Clarksons Renewables Offshore Wind Project and Vessel Newsletter

Clarksons Renewables Newsletter

WEEK 34

Approaching Disappointing AR5 Auction Results

by David Matthews, Head of Strategy, Clarksons Offshore

As we edge closer to the UK Government AR5 auction results, a mix of hope and concern fills the air. While we're eager for positive news, it's important to be realistic about possible challenges.

RenewableUK, a trusted voice in the renewable energy sector, has highlighted factors that could shape the auction's outcome. According to them, tough economic conditions and strong global competition for skills, supplies, and investment lie ahead. As we anticipate the results, it's wise to prepare for potential disappointment.

Post pandemic and war in Europe has reshaped the renewable energy landscape. Disruptions in supply chains, increased commodities prices and higher interest rates have increased costs for developers and suppliers.

This period has emphasized adaptability, particularly for the energy sector. The world's focus on decarbonization has intensified the competition for essential resources. In this context, the UK faces tough competition from nations with more supportive policies and attractive power prices.

Despite these challenges, public support for renewable energy remains strong. This shift isn't just about reducing carbon emissions; it promises economic growth by creating well-paying jobs, especially in coastal communities. By 2030, offshore wind projects could offer jobs to over 100,000 people.

As we anticipate the AR5 auction results, Energy UK's view should also be considered. They point out a potential gap in this round due to budget limitations and pricing issues that haven't accounted for current market realities. This shortfall of at least 4.8GW of offshore wind capacity translates to powering around 5.5 million homes. This not only slows down cleaner energy adoption but could cost consumers up to ￡530 million due to reliance on expensive imported gas.

Given these challenges, calls for government action grow stronger. Industry experts seek a review of auction methodologies to ensure they reflect today's market dynamics. This is vital as global competition for resources and skills increases. A strong foundation is crucial for the renewable sector's success.

No matter the result, it's crucial to quickly learn and adjust for upcoming auctions. Cycles of rapid growth and decline that disrupt progress can have longer term effects, giving rival markets a chance to grab resources and forge ahead. The UK market has seen this before.

OFFSHORE RENEWABLES NEWS

The world's largest floating offshore wind farm, Hywind Tampen, has officially opened. This project was developed by Equinor together with it’s partners Petoro, OMV, V?r Energi, Wintershall Dea and INPEX Idemitsu. The wind farm consists of 11 wind turbines based on the floating Hywind concept, developed by Equinor and it has a system capacity of 88 MW. Apart from being the world’s largest floating offshore wind farm in operation, it is the first wind farm to supply electricity to oil and gas platforms. The wind farm is managed from Equinor's office location in Bergen. Source: Equinor

Prysmian was selected by transmission system operator Amprion as preferred bidder for the BalWin1 and BalWin2 offshore grid connection systems and the DC34 underground cable project. The contracts, with a total value of around €4.5 billion, are to be completed by 15 January 2024. These projects are essential to Germany's goal of achieving 70 GW of offshore wind energy capacity by 2045. BalWin1 and BalWin2 will each transmit up to 2 GW of energy from the wind farms in the North Sea to the connection points in Wehrendorf and Westerkappeln. Single-core ±525 kV HVDC copper cables with P-Laser insulation with a total length of around 2,100 km will be used. Source: Prysmian?

Fred. Olsen’s jack-up installation vessel Bold Tern has installed half of the wind turbines at Changfang & Xidao. The company said it is aiming to complete turbine installation by the end of the year. Located off the coast of Changhua County, CFXD is a 600-MW project using 62 V174 9.6MW offshore wind turbines supplied by Vestas.#

The V174 9.6MW model is currently the largest commercial machine in the APAC market with typhoon certification. Source: Clarksons Renewables Intelligence Network

Artemis Technologies has revealed an updated crew transfer vessel (CTV) design for offshore wind operations. The Artemis EF-12 CTV is designed to transport technicians to and from windfarms, offering an optional extra propulsion system for maneuvering near turbines. With room for 12 passengers, the vessel focuses on comfort during extended trips, featuring an expanded interior and safety enhancements. The EF-12 CTV also boasts improved communication and real-time fleet management capabilities, reducing downtime. Artemis Technologies, in collaboration with ?rsted, Tidal Transit, and Lloyd’s Register, plans to deploy the EF-12 CTV at ?rsted’s Barrow offshore windfarm. The project received ￡2.4 million funding from the Clean Maritime Demonstration Competition Round 3, a partnership between the UK’s Department for Transport and Innovate UK. Source: Artemis Technologies

MEET CLARKSONS AT RENEWABLES EVENTS

ADIPEC, Abu Dhabi?| 2nd – 5th October 2023 | More information

ACP, Boston | 3rd – 4th October 2023 | More information

Floating Wind, Aberdeen | 4th – 5th October 2023 | More information

Wind Energy Taiwan, Taipei | 18th - 20th October 2023 | More information

10th Asia Offshore Wind Day, Busan | 24th October 2023 | More Information

Offshore Energy, Amsterdam | 28th – 29th November 2023 | More information

UK-based AMS Trenchles has secured the cable landing works contract for ?rsted's Hornsea Three offshore wind farm. The company will carry out specialist tasks at the landfall site in Weybourne, North Norfolk, where the offshore cables will be connected to the onshore cables. The North Lincolnshire company will use Horizontal Directional Drilling (HDD) to lay underground cable ducts so that the transmission cables can be pulled ashore from a jack-up vessel without the need to trench or disrupt existing sea defences.

Hornsea Three, a 2,852MW project awarded a Contract for Difference (CfD) in July 2022, is expected to include up to 231 wind turbines and will be located 120 kilometres off the North Norfolk coast. The final investment decision is expected later this year. Offshore construction is scheduled to start in 2025 and be completed by 2027. Source: Offshore WIND

Hellenic Cables has received an order from 50Hertz Offshore for two export cable systems connecting the western offshore substation of the Gennaker wind farm to the German grid. Hellenic Cables' scope includes the design, engineering, manufacture, supply, installation, testing and commissioning of 80 km of 220 kV submarine cables and 210 km of 220 kV underground cables and accessories. The cables will connect an onshore substation near Gnewitz to the western substation of the Gennaker offshore wind farm. Manufacturing will take place at Hellenic Cables' plants in Corinth and Thiva, Greece.?The 927 MW offshore wind farm is in the German Baltic Sea. The project is scheduled to be completed and delivered by 2027. The contract is worth around 450 million euros. Source: Hellenic Cables

Seaway 7 has contracted the Correll Group to carry out the termination and testing of 29 inter-array cables and four landfall export cables on Zhong Neng Offshore Wind Farm. The scope also includes pre and post engineering tasks along with logistical operations. This wind farm is located around 10km to 17km off the west coast of Changhua in central Taiwan and spans across 36.54km2. The project will be split into two campaigns, with the initial one scheduled for July 2023. This phase involves splicing and testing export fiber optic cables at the onshore Transition Joint Bay. The subsequent phase, projected to start in Q2 2024, will encompass termination and testing activities for high voltage power cores and fiber optic cables within the export and inter-array subsea cables. Comprising 31 Vestas V174-9.5MW turbines, the Zhong Neng Offshore Wind Farm boasts a total capacity of 298MW, sufficient to power approximately 300,000 Taiwanese households annually. Source: Correll Group

The first turbine has been installed at the EDF Renouvelables Provence Grand Large floating offshore wind project in France. The floating turbine is the first to be installed as part of a pilot project in France and the first in the Mediterranean Sea. Once completed, the project will comprise three 8 MW wind turbines. Source: Siemens Gamesa

The US Bureau of Ocean Energy Management (BOEM) has granted approval for the 704 MW Revolution Wind project. This important decision paves the way for ?rsted and Eversource to build the first offshore wind farm to power Rhode Island and Connecticut. The next step is the approval of the Construction and Operation Plan (COP), which is expected in November. The COP contains detailed information on construction, operation and maintenance, including decommissioning plans, mitigation measures and design alternatives. Onshore construction will begin shortly, while offshore work is expected to intensify in 2024, with the aim of bringing the project into operation in 2025. Once operational, Revolution Wind will provide 400 MW of offshore wind energy to Rhode Island and 304 MW to Connecticut, powering over 350 000 homes. Located approximately 15 nautical miles southeast of Point Judith in Rhode Island, the project will consist of 65 Siemens Gamesa 11 MW class wind turbines mounted on monopile foundations. Source: Offshore WIND

Ampelmann has received a new order to manufacture two more W-Systems for Ulstein on behalf of a German shipping company. This is the second collaboration between Ampelmann and Ulstein to integrate a gangway system into two future vessels. The two W-type systems, which are scheduled for completion by 2025, are part of the first contract, with the client having the option to order two more. These systems are specifically designed for offshore wind turbines and facilitate the safe transfer of personnel and cargo between vessels and offshore platforms. The Type W system has a height-adjustable height-adjustable tower that can range up to 16m. It is also capable of allowing access to trolleys with cargo up to 750kg and can convert into a crane with a lifting capacity of 2mt. The W-type can compensate for waves of 3.5m Hs, making it a viable solution to withstand heavy weather conditions whilst still maintaining its ability to transfer people and cargo. Source: Ampelmann

First Nacelles have arrived for Vineyard Wind One. With the delivery of these massive structures Avangrid's Vineyard Wind 1 has received all components in New Bedford for the first GE?Haliade-X turbines that will power this offshore wind project. The installation of wind turbines offshore Massachusetts is the first work Sea Installer will perform after its recent upgrade that saw the vessel being fitted with a new 1,600-tonne crane. Source: Avangrid and Offshore WIND

Crowley and Morgan Stanley Investment Management (MSIM), through Morgan Stanley Infrastructure Partners (MSIP), have partnered to advance offshore wind energy solutions in the US. The joint venture combines Crowley's maritime and logistics capabilities with MSIP's financial expertise. The primary focus of the collaboration is the repurposing and operation of existing US port facilities to be leased to offshore wind developers under long-term agreements. These terminals will be critical for the manufacturing, assembly and storage of wind farm components, as well as providing maritime services such as Jones Act-compliant feeder vessels. These vessels will provide compliant transport of components from ports to offshore wind farms.???

The joint venture also has ambitions for a US West Coast terminal in Eureka, California, under a public-private partnership. In addition, Crowley has a right of first refusal for a wind terminal in Port Fourchon, Louisiana. This partnership underscores the commitment to strengthening the offshore wind sector in the US by expanding port infrastructure and logistics capabilities. Source: Morgan Stanley.

Contacts

OSLO

Frederik Colban-Andersen?|?Managing Director?

Erik T?nne?|?Managing Director, Market Analysis

Jens Egenberg?| Head of Research Renewables

Anders C. Hagen?| Chartering Walk-2-Work, Subsea

Vegard Volls?ter?| S&P and Newbuilding T&I/CSOV

Espen Bj?rnson?| Chartering Subsea & Wind

HAMBURG

David Matthews?| Head of Strategy Renewables

Rouven C. Willner?| Projects SOV, CSOV

Tim?B?rner?|?Chartering Walk-2-Work, Gangways

Henning Leverkus?| Chartering CTV, Tugs & Workboats

Sina Ingber?| Marketing & Projects

COPENHAGEN

Gabriel Andersen?| Principal Consultant Logistics and EPC

LONDON

Neil Buchan?| Head of APAC Subsea & Wind?

Mikkel Nielsen?| Principal Consultant Logistics & O&M?

Chris Roberts | Chartering and Renewables Consultant

ABERDEEN

James Braid?| Divisional Director Logistics, Transport & Installation

Olivier Candeel?| Chartering & Consultant Transport & Installation

Oliver Thompson?| Market Analyst, Transport & Installation

Chris Tweedie?| Chartering Subsea and Offshore

HOUSTON

Jonathan Lints | Director Subsea and Renewables

Jack Fitzgerald?| Chartering Jones Act Specialist?

Tylor Bojé | Chartering?OSV / Jones Act Lead

SHANGHAI

Jack Qiu?| Projects Newbuilds and China?

SINGAPORE

Tilly Manley?| Chartering APAC Renewables

Smarter decisions.?Powered by intelligence.?

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