GDG Supports Move By Irish State to Facilitate Port Infrastructure Upgrades focused specifically on the Offshore Wind Sector

Paul Doherty,?Managing Director, GDG

January 4, 2022, Dublin

The offshore wind sector in Ireland is starting to gain increased momentum with the long-awaited Maritime Area Planning (MAP) bill being signed into law on the 23rd December 2021 and the Department of the Environment, Climate and Communications (DECC) publishing the timeline for the first Offshore Renewable Energy Support Scheme (RESS) auction, setting a date of Q4 2022 These major legislative milestones provide a consenting framework and route to market for the first round of offshore wind projects and with consultation underway for defining the Phase Two project strategy, the wider industry can finally see a clear pathway to achieving the Climate Action Plan target of at least 5GW of offshore wind energy by 2030.

Attention must now be focused on the practical aspects of how these 5GW of offshore wind projects will be delivered. In particular, port infrastructure remains a major bottleneck with a lack of suitable infrastructure existing on the Island of Ireland to ensure that all projects can be delivered in a timely manner. To ensure a robust long-term offshore wind sector, it is imperative that a local supply chain is developed to service those areas of the industry which can benefit from local capabilities. Ports can serve as a hub for suppliers to congregate and can act as a catalyst for upskilling and upscaling of maritime businesses to become key suppliers to the offshore wind sector – the positive impact of dedicated ORE Ports on growing the supply chain has been seen in many mature offshore wind markets (e.g. Esbjerg in Denmark).

The need for port infrastructure upgrades is something that is now getting increased attention from both the private and public sectors and this is reflected in a revised policy statement that was released on the 20th December 2021 by the Department of Transport setting out the strategy for commercial ports to facilitate offshore renewable energy activity in the seas around Ireland. The key conclusion from this policy statement was a recognition that significant upgrades at multiple ports will be required to meet the long-term demands of the emerging Offshore wind industry in Ireland and that the Irish government will wholly support this effort through the application for European funding (e.g. Connecting Europe Facility (CEF)). A recognition that separate facilities, with different infrastructure requirements, are likely needed to service the fixed and floating market is a welcome addition to the Policy paper and shows a long-term commitment from the Department of Transport to look beyond the immediate fixed bottom opportunity. The impact of port upgrades on maximizing “the economic benefits at both regional and national level in terms of job creation and new SME enterprises in areas such as engineering, fabrication, transport and logistics, and other technologies” is also a welcome finding in the policy briefing.?

GDGs’ dedicated port engineering team is well placed to support the much-needed infrastructure upgrades for the offshore wind sector. With a unique combination of expertise in offshore wind development, marine civil engineering, and Irish maritime policy, GDG are ideally suited to deliver on the Irish ambition for designing and developing major port capabilities around the Irish coastline.?

The key recommendation arising out of the port policy statement is that multiple port facilities will be required for deployment/construction activity as well as separate harbours needed to service the Operation and Maintenance (O&M) activities. DECC recognize that “This multiport approach will help maximize the economic benefits at regional as well as national level in terms of the creation of jobs and new SME enterprise that can support the development of the ORE industry”.

The Policy statement sets out:

• The background EU and National targets with regard to ORE.
• That around the Irish coast, ORE projects will develop in several phases and that a multiport approach is the most optimal Policy facilitating a strong response from the ports sector and private entities within ports. A minimum of two facilities will be required from 2025 onwards for deployment activity is noted.
• That eligible TEN-T ports can apply for funding for ORE related port infrastructure under the Connecting Europe Funding facility (CEF) which is the funding instrument for the EU's Trans-European Transport Network (TEN-T).
• Other opportunities in terms of wave and tidal renewable energy in the waters around Ireland and the potential for very large-scale green hydrogen and green ammonia projects, although these are very much pre-commercial technologies at this stage.
• The Department of Transport will establish a Ports Co-ordination Group to coordinate port responses and maintain policy alignment.
• The 2021 CAP 21 also notes that a cross-departmental ORE Team, chaired by the Department of Environment, Climate and Communications, is being established to capture wider economic and business opportunities associated with the development of offshore renewables in Ireland. This will include the identification of supporting infrastructure development and supply chain opportunities as Ireland’s ORE industry is developed.

As an island nation, we have always maintained strong trade links with our neighboring countries which have necessitated the upkeep of robust port infrastructure, however this port infrastructure is currently at capacity and therefore the introduction of a new industry, ORE, that places additional demands on our port/harbor network, necessitates the need for creating new capacity in the form of additional berths, deepwater channels, and heavylift areas dedicated to servicing the offshore wind sector.?The relative location of ports to the emerging Offshore Wind activity will be a key consideration in determining the viability of specific infrastructure upgrades at ports around the coast to facilitate the immediate industry requirements (Phase One and Two projects), with the majority of demand pre-2030 focused on the deployment of fixed turbines off the East and South East coasts.

For projects post-2030, there is a clear need for port upgrades along the West and South-West coastlines to ensure that the long-term ambition of floating wind can be realized. These Phase Three projects will be delivered as part of a national “plan-led” enduring regime, with the preferred locations informed by the Offshore Renewable Energy Development Plan (OREDP) 2, which will be developed throughout 2022. Therefore OREDP 2 will also be a key document in informing the ideal locations for West coast port upgrades.

A key feature of the policy statement is a recognition that private port entities and public-private partnerships are likely to be key vehicles to realize port upgrades and therefore the applications to CEF funding will not be limited to the public commercial ports. The inclusion of a wider stakeholder base in the support for European funding will likely encourage wider investment interest in port infrastructure and ensure that the port infrastructure can gain momentum in the immediate future.?

The port policy statement issued by DECC last week provides welcome recognition of the gap that exists between the current Irish port capabilities and the specific infrastructure requirements of the Offshore Renewable Energy industry. The need for a multi-port strategy to upgrade facilities around the coast also shows a long-term commitment to both the immediate CAP targets of 5GW predominantly focused on delivering offshore wind projects on the east coast as well as the post-2030 targets to deliver 30GW of floating in the deeper waters of the Atlantic. To ensure the port facilities can be delivered in time to meet the demands of the ORE sector, investment is required immediately and the planning and engineering stages need to commence without delay.

Our thoughts on the Next Steps:

• Given the urgency of action required, the establishment of the proposed Port Co-ordination group is on the critical path and therefore we would welcome a firm timeline and commitment for when this will be in place. A clear link between the public sector (eg. Department of Transport), the Ports themselves and the Offshore Wind industry is encouraged to ensure that this is a holistic group that involves all the key stakeholders;
• While supporting ports to apply for European funding is a welcome measure, additional support by means of state funding or other state support schemes should also be explored to align with recent announcements from other countries where direct government investment in port infrastructure is underway. Measures to accelerate the delivery of these facilities through identifying additional secure sources of finances would be most welcome;
• There is an onus on both the Ports and the Offshore wind industry to work together to quantify the extent of the infrastructure needed and associated timelines for such infrastructure to be developed. We are aware that this dialogue is underway and we hope that it maintains momentum throughout 2022;
• Given that the timelines are likely going to be very tight, it is recommended that individual ports should commence critical path activities at risk by undertaking long-lead items such as conceptual engineering, foreshore licensing and environmental surveys. This will help facilitate timely delivery of any new infrastructure and will hopefully minimize drift for the final infrastructure delivery.
• Obviously, the support of the Irish state for ports applying for CEF funding for 50% of the cost of undertaking studies and 30% of CAPEX is a welcome measure and something that ports targeting ORE upgrades are encouraged to apply for. However, noting that these funding mechanisms can be quite competitive, alternative parallel sources of funding and financial support should also be explored.?
• The supply chain group at Wind Energy Ireland, which includes developers, ports, and wider industrial members, are actively working on topics such as the promotion of an industrial sector deal and the development of a Port Infrastructure Study to highlight the gaps where investment is needed. It is suggested that the Port Co-ordination Group at Department of Transport work closely with the supply chain group at Wind Energy Ireland to leverage the knowledge of all the stakeholders and co-ordinate a robust response to this challenge.?

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