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BOEM shake the roomBureau of Ocean Energy Management acting director Walter Cruickshank gives a keynote address to US Offshore Wind 2019 delegates.Salon F&G, 8.40am-8.55am
Massachusetts to be the playmakerMassachusetts will aggressively pursue a leading role in US offshore wind, Governor Charlie Baker told USOW 2019.
The state is focused on doing “offshore wind properly” after becoming the first to support development of a commercial-scale project, the 800MW Vineyard scheduled to go live in 2022.
“One of greatest challenges we will face is to be aware that we need to get offshore wind right,” Baker told delegates during a keynote address in Boston on day one.
“We feel a responsibility having chased offshore wind that we need to get it right and we’ll be aggressive about making sure we do get it right.”
Massachusetts will focus not just on projects but also on development of the supply chain, workforce and transmission, he added.
Baker said he is proud of bipartisan work done to deliver 2018 clean energy legislation and other policy measures that have launched offshore wind in the state.
Further efforts include a second recently-announced
Industry needs fresh take on contractingUS market-specific challenges will force offshore wind developers to come up with new contracting and construction strategies, USOW 2019 has heard. p2
2020 for next BOEM offshore lease auctionBOEM Office of Renewable Energy Programs chief James Bennett (above) has confirmed its next offshore wind lease auction will be held in 2020 for acreage in the New York Bight. p3
Knotty problem of transmission linksThe nascent US offshore wind sector faces a major challenge to grid-connect the around 18GW of capacity planned along the east coast. p4
DO IT RIGHT: Massachusetts Governor Charlie BakerPhoto: renews
LiVE @ US OFFSHORE WIND 2019
TUESDAY’S HIGHLIGHTS
Getting fit for the futurePanellists from Avangrid Renewables, Diamond Offshore Wind Development, EnBW North America, Northland Power and Siemens Gamesa discuss how the US can build a competitive offshore wind market.Salon F&G, 8.55am- 9.35am
In the houseMassachusetts House Representative Patricia A. Haddad, a key proponent of state legislation supporting offshore wind, makes a keynote speech. Salon F&G, 10.15am-10.30am
‘Appy daysA first for the US Offshore Wind event, New Energy Update has launched a networking and supply chain matchmaking app, WindLink, to contact and arrange timed meetings with attendees.WindLink Supply Chain Matchmaking Zone (Salon E), 10.30am-5.30pm
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It’s up to you, New YorkNYSERDA offshore wind principal engineer Adrienne Downey outlines how the Empire State can install 9GW by 2035.Salon H-K, 11.00am-11.20am
THE INTERVIEW
Today, Mayflower Wind Energy president John Hartnett. p5
800MW solicitation on an accelerated timeline. The state is also committed to holding two further procurements totalling 1.6GW, he added.
Baker also said support for the sector in Massachusetts has sparked similar approaches in Rhode Island, Connecticut, New York and New Jersey. “I would argue this has been driven by the win-win that came out of procurement.”
Senior public officials meanwhile called for cooperation between US east coast states to help fully realise the potential of the country’s burgeoning offshore wind sector.
Connecticut Senator Paul Formica said offshore wind is a new US industrial segment that provides a unique opportunity should
states work closely together. “We have no choice but to cooperate and to understand each other’s need.”
Massachusetts Department of Energy Resources Commissioner Judith Judson said collaboration on procurement timelines between her state, Rhode Island and Connecticut has started.
“Of course, we want to see Massachusetts benefit from jobs but this is a very large pie,” she added.
New York State Energy Research and Development Authority director Doreen Harris said offshore wind in the US is not going to emerge around a single solution or approach as it has in Europe.
“Transmission and ports infrastructure are good opportunities for collaboration, and R&D is another.”
Industry needs fresh take on contracting
Hiring drive picks up pace
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BOOTS ON THE GROUND: MHI Vestas has formally cut the ribbon on its new US headquarters in Boston. Some 120 guests attended the opening Monday night, including Massachusetts State Representative Patricia Haddad (left).
“By MHI Vestas establishing a presence in the Commonwealth, they show a firm commitment to partnering with those of us working to grow this new Massachusetts industry,” she said. The turbine manufacturer has begun recruiting for the office, which will be led by national sales director Jason Folsom.
CEO Philippe Kavafyan (right) said the base is the right location to deliver on its contract to supply V164-9.5MWturbines for Vineyard Wind’s 800MW project off Massachusetts that is due to go live in 2022. “Choosing Boston, and now opening the office, shows MHI Vestas’ commitment to the US offshore wind market and to the Commonwealth of Massachusetts,” he added. Photo: MHI Vestas
Offshore wind developers and manufacturers are working to boost US staff numbers and skills before moving into the project execution phase, USOW 2019 has heard.
Vineyard Wind chief executive Lars Thaaning Pedersen said the developer has been growing its team from five people in 2016 to nearly 100 today to deliver its 800MW project off Massachusetts. Mayflower Wind chief John Hartnett said
there is a strong labor market in the US, which is making recruitment of skilled staff tough. However, efforts at federal, state and grassroots levels, such as with labor unions, will help to establish a skilled work force, he added.
MHI Vestas chief executive Philippe Kavafyan said the company is in the process of employing 40 staff in the US and will begin training recruits on offshore wind projects in Europe.
US market-specific challenges will force offshore wind developers to come up with new contracting and construction strategies, USOW 2019 has heard.
Vineyard Wind head of procurement and supply chain management Morten Hjortkjaer said the Avangrid Renewables and Copenhagen Infrastructure Partners joint
venture has established a “hybrid” procurement approach for the 800MW Vineyard project off Massachusetts.
The strategy has evolved through market engagement, in particular on resolving challenges associated with the Jones Act, he said. “We are not doing the project as one engineering, procurement and construction contract, nor
are we taking a utility multi-contract approach,” he said.
“We have come up with a hybrid model. For example, we started with control of logistics ourselves but have since wrapped it into an EPC contract where we have identified partners capable of resolving that issue for us.”
Hjortkjaer said experience from Europe is important for avoiding mistakes in the new market. However, the US presents different challenges that require adaptation.
Atlantic Shores finance and commercial director Joris Veldhoven highlighted how new strategies are emerging due to impediments at US ports, including bridges and hurricane barriers, as well as the Jones Act.
These include the use of feeder vessels to ship out components in contrast to the all jack-up method commonly deployed in Europe.
2020 for next BOEM auction
Virginia ‘homeof innovation’
Connecticut joins the party
0311 June 2019LiVE @ US OFFSHORE WIND 2019
“ The benefits of offshore wind are clear: American-made clean energy that diversifies our energy portfolio and creates quality local jobs.”
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Lend me your ears Who will finance US offshore wind projects and how? Representatives from Green Giraffe, KfW IPEX-Bank, Macquarie Capital and Rabobank International have the answers. Salon F&G, 9.35am-10.15am
Float on, float onAmerican Jobs Project, BOEM, Castle Wind, EDP Renewables and others discuss how to unlock the huge potential for floating wind off the Californian coastline.Salon F, 11.00am-11.40am
Northern exposureMarine Renewables Canada director Elisa Obermann outlines initiatives to support a nascent offshore wind industry in the ‘Great White North’.Salon H-K, 11.40am-12.00pm
Every little helpsA Q&A with key state representatives about how to access the grants, funding and tax incentives available for port infrastructure, local manufacturing facilities and training programs.Salon H-K, 1.30pm-2.10pm
Meet the right personMassachusetts Clean Energy Center hosts offshore wind supply chain matchmaking and networking sessions.Salon H-K, 1.30pm-5.30pm
Tuesday highlightsVirginia has a key role to play in the US offshore wind industry by serving as a test bed for innovations that can reduce the levelized cost of energy, USOW 2019 will hear.
John Warren, director of the Department of Mines, Minerals and Energy, said three research lease areas on the edges of the state’s commercial offshore wind acreage are ideal for recording atmosphere, metocean and environmental data relevant to all Mid-Atlantic zones.
Dominion Energy’s 12MW Coastal Virginia pilot, which is in one of the three areas and due online in 2020, will provide “data and learning that can teach and inform the rest of the industry”, Warren said.
The DMME man will give an update on the state’s offshore wind plans during a session on day two of USOW 2019 that will also hear the latest proposals for Massachusetts and North Carolina.
The Connecticut Department of Energy and Environmental Protection has started a request-for-proposals process for up to 2GW of offshore wind.
First steps include convening a Commission on Environmental Standards that will develop recommendations and
accept public input on an environmental and fisheries mitigation plan.
The commission will complete its work by 31 July with DEEP aiming to issue a solicitation for projects on 15 August.
Bids for projects are due 30 September with winners to be named in November.
The Bureau of Ocean Energy Management has confirmed its next offshore wind lease auction will be held in 2020.
Office of Renewable Energy Programs chief James Bennett told USOW 2019 the acreage up for grabs will be in the New York Bight off the US north-east coast.
The final areas for the round will be identified shortly, he said. Final notices are due in mid-2019 in time for the auction in 2020.
The World Ocean Council
is meanwhile working on measures to help mitigate conflict between offshore wind and other ocean-based commercial interests, USOW 2019 has heard.
Chief executive Paul Holthus told delegates the council aims to develop an adaptive approach and collaborative agreements based on science and data gathering, which include aligning wind farm construction phases with fisheries seasons.
The nascent US offshore wind sector faces a major challenge to grid-
connect the around 18GW of capacity planned along the east coast.
Stability issues, suitable tie-in points and onshore permitting are among the hurdles that need to be overcome by developers, grid companies and regulators.
North-east US transmission is currently set up for dispatchable power sources and will require technological solutions to integrate large volumes of intermittent wind
power, said Alexandre Nicolas (left), North America director of
ABB and SNC Lavalin joint venture Linxon.
“If you change the type of power you are injecting from the very stable, consistent and controllable sources such as coal to wind and other renewables, and you also
inject it in a different location, you have the challenge of making sure your grid stays stable,” he added.
Most offshore developers are opting to use AC links to connect their wind farms to shore, said Nicolas.
Vineyard Wind, for example, awarded a $220m contract last month to Prysmian to install around 125km of HVAC cables to tie in its 800MW wind farm off Massachusetts, due online in 2022, with the New England network at Barnstable, Cape Cod.
The technical challenge will be to compensate for power irregularities, the Linxon executive added, and technologies such as static VAR compensators and synchronous condensers will likely be used where AC export wire is deployed.
Another key challenge will be finding suitable connection points along the densely-populated east coast.
“Connection points usually have pretty important and
urban geographies so the challenge is how to connect the cables while aligning with the needs of local residents and meeting regulatory requirements. Concealing substations could be challenging,” said Nicolas.
There are concerns that suitable shore-ends will be taken up by earlier projects and leave later offshore wind farms faced with the prospect of higher grid connection costs. However, Nicolas said he believes those worries could be addressed by emerging models for a more coordinated approach to transmission links.
The Massachusetts Department of Energy Resources, for example, last month recommended the state evaluate holding a solicitation for offshore wind transmission infrastructure.
A shift towards independent, shared offshore transmission facilities would reduce costs, said Nicolas. One beneficiary of such a move would be
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Knotty problem of transmission links
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Intermittent wind power needs
to find a home on dispatchable generation-era
US electricity network, writes Sian Crampsie
transmission developer Anbaric, which last month revealed plans to build a 1.2GW converter station at the former Brayton Point coal-fired power plant in Massachusetts to serve the local offshore wind industry.
“A separate, shared transmission system could minimize environmental disruption,” said Anbaric CEO Edward N. Krapels. n
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THE INTERVIEW Mayflower Wind Energy president John Hartnett (left) discusses the opportunities and challenges for
the US offshore wind sector.
Q What regulatory support systems are needed to succeed?
A Success in the regulatory space will depend on consistency, both in process and in
timing, along with appropriate flexibility and adaptability tailored for individual projects. There will be opportunities to leverage the regulatory systems for collaboration in understanding, migrating and managing potential impacts on the environment.
This still requires balance and certainty to enable the success for both individual projects as well as for the overall sustainable growth of the north-east offshore wind industry.
Q As the industry moves into the project execution phase, what are the
challenges and opportunities ahead?
A Many opportunities will be unlocked as the offshore wind industry in the US develops,
such as economic growth, a supply chain that creates value across the board and more reliable, renewable energy to meet demand.
That said, offshore wind also has well understood challenges, such as supply chain complexities, technology, schedule and cost management. We are working
with the federal government on their lease process and permitting requirements, state governments on their procurement plans and long-term strategy, and policymakers and other developers to find solutions to difficult transmission problems.
A key priority for us is to maintain an open, two-way dialogue with our local communities such as fishermen, both commercial and recreational, and academic communities on how to coexist with existing industry in the region. Understanding and managing any impacts on the environment will be critical to success.
The opportunity lies in doing this right — that is, listening to our local communities and following through on our commitments, as well as ensuring that we have the best environmental data to make informed decisions.
Our belief is that industrial development at scale would lower cost, create value across the supply chain and stimulate economic growth. We can learn together how to do offshore wind at scale to optimize value for all participants.
That might mean evaluating business opportunities that ultimately contribute to both the global and local markets to develop an effective and sustainable supply chain. A focus
on market visibility and longevity provides more opportunity for a sustainable supply chain that goes beyond a local north-east market.
Taken together, those are the challenges that we, as part of the industry, would be keen to work on, and they are challenges that can be turned into opportunities.
Governments, businesses and society will all have a significant part to play, and there is an opportunity for this cross-sector group to come together with a broader response on a larger scale.
Q What will it take to successfully execute the first major projects?
A A visible path forward is imperative. A number of states have established goals
for offshore wind. However, clear guidelines on when the solicitations are going to take place and how the contracting will work will provide a clear message to the industry supply chain that there will be long-term opportunities.
That should help encourage local investment in supply chain, increasing competition and driving costs lower.
We see a great advantage in a clear and transparent regulatory framework to help advance the market. Photo: Mayflower Wind