International Perspective on Floating Offshore Wind

Rhodri James | The Carbon Trust

Floating Wind UK, Glasgow | 14 November 2017

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Carbon Trust has been working with government and industry to accelerate offshore wind for >10 years

Active in ¾ of the UK’s offshore wind projects

Offshore Wind Accelerator (OWA)

• Collaborative R&D programme involving 9 developers, Scottish Government, & Carbon Trust

• €100m programme (2/3 industry, 1/3 government)• 2008-2017: >100 RD&D projects completed• Leverage ratio = 13.5 : 1• Industry-led, market-pull approach• Programme running to at least 2020

Offshore wind: Big challenge, big

opportunity (2008)

Technology Innovation Needs

Assessment (2012)

Cost Reduction Task Force (2012)

Appraisal of Offshore Wind in

Japan (2014)

Floating Offshore Wind: Market & Technology

Review (2015)

IEA-RETD: International Offshore

Wind Policy (2017)

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Carbon Trust are working with government and industry to accelerate the development of floating wind

Floating Wind JIP: Stage 2Floating Wind JIP: Stage 1Floating Wind Market & Technology Review

2015 2016 2017

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Floating wind is gaining momentum1. Technology has been proven

IDEOL

Kabashima

Fukushima

2-7 MWProject size

2-7 MWTurbine size

1-3Turbine units

~20 MWCumulative IC (in 2016)

Demonstration

Hywind

WindFloat

VolturnUS

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Floating wind is gaining momentum2. Series of pre-commercial arrays set to come online by 2020/21

DCNS

IDEOL

SBM Offshore

Kabashima

Fukushima

20-50 MWProject size

6-8 MWTurbine size

3-8Turbine units

~100-200 MWCumulative IC (by 2020)

Pre-commercial

Hywind

WindFloat

IDEOL

WindFloat

Hywind

VolturnUS

Kincardine

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Floating wind is gaining momentum3. Several commercial projects under development

USA: California + Hawaii

IDEOL

SBM Offshore

Kincardine

Kabashima

Fukushima

200-800 MWProject size

8-15 MWTurbine size

30-100Turbine units

~2-10 GWCumulative IC (by 2030)

Commercial

Hywind

IDEOL

Hywind

DCNS

WindFloat

WindFloat

VolturnUS

FR: Commercial tenderJP/TW: Commercial projects

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An

nu

al in

stal

led

cap

acit

y (M

W)

Bluesky

Installed

Project

6N.B. Installed capacity is weighted against probability. High upside potential with suitable policy support.

Current momentum is at risk, with notable gap in deployment from 2020-2025

• Typical project development timeline = 6-8 years

• Need activity now to create pipeline of projects from 2025

3 GW by 2030

Technology development & selection

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Commercial projects for 2025 need to be developed now

Project developmentPPA /

AuctionFID Construction

Site identification & acquisition

Survey & investigation

Permitting

Policy wish list:

2017 2025

DE-RISKING- Surveys- Consent

- Tech R&DSUPPORT MECHANISM- Ring-fenced

CfD

MARKET VISIBILITY

- Site leasing- Targets

20222021

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Cost reduction: Threat or opportunity?

£57.5 /MWh

Turbine

Foundation

Electrical

Installation

O&M

AEP

WACC

2: Low cost offshore wind means more deployment globally, which will require floating technology

UK:• Offshore wind-heavy UK energy strategy

could require ~50 GW by 2050 (‘Sector Deal’)• 50 GW OSW in the UK will require floating

technology

Global:• Threshold much earlier in several markets

(e.g. Japan, Taiwan, USA)

Export opportunity for first movers

1: Floating can match much of the cost reduction seen in fixed offshore wind, if deployed at scale

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Several challenges for large scale deployment of floating offshore wind

COST+

RISK

Dynamic cables & connectors

Integrated design

Mooring systems

Logistics (construction, O&M)

Substructure optimisation

Wake effects

Floating substation

Environmental & social impact

Turbine optimisation

Monitoring, inspection, maintenance, and repairs

R&D needed to: - Develop and de-risk

technology - Reduce costs

Floating Wind JIP has been set up to investigate commercial deployment challenges for floating wind

Dynamic cables Connectors Substations

Fabrication Installation O&M

Mooring system optimisation Array layouts

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Electrical systems

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Mooring systems

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Infrastructure & Logistics

Three projects delivered in 2017:

Focus on commercial scale floating wind farms

Design basis:

500 MW wind farm

(50 x 10 MW units)

Floating Wind JIP has been set up to investigate commercial deployment challenges for floating wind

Up to five studies planned for 2018, including two currently out to tender:

1: Turbine requirements & foundation scaling

2: Heavy lift offshore operations

Turbine design requirements:- Component sensitivity- Modifications

Impact of larger turbines (10-15 MW) on foundation design:- Substructure & mooring scaling- Scope for optimised integrated

designs

Heavy lift offshore operations:

- Feasibility, challenges, technology development needs

- Floating-to-floating lifts

- Utilising next generation DP2/3 heavy lift vessels

Focus on commercial scale floating wind farms

Design basis:

500 MW wind farm

(50 x 10 MW units)

• Floating wind has potential for large scale deployment within the next decade, supporting the global expansion of offshore wind

• Action needed now to create a pipeline of projects from 2025

• R&D activities are crucial to de-risking the technology and bringing down costs

• Collaboration will be essential to accelerate commercialisation, across sectors

• Floating Wind JIP is striving to accelerate technology development and de-risking

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Summary & Conclusion

Rhodri James, Manager, Policy & Innovation

Rhodri.James@carbontrust.com

Thank you

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