Introduction to Floating Offshore Wind: An opportunity for Island Communities?

February 2014

Presentation Overview

About Source Low Carbon LLP

Floating Wind Foundation Technology Overview

Business Case for Floating Wind

Path to Commercialisation Path to Commercialisation

Island Nations a new power source?

Leading Markets

Focus: Floating Wind in Scotland

About Source Low Carbon LLP Offshore Renewables Advisory and Development Services Partnership.

Established in 2013 by 3 partners, each with over 10yrs experience in UK

offshore wind and marine energy

UK based, registered in Scotland

Experience as developers, regulators and government advisors

Project Development: floating wind opportunities, commercialisation Neart na Gaoithe: Project Development: floating wind opportunities, commercialisation

of technologies for near-term deployment

Neart na Gaoithe:

450MW

Walney phase 3:

750MW

Advisory Services:

Policy and Regulatory: site selection, strategic environmental

assessments. Eg designing and managing offshore wind & tidal

tender for Isle of Man Government

Development Services: Advising UK offshore wind, marine

renewables developers

Floating Wind TechnologiesSemi-Sub

Combines the main principles of TLP, Spar

Eg Principle Power:

Windfloat: full-scale demo 2011

Relatively shallow draft

Spar Buoy

Large cylindrical

buoy stabilises

turbine using ballast

Large draft

Eg Hywind: Full-scale

prototype deployed

since 2009

Demonstration array

planned in Scotland

Tension Leg Platform

Buoyant structure, semi submerged

Tensioned mooring lines anchored on seabed

Concrete Floater

Water Depth (m)

Ideol Floatgen

Concrete structure

shallow draft, compact size

Damping Pool to reduce motion

Business Case for Floating Wind

Development Construction Operations Decommissioning

Opens up new areas for offshore wind: Current technologies limited to 40-50m.

Cost Reduction: alternative solution for existing projects with marginal economics.

Local Economic benefits: jobs, supply chain

Many advantages are technology-specific, general benefits include:

Reduced impacts on some receptors, egnoise for marine mammals, fish

Reduced ground survey work

Assembled onshore, transferred to site

Cheaper, more widely available vessels (no jack-ups)

Reduced installation costs and time

Can be returned to shore for significant maintenance

Complete removal

Path to Commercialisation

R&D, Pilot stage

Single Prototypes

R&D on concepts, designs, modelling.

Testing downscaled model in controlled environment

New structures, need to go through different stages of development before coming

on to the market.

Importance of perception by investors: increasing reliability, reducing cost

Some key Issues: integration of wind turbine onto platform, dynamic cables

Testing full scale model to assess concept maturity

7 experimental substructures (4 in Europe, 2 in Now Single Prototypes

Demonstration Arrays

Commercialisation

Small number of full scale devices.

Validates overall principles, manufacturing, installation, O&M

UK Crown Estate Round to award demo sites

Generation by Q3 2018

Serial production, commercial deployment

Much innovation is still needed to ensure reliability,

commercial viability

Need for government support

7 experimental substructures (4 in Europe, 2 in

Japan, 1 USA)Now

Planning

Underway

Post

2020

Island nations a new power source? Advantages

Climate change

Direct access to grid coastal communities

Will become cheaper than imported fuels

Low impact infrastructure

In many cases can be deployed from small ports

No need to reinvent the wheel: technologies, expertise, skills developed

elsewhere can be imported. Eg:elsewhere can be imported. Eg:

Environmental assessment, permitting procedures

Exchange of data and information

Requirements for ports, supply chain

Standards and standardisation

Time to plan:

policy, legislative framework, spatial planning

Caribbean-specific issues: eg hurricane risk

Leading Markets for Floating Wind Post Fukushima impetus

>80% offshore wind resource is in deep

waters

Government funding for demonstrators

Fukushima Forward: prototype

demonstration programme

Using wind turbines designed for

areas where wind speed exceeds class

1 design values

>90% worlds capacity of offshore wind

2013: 5GW installed, 60,000 jobs

Supportive policy, legislative environment, underpinned by renewable 1 design values

Good resource, intensive power demand

near coast

Leasing, permitting processes in place

Department of Energy funding initiative:

3 of 6 projects competing for funds (up

to $47m) are floating.

Embryonic offshore wind industry

Only offshore turbine in US waters

is on a floating foundation

environment, underpinned by renewable energy targets.

Driven by need to reduce cost, to build further from shore, deeper waters.

Floating technologies would unlock Atlantic, Mediterranean and deep North Sea areas.

Particular opportunities for Portugal, Spain, France.

Funding programmes: EU and member state level (France, UK).

Market Focus: Scotland, UK Deeper waters, environmental and other constraints near to shore

Seeking first mover advantage in deeper water technologies

Scottish Government: financial, political, legislative support

Renewables Obligation (RO): higher level of support for demonstration arrays.

Generation by Q3 2018

Planning, permitting, environmental

Proposed Projects

Hywind II pilot project Agreement for Lease awarded

Worlds largest offshore wind programme:

4GW generating, 1.5GW in construction, 40GW in development

Potential for commercial deployment of floating technologies on many of

these projects

Project pipeline supports the progress to commercialisation

Hywind II pilot project Agreement for Lease awarded

Crown Estate leasing programme: UK wide, RO incentive to locate in Scotland

Good opportunities for learning, strong appetite to share those lessons

Summary Floating Offshore Wind has significant potential reduce costs, open up deeper areas

Local economic benefits

Strong mid-long term potential for Island communities: post 2020

Many different technologies, several prototypes already deployed

Progress in key markets may accelerate commercialisation

Need for clear, stable policy: opportunity to put the right framework in place

Information sources:

European Wind Energy Association, Deep Water: The Next Step for Offshore Wind, Report

July 2013.

http://www.ewea.org/fileadmin/files/library/publications/reports/Deep_Water.pdf

The Crown Estate UK Market Potential and Technology Assessment for floating offshore

wind power, December 2012. http://www.thecrownestate.co.uk/media/428739/uk-floating-

offshore-wind-power-report.pdf

Fukushima Forward: Information about the Fukushima Floating Offshore Wind Project.

http://www.fukushima-forward.jp/pdf/pamphlet3.pdf

For further information:

Cathryn Hooper, Partner, Source Low Carbon LLP

cathryn.hooper@sourcelowcarbon.com +44 (0)7880 499962

www.sourcelowcarbon.com

www.sourcelowcarbon.com