Renewable Energy Session sponsored by. Chaired by: Brendan Moffett, Marketing Sheffield

Transcription

1 Renewable Energy Session sponsored by Chaired by: Brendan Moffett, Marketing Sheffield

4 Key principles of UK (BIS) Industrial Strategy Long-term, whole of Government approach Partnership with business at its heart Building confidence and give greater certainty Covering sectors, technologies and innovation, R&D, access to finance, procurement and skills 4

5 Strategic partnerships the sectors Early 2013 Spring 2013 Summer 2013 Aerospace Automotive Nuclear Information Economy Offshore wind Construction Professional Business Services Education Oil and Gas Agri-tech Life Science Strategy Dec 2011 Life Science Strategy one-year-on Dec

6 UK Catapults accelerating R&D/Innovation to commercialisation High value manufacturing Offshore renewable energy Cell therapies Satellite applications Connected digital economy Future cities Transport systems 6

8 Why Does the UK need Renewable Energy? SUSTAINABILITY Climate Change COST (?) Ofgem Oct 2009 (2020 prices to customers rise least in scenarios with most renewables) GREEN JOBS ENERGY SECURITY Siemens All rights reserved.

9 SIEMENS is Market leader in offshore with 2.0 GW installed Burbo Banks, UK 25 x SWT (2007) Vindeby, DK 11 x 0.45 MW (1991) Lynn / Inner Dowsing, UK 54 x SWT (2008) Middelgrunden, DK 20 x SWT (2000) Gunfleet Sands, UK 48 x SWT (2009) Samsø, DK 10 x SWT (2002) Rhyl Flats, UK 25 x SWT (2009) Walney I & II, UK 102 x SWT /120 (2012) Rønland, DK 4 x SWT (2002) Greater Gabbard, UK 140 x SWT Sheringham Shoal, UK 88 x SWT Pori, FIN 1 x SWT (2010) Baltic I, DE 21 x SWT (2010) Rødsand/Nysted, DK 72 x SWT (2003) Frederikshavn, DK 1 x SWT (2003) Horns Rev II, DK 91 x SWT (2009) Rødsand II, DK 90 x SWT (2010) Lillgrund, SE 48 x SWT (2007) Hywind, NO 1 x SWT (2009) Source: SWP Siemens All rights reserved.

10 Many projects in execution phase, also outside Europe London Array, UK 175 SWT Anholt, DK 111 x SWT Lincs, UK 69 x SWT Baltic 2, DE 80 x SWT Gwynt Y Mor, UK 160 x SWT Borkum Riffgat, DE 30 x SWT West of Duddon Sands, UK 108 x SWT Dan-Tysk, DE 80 x SWT Teesside, UK 27 x SWT Borkum Riffgrund 1, DE 77 x SWT Amrumbank West, DE 80 x SWT Rudong Intertidal, CHN 21 x SWT Source: SWP Siemens All rights reserved.

14 Elements of offshore wind Supply Chain Wind Turbine c45% of Capex HVDC Converter Stations Foundation 20% Array cables 7% Collector Substation 5% High Voltage Marine export cable 5% AC Substation & Reactive Compensation 5% Medium Voltage Array switch 1% Page 14 Onshore export cable 5% April 2011 Steve Aughton Capex % is typical and all forrights guidance only Copyright Siemens reserved

18 Offshore Supply Chain Challenges Key Challenges for the Offshore Supply Chain Manager Offshore turbines and their components continue to grow in size and weight. How will I physically handle these big and heavy components? Customer demand is always changing. And so are technology designs. How will I keep the offshore facility flexible - being able to scale up or down as needed - while keeping the investments low? The pressure to reduce costs is immense. How will I provide components at lowest cost and how will I increase cost efficiency in pre-assembly and installation? Reliability of our offshore turbines and equipment is one of SIEMENS' major success factors. How will I answer all questions above and keep our quality at the required level? Page 18 April 2011 Steve Aughton Copyright Siemens all rights reserved

20 Agenda UK Industrial Strategy UK Offshore Windpower Supply Chain Opportunities & Challenges Windpower and Steel Summing Up Page 20 April 2011 Steve Aughton Siemens All rights reserved Copyright Siemens all rights reserved.

21 Scope for Steel in Offshore Wind Planned capacity not yet built = 40 GW Typically 300t/MW (Germanische Lloyd estimate) = 12 million tonnes of steel This is just the UK s planned development. Germany, France, Norway etc are also developing big offshore projects (approximately doubling the amount of steel) Germanische Lloyd project a European volume of 1.5 Mtpa, mostly in plate, lasting till approximately 2025 Siemens All rights reserved.

22 Scope for Steel in Offshore Wind The Manufacturing Operational Challenge: With the largest machines today around 6MW 40 GW is 6500 turbines 6,500 sets of jackets or piles The Engineering Challenge: Every turbine represents: >300t of rotating machinery 120m in the air In 50-60m of water Up to 300km from the shore Images: 6 MW DD prototype in Denmark (onshore testbed, operational since 2011) Siemens All rights reserved.

26 Infrastructure Offshore Substations Round 3 subs will be even bigger (or multiple units, so more steel either way) Topsides may be ~10-12 kt - Same height as the Tower of Pisa - Footprint of a football pitch - Weight of the Eiffel tower! So: very large jackets required as big as anything in Oil and Gas Siemens All rights reserved.

27 Summary Massive opportunity for UK Supply Chains Around 12 million tonnes of steel yet to be ordered for UK Offshore wind farms Most of it in offshore structures and towers (ie plate), that all need fabricating and machining. The last big chance for large scale plate & fabrication in the UK? - Right location - Right technical pedigree (North Sea Oil) - Right Skills, Innovation and levels of investment? Siemens All rights reserved.

29 Renewable Energy Session sponsored by Case Study

30 David Oswin Offshore & Renewables Sales Manager MTL Group Limited Journey Into Renewables

31 Who Is MTL Group?

32 MTL Group is a contract engineering & manufacturing company operating in the defence, construction, rail & renewable energy sectors

33 Established: 1995 Based: Rotherham, UK Turnover: 50m Employees: 330 Manufacturing space: 28,000 m2.

34 MTL Group Limited - Rotherham Facility MTL Group HQ is a modern 18,000 m2. manufacturing facility based on a 28 hectare secure site.

35 Investment In Facilities - Port of Blyth From South Harbour 2011 MTL Group Limited invest in a new dockside Facility From this site we are able to handle fabrications in excess of 300t in weight.

36 MTL Group Limited What Does MTL Group Do?

37 Cutting Facility

38 Facilities - Cutting 8 Laser Cutting Machines Bevel cutting facility to 50 deg Up to 30mm laser cut 3 large format machines up to 20m x 3.5m CNC Profi ling Machine 10m x 4m cutting area 4 head cutting 2 High Defi nition Plasmas Twin head cutting Large format 25m x 5m x 40mm Latest technology in plasma cutting High speed cutting Bevel cutting facility to 40 deg Robotic Plasma Pipe Cutting 1m Dia x 40mm wall thick Holes, Chamfers & Preps cut

39 Facilities Water Jet Cutting 12m x 3m cutting area 4 cutting heads Bevel cutting option up to 50 degrees Any material processed up to 200mm thick Cold cutting process no HAZ

40 Bending and Machining Facility

41 Facilities Press Braking 1 Ursviken CNC 7.2m x 640t Robotic handling system. Angle checking device 0.5 degree accuracy. 1 Ursviken CNC Press 7.2m x 640t 2 Ursviken CNC Presses 4m x 200t 1 Euromac CNC DIGIBEND 1 CMZ Pyramid Rolls.

42 Facilities CNC Machining Mazatech CNC Twin Pallet machining centre Awea VMC 4 Hartford Blockbuster VMC Wadkins CNC Router

43 Facilities - Welding Assembly

44 Facilities - Fabrication 6 No Fanuc Robotic Welding Systems BS EN ISO 3834 Part 2 32 manual welding cells 100+ qualifi ed welders PCN Level 2 NDT

45 Accreditations & Approvals Accreditations BS EN ISO 9001: 2008 ISO FPAL EEMUA 158 DIN Norsok M101 DNV Approvals Aker Solutions Weserwind Ambau BiFab OpenHydro Soil Machine Dynamics BAE Systems Lockheed Martin General Dynamics Rolls Royce Aker Solutions

46 Sales by market sector Green sector manufacturing represents a quarter of our business Renewables 15% Construction 18% Recycling 9% Rail 7% Other 6% Defence 26% Quarrying 19% Diversified markets reduce effects of cyclical swings

47 Market Sector - Construction Laser cut and machined parts from mild steel and Hardox material. Large pressed chassis components from high strength steels Robotic and manually welded chassis components Laser cut and robotically formed Components

48 Market Sector - Quarrying Robot welded vibrating grids manufactured from Hardox steel Laser cut, pressed and machined assemblies Hopper / Chute fabrications Large chassis related fabrications Hydraulic & Fuel tank fabrications

49 Market Sector - Defence IED Protection Mine roller assemblies Robot welded fabrications Assembly of wheel and hydraulic system

50 Market Sector - Defence Foxhound Vehicle Replacement to the Snatch Land Rover High strength blast armour Fully fabricated at Rotherham High volume manufacturing

51 Market Sector - Defence Armoured Vehicle Hulls Laser cut and pressed high strength ballistic steel High strength blast armour Complete hull/pod manufactured in Rotherham

52 Market Sector - Recycling Fabricated Truck bodies Wear resistant & high strength steel fabrications Side Body panels High yield strength, low weight components

53 Market Sector - Rail Sub Surface Line (London) Competitive tender (UK /Overseas) CNC Water jet & Laser cutting CNC Bending & Machining Safety critical fabrications Final Bolster assembly

54 MTL Group Limited Investing in the latest state of the art machinery

55 Robot Press

56 Journey Into Renewables

57 Overview Today offshore wind contributed 1.5% of the UK s electricity supply and that figure will significantly increase in order to achieve the 2020 renewables target The Crown Estate, UK Offshore Wind, P3, 2012

58 The Opportunity DECC has predicted that as much as 18GW of offshore wind could be deployed by 2020, with the possibility to reach 40GW by 2030 EIC, offshore wind supply change challenges, P6, May 2012

59 The Opportunity This is a estimated offshore wind market potential of 8,000 Wind Turbines 12,000 Boatlanding systems 120,000 tonnes of processed steel

60 Ready For Round 3 Blyth Rotherham

61 Renewables Sales ( m) 7 Nil To 7m In 5 Years Forecast

62 2012 Renewables Export Sales Growth 2006

63 Offshore Wind Projects Ormonde - UK Nord Sea Ost - Germany Borkum West - Germany Meerwind - Germany Humber Gateway UK Cable Reels - Worldwide

64 Offshore Wind - Ormonde Operational

65 Offshore Wind Ormonde Ormonde Wind Farm - 30 Jackets 60 Boat Landing Systems Beams for Working Platform

66 Offshore Wind Nord Sea Ost Wind Farm Customer: Aker Verdal 97 Boat Landing Systems Completed 2013

67 Nord See Ost Offshore Fabrications Platform for high voltage substation

68 Offshore Wind Borkum West Borkum West - 40 Tripods 40 Boatlanding systems Transitional Platforms Installed in Germany

69 Offshore Wind Humber Gateway Humber Gateway - 16 Monopiles 16 Boatlanding Systems

70 Offshore Cable Reel Fabrication

71 Offshore Reel Fabrication in our Blyth Facility

72 Strategy for Growth 1. Understanding the sector 2. Investment in facilities 3. State of the art machinery 4. Investment in people

73 Investment In Facilities - Port of Blyth South Harbour 2011 MTL Group Limited invest in a new dockside Facility From this site we are able to handle fabrications in excess of 300t in weight.

74 State of the Art Machinery

75 Investment In People Six Sigma Deployed since Black Belts Training carried out by Caterpillar Six Sigma team Roll out programme to train all employees as Yellow / Green belts 12 improvement projects on-going

76 Investment In People Investing in Young People 16 Apprentices are currently training at our Rotherham site

77 MTL Group Limited In The Community Brinsworth 10k Charity Run Raising money for Rotherham Hospice, our nominated charity

78 Investing In People Investing in international offshore welding qualifi cation training FPAL DNV IIW Norsok M101

79 The Next Phase Wave & Tidal Nuclear Wind Tower Internals Subsea Joint Ventures with Europe

80 Next Phase Wave & Tidal

81 Next Phase - Wave & Tidal

82 Next Phase - Nuclear Hinkley Point

83 Next Phase Wind Tower Internals

84 Next Phase - Subsea Courtesy of SMD

85 Summary MTL has established itself as the leading supplier of secondary steel work for offshore wind foundations. It has a proven track record of meeting demanding offshore requirements It has the latest state of the art equipment specifi c to the requirements of renewables MTL is ready to play a leading role in the UK meeting its carbon/reduction targets and energy requirements

86 Your Partner In Renewable Energy

87 Thank you Dave Oswin Tel: Fax:

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