OPPORTUNITIES IN ENERGY Innovation in Offshore Wind support structures Supporting a globally competitive Scotland
Offshore Wind Key Facts Contents 2 Introduction The Offshore wind opportunity Innovation in offshore wind 3 Support structures Scottish offshore wind sites 4 Support structure installation The challenges 5 The opportunities Potential innovation opportunities 6 The market for support structures 7 The local supply chain for support structures How Scottish Enterprise supports innovation 9 Summary
Introduction This paper is the first in a continuing series detailing the findings of technology and market based research carried out by Scottish Enterprise to identify opportunities open to Scottish industry, higher education and other organisations in segments of the energy market. The support mechanisms available from Scottish Enterprise to assist in their realisation are also listed. The offshore wind opportunity The potential investment of 100 billion (BN) UK offshore wind markets over the next 10 years offers a significant economic growth opportunity for Scotland. World class offshore oil & gas operating experience, engineering and higher education expertise and the ports infrastructure Scotland possesses, together with its wind resources, means we are well positioned to reap the benefits that offshore wind development offers. Success in Scottish & UK markets could be a springboard for Scottish companies to access global markets. Recent analysis has shown that if the offshore renewables industry is developed to its full potential the estimated economic benefits to Scotland would be over 28,000 full time jobs and more than 7BN Gross Value Added to the Scottish economy (1). As a result, achieving this vision has been identified as a key strategic priority by the Scottish Government and Scottish Enterprise. Innovation in offshore wind With respect to offshore wind innovation, these papers aim to highlight ways of: cutting the cost of energy of offshore wind projects by 30% (a challenge outlined in the Offshore Wind Industry Route Map) (2), particularly at more challenging sites (for example with deeper water, difficult seabed conditions, smaller weather windows) reducing the risks and uncertainty associated with these projects promoting the mass manufacture and deployment of offshore turbines in order to deliver economies of scale and meet ambitious renewable policy targets enabling companies to win more value from local projects and grow their export earnings This first paper outlines some opportunities for the application of innovation to the design, manufacture and installation of support structures. There should be opportunities to build on established Scottish oil and gas companies in this area, such as offshore construction contractor Burntisland Fabrication, to become a centre of production of support structures, supplying UK Round 3 offshore wind sites and markets further afield, in line with ambitions captured by the Offshore Wind Industry Route Map. Sources: 1/2) Scottish Government - Offshore Wind Industry Group (OWIG) website at http://www.scotland.gov.uk/publications/2010/09/28115850/0 2
Support structures There are five main types of support structure (or foundations) that can be considered for offshore wind projects: Gravity base structures placed onto the seabed Monopiles driven into the seabed Tripods three steel piles driven into the seabed Jackets steel lattice structures Floating foundations different concepts are under development Choice of structure type depends on site-specific conditions including water depth and seabed properties as well as the size and weight of the turbines being used. All of these designs are still evolving and the structures that are able to offer the best proposition to developers will gain a strong hold in a new rapidly growing and global market. Support structures are a key element in any offshore wind project and including their installation costs they typically account for around 20% of a project s total costs (3). A typical offshore wind project costs around 3.0M per MW deployed. Cost breakdown of a typical offshore wind project: Development Expenses (10.0%) Wind Turbine (44%) Electricals (16%) Support Structure (6.0%) Support Structure Installation (9.0%) Other Installation (2.0%) Scottish offshore wind sites The Scottish territorial water and Round 3 offshore wind leasing sites (4) have some advantages over more southerly sites in that their wind speeds are higher and the sites themselves are generally closer to shore. However, they also present particular challenges, most notably their depth (which averages around 35m) (5), their seabed conditions (at around half of the sites there is up to 20 meters of looser material over the bedrock) (6) and their weather conditions, which can restrict access (mean wave heights on sites off the west coast average around 2m) (7). These factors affect the choice of support structure. Monopile foundations are best suited to shallow sites (20m or less), sub-5mw turbines and ground conditions which allow piling. Tripod designs have significant steel requirements at greater depths, pushing up their costs. Gravity base structures (GBS) are an option, but mainly where conditions allow them to rest on bedrock. Floating structures are still under development and the most advanced designs, namely Spar buoys and Tension Leg Platforms require depths of more than 50m (8). Therefore it seems that jackets are in an excellent position to capitalise on these sites (9). Relative to other designs, their costs increase less rapidly with depth. A sweet spot for jackets is believed to exist in 30-50m water depths, which accounts for approximately ¾ of the Scottish offshore leasing sites. They also distribute their load on the seabed more widely, making them better suited for seabed conditions where there is looser material over the underlying bedrock. Cost saving innovation targeted at these conditions would not only disproportionately benefit the development of Scottish sites, it would also facilitate the development of similar sites (and generally all offshore project sites have a variety of seawater depths and conditions in them). Opposite page sources: 3) Douglas Westwood Offshore Wind Innovation Draft Interim Report page (March 2011) 4) These sites are listed on the Crown Estate website at http://www.thecrownestate.co.uk/scottish-offshore-wind for the Scottish territorial sites and the Round 3 Scottish sites at http://www.thecrownestate.co.uk/our_portfolio/marine/offshore_wind_energy/round3/r3-developers.htm 5) Scottish Enterprise Foresighting team 2011 estimates based on information on sites available at 4COffshore.com website at http://www.4coffshore.com/windfarms 6/7) Garrad Hassan Offshore Wind Techno-economic market foresighting page 8 (March 2011) 8) National Renewable Energy laboratory Engineering challenges for floating offshore wind turbines page 7 (October 2005) 9) As ref 3 page 65 (March 2011) Innovation in Offshore Wind Foresighting Report
60 Mean project water depth (m ) 50 40 30 20 Wigtown Bay Islay Beatrice Inch Cape Neart na Gaoithe Beatrice Demonstrator Moray Firth (Phase one) Firth of Forth (Phase three) Firth of Forth (Phase two) Firth of Forth 10 Argyll Array The Beatrice 10MW Wind Farm Demonstrator Project (commissioned in 2000) was the first offshore wind site to be developed in Scotland and utilised jacket style foundations. The jackets, designed by OWEC Tower AS of Norway, are secured to the seabed with four piles. Fife s Burntisland Fabrication (Bifab), under license to OWEC, delivered the two jackets needed for the project. The OWEC Jacket Quattropod design is over 60m in height, is made of steel and weighs 550 tonnes, considerably lighter than alternative structures. Support structure installation Calm weather and stable sea conditions are key variables affecting installation work. Support vessels for installing support structures need specialist controls to provide high accuracy positioning, novel crane and loading arrangements and roll reduction in poor weather conditions. The more the window of construction could be extended the lower the project cost. There could be opportunities to do this by the development of specialist vessels, equipment and electro-mechanical control systems for installation work. To date, experience from recent offshore wind projects shows that foundation installation rates typically averages one every two days. The installation method varies depending on foundation type. Jacket foundations are currently installed using a crane barge and are transported offshore and installed in one piece. The challenges 10 20 30 40 50 60 70 80 Distance from shore (km) The cost challenges below are based on a need to offset expected future reductions in revenue as UK Government support is scaled back in 2015, rising material costs and to the cost of deploying structures in deeper waters. The manufacturing and installation challenges are based on a desire to deliver economies of scale and assist meet ambitious renewable energy policy targets. Reduce the cost of structures in 30-60 meter water depths and seabeds with up to 20 meters of looser material over underlying bedrock by 30% against a benchmark of 0.75M/MW at 35m depth Reduce the cost of structure installation in 30-60 meter water depths by 30% against a benchmark of 0.3M per MW installed Enable the faster production of structures. Achieving production of 3 or 4 structures from a single site would greatly assist meet projected demand. Enable installation rates of greater than one structure every two days Widen the weather window available for installation through, for example, access systems that are able to work in waves of greater than 1.5m height and 15m/sec wind speed 4
The opportunities New foundation designs could have lower mass per MW supported or lower materials costs. There may be significant opportunities to cut costs and increase deployment rates through innovation in manufacturing and installation. Garrad Hassan work on Offshore Wind Foresighting for Scottish Enterprise in 2010 (10) identified the innovation opportunities listed below for foundations and foundation installation. Additional opportunities are likely to exist. For example, activity is underway to see if it is possible to float structures to their installation points removing requirements for specialist installation vessels. There may be opportunities to migrate know-how from other sectors such as aerospace into this area. Potential innovation opportunities Foundations Develop new support structure concepts Standardise support structure selection and design Automated welding of cast or forged support structure nodes Improve designs through better validation Description of innovation Design changes that cut weight or material costs or increase manufacturability are desirable. Standardisation could offer dramatic reductions in cost and construction time. The difficulty is to achieve a range of standard designs suitable for a wide range of site conditions, soil conditions and turbine sizes. This could dramatically reduce the cost and time for construction. Prefabricated nodes simplify the welding required to the point where automation may be justified. This is a specific opportunity related to manufacturing but there are likely to be others in this area Validation by measurements on operating offshore jackets could identify areas of conservatism, allowing design standards to be reduced, thus saving cost. Estimated foundation cost saving 20% 10% 10% 5% ESTIMATED OVERALL SAVING 45% Installation New techniques for installation Description of innovation There is an over reliance on oil and gas installation techniques that may not be appropriate for offshore turbines. New surveying, handling, positioning and installation techniques for foundations could reduce the cost of the process or the cost of vessels required or time on site. This could include the development of specialist vessels, equipment and electro-mechanical control systems for installation work. Estimated Installation cost saving 5% Multi-pile installation Piling noise control Subsea rock pile-drilling Pile installation is a major cost and weather risk for foundation concepts based on multiple piles, like jackets. Techniques could be developed to install several piles at once. Piling noise may affect marine life and could become a major restriction on the construction timetable. Reducing the transmitted noise could reduce the problem considerably. In some sites, particularly Scottish waters, the soil is not suitable for conventional piling. Techniques for drilling rock at sea will be required. 5% 5% 5% ESTIMATED OVERALL SAVING 20% Source: 10) Garrad Hassan Offshore Wind Techno-economic market foresighting page 11 and Annex1 (March 2011) Innovation in Offshore Wind Foresighting Report
The market for support structures Based on the most recent information on UK sites the total market size for foundations and foundation installation can be estimated as follows Estimated size of market opportunity for support structures (MW) size of undeveloped projects ( M) Value of foundation capex B ( M) Value of installation of foundations c approximate number of foundations d All Scottish sites A 9,745 4,873 2,924 1,949 Round 3 non Scottish sites 30,900 15,450 9,270 6,180 Round 1 & 2 not under construction 3,445 1,723 1,034 689 European sites E 28,000 14,000 8,400 5,600 Rest of the World E 8,000 4,000 2,400 1,600 TOTAL 80,090 40,045 24,027 16,018 A: Actual lease site capacity less Bell Rock, Forth Array, Kintyre site B: Assumes 0.5 M/MW C: Assumes 0.3 M/MW D: Assumes 5.0 MW Turbines E: Based on Scottish Offshore Wind: Creating an Industry Scenario A 2020 numbers Price Waterhouse Coopers (13) have estimated that 2/3 of all the planned UK offshore wind capacity will need to be built by 2020 to meet Government policy targets. In addition to these opportunities there will be considerable activity in UK and European waters and further afield. These would represent an upside market opportunity for jacket structures. Work conducted by Scottish Enterprise in June 2010 estimated that by 2020 some 28,000 MW of capacity could be built in European waters, with a further 8,000 MW in other markets (14). Source: 11) Crown Estate and Scottish Enterprise research (11) 12) Presentation by Douglas Westwood on 4th March 2011 to Scottish Enterprise Foresighting team 13) Price Waterhouse Coopers Meeting the 2020 renewable energy targets: Filling the offshore financing gap page 5 (July 2010) 14) IPA Scottish Offshore Wind : Creating an Industry : Scenario A page 26 (August 2010) 6
The local supply chain for support structures Delivering the innovation opportunities outlined above will likely require changes to the design, manufacturing and installation of these structures. Below is a list of potential parties that could become involved: Academic institutions: There are several research groups with capabilities in this area. For example, the University of Strathclyde has a manufacturing centre of excellence, which has already collaborated with BiFab in order to identify manufacturing technologies with potential to improve production rates. This group works across multiple industry sectors and has identified potential to utilise technologies from aerospace and car manufacturing in the production of offshore wind structures. Structural design houses: There are numerous engineering and design houses in Scotland which specialise in structures for oil & gas. This expertise is highly applicable to the design of structures for offshore wind. Major players are clustered around the Aberdeen area with key players including Xodus and JP Kenny. Project Developers / Utilities: ScottishPower Renewables and SSE Renewables have several projects in Scottish waters, which are likely to require deep-water technologies. In the scoping documents for these projects, jackets are specifically mentioned as foundation options. SSE Renewables have specific experience in this area through the Beatrice project and have also taken an equity stake in BiFab demonstrating commitment in the market going forward. Jacket Manufacturers: BiFab are currently a leader in the field of jacket manufacture through their supply of structures to the Beatrice and Ormonde projects. As several competitors (Weserwind, SLP) are part of much larger full-service EPC companies, there will be a requirement in the future to offer design and engineering skills in addition to manufacturing capabilities. For this reason BiFab is building capabilities in these areas through a partnership with the engineering house Atkins. Other parties that could become involved include ship builders, specialist vessel providers, service providers for offshore installation, maintenance and inspection. How Scottish Enterprise supports innovation Scottish Enterprise (SE) has a number of R&D and innovation support mechanisms that can assist companies from the early stages of investigating market and technical feasibility; through product, process or service development; to market launch. This is a summary of the innovative support services we offer: Innovation Support Service The Innovation Support Service is an impartial advisory service available, free, to all companies needing advice and guidance on innovation projects. Many companies engage too quickly in development activity without fully understanding the critical factors that will impact and inform the business case of a project and ultimately its success. The Innovation Support Service is focused on helping with the front-end planning process and developing robust business cases for your innovation project. As well as providing advice and guidance, our experienced innovation advisers will help identify and link your business to relevant partner organisations and point you to relevant sources of further support. The Innovation Support Service is frequently the first step that assesses companies and their innovation projects for follow-on SE innovation consultant support or grants. Innovation in Offshore Wind Foresighting Report
SMART: SCOTLAND The SMART: SCOTLAND programme is a single company R&D support scheme that aims to stimulate the creation of new innovative businesses and to help existing small businesses improve their competitiveness by developing new products and processes. SMART: SCOTLAND Support for Feasibility Studies is an open competition where companies may apply for support for Technical and Commercial Feasibility Studies. Support is available at up to 75% of the eligible costs. The maximum grant is 70,000. Projects must last for at least 6 months and no more than 18 months. SMART: SCOTLAND Research and Development Grant is available to enable companies to develop a preproduction prototype of a new product or process and can support up to 35% of the eligible costs, up to a maximum grant of 600,000. Research and Development projects must take at least 6 months, and no more than 36 months to complete and involve eligible costs of at least 75,000. The R&D Grant The R&D Grant is a discretionary grant that can support the eligible costs of all sizes of companies that wish to grow through the development of new products, process or services in Scotland. The grant is for projects with activities that fit within the European Union definitions of industrial research and experimental development (essentially activities up to the point of creating a prototype). Projects must represent a significant innovation, with significant risks, for the company concerned. Scottish Manufacturing Advisory Service SMAS provides expert advice, one-to-one support, training and events for manufacturing companies of all sizes throughout Scotland. The practitioner team consists entirely of hands on experts in process improvement and lean manufacturing, and allied disciplines. The starting point is the free SMAS manufacturing review that will explore a company s manufacturing and associated processes and identify ways to improve productivity. Proof Of Concept Researchers from Scotland s universities and research institutes can receive funding and support to turn their ideas into a business. Proof of Concept funding will cover 100% of salaries, consumables, market assessment, patent costs, subcontracting, travel, and essential equipment. Applications should be earlystage ideas that have typically reached patent level and could lead to the establishment of new, highgrowth businesses in Scotland and must have been approved and endorsed by the Principal/Director of the Institution and its commercialisation office. Offshore Wind Expert Support Expert Support is designed to help companies consider and build diversification strategies to enable them to win business in the offshore wind sector. The focus of the support is on identifying and exploring potentially profitable revenue streams and culminates in the production of a company specific action plan. Companies receive 2-days of fully funded support delivered by specialists who have knowledge and experience of the Offshore Wind sector. The National Renewables Infrastructure Fund The National Renewables Infrastructure Fund (N-RIF) has been established to support the development of port and near-port manufacturing locations for offshore wind turbines and related developments including test and demonstration activity, with the overall aim of stimulating an offshore wind supply chain in Scotland. 8
National Renewables Infrastructure Plan Scottish Enterprise <back to contents Summary Support structure designs and installation procedures are still evolving and the structures that are able to offer the best proposition to offshore wind project developers will gain a strong hold in a new rapidly growing and global market. Jacket support structures are particularly well matched to the conditions of Scottish offshore sites. They are also suited to newer larger and heavier offshore wind turbine designs. Scottish Enterprise is looking to support a 30% reduction in their capital and installation costs and/or enable faster manufacturing and installation. Contacts at Scottish Enterprise: Innovation Funding: Contact our Enquiry fulfilment & research service via email using offshorewind@scotent.co.uk or via 0845 607 8787 Scottish Enterprise prior publications in offshore wind Scottish Enterprise has produced other work in this area which is available at the following website: www.scottish-enterprise.com/offshorewind Further papers on Innovation in offshore wind (and in other energy market segments) are planned for release later this year. Offshore Wind Key Facts National Renewables Infrastructure Plan Report from Scottish Enterprise and Highlands and Islands Enterprise Scotland s Enterprise, Innovation and Investment Agency Supporting a globally competitive Scotland Innovation in Offshore Wind Foresighting Report
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