WTIV: You should rather know what is means in you are in the wind industry.

The #offshore wind business is riding a powerful wave, driven by the global need for clean energy and the increasing cost-competitiveness of wind power. The industry is experiencing a surge in growth, with ever-larger and more powerful turbines being deployed to capture stronger offshore winds and generate more electricity. Technological advancements are pushing down costs, making offshore wind a more attractive option compared to traditional energy sources.

This growth is accompanied by a shift towards developing massive offshore wind farms for maximum efficiency and cost reduction. Floating wind turbine technology is emerging as a game-changer, allowing wind farms to be built in deeper waters with stronger and more consistent winds.

Driven by a strong demand, Europe and North America, have stimulated the development of a robust supply chain.?However, the Asia Pacific region, particularly China and now Japan, Taiwan and shortly Korea and Australia, will experience rapid growth.

Despite its bright future, the offshore wind business faces some challenges. The high upfront investment required for developing offshore wind farms can be a barrier to wider adoption. Upgrading existing grid infrastructure might be necessary to integrate the large-scale energy generated by these farms. Additionally, careful planning and mitigation strategies are crucial to minimize the environmental impact of offshore wind projects. Finally, the installation part remains very specific and quite different from on the onshore business.

In offshore, turbines are installed by WTIVs.?They are special vessels called Wind Turbine Installation Vessels (WTIVs). There's no definitive source for the exact number of operational WTIVs globally. However, estimations suggest there are likely around 50-70 operational WTIVs currently active with less than 10 units for the very large turbines (> 7 MW).

To share an overview of the size of these vessel,?Les Alizes vessel by Jan De Nul Group from Belgium has a deadweight tonnage (DWT) of a whopping 61,000. DWT signifies the total weight a vessel can carry, and for Les Alizes, that translates to some serious lifting muscle. Its main crane boasts a capacity of 3,200 tonnes, allowing it to handle the colossal next-generation wind turbines. Another example is?Green Jade by DEME which has been crafted in Taiwan. This vessel measures a staggering 710 feet in length and displaces approximately 60,000 DWT. Green Jade prioritizes not just lifting capacity but also versatility. It's designed to transport multiple jackets and foundations in a single shipment, streamlining the wind farm construction process.

2024 is expected to see the most wind farm auctions ever, totaling over 50 GW of capacity over the world. This signifies a significant demand for turbines and an increasing pressure on the supply chain and WTIV demand. As of today, months or even years are required to book WTIV slots.

These increasing tensions are pushing offshore OEM to develop collaboration frameworks. This is, for example, the case between?Siemens Gamesa and Vestas which have initiated discussions to tackle the lack of standardized equipments. In parallel, the US have clearly identified the WTIC risks on the expected offshore deployment speed. The US lacks a robust domestic shipbuilding industry for WTIVs. Most WTIVs are built in Europe or Asia, making the US reliant on foreign companies and potentially vulnerable to disruptions like trade tensions or geopolitical issues. The US government has recognized these challenges and is taking steps to incentivize domestic WTIV construction. Policies like tax breaks and subsidies could encourage investment in US shipyards and foster a domestic WTIV industry.

Offshore wind industry aims to develop large scale green energy source and also to support countries sovereignty. However, complexity of supply chain is underestimated. are some lessons learns we should consider when having the willingness to build such an industry:

• Diversification and Resilience: Over-reliance on a single source (country) for key components can be risky. This is valid of components and equipments on the entire value chain.
• Investment in Domestic Manufacturing: On my personal opinion, investing in domestic manufacturing capabilities, even for key sub-components, can enhance long-term resilience and potentially create jobs. The answer is not necessarily YES, it needs to be careful analysed.
• Collaboration and Standardization:?New comers like Australia can encourage similar partnerships between stakeholders (manufacturers, government,research institutions) to promote standardization of equipment and processes, leading to greater efficiency and cost savings.
• Long-Term Planning and Policy Support: A clear national strategy for offshore wind development, with a focus on supply chain resilience, is crucial. Government policies like subsidies, tax breaks, and funding for research & development can incentivize domestic manufacturing and innovation in the wind energy sector. There is an absolute necessity to provide visibility and confidence to all the companies and stakeholders involved in the supply chain.
• Developing a Skilled Workforce: Building a skilled workforce with expertise in WTIV construction, wind turbine maintenance, and other areas is essential (Educational programs and training initiatives).