1. Stephen Kerr Beatrice Offshore Windfarm

2. STW Offshore Wind Supply Chain 2 nd February 2010 Inverness

3. 3 Introduction Developers & Sites Supply Chain Gaps Contracting Strategies Adding Value

4. Developers & Sites The Crown Estate 2009 Site NameDeveloperEstimated MW Argyll Array Scottish Power Renewables1500 BeatriceSSE Renewables & SeaEnergy920 Inch Cape RWE Npower & SeaEnergy905 Bell Rock SSE Renewables & Fluor700 Islay SSE Renewables680 Forth Array Fred Olsen415 Kintyre SSE Renewables378 Neart na Gaoithe Mainstream360 Solway Firth E.ON300 Wigtown Bay DONG Energy280 TOTAL 6438

6. Current Development Timescales ActivityTimescale Exclusive development agreement awarded by The Crown Estate February 2009 Commence boat based bird surveysOctober 2009 Scoping (first stage of the Environmental Impact Assessment) Feb 2010 Scottish Government Strategic Environmental Assessment (SEA) Consultation Document Feb 2010 draft / May 2010 final Application for Statutory Consent and LicensesAim is late 2011/ early 2012 Consent GrantedAim is early 2013 Construction CommencingAim is 2014/ 2015 Fully OperationalAim is 2016/2017

7. Potential STW Supply Chain Gap

8. STW Supply Chain Value - CAPEX

9. STW Supply Chain Value - OPEX

10. Contracting Strategies Developments at early stage BOWL will work closely with Tier 1 suppliers and contractors in offshore wind to determine the most suitable procurement model:- Single Stage EPIC Single Stage EPIC with Nominated Supplier Packages Multiple Package Construction Management Most likely model Tier 1 suppliers and contractors in the following categories: Onshore Factory / Fabrication – Delivered to Quayside Wind Turbine Manufacture Substructure – e.g. Monopilpile or Jacket Cable Manufacture Electrical Systems Substations – Onshore and Offshore Control System Installation (Marine Coordination, Transport, Install and Hook Up) Commissioning

11. Contracting Equipment manufacturer typically has 5 year warranty thereafter maintenance may be contracted to specialist or performed by owner or operator. 2 way link to operations Understand where you want to fit – who is your customer? Don’t assume developers understand your technology and capability Understand their procurement process – Achilles, FPAL, UVDB... Where Will You Add Value? Step change in installed cost required Series production techniques – economies of scale Innovation – eg structures, installation, control systems, condition monitoring... Develop technologies – learning from oil & gas experience Early engagement

12. QUESTIONS