Size matters: larger, more costly turbines set to further reduce LCOE

As wind turbines grow in size, they become more expensive to manufacture, but larger and larger units continue to drive down the cost of electricity from offshore wind.

2020 has seen leading manufacturers of offshore wind turbines unveil new, larger, higher capacity units. Siemens Gamesa’s 14-MW offshore wind turbine (which is expected to be capable of 15 MW in due course) is set to become commercially available from the mid-2020s and larger versions of existing turbines are in development elsewhere, not least GE Renewable Energy’s Haliade-X and a new turbine from MHI Vestas Offshore Wind.

Larger turbines are more expensive to manufacture, but analysis by Rystad Energy demonstrates that, although they are more expensive, using new-generation turbines reduces overall costs for large-scale offshore windfarms.

This is because the additional cost involved in manufacturing giant turbines is mitigated by the need to install fewer of them, and the efficiency gains associated with more technologically advanced turbines.

Every turbine also needs a foundation, so the overall number of foundations required for a project decreases, as does the need for array cables.

Rystad Energy analysed the cost of using turbines of differing sizes for a 1-GW offshore project. Utilising 14MW turbines instead of 10MW units, the number required for a 1 GW project falls by 28 units, from 100 to 72. Moving to a 14MW turbine from a 12MW turbine still offers a reduction of nearly 11 units.

Overall, the analysis shows that using the largest turbines for a new 1GW windfarm can provide cost savings of nearly US$100M, compared to installing currently available 10MW turbines.

Rystad Energy product manager offshore wind Alexander Flotre says“Siemens Gamesa’s latest turbine is a step towards dramatically reducing development and levelised costs worldwide.

With larger turbines come greater savings and greater revenue generation potential over the duration of projects, increasing the offshore wind industry’s competitiveness.”

Rystad Energy assumes the cost of a turbine is approximately US$800,000 per MW on average for currently available units, that is, turbines with a nameplate capacity of up to 10 MWwith a 2.5% premium applied for each additional MW for the larger units expected in the medium-term, to reflect anticipated efforts by manufacturers to capture upside.

“For this analysis, we estimate the cost of a 10MW turbine is US$8M, while a 12MW and a 14MW turbine would cost approximately US$10.1M and US$12.3M, respectively,” says Rystad Energy.

“Moving from a 10MW turbine to a 14MW turbine could result in higher costs, of approximately US$85for manufacturing. Utilising a 14MW turbine in lieu of a 12MW unit could add almost US$45M to manufacturing costs.

Foundations are the main components that offer opportunities for cost reductions if larger turbines are utilised. Rystad Energy estimates that a foundation typically costs between US$3and US$4M, with variations relating largely to foundation type and water depth.

In a 10 MW to 14 MW switch, cost savings could exceed US$100M for the developer, while savings in a 12MW to 14MW scenario would range from US$30M to US$50M.

The cost of array cables varies based on the turbine size. While the use of larger turbines implies potential cost savings through fewer foundations, the added length required for array cables for 14MW turbines is likely to keep overall cable costs flat. However, the lower turbine count reduces the number of cabling runs and connection of turbines to the offshore substation, which in turn could cut installation costs.

This analysis shows that although larger units are expected to drive up the cost of turbines, reductions from other segments – namely foundations – could result in cost savings of US$100to US$120M in manufacturing costs alone, helping to offset some of the developer’s expenses,” says Rystad Energy.

Rystad Energy also estimates the cost of installing a turbine ranges from US$0.5M to US$1M, and the cost of installing foundations ranges from US$1to US$1.5M per unit.

Using the midpoint in each range, for a 1GW project the implied savings exceed US$50when using 14MW instead of 10MW units. Comparing 14MW with 12MW turbines, potential savings exceed US$20M.

Furthermore, the reduction in cabling runs and connections due to the lower number of array cables could lead to additional savings of between US$5M and US$15M, when using 14MW turbines rather than 12MW and 10MW turbines.

In addition to potential cost savings from reducing the number of units required, the increase in turbine size can also drive other efficiency gains. Rystad Energy analysed the potential reduction in the levelised cost of energy (LCOE) using Equinor’s Empire Wind in the US as a case study.

In this case, using 10MW turbines, the estimated LCOE is approximately US$75/MWh. Opting for 12MW turbines, LCOE falls to approximately US$71/MWh. With a further upgrade to 14MW turbines, LCOE is estimated to be US$68/MWh.

“With the incremental increase in size, turbines and offshore windfarms become more economical – not just in terms of reduced upfront costs, but also in longer-term power generation potential,” Rystad Energy concludes.

GE to provide 13-MW version of Haliade-X for Dogger Bank

GE Renewable Energy is to supply an uprated version of its Haliade-X offshore wind turbine for the massive Dogger Bank offshore windfarm in the UK.

Dogger Bank Wind Farm and GE Renewable Energy signed a contract on 22 September 2020 for 13-MW Haliade-X turbines for the Dogger Bank A and Dogger Bank B phases of the project. When launched, the Haliade-X was described as a 12-MW unit.

The award, which is subject to Dogger Bank A and B reaching financial close, covers the supply of 190 Haliade-X 13-MW turbines, split evenly at 95 turbines for each of the first two phases of the project.

The Haliade-X 13MW is an enhanced version of the successful 12-MW prototype unit which has been generating power in Rotterdam since November 2019 and recently secured its provisional type certificate from DNV GL.

The prototype unit, which set a world record in January 2020 by being the first wind turbine to produce 288 MWh in one day, will start operating at 13 MW in the coming months as part of its ongoing testing and certification process.

As part of the agreement with SSE, GE Renewable Energy will establish its marshalling harbour activities at Able Seaton Port in Hartlepool which will serve as the base for turbine service equipment, installation and commissioning activities for Dogger Bank A and B.

This will see the delivery of components for the 13-MW wind turbines to the port, including the nacelle, three tower sections and three 107-m long blades, for pre-assembly onsite at Able Seaton prior to transport out to the North Sea for installation. This activity will lead to 120 skilled jobs at the port during construction. Turbine installation is expected to commence in 2023 at Dogger Bank A.

The announcement also includes a five-year service and warranty agreement supporting operational jobs in the maintenance of the windfarm.

by David Foxwell

Source:Riviera, Oct 15, 2020

Ørsted, Pict Offshore Make Boat Landings and Ladders Redundant at Hornsea Two

The wind turbines at the Hornsea Two offshore wind farm in the UK do not feature the usual setup including boat landing structures and ladders, as its developer Ørsted purchased a novel lifting system.

The 1.4 GW project is the first-ever offshore wind farm to deploy the Get Up Safe (GUS) motion-compensated lifting system from the Scottish engineering company Pict Offshore, with whom Ørsted signed a multi-million-pound deal and in which the developer holds a 22.5 per cent stake.

“With the GUS system in place, technicians will be lifted and lowered directly between crew transfer vessel and the platform. This removes the need for technicians to step between the bow of the vessel and the ladder; a potentially dangerous operation that requires skilled co-ordination to be carried out safely during variable weather conditions, and eliminates a tiring climb, which can be up to 20 metres in length”, Ørsted said in a press release.

“The GUS systems’ active heave compensation function tracks the motion of the vessel deck and automatically adjusts the line position to ensure that transferring technicians are always kept safe, even if the vessel is moving in variable wave and weather conditions”.

Furthermore, Ørsted pointed out the cost benefits of adding GUS to each of Hornsea Two’s 165 wind turbine foundations, whereby losing the ladders leads to streamlining the foundation and reducing steelwork requirements.

The first foundation, equipped with the system, was installed a week ago at the project site.

“The decision to deploy the GUS system at Hornsea Two is a bold and transformative move designed to both increase safety and reduce costs for the next generation of offshore wind farms”, said Philip Taylor, Pict’s Managing Director. “With other offshore wind developers now taking a strong interest in the system, we hope that it’s a vision that will be shared by the industry”.

Ørsted said the project was the result of a three-year collaboration with Pict Offshore, during which time Ørsted had taken a minority stake in the company, which is now manufacturing the GUS systems at its facility in Inverkeithing Fife and has doubled its headcount in the past months.

The 165 wind turbine foundations for Hornsea Two are being delivered by EEW and Bladt Industries. The monopiles are fabricated by EEW and the transition pieces by Bladt Industries (135) and EEW Special Pipe Constructions (30).

The 1.4 GW Hornsea Two project, scheduled to be commissioned in 2022, will feature Siemens Gamesa 8 MW turbines, and an offshore substation and a reactive compensation station (RCS), both installed on jacket foundations.

by 

Source:offshoreWIND.boz,  Oct 15, 2000

CWind Taiwan nets BOP contract for Formosa 1 offshore wind farm

CWind Taiwan has been awarded a balance of plant (BOP) contract for the Formosa 1 offshore wind farm.

The company is providing inspection and maintenance services to the 22 turbines at Formosa 1 Phase 1 and Formosa 1 Phase 2 sites, including internal and external inspections and painting.

Under the contract, signed with Formosa 1 Wind Power Co. ltd (FOWI), CWind has deployed its Taiwan-flagged crew transfer vessel Ocean Surveyor 3 and its in-house technicians in September 2020.

Since Formosa 1 is the first offshore wind farm in Taiwan to move into the operations and maintenance (O&M) phase, the first team of Taiwanese technicians to graduate from CWind Taiwan’s Global Wind Organisation (GWO) training school will work on the project, alongside their colleague senior technicians from CWind in Europe.

The Ocean Surveyor 3 CTV and its crew have been supporting the Formosa 1 project out of the Nanliao fishing harbour since 2016, and now have extensive knowledge of the sea conditions and familiarity with the local authorities there. The company will use the same port for its BOP campaign too, saying that utilising this location increases project efficiency as transit time is minimised.

Formosa 1 entered commercial operation on 27 December 2019.

The 128 MW wind farm consists of the 8 MW Formosa 1 Phase 1, inaugurated in May 2017, and the 120 MW Formosa 1 Phase 2 which was officially commissioned in November 2019.

Formosa 1’s first phase comprises two Siemens Gamesa 4 MW turbines and the second phase features 20 Siemens Gamesa 6 MW turbines.

by Adrijana Buljan

Source: Offshore Energy, Oct 15, 2020

Maersk Supply Service, Ørsted Working on Offshore Charging Buoy

Danish offshore vessel specialist Maersk Supply Service and its compatriot offshore wind developer Ørsted have teamed up to test a prototype offshore charging buoy.

The buoy will act as a safe mooring point and a charging station for vessels, potentially displacing a significant amount of marine fuel with “green” electricity.

The prototype buoy has been developed by Maersk Supply Service while Ørsted is responsible for the buoy’s integration with the electrical grid at the offshore wind farm. The charging buoy will be tested in the second half of 2021, where it will supply overnight power to one of Ørsted’s service vessels.

The buoy can be used to charge the smaller battery- or hybrid-electrical vessels and to supply power to larger vessels, enabling them to turn off their engines when laying idle.

“By substituting fossil-based fuels with green electricity, virtually all emissions are eliminated while the buoy is in use,” Maersk Supply Service said.

Upon technical validation and commercial ramp up, the electrical charging buoy has significant potential, short to medium term, to contribute positively to reduce emissions for the maritime industry, the Danish offshore vessel operator said.

“This will happen through displacing tens of thousands of tons of fuel consumed every year in the wider maritime sector by enabling inactive vessels to turn engines off and replace energy consumption and charge batteries with renewable electricity. Within five years of global operation, Maersk Supply Service has the ambition to remove 5.5 million tons of CO2, additionally avoiding particulate matter, NOx, and Sox,” MSS said.

Intellectual rights publicly available

Ørsted plans to make any intellectual property created in designing the integration of the buoy into the offshore wind asset publicly available to maximize the uptake potential of this carbon reduction innovation across the offshore wind sector.

“As large parts of the global maritime fleet are getting ready to receive shore power in ports, timing is right for implementing this clean ocean-tech innovation. The charging buoy is applicable as a mooring point outside ports, in offshore wind farms, and near vicinity to other offshore installations. Additionally, it will further help limit the increasing vessel congestions and remove air pollution in port areas,” the two companies said in a statement.

Jonas Munch Agerskov, Managing Director for Offshore Renewables at Maersk Supply Service said: “The charging buoy tackles a multitude of problems; lower emissions, offering a safe mooring point for vessels, better power efficiency and eliminating engine noise. This is also a solution that can be implemented on a global scale, and one that can be adapted as the maritime industry moves towards hybridization and electrification.”

Mark Porter, Senior Vice President and Head of Operations at Ørsted Offshore:”Ørsted has set the ambitious target of having carbon neutral operations in 2025, which includes the operations of our offshore wind farms. Technical and commercial innovation is central to Ørsted’s ability to provide real, tangible solutions to achieve our operational ambitions – and we need our partners’ support. We are happy to team up with Maersk Supply Service to test this innovative charging buoy, which brings us a step closer to creating a world that runs entirely on green energy.”

For the demonstration phase of the project, Maersk Supply Service has received one of the largest EUDP grants (Energy Technology Development and Demonstration Programme, under the Danish Energy Agency) in 2020 supporting with DKK 22mn to the engineering and demonstration of the power buoy. The Danish Maritime Fund has provided initial co-financing to conceptualize the project.

Source: Marine Technology, Sep 28, 2020

In a First, ROVOP Inspects Offshore Installation via Video Link

UK-based ROV services provider ROVOP has said it has delivered its first remote platform-based inspection, repair, and maintenance workscope, “effectively reducing the number of personnel required offshore,” on Premier Oil’s Balmoral floating production vessel in the UK North Sea.

The ROV company carried out remote visual and NDT inspections of hull sections, flowlines, umbilicals, and risers, along with chain inspection, measurement, and cleaning, on the Balmoral unit with the help of a live video stream.

“Using the latest communications and modeling technology, ROVOP worked closely with Premier Oil to develop a robust live video streaming service back to shore. Two-way open communications allowed the inspection and data recording engineers to run the workscope remotely from onshore, resulting in three less people on board the vessel, where accommodation is limited due to the COVID-imposed restrictions,” ROVOP said.

Premier Oil, which on Tuesday said it would merge with Chrysaor, last month filed the decommissioning plan for the Balmoral FPV and the associated subsea infrastructure. The Balmoral platform was installed in the Balmoral Area in 1986.

ROVOP said that the cloud-based viewing platform allowed those working from home to view the inspection work as it unfolded.

“They were able to see exactly what the ROV and inspection engineers were seeing in real-time. Data, which would once have taken weeks to return from offshore to be analyzed, was captured as those watching onshore were able to influence the operation live, making the campaign much more efficient,” ROVOP said.

Credit: ROVOP

Also, ROVOP selected subsea mooring inspection and integrity engineering specialists Welaptega, an Ashtead Technology company, to support the project. Welaptega’s mooring inspection and 3D modeling photogrammetry equipment was integrated into the ROV to enable accurate and repeatable chain measurement and 3D modeling of the subsea template.

The point cloud data produced will be used to assist the planning of the template removal, ROVOP said.

The main components of the Balmoral field consist of; the Balmoral FPV, Balmoral Template, 11 template and 10 satellite wells, a riser system, pipelines, umbilicals, and cables.

Paul Hudson, ROVOP’s sales and marketing director, said: “Reducing numbers of people offshore has clear benefits in terms of risk, cost and overall efficiency and, of course, it is particularly relevant when dealing with the challenges presented to the offshore industry by the coronavirus pandemic. This project underlines how digitalization and collaboration can address some of our most pressing industry challenges.”

David Robertson, diving & ROV engineer with Premier Oil, added: “This is a fantastic achievement for both ROVOP and Premier Oil.  Through a lot of hard work and collaboration with respective network technology companies, we managed to de-risk personnel traveling to an offshore installation during the COVID-19 pandemic.

“Executing work of this nature from an installation is always challenging due to bed space requirements. We have proven that inspection activities can be done with a significant reduction in manpower offshore, which potentially paves the way for cost and greenhouse gas reductions across our other assets in the future”.

Source: Marine Technology Oct 7, 2020

Swancor unveils plan to build huge offshore windfarm off Taiwan

Lucas Lin: "Swancor is committed to supporting the Taiwanese Government’s goal of promoting offshore wind and renewable energy"

Lucas Lin: “Swancor is committed to supporting the Taiwanese Government’s goal of promoting offshore wind and renewable energy”
Swancor Renewable Energy in Taiwan has revealed plans to develop a massive offshore windfarm far larger than any project to date in the country, off its northwest coast.

The Taiwanese company said it is working with Stonepeak Infrastructure Partners, the independent asset management firm in the US that acquired a 95% stake in the company in 2019, and other partners including an entity identified as Siva New Energy, to develop the 4.4-GW Formosa 4 offshore windfarm. It said it had submitted a plan for the project to the Environmental Protection Agency this week.

The massive project will be built in a range of water depths and use bottom-fixed and floating foundations. It will consist of a trio of projects: SITC (Formosa 4-1); Haishuo (Formosa 4-2); and Haisheng (Formosa 4-3).

The company said the site is approximately 18 to 20 km of the coast of Miaoli County and would be capable of meeting electricity demand for up to 4.5M households.

Swancor Renewable Energy is the developer of the 128-MW Formosa 1 offshore windfarm, which has entered into commercial operation and is developing the 376-MW Formosa 2 project. Assuming Formosa 4 passes an environmental assessment and secures government permits, and obtains financing, the project “will be completed and commercialised after 2025,” Swancor stated.

Swancor Renewable Energy chief executive Lucas Lin said the company has been preparing for development of the 4.4-GW project since 2019.

“We are committed to supporting the government’s goal of promoting offshore wind and renewable energy,” he said. “Through the Formosa 4 development plan, we will be committed to strengthening the local supply chain, and at the same time implementing our vision of becoming a leader in the renewable energy industry in the region.”

He went on to say the company would draw on the experience of developing Formosa 1 and 2 and “continue to cultivate a friendly relationship with the Miaoli County government, residents and industries.”

Miaoli County Mayor Xu Yaochang expressed support for the project. He said, “Miaoli has the best offshore wind conditions in Taiwan. Its unique natural resources are most suitable for the development of offshore wind power.

“We fully support Swancor’s plans in Miaoli, which will help develop the marine economy in the county and will work with local government to promote more offshore windfarms.”

Source: Riviera

 

Ørsted breaks ground on Taiwanese O&M base

SeaOwl plans remotely controlled OSV fleet

Why ammonia may be part of the future fuel mix

More points to ammonia as a promising zero-emission fuel. When based on wind or solar energy, it is a carbon-neutral option, with the infrastructure already in place, and ready to be mass-produced. After overcoming the challenges such us higher costs and the development of a new engine technology, it may become a part of the future fuel mix.

September 08 2020

In connection with the UN Climate Action Summit, MAN Energy Solutions joined the Getting to Zero Coalition in September 2019 to help develop zero-emission vessels by 2030 with its industry partners.

We view the Getting to Zero Coalition’s aims as closely aligned with our own strategy of cooperating with external partners to expand our business with sustainable technologies and solutions, such that they become our main source of revenue by 2030.

As I said, at the time of our joining the coalition, we understand the need to work with a wide group of industry partners to achieve this strategy and the Getting to Zero Coalition is therefore a perfect match. In shipping, MAN Energy Solutions has publicly spoken out in favour of a ‘maritime energy transition’ for some time now, which draws on the increased use of low-emission fuels. For us, the path to decarbonising the maritime economy starts with fuel decarbonisation, which will be a natural step towards the development of zero emission vessels.

But what fuel?

January 1, 2020, marked a milestone for the maritime shipping industry. From that date, all vessels became bound by new IMO rules restricting the use of high-sulphur fuels. While compliance with this was relatively straightforward for shipowners, decarbonisation will prove a tougher nut to crack and requires swift action.

As such, ships launched in 2030 will still be at sea in 2050 when – according to an IMO strategy adopted in April 2018 – the sector must reduce its total annual greenhouse gas emissions by at least 50%.

Potential zero-carbon fuels include alternative fuels like synthetic methane, alcohol, green hydrogen, and ammonia. In this respect, there’s naturally a bit of uncertainty because everybody realises the need for change. But it is also clear that you do not have just one solution.

Ammonia is a promising candidate

As a potential zero-carbon fuel, ammonia is an interesting candidate. Indeed, the DNV-GL declared in 2019: “Ammonia is the most promising, carbon-neutral fuel option for newbuildings.”

Since large quantities of ammonia are already transported around the world, it is a well-established commodity with some 120 ports globally currently importing/exporting it, and some with storage facilities. Thus, using ammonia to power ships would be a natural step with infrastructure already in place.

The companies already producing and distributing ammonia around the world know ammonia technology and have an incentive to showcase it as it is a sustainable technology that could provide new business opportunities.

Sustainable production and competitivity

When discussing future fuels, one thing is clean sulphur-free fuels but the CO2 footprint of such fuels also needs to be looked at. In this context, so-called power-to-X solutions where fuels are produced from sustainable energy sources are worth investigating.

The ammonia you have in the market today is CO2-free but based more on fossil fuel. Manufacturing green ammonia implies that you take electricity created by windmills and react hydrogen with nitrogen to produce ammonia. What is interesting about this is that there is no carbon involved in the process, making it a completely carbon-free fuel.

There are certain barriers, however, for ammonia and green ammonia – as there are with green or synthetic methane. It is relatively expensive, compared to fossil-based fuels. When talking about merchant shipping and the two-stroke business, solutions need to be business-viable.

Even if the cost of moving goods by sea increases in the future due to the introduction of zero-carbon fuels, it will still be the most efficient method as nothing can compete with shipping in terms of transporting goods. What we need to do is to create global coalitions and get the IMO to support a CO2 tax, and then funnel the money into R&D development and into developing solutions for the supply chain and large-scale production of these fuel types.

Ultimately, you need to build a scalable production of ammonia, utilising offshore windmill-fields or solar-power plants to provide the clean electricity required. Hand in hand with this, the ammonia supply-chain will have to be scaled up so that sufficient bunkering capacity is in place to supply vessels. Another requirement is, of course, a suitable engine technology.

First ammonia engine by 2024

MAN Energy Solutions has a convincing track record in developing engines running on alternative fuels, having developed the world’s first oceangoing ships driven respectively by LNG, methanol, ethane, and LPG.

In a technical paper released in late 2019, we noted that the two-stroke ammonia concept is an add-on to our electronic ME-engine and similar to the previous engine concepts for liquid gas injection propane (ME-LGIP) and liquid gas injection methanol (ME-LGIM).

The development of the LGI engine has already addressed challenges similar to those posed by ammonia – namely corrosion, toxicity and low flammability – and there would be little difference between an ammonia engine and the ME-LGIP/LGIM engines. In light of this, we aim to deliver the first ammonia-fuelled, two-stroke engine in 2024.

Ammonia-engine development will take place at our Research Centre Copenhagen (RCC) facility. We already kickstarted the project in early 2020 with a HAZID (hazard identification) workshop. Subsequently, the first engine tests are scheduled to begin in 2021 where the ammonia supply and auxiliary systems will be specified, with an after-treatment (emissions) solution specified by 2022. NOx emissions reductions are expected to be achieved via a Selective Catalytic Reaction (SCR) system, which has already proven itself in the industry.

A full-scale engine test is scheduled for 2023, the success of which will enable the first delivery of an ammonia-fuelled engine to the market in 2024. We are also working diligently towards a dual-fuel, ammonia-retrofit solution for existing engines, which will be available from Q1 2025.

Source: Global Maritime Forum

New four-stroke engines comply with strict Chinese emissions regulations