EDF to submit a Massachusetts] and the South must be approved by regulators at companies to proceed with bid in New Jersey’s initial 1.1GW Coast than any other bidder,” the the Massachusetts Department of additional offshore wind offshore wind capacity allocation

Photograph | Getty Photograph Massachussetts Executive Office Public Utilities. solicitations for up to an additional but lost out to Ørsted.

rechargenews.com 11 DARIUS SNIECKUS A rendering of Aibel’s design orwegian offshore for the HVDC converter stations contractor Aibel has won being installed at an order valued at more the UK’s Dogger N Bank offshore than NKr2.5bn (€248m) to build wind power two high-voltage direct-current complex (HVDC) converter stations for the giant Dogger Bank offshore wind mega-project being developed in the UK North Sea by SSE Renewables and Equinor. The “lean design” steel platforms, which will be equipped with ABB HVDC Light technology, are to be installed on the 3.6GW complex’s Creyke Beck A and Creyke Beck B projects, with Aibel in the frame to build another unit for the third Dogger Bank project, Teesside A. The HVDC stations, which will be normally unmanned, operated from shore and accessed only by service vessels, will make it possible to transport production from the Dogger Bank zone, located some 130km off the northeast coast of England, to the onshore grid without significant power losses. Though HVDC stations have been used off Germany, this will be the first such project off the UK’s first HVDC system ordered UK. “This is an important milestone for Dogger Bank for world’s biggest offshore complex with a groundbreaking HVDC technology solution enabling a important strategic milestone the west coast of Norway, while Bank in first quarter of 2023. The competitive solution for offshore for Aibel. With this award, we construction of the two platform delivery for Creyke Beck B is wind at a long distance from strengthen our role in the topsides will take place at Aibel’s scheduled for the third quarter of shore,” said Halfdan Brustad, ongoing energy industry facility in Thailand. 2024. vice-president for Dogger Bank at transformation.” The topside for the Creyke Beck Once on line, Dogger Bank, Equinor. The converter station project for A is slated to arrive in Haugesund which is sited in 20-35 metres of Aibel chief executive Mads Dogger Bank will be staged out in the second quarter of 2022, water, will supply power to some Andersen said: “This is an of the Aibel Haugesund yard on with transportation to Dogger 4.5 million British homes.

EU-funded group calls for North Sea Treaty for offshore wind BERND RADOWITZ from 11 countries, including and financing framework for enable the first hybrid assets to Dutch-German transmission cross-border HVDC offshore be built. An EU-funded public-private system heavy-weight TenneT and connections and provides It says that a North Sea treaty consortium has called upon energy consultancy DNV GL. recommendations for policy would provide a stable governance the countries around the North “The development of a cross- makers and other stakeholders and decision-making structure, Sea to harmonise regulatory border HVDC [high-voltage to take appropriate measures to a common interpretation of frameworks and eventually sign a direct-current] grid is one of the maritime law, and processes for North Sea Treaty to fully exploit most promising opportunities long-term wind farm and grid the potential of a meshed offshore for a sustainable energy future planning. grid. in Europe,” said TenneT The treaty would also fix the The PROMOTioN (Progress chief operating officer Tim terms of cooperation between on Meshed HVDC Offshore Meyerjürgens. national regulatory bodies, and Transmission Networks) The consortium has released a streamline the decision-making project has brought together 33 report summing up key findings process for the HVDC cross-

Photography | Aibel Photography companies and organisations on the design of a legal, regulatory border links.

12 rechargenews.com US fisheries rebuff offshore wind’s project layout rethink

DARIUS SNIECKUS

The five developers advancing offshore wind farms off the northeast US — Equinor, Mayflower Wind, Orsted/ Eversource and Vineyard Wind — have put forward a proposal to the country’s US Coast Guard (USCG) to use a uniform turbine layout for the projects, in a bid to defuse ongoing objections from the regional fishery industries. The New England Offshore Wind Leaseholders (NEOWL), advancing more than 7GW between them, said the layout would have rows of turbines spaced one nautical mile Turbine order for 2.64GW US apart, and align to the USCG’s requirement for “robust navigational safety and search and offshore project still up for grabs rescue capability by providing hundreds of transit corridors to RICHARD A KESSLER adjacent to its leased wind energy with potential reduction in cost accommodate the region’s vessel area. and improved efficiencies (higher traffic”. ominion Energy has not The utility, however, is going capacity factors),” the company But fishery industry body decided what turbine to to put the large project — 43km told Recharge in a statement. the Fisheries Survival Fund Demploy in its planned US from shore — out to bid for “We also see a lot of opportunity (FSF) poured cold water on the industry-leading $7.8bn, 2.64GW construction and is evaluating to reduce costs as a US-based NEOWL’s reconfigured layout project off the southeast coast how best to proceed. No decisions supply chain is established,” it saying that the spacing between of Virginia but is considering have been made regarding added. turbines “neither allows for safe models from 8MW to 12MW partners, suppliers and related None of the three OEMs have transit nor viable fishing, at nameplate capacity, the utility issues, it said. committed to domestic turbine least from the scallop fishery’s told Recharge. Given wind speeds at the project production although a contract perspective”. Local press reports and at site are between 8.0-9.5 metres from Dominion could change that. It is unclear, FSF said, “how least one non-governmental Analysts see little this unsupported proposal... organisation, Sierra Club, chance that Chinese will benefit commercial fisheries have written that Dominion is The future award will be OEMs that have or promote fishing vessel advancing the proejct with 220 8-10MW models in navigational safety”. 12MW machines for the array among the largest globally development could “We were not consulted on this that it expects to build in three compete for supply proposal, have not supported this 880MW stages between 2024 for offshore turbines deals in the US given proposal in the past, and do not through 2026. tense bilateral trade support it now.” The future award will be among per second, it conservatively ties, and unfamiliarity with the the largest globally for offshore estimates a 42% companies and technology among turbines and is already subject for the project versus 50% to 55% state officials and utility regulators. to heated competition from GE for Atlantic arrays in development Earlier this decade, XEMC Renewable Energy, MHI Vestas off New England. sought to enter the offshore and Siemens Gamesa, which have To what extent that could market here with its XD115 all won conditional or firm turbine influence turbine selection is 5MW turbine and the promise orders for projects in the young unclear, as is the zone’s location in of a turbine assembly plant but fast-growing US market. the path of potential hurricanes. in New Jersey, but regulators Siemens Gamesa is supplying “We continue to see rejected the Fishermen’s Energy Fisherman haul a pair of turbines for a 12MW opportunities to improve the 24MW pilot proposal and it was in a catch off the pilot project that Dominion levelised cost of energy of offshore unable to advance with a future coast of Virginia

Dominion Energy | Getty | Dominion Energy Photography has contracted Ørsted to build wind as the technology evolves, commercial-scale array.

rechargenews.com 13 RECHARGE | OFFICIAL EVENT DAILY

LEIGH COLLINS

700MW green hydrogen plant powered by a Adedicated Orsted offshore wind farm and producing carbon- Offshore wind to neutral aviation fuel could be up and running in Europe by 2030 if an ambitious project backed power 700MW green- by the German government goes according to plan. The Westküste 100 project — which has nine project partners, hydrogen-fuel plant including developers EDF Energy, Orsted and industrial giant Thyssenkrupp — has been named by federal energy and economy minister Peter Altmaier as one of Germany’s “real-world laboratories of the energy transition” and is set to receive “close to €100m” of government funding. The project in northwest Germany, at the site of the Heide oil refinery, will be a unique example of cross-sector co- operation and technology, and show local wind farms how they can use their excess energy — about 40% of which was wasted last year due to grid constraints. For the pilot project, surplus wind energy that would otherwise be curtailed will power 30MW of alkaline electrolysers that will split water molecules into hydrogen and oxygen. The oxygen will be sold to a nearby cement plant for use as “oxyfuel”, with the waste heat from the electrolysis process sold to a nearby district heating system, thus creating additional revenue elsewhere, including injection into Holstein state where it is located, is team about our future as a streams. Most electrolysis projects the natural-gas grid. the brainchild of Raffinerie Heide, refinery and how does business simply release the heat and oxygen the company that owns the Heide look like for us in 10, 20, 30 into the air. Decarbonising an oil refinery as well as a nearby “tank years, given that the amount of The green hydrogen will be refinery farm and oil port”. fossil fuel is dropping,” Raffinerie combined with carbon dioxide The Westküste 100 project, named “A couple of years ago, I was Heide chief executive Jürgen captured from the cement plant after the “west coast” of Schleswig- strategising with my management Wollschläger tells Recharge. to produce synthetic methanol, The company realised that which would then be refined into their site was located in the carbon-neutral synthetic kerosene wind capital of Germany, and (ie, aviation fuel), for use at the that about 40% of the local wind nearby Hamburg airport. The energy generated was not allowed airport is hoping that 5% of all fuel onto the grid, resulting in €500m used there will be carbon-neutral of taxpayer money being paid by 2025. to wind producers for curtailed The Heide refinery happens to power. have huge salt caverns on its land “So we were thinking, ‘there where up to ten million tonnes must be something we can do of hydrogen can be stored, as with this electricity’. As a refinery, well as a dedicated bidirectional we are a hydrogen consumer... hydrogen pipeline to a Linde grey- and actually operating a hydrogen

hydrogen facility 30km away — so The ins and outs pipeline, which connects with large amounts of green hydrogen of the Westküste our hydrogen source, which is a ‘real-world could eventually be stored and laboratory’. Linde steam-methane-reforming

Photo: Raffinerie Heide | Photo: Photography transported via a pipeline for use plant, some 30km away from the

14 rechargenews.com being built by Shell in Cologne.) project partners could sell the Utilising excess wind “Obviously in that 30MW step, green hydrogen to local industries, power Heide oil refinery there are a number of aspects we including chemicals producers, Wollschläger explains that he in northwest Germany, which want to learn,” says Wollschläger. for which there is about 1GW of would like the price of the project’s will host the “What are the scaling effects, the demand within a 30-40km radius green hydrogen to be cost- offshore wind- to-hydrogen learning curves to best optimize around the refinery. competitive with the grey hydrogen Westküste 100 the system, the cost digressions “That’s one avenue you could that Raffinerie Heide is currently project that are obviously needed and follow. Our idea is actually buying from Linde. required for scaling up? a slightly different one,” says He says this will only be possible “I’m pretty sure that once we’re Wollschläger. “We want to scale up if regulations are changed to enable working on it, there will be to 700MW, we want to take that them to buy cheaper wind energy. solutions and aspects we have hydrogen and take the CO2 from In the current German system, never even thought about, they will the cement factory and turn it into wind farms are paid a set amount just come to light in the moment synthetic fuels. for the power they generate, you work on them.” “And there’s obviously two regardless of whether that After the lessons have been electricity is allowed onto the learned from the five-year 30MW grid. And unlike other markets, pilot project, “the vision is to build the local electricity price does a 700MW electrolysis unit”, he not fall when the supply of wind explains. power is high, meaning there is “Orsted, one of the partners no incentive for consumers to buy in the consortium actually has that excess wind energy. Instead, licenses to build the equivalent it is simply curtailed, costing the offshore wind park next door. German government about €500m And that’s actually why they’re annually. invested and interested. They “If we’re already currently paying want to monetise on that license, half a billion euros a year for not Jürgen which they currently can’t do as the Wollschläger producing electricity, why can’t I electricity grid is so congested.” have a different price for electricity? So would this be a dedicated Because my current price for offshore wind farm that only reasons for this. One is obviously electricity is what everyone has supplies energy to the electrolysers, that then we are back in our core to pay. I’m in a location where we rather than the grid? business in the sense of we are have this curtailment regime and “Yeah, it could very well be,” says working with hydrocarbons, just this excess electricity. It costs the Wollschläger. that in this case, hydrocarbons German taxpayer money — I have Orsted did not seem so confident are not coming from crude oil but a solution for a better usage for it that this would be possible. “In from other sources and we can and yet I have to pay market prices Germany the offshore wind supply our existing customers. for it.” build-out is strictly regulated and “Now I acknowledge that a Wollschläger believes that the such a project is not part of the number of those customers, most five-year pilot project will break current federal build-out plan. likely in 10 years time will have even, when including the injection refinery,” explains Wollschläger. Unfortunately, we do not see any moved to different applications of government funding, which is “So we have experience with signs that the government intends and solutions for their specific due to be finalised over the next six hydrogen and we have the to revise their approach,” the problems. But there are a couple to eight months. The second-phase excess of wind energy, so we company said in a statement. of areas and sectors which are very from 2025-30, he believes, will pay were wondering as well, having Orsted vice-president for difficult to decarbonise. And for for itself. decarbonisation in mind, whether hydrogen, Anders Christian them, synthetic fuels I would argue “Our expectation is that at that embarking on green hydrogen Nordstrom, told Recharge: “While are a solution. And those sectors point in time, the economics isn’t one of our future [business] it’s still early days for will work out much better,” avenues. And we explored and renewable hydrogen, says Wollschläger. “You have looked into it and realised that we do see that it has We’re already paying the learning curve and the cost our ultimate goal is to turn the significant potential digression on the electrolysis refinery into what I would call a to help decarbonizing €500m a year for not unit, I would argue, which simply green refinery.” sectors such as heavy will come out of the project. You industry, shipping producing electricity [from obviously are five years further Details of the plan and heavy road curtailed wind farms] in, which means you will have The ten-year Westküste plan is split transportation. Large- different levels of crude [oil] price, into two five-year stages. scale renewable power natural-gas price, CO2 ticket price The first is to scale up to 30MW from offshore wind is ideal for are definitely aviation, and most [within the EU Emissions Trading of electrolysis capacity by 2025 — production of renewable hydrogen, likely heavy-duty trucks and deep- System]. which would supply enough green and which makes it a natural fit for sea shipping.” “If we currently think it’s smart hydrogen to meet the needs of the Orsted.” Wollschläger also acknowledges to pay €500m to not produce site’s refinery. (NB: The world’s that if the latter two sectors shift electricity, there must be a way to largest existing green hydrogen How would the green towards using green hydrogen as use this half a billion better and production facility is 5MW, with a hydrogen be used? their fuel, the refinery would be create a sensible business case for 10MW electrolysis plant currently Wollschläger explains that the able to meet that demand. [green hydrogen].”

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