Offshore Renewable Energy Catapult: Delivering Innovation for Offshore Renewable Energy WavEC Annual Seminar 2018

04/12/2018 Alex Louden

GLASGOW ORE Catapult

Agenda

• United Kingdom Catapult Centres: Offshore Renewable Energy Catapult

• What we are and how we operate

• ORE Catapult technology-based facilities

• Ocean Power Innovation Network

• Commercial success is about more than just technology

• Supply Chain Support

• Fit for Offshore Renewables

• Route to market support for marine energy

The Catapult Network

• Designed to transform the UK's capability for innovation

• Core grant leveraged with industry and other public

funding

10

The Role of ORE Catapult

Risk (and its perception) drives the cost of borrowing money…

Reduce risk through:

• Sound design principles

• Testing and validation

• Track record

Test & validation of technology is incredibly important

BLADES POWERTRAINS

ELECTRICAL INFRASTRUCTURE O&M TECHNOLOGY VALIDATION

Including specialised facilities for marine energy

T&V is just one part of what ORE Catapult does with companies

164 SMEs supported in 2017/18

410 SMEs supported since 2013

Test and validation for business models

Analysis & Insights

• Generating insights from detailed analysis • Flagship reports for policy-makers and industry • Economic impact from developing new technologies • Current and future cost reduction trends

• Robust financial modelling

• Bottom-up LCoE analysis • Project economics • Cost-benefit analysis

High growth SME support

• Business planning and market analysis • Maintaining basic market overview material • Preparing investor-ready business plan documents • Guiding SME’s on investor requirements

Ocean Power Innovation Network • Stimulate cross-sector innovation between SMEs

• Provide in-depth support to the development of new products and processes in the ocean energy sector

• Build a transnational network of SMEs in the ocean energy sector

This Interreg North-West Europe project will be kicking off soon

OPIN will provide services to ocean energy focused SMEs

Partners

IE Sustainable Energy Authority of Ireland

UK Scottish Enterprise

UK Offshore Renewable Energy Catapult

Be Sirris, het collectief centrum van de technologische industrie

Fr Ecole Centrale de Nantes

NL Dutch Marine Energy Centre

De Fraunhofer-Gesellschaft zur Förderung der angewandten Forschung e.V.

• Annual Symposia: networking opportunities

• Connecting research SMEs, RTOs and large enterprise

• Workshops: thematic and cross-sectoral

• Information transfer and cross-sector innovation

• Masterclasses: detailed events

• Technology challenges and challenges for SMEs in the sector

• Collaborative Innovation Groups

• Bringing SMEs, large companies and RTOs to address barriers to economic deployment

• Technology Assessment

• Benchmarking and guidance using ORE Catapult’s TAP process

OPIN is as much about innovation clusters, networking and collaboration as it is about technology

OPIN’s services focus on more than just technology

Fit for Offshore Renewables (F4OR) is a unique, free service to help the UK supply chain get ready to bid for work in the offshore renewable energy sector.

Adaptation of the successful Fit for Nuclear programme (F4N), with a key focus on business excellence.

Objectives

• Increase competitiveness to support continued cost reduction in offshore renewables.

• To help secure long-term economic benefits in the UK.

Building the supply chain: Fit for Offshore Renewables – Scottish Pilot

Marine energy has been assessed against 3 key tests

• The UK government’s clean growth strategy has set out three tests.

• This study is assessing how the UK’s Tidal Stream and Wave Energy industries can perform against these tests.

• *Tidal stream has been assessed against all three test and wave energy against tests 2 and 3.

Can we see a clear cost reduction pathway for this technology, so we

can deliver low cost solutions?*

Can the UK develop world-leading

technology in a sizeable global market?

Does this deliver maximum carbon

emission reduction?

Oct 2017

1 2 3

Link to report: https://s3-eu-west-1.amazonaws.com/media.newore.catapult/app/uploads/2018/05/04120736/Tidal-Stream-and-Wave-Energy-Cost-Reduction-and-Ind-Benefit-FINAL-v03.02.pdf

Test 1: Cost Reduction Pathway

Link to report: https://s3-eu-west-1.amazonaws.com/media.newore.catapult/app/uploads/2018/05/04120736/Tidal-Stream-and-Wave-Energy-Cost-Reduction-and-Ind-Benefit-FINAL-v03.02.pdf

Initial Accelerated Reductions

• Economies of Volume

• Economies of Scale

• Accelerated Learning

Learning by Doing & Innovation

• Optimised processes & manufacturing

• Real life operational & weather data

• Collaborative shared learning

Cost of Capital

• Increase project debt

• Reduce equity risk

LCOE expressed in pre-tax real, 2012

-

50

100

150

200

250

300

10MW Installed (current cost)

Initial accelerated reductions

Learning by doing and innovation

Cost of capital 200MW Learning by doing and innovation

Cost of capital 1GW

LC

OE

£/M

Wh

(20

12)

Tidal Stream LCOE reduction

Test 2: UK - A global leader in marine energy

-

50

100

150

200

250

300

350

400

2020 2025 2030 2035 2040 2045 2050

Inst

alle

d C

apac

ity

(GW

)

Cumulative Global Deployed Marine Energy Capacity (ETP, 2012)

Wave Energy Tidal Stream

20+ tidal stream & 20+ wave technology developers in the UK

850 supply chain companies

1GW tidal stream deployed in the UK by 2030

1GW wave energy deployed in the UK by 2040

1,700 jobs today growing to 23,000 by 2040*

*Direct and indirect jobs supported

• Hubs of activity in South West, Scottish Highlands and Islands, Wales, Northern Ireland and South Coast

• 50-60% of GVA and jobs are expected to be created in coastal areas

• Technology development is essential to innovation and supporting the supply chain

• But, there are many other key factors that require consideration and activity

• Building collaboration and networks

• Ocean Power Innovation Network

• Lobbying for the correct support from governments

• Wave and Tidal cost reduction and industrial benefit analysis

• Ensuring businesses are resilient and ready to respond to challenges

• Fit for Offshore Renewables

Summary

Contact us

ore.catapult.org.uk @orecatapult

BLYTH National Renewable Energy Centre Offshore House Albert Street Blyth, Northumberland NE24 1LZ T +44 (0)1670 359 555

GLASGOW Inovo 121 George Street Glasgow G1 1RD T +44 (0)333 004 1400

LEVENMOUTH Fife Renewables Innovation Centre (FRIC) Ajax Way Leven KY8 3RS T +44 (0)1670 359 555

HULL O&M Centre of Excellence Ergo Centre Bridgehead Business Park Meadow Road, Hessle HU13 0GD