1 Carl Sixtensson Senior Consultant, DNV KEMA Renewable Energy 01 April 2017Floating Offshore Wind Power Possibilities and challenges for Norwegian IndustryCarl SixtenssonSenior Consultant, DNV KEMA Renewable Energy
2 01 April 2017Presentation outline1. The context of floating wind 2. Emergence of a global market – focus on USA and Japan 3. Enablers and barriers for Norwegian companies – The case of Japan 4. Final conclusions
3 Floating Wind Turbines – A rapid development 01 April 2017Floating Wind Turbines – A rapid development2009: The first full scale prototype deployed outside Karmøy, Norway2012 & 2013: Year’s of global developments
4 1. The context of floating wind 01 April 20171. The context of floating wind2. Emergence of a global market – focus on USA and Japan3. Enablers and barriers for Norwegian companies – The case of Japan4. Final conclusions
5 EWEA 2013 The average European ONSHORE wind turbine Capacity: 2.2 MW 01 April 2017EWEA 2013The average European ONSHORE wind turbineCapacity: 2.2 MWCapacity factor: 24%Average annual energy production: 4,702 MWhThis can power more than 1202 householdsThe average European OFFSHORE wind turbineCapacity: 3.6 MWCapacity factor: 41%Average annual energy production: 12,961 MWhThis can power more than 3312 households
6 A Floating wind turbine example – Statoils Hywind 01 April 2017A Floating wind turbine example – Statoils Hywind50 %capacity factor in 2011Extraordinary energy potentialSource: Statoil
7 An ocean of different concepts - Innovations and a time of learning 01 April 2017An ocean of different concepts - Innovations and a time of learning
8 Weight-buoyancy stabilized with relatively large draught 01 April 2017The spar buoysWeight-buoyancy stabilized with relatively large draughtWeight-buoyancy stabilized with a relatively large draft4-6 times (up to 10-20) the waterdepthFairleadWater depthAnchorAnchorSchematicHywind, Statoil NorwayFew active componentsWell-proven technologyStable design
9 The semi-submersibles 01 April 2017The semi-submersiblesFree-surface stabilized structure with relatively shallow draught4-6 times (up to 10-20) the waterdepthFairleadWater depthAnchorSchematicWindFloat, Principle Power USAVery flexible with regard to siteLow requirments on soil conditionsSimple installation
10 The Tension Leg Platforms 01 April 2017The Tension Leg PlatformsTension restrained structure with relatively shallow draughtWater depthTendonAnchorSchematicPelaStar, GLOSTEN USASmall seabed footprintLow structural weightFew active systems/components
11 1. The context of floating wind 01 April 20171. The context of floating wind2. Emergence of a global market – focus on USA and Japan3. Enablers and barriers for Norwegian companies – The case of Japan4. Final conclusions
12 Global activities on floating wind – Some examples 01 April 2017Global activities on floating wind – Some examplesOver 60% of resources in deep waterUS DOE funding of seven offshore wind projects, including three floating.2400 GW in waters beyond 60 mETI will fund a floating wind demonstration project to be tested at the UK’s Wave Hub, Glostens PelaStar TLPStatoils HywindStrong emphasis on research, protoype development etc.Considerable deep water resourcesVast majority of wind resources in deep watersA very strong focus on floating wind, especially after Fukushima.Seventh Framework Programme (FP7)HiPRind project,11M€,Inflow program, vertical axis turbines, long term goal of 26 MWNER300 funding for a 27 MW WindFloat array
13 US – OverviewUS Department of Interior assessed the energy resources of the Outer Continental Shelf and concluded that almost the entire US electric energy needs could be met by deep water offshore wind solely.Over 60% of the wind resources in deep water, including all the offshore wind resources in Northern New England, the US West Coast and Hawaii (in water depths beyond 60 m) - floating offshore wind technologies is the only realistic and viable solution at many locations.
14 The US market actors Key market actors DeepCwind consortium: is a group consisting of 36 industrial, university and national laboratoty partners, coordinated by the University of Maine through DOE funding.NREL: U.S. Department of Energy's primary national laboratory for renewable energy and energy efficiency research and developmentDepartment of Energy: In mid- December 2012 DOE decided that three floating wind projects would receive funding for deep-water demonstration site developments. Initial funding of $4M is provided for development support and up to $47M in total.StatoilPrinciple PowerUniversity of Maine
15 The DOE projects – Statoil Statoil North America of Stamford, Connecticut plans to deploy four 3-megawatt wind turbines on floating spar buoy structures in the Gulf of Maine off Boothbay Harbor at a water depth of approximately 140 m.These spar buoys will be assembled in harbor to reduce installation costs and then towed to the installation site to access the Gulf of Maine's extensive deep water offshore wind resources.The $120M project gained key approval in late January 2013HywindPhoto: C.F. Salicath
16 The DOE projects – Principle Power Washington-based Principle Power plans to install five semi-submersible floating foundations outfitted with 6-megawatt direct-drive offshore wind turbines.The project will be sited in deep water approximately 25 km from Coos Bay, Oregon.Detailed scope of work is under establishmentPartners:Siemens Wind PowerNRELHouston Offshore Engineeringthe Pacific Northwest National Laboratorythe American Bureau of ShippingMacArtney Underwater Technology…Image: Renewable Energy Magazine
17 The DOE projects – University of Maine The University of Maine plans to install a pilot floating offshore wind farm with two 6-megawatt direct-drive turbines on concrete semi-submersible foundations, total 12 MW, near Monhegan Island.The project will be using the VolturnUS floating platform technology developed at the Umaine Composites Center and builds on the success of the DeepCwind Consortium Research Program,These concrete foundations could result in improvements in commercial-scale production and provide offshore wind projects with a cost-effective alternative to traditional steel foundations
19 Japan – Current situation Most nuclear reactors were closed down following the Fukushima accident in All-time high oil prices and Japan being highly dependent on imported gas to run their gas power plants act as brake on global economy. New energy sources are needed.Limited amount of space for new onshore installations, issues related to grid access, time-consuming environmental impact assessments and lengthy project construction times have weighed on the growth of the country’s wind industry.The JWPA claims there is potential to develop up to 519 GW of floating offshore wind and 94 GW of fixed offshore wind, as well as 169 GW of onshore wind, in Japan.
20 Reform Process of Japan’s Agency for Natural Resources and Energy 01 April 2017Market incentivesJapan introduced a new feed-in tariff for wind projects on 1 July 2012 of 23.1 yen (~€ 0.2, ~ twice as much as the UK support for offshore wind projects) per kWh for 20 years, up from the roughly 15 yen (~€ 0.13) being paid on contracts previously. For offshore wind the FIT is expected to be times this levelThe revised energy policy envisage investment in renewable energy sources of €380 billion over the next two decades. MITI (Ministry of International Trade and Industry) estimates that total investment in renewables could be in the vicinity of €495 billion by 2030.Reform the power transmission/distribution sector.The grid will be openend up for independent power investors, separation between production, transmission and distribution meaning a situtation more similar to what we see in Norway and Sweden.Reform Process of Japan’s Agency for Natural Resources and Energy1. Ensure freedom of choice of electricity for all peopleOpen electricity system for all people2. Enable all people to create electricity freelySupply-demand balance through competition and selection3. Deliver all electricity to all people widely and neutrally
21 Japanese floating wind initiatives - Fukushima Four different floating wind structures are planned to be installed off the coast of Fukushima during 2013 and 2014.Stage 1: A floating substation and a 2MW downwind floating turbine installed on a semi-submersible substruture will be installed.Stage 2: A 7MW turbine is planned to be installed on v-shaped semi-sub and an advanced spar solution respectively.1000 MW Fukushima Wind Farm?
22 Japanese floating wind initiatives - Kabashima The Kabashima demonstration turbine:A consortium including the Ministry of the Environment, Sasebo and Fuji have installed a 100kW downwind turbine on a Spar solution in the sea outside Kabashima.A full scale solution with a 2MW turbine is planned for the summer of 2013 in this project funded by the Japanese government.
23 1. The context of floating wind 01 April 20171. The context of floating wind2. Emergence of a global market – focus on USA and Japan3. Enablers and barriers for Norwegian companies – The case of Japan4. Final conclusions
24 Japans ambition - Summary Japan waters will be a ‘laboratory’ in the coming years with the aim to establish an industry with an interational potential. We are likely to see:1. Further technical development , prototype testing and building of small arrays – All strongly supported by the Japanese government.2. Need to import Technologies/Methodologies – Learn from the industry3. Japanese companies looking at international markets, for example in the waters between Taiwan and mainland China.Norwegian companies have a potential to assist Japanese (and other international) developments based on the experience gained from offshore activities and wind developments, in Norway and internationally..
25 The gaps needs to be identified – Potential for Norway New Technology, unique solutionsO&M, Installation, Anchors, station keepingStandards & rulesConsultancyAdvisory ServicesTechnology qualificationCertification
26 Joint VenturesJapanese industrial firm Hitachi Zosen has teamed up with Statoil to strengthen their offshore wind ambitions.Feasibility studies into how the Hywind could be deployed in Japanese waters are underway.Hitachi Zosen has formed a consortium with six other companies to invest about €1.2 bn in Japanese offshore wind projects.
27 1. The context of floating wind 01 April 20171. The context of floating wind2. Emergence of a global market – focus on USA and Japan3. Enablers and barriers for Norwegian companies – The case of Japan4. Final conclusions
28 Final remarksSignificantly increased focus on floating wind structures globally.Incentives and developments in Europe, US and especially Japan (and Korea).One should not underestimate Japanese technology development and capacity to quickly adopt and find solutions to technical challenges.In order to enter the Japanese market financial muscles are likely to be required and/or a unique technology desired by Japanese firms.JV’s are an effective way to create a business momentum in Japan (and elsewhere internationally)DNV have worked in close collaboration with several Japanese stakeholders through Joint Industry Projects etc.