The U.S. Offshore Wind Industry: Block Island Wind Farm & Beyond PANELISTS

 Jeff Grybowski, CEO, Deepwater Wind  Andy Geissbuehler, Managing Partner, Renewable Resources International, LLC  Darryl Francois, Chief, Engineering & Technical Review Branch, Bureau of Ocean Energy Management (BOEM), U.S. DOI  Dr. Tim Unruh, Deputy Assistant Secretary for Renewable Power for the Office of Energy Efficiency and Renewable Energy (EERE), U.S. DOE Jeffrey Grybowski Chief Executive Officer February 26, 2018 America’s Offshore Wind Leader

• Developer and operator of the first offshore wind project in the US • Winner of the first auction for federal offshore wind leases in the US • Awarded first, second, and third offshore wind power contracts in the US • Controls three offshore lease areas with 4,000 MW capacity

Principally owned by D.E. Shaw, one of the largest global alternative asset managers with more than $46 billion assets under management as of October 1, 2017. Founded DWW in 2005 to focus on offshore wind in the US. America’s First Offshore Wind Farm is Now Operating

5 turbines. 17,000 homes. 300+ construction jobs. 1st in the nation.

Tapping into the US Building Foundations Offshore Industry in the Gulf of Mexico

1 2 3

Turbine Installation Complete

Summer 2016

Demand for power is coastal Wind resource East coast has wide offshore is huge (red offshore continental denotes stronger shelf with shallow water winds)

The Potential

Offshore wind delivers energy when and where it’s needed most. The Next Projects US Offshore Wind Energy opportunity

Andy Geissbuehler Managing Partner Renewable Resources International LLC

American Wind Energy Association (AWEA), in cooperation with the Renewable Energy & Efficiency Caucus Briefing in Congressional Meeting Room – North – CVC 268; Washington DC, February 26, 2018

18 Renewable Resources International US Offshore Wind Energy opportunity Block Island - the nations first commercial offshore windfarm

Source: Deepwater Wind

19 Renewable Resources International US Offshore Wind Energy opportunity North East business case unleashes US industry

BUSINESS CASE to launch: - energy price peaks - transmission advantage - strong capacity factors - close to load centers - 20+ miles offshore - State energy policy - energy independence - US job creation - European learning curve

20 Renewable Resources International US Offshore Wind Energy opportunity North East business case unleashes US industry

North East scaling up enables Northeast US capacity forecast: BUSINESS CASE for low (4GW) and high (8GW) scenarios wave #2 - Midatlantic and wave #3 – West Coast  US learning curve catching up  Developers / owner / operators building moderate scale  US supply base & marine logistics Source: BVG Associates for NYSERDA following evolving demand  European Levelized Cost of Energy (LCoE) improvements materializing step by step also in the US  Waves #2 and #3 enabled to secure business case  US economic benefit accelerating

21 Renewable Resources International US Offshore Wind Energy opportunity Supply chain & job creation opportunities and dilemmas

Global sourcing concept  shortterm optimized LCOE Project management O & M Component US East Coast logistics concept manufacturing gradually invest to grow US scale and optimize logistics Community Component integration assembly State local content concept  immediate job creation Workforce Installation training logistics

Industrial Engineering & services R&D and prototyping testing

Cost Scaling Cumulative 30 MW 90 MW 120 MW + 400 MW reduction takes off >5 GW follows

22 Renewable Resources International US Offshore Wind Energy opportunity Typical scope breakdown

Source: BVG Associates for Wind Europe

23 Renewable Resources International US Offshore Wind Energy opportunity Job creation potential

Total available direct and indirect FTE years created annually between 2020 and 2030 (8GW scenario) Source: BVG Associates for NYSERDA

24 Renewable Resources International US Offshore Wind Energy opportunity Job creation scope

Total FTE years per supply chain element: Baseline: High probability: Medium probability: Low probability:

Source: BVG Associates for NYSERDA

25 Renewable Resources International US Offshore Wind Energy opportunity Scope examples

Chet Morrison Contractors - Louisiana Zentech Inc - Texas

Bladt Industries - Denmark Siemens - Germany

26 Renewable Resources International US Offshore Wind Energy opportunity The triangle of success

EUROPEAN OSW LEARNING CURVE

Zentech ZeeRig 3 B$ MISSION US OFFSHOREBlock Island, RI – first commercial offshore windfarm in the US US EPC & RISK OIL&GAS Project structure – MANAGEMENT EXPERIENCE scope & risk optimized CAPABILITIES

27 Renewable Resources International 28 Renewable Resources International Renewable Energy Briefing Washington, D.C. | February 26, 2018

Offshore Renewable Energy Leasing on the Atlantic Outer ContinentalBureau of ShelfOcean Energy Management

Darryl François Chief, Engineering and Technical Review Office of Renewable Energy Programs Bureau of Ocean Energy Management

February 25, 2018 www.boem.gov 29 Recipe for Success: The Wind Resource

This map shows the annual average wind power estimates at a height of 50 meters. It is a combination of high resolution and low resolution datasets produced by NREL and other organizations. The data was screened to eliminate areas unlikely to be developed onshore due to land use or environmental issues. In many states, the wind resource on this map is visually enhanced to better show the distribution on ridge crests and other features.

February 25, 2018 www.boem.gov 30 Recipe for Success: Buildable Environment

Source: National Renewable Energy Laboratory

February 25, 2018 www.boem.gov 31 Recipe for Success: Market Demand

February 25, 2018 www.boem.gov 32 Atlantic OCS Renewable Energy Activities

University of Massachusetts Wind Energy Center Massachusetts New Bedford Marine Commerce Terminal Rhode Island/Massachusetts Wind Technology Testing Center New York

Quonset Point & ProvPort New Jersey

Sparrow Point Delaware Maryland Clemson Turbine Testing Facility Virginia Gulf Island Fabrication Kitty Hawk

Wilmington WEA

South Carolina Call Area

February 25, 2018 www.boem.gov 33 Office of Renewable Energy Programs

Leasing • Since 2009, BOEM has issued 13 commercial wind energy leases in the Atlantic • Upcoming Lease Sales in MA & NY

Site Assessment Plans (SAP) • 3 approved (MA, RI, VA) • 3 processing (MD, MA, NJ)

Construction and Operations Plans (COP) • 1 processing (Vineyard Wind)

Planning activities continue off Hawaii, California, the Carolinas and the New York Bight

Management and incorporation of results from 11 ongoing environmental studies, 6 ongoing technology studies and dozens of completed studies.

14 Intergovernmental Renewable Energy State Task Forces

Interagency collaborative efforts (e.g., CEQ Permitting Subgroup, Radar Interference, Telecommunication Cables)

Regulatory review & guidelines (e.g., Design Envelope, Lighting and Marking)

February 25, 2018 www.boem.gov 34 Atlantic OCS Renewable Energy: State Leadership

Offshore Offshore Renewable Solicitation (MW) Goals (MW) Goals

Massachusetts 400 1,600 25% by 2030

Rhode Island 400 N/A 38.5% by 2025

Connecticut 250 N/A 20% by 2020

New York 800 2,400 50% by 2030

New Jersey 1,100 3,500 N/A

Maryland 368 N/A 25% by 2020

TOTAL 3,318 MW 7,500 MW -- Atlantic OCS Renewable Energy: “Projects in the Pipeline”

Year Project Company 2020 Coastal Virginia Offshore Wind (CVOW) 2021 Vineyard Wind 2022 South Fork 2022 Ocean Wind 2022 Bay State Wind 2022 U.S. Wind (MD) 2023 Revolution Wind 2023 Skipjack Windfarm 2025 Dominion Commercial Lease 2026 U.S. Wind (NJ) 2027 Empire Wind * Projections based on current estimates and/or standard timeline 2027 Kitty Hawk The Path Forward: Steel in the Water

Photo courtesy Deepwater Wind

February 25, 2018 www.boem.gov 37 Offshore Wind at DOE: Investing in the R&D to enable offshore wind development in all U.S. coastal regions

Timothy D. Unruh, Ph.D. Deputy Assistant Secretary for Renewable Power Office of Energy Efficiency and Renewable Energy February 26, 2018

U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY 38 Wind Energy in the United States Past, Present, Future

The U.S. wind industry promotes jobs, energy diversity, and economic growth: • The unsubsidized cost of wind energy has dropped 90% from 1980 to 2016 • Wind energy provides over 6% of the nation’s electricity and supports over 100,000 domestic jobs,

including over 500 manufacturing facilities in 41 U.S. Wind Cost and Cumulative Deployment, 1980-2016. States. o Wind turbine service technician is America’s second fastest growing profession. • 14 states have at least 10% of annual electricity generated by wind, with four states having greater than 25%. o In the past decade, installed U.S. wind generating capacity has more than tripled, from 25 GW in 2008 to 89 GW in 2017.

Wind-Related Manufacturing Facilities and Installed Capacity by State, 2015

U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY 39 DOE’s Strategy to Capture more Wind Energy

Tall Wind: Taller Towers & Bigger Blades • Big Adaptive Rotor initiative to develop low-specific power rotors (larger swept area) for tall wind applications, with an improvement in energy capture of up to 15 percent. • By increasing hub height from 80 meters to 140 meters, the area in the U.S. that has a minimum net capacity factor of 30% is increased by 68% Wind Plant Optimization (Atmosphere to Electrons, A2e) • R&D for next-generation wind plants to increase performance by reducing turbine-turbine wake interaction (current 20-30 percent energy reduction) • Component and control innovations to reduce unsubsidized cost of wind energy by up to 50 percent by 2030. Offshore Wind • Collection and dissemination of wind and wave conditions data at U.S. offshore wind development sites. • R&D to decrease technology costs and adapt to the unique U.S. conditions. • Demonstration projects leveraging technologies that address U.S.-specific challenges. Evaluation of supply chain limitations. • Wake Interaction at Horns Rev Offshore Wind Farm

U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY 40 U.S. Offshore Wind Industry Challenges and Opportunities U.S. Specific Challenges Opportunities • Steep learning curve – European solutions may • Generate low cost electricity near areas of not be optimal or appropriate high demand with limited new transmission • Vessels and Jones Act • Revitalize ports and heavy industry • Supply Chain and Port Infrastructure • Targeted R&D and supply chain investments • Permitting can result in steep cost reduction • Wildlife • Transformative technology that allows • Visual Impacts offshore wind to be deployed in deep water, • Challenging physical conditions – which are and in hurricane prone regions different than they are in Europe, i.e. • Foundation and installation technology that hurricanes, ice, geophysical mitigates sound impacts on marine species • Deep water -- nearly 60% of the offshore wind • U.S. can become the world leader in floating resource in the U.S. is in deep water, nearly platform technology using expertise from oil 100% on Pacific Coast and gas industry

U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY 41 DOE’s Role in Addressing U.S. Offshore Wind Challenges

Strengthen Domestic Conduct R&D to Improve Enhance U.S. Energy Manufacturing and U.S. Competitiveness Security and Independence Economic Growth

• Help achieve significant cost of energy reductions through R&D, to optimize wind plant performance, develop advanced components, improve reliability, and resource characterization data

• Address market barriers through early stage research that reduces risk • Optimize grid integration and transmission for wind systems through integration studies and operational forecasting tool development

• Convene stakeholders and partners: National Offshore Wind Strategy, roundtables, workshops, open door for industry

• Disseminate data and results: reports, websites, conference participation, journal papers, etc.

U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY 42 DOE’s Current Offshore Wind Funding

Offshore Wind R&D Consortium R&D Consortium Key Dates • $18.5M (+$2M to DOE labs) funding opportunity now open to establish an R&D consortium with matching industry funds to accelerate U.S. FOA Published Dec. 12, 2017 offshore wind by supporting fundamental R&D addressing: o Offshore Wind Plant Technology Advancement -- floating foundations Concept Papers Jan. 23, 2018 R&D, innovations in components, controls, and electrical subsystems. Due o Resource and Site Characterization -- validation of innovative Full Applications Mar. 26, 2018 methodologies to collecting in situ data, improve understanding of Due extreme conditions such as hurricanes. Expected June 2018 o Installation, O&M and Supply Chain Technology Solutions -- Selection reduction of onsite O&M needs, reduction in costs through improved Notification foundation technology and installation processes. Offshore Wind Advanced Technology Demonstration Projects • Continue projects facilitating a competitive U.S. industry through the research and development of innovative technologies with the potential to lower the cost of energy. Offshore Wind Plant Optimization – Atmosphere to electrons (A2e) • Improve the performance and reliability of next-generation optimized plants by investigating systems-level efficiency losses influenced by atmospheric conditions and turbine-turbine wake interaction in large arrays. Offshore Wind Market Acceleration and Deployment by Supporting Early-Stage R&D • Develop new technologies for monitoring wind-wildlife interactions in the offshore wind space, and information aggregation and dissemination through domestic and international collaborative partnerships. U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY 43 Offshore Wind Advanced Technology Demonstration Projects Brief History

2013 - Seven Projects • Regionally and technologically diverse • Goal: 50% Front End Engineering Design (FEED) including vendor quotes • Down-Select based on progress and technical viability 2014 – Five Projects (three projects, two alternates) • Goal: 100% FEED, vendor quotes, Current Portfolio installation and O&M, completion of University of Maine NEPA, regulatory and interconnection • Monhegan, ME requirements • 12 MW project, 2 turbines • Go/No-Go based on progress to • Floating concrete semi-submersible accomplishing goals, including power to handle deepwater offshore wind purchase agreement resources 2017 – Two Projects • Goal: Fabrication, installation and LEEDCo commissioning of the project by 2020; • Cleveland, OH environmental and performance data • 20.7 MW project, 6 turbines collection 5-years beyond project • Monobucket (monopile large suction completion pile) to resist weak soils surface ice • Regular Go/No-Go decision points conditions of the Great Lakes

U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY 44 University of Maine: NE Aqua Ventus I Project Overview and Updates

Substructure Water Project Commission Turbines Location Type Depth Cost Date 2 X 6MW 2.5 Miles offshore Floating concrete 90- GE Monhegan Island, ME ~$250M 2020 semi-submersible 120m Turbines State Waters

Project Highlights • Unique floating concrete substructure that can be fabricated in Maine and can be utilized in deepwater nationwide. • The UMaine-developed, patented VolturnUS floating concrete hull technology can support wind turbines in water depths of 45 meters or more. • Turbine can be installed and commissioned in port and towed to the deployment site

U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY 45 LEEDCo Icebreaker Wind Project Project Overview and Updates

Substructure Water Project Commission Turbines Location Type Depth Cost Date Lake Erie 6 X 3.45MW Fixed-bottom 7 miles offshore Vestas ~17m ~$210M 2020 Mono bucket Cleveland, OH Turbines State Waters Project Highlights • Mono bucket substructure  Innovative design uses technology utilized in the oil and gas industry  Technology can be installed without significant noise or seabed disturbance • Icebreaking integrated into the substructure – critical for Great Lakes offshore wind • Partnered with Fred Olsen Renewables as project partner/investor • Draft NEPA Environmental Assessment completed

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U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY 46 Thank you.

U.S. DEPARTMENT OF ENERGY OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY 47 Questions?