Offshore Update 5th May 2018

HAPPENING ELSEWHERE

HORNSEA ONE (UK81) The first offshore substation topside (Z12) has been installed by the Saipem 7000 heavy-lift vessel. 26th Apr 2018

FLOATGEN (FR59) Tow out of Floatgen and offshore installation commenced on 29th April. It will take 3-4 days to connect to the export cable. 29th Apr 2018

BORKUM RIFF. 2 (DE30) GeoSea’s jack-up Innovation arrived on site to install the first of the suction bucket jacket foundations. 30th Apr 2018

GUJARAT (IN15) 28th May 2018 Expression of Interest for "Development of 1000 MW Offshore Wind Farm in Gujarat" to be submitted between 25th-28th May.

BURBO BANK EX. (UK59) NEC Energy Solutions will begin construction of the Carnegie Road battery storage project, due to be operational by the end of 2018. May 2018

BORSSELE 3&4 (NL0J) The production of monopiles by Sif Holding N.V is scheduled from early July until December 2018. July 2018

(Burbo Bank Extension. Source: Ørsted) Click on a project name, turbine, vessel or map to find out more on the 4C Offshore website

LOOKING FORWARD

GERMANY ANNOUNCES SECOND AUCTION WINNERS

Bundesnetzagentur has announced the winners of the

1.61GW second German offshore wind capacity auction

for the North and Baltic Seas. The average price for six

winning bids was €46.60/MWh which was above the 2017

auction average of €4.4/MWh. This was attributed to

fewer bids being submitted in round two and only existing

projects that had not been awarded in the first call could

participate. Ørsted topped both ends of the scale with a

winning zero subsidy bid for the 420MW Borkum

Riffgrund West 1 (BRW1) and the highest winning bid of

€98.30/MWh for the 131.74MW Gode Wind 4. According

to Ørsted the value-drivers included larger turbines, supe-

rior wind speeds, synergies with adjacent sites and the

extension of the operational lifetimes to 30 years. BRW1 is

a candidate for capacity on DolWin5 and Gode Wind 4 is a

contender for DolWin6 which are proposed to come

online in 2023 and 2022 respectively. Iberdrola also came

out successfully with the 476MW Baltic Eagle project and

the 10MW Wikinger Süd. Iberdrola will develop these

wind farms at the same time to maximise cost efficiency

and economies of scale. KNK Wind GmbH will build the

247.25MW Arcadis East 1 project featuring 58 Haliade 150

-6MW turbines in the Baltic Sea. This project and

Iberdrola’s are candidates for capacity on OST-B-1 which is

proposed to come online in 2021. Finally innogy secured

the rights for the 325MW Kaskasi project. The projects will

now progress towards financial close which Innogy ex-

pects to reach for Kaskasi in 2020 with the start of com-

missioning in 2022. Germany’s next offshore wind tender

is planned for late 2021 with commissioning in 2026.

DOMINION SETS OUT VIRGINIA STRATEGY

Dominion Energy Virginia has submitted its Integrated

Resource Plan (IRP) for the next 15 years (2019-2033) to

the Virginia State Corporation Commission. The plan pre-

sents a range of options for meeting electricity demands

and a strategic short term five year action plan. One option

of the IRP calls for targeted installation of two Haliade 150-

6MW turbines 43.4km offshore by 2022 with commission-

ing of the Coastal Virginia Offshore Wind project in 2021. In

January 2018, an EPC agreement was executed with Ørsted

for the two turbines. The project is an important first step

and will give Dominion valuable experience in permitting,

constructing, and operating offshore wind resources ahead

of the potential development of the adjacent 112,000 acre,

2GW wind lease area. Ørsted also has exclusive rights to

discuss a strategic partnership with Dominion Energy about

developing the commercial site based on successful de-

ployment of the initial test turbines.

ICEBREAKER RESUMES WITH DELAYED 2020 START

The Ohio Power Siting Board (OPSB) has resumed its re-

view of Fred Olsen Renewables’ 20.7MW Icebreaker off-

shore wind farm. Slated to be the first offshore wind facili-

ty in the Great Lakes, the OPSB will hold an adjudicato-

ry hearing regarding the project on 6th August. The hear-

ing has been postponed since last November to allow

OPSB staff additional time to obtain information from the

developer on the radar technology monitoring protocol

used for determining any project impacts. Following this

10 month delay construction has been also pushed back

to summer 2020 with operation by November 2020. The

Department of Energy anticipate publishing the Final

Environmental Assessment this June. The project will

feature six V126-3.45MW turbines with 450 tonne mono

bucket foundations which combine gravity base, mono-

pile, and suction bucket technology to minimize the envi-

ronmental impacts and reduce costs.

BIDDERS CELEBRATE TAIWAN RESULTS

The Taiwanese government has awarded grid connection

rights for 11 offshore wind farms totalling 3.836GW,

336MW more than expected. 738MW of the allocated

capacity will be operational by 2021 and 3.098GW from

2021-2025. European winners were particularly success-

ful; Ørsted was awarded the right to connect 900MW in

the Changhua region, wpd secured 650MW in Yunlin and

350MW in Guanyin and Copenhagen Infrastructure Part-

ners was awarded a total of 900 MW (300MW with part-

ners). Other successful parties include Taipower, Swancor,

China Steel and Northland Power. The winning projects

will be entitled to a feed-in tariff (FIT) set by government.

The current FIT is €164/KWh. The developers still have to

secure an FIT by signing a power purchase agreement with

Taipower and obtain establishment permits before achiev-

ing financial close. A further 2GW will be auctioned in June

to complete Taiwan’s 5.5GW target by 2025.

SEAJACKS SETS ITS SIGHTS ON TAIWAN

Seajacks has won a contract from Siemens Gamesa (SG) to

install the 6MW turbines at phase 2 of the 120MW For-

mosa 1 offshore wind farm in Taiwan. This award repre-

sents the first renewables project outside of Europe for

the Great Yarmouth-based company. The 10,000 tonne

jack up vessel Zaratan is lined up to install the 20 SWT-6.0-

154 wind turbines in water depths of 30m up to 6km off

the coast of Miaoli County from Q2 2019. According to SG

the entrance of Seajacks into the Taiwan market relieves

one of the bottlenecks for utility scale offshore wind in the

region. SG also ‘expect more to follow, now that the Tai-

wanese pipeline until 2024 is clear, creating a healthy and

sustainable market’. The installation contract is subject to

a final investment decision and financial close, both of

which are expected later this year. Phase 1 of Formosa

featured two 4MW demonstration turbines installed in

2016.

ARKONA ARRAY CABLING UNDERWAY

Stemat Spirit with support from VOS Stone has commenced

array cable installation at the Arkona offshore wind farm.

VBMS’s contract scope includes engineering, surveying, pre

-lay grapnel runs, trenching, installation, termination and

testing of the 65 cables.

+44 (0)1502 307 037 info@4coffshore.com