OFFSHORE WIND –A New Market for

L d B d Wi d D l d Th i S l Ch i ?Land-Based Wind Developers and Their Supply Chain?

WIND POWER SUMMITHosted by:

Marcus EvansMarcus Evans

Dallas, TXFebruary 25, 2013

THE OFFSHORE WIND DEVELOPMENT COALITIONMembers and Mission

• Board Members– Apex Wind – Fishermen’s Energy

C Wi d NRG Bl t Wi d– Cape Wind – NRG Bluewater Wind– Deepwater Wind – OffshoreMW– EDF Renewables – AWEA

• Policy and General Members– Supply chain industries – Consultantspp y– Manufacturers – Engineering Firms

• Mission– To advocate for legislative and regulatory policies that

promote the development of offshore wind

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WHY OFFSHORE WIND?

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WHY OFFSHORE WIND?Creating highly-skilled, green-tech jobs in the U.S.

Land-Based Wind in U.S.: Indicator for U.S. Offshore Wind Potential• Averaged more than $15 billion annually in private investment for

t fipast five years• Manufacturing supply chain: nearly 500 manufacturing facilities,

employs 30,000 people, with industry-wide employment at 75,000• 67% of a wind turbine’s value now produced in the U.S., as

compared to only 25% prior to 2005• Added 35% of all new power generation capacity over past five years• Five states obtain more than 10% of their electricity from wind; 13

more obtain over 5% of their electricity from wind• Total U.S. wind capacity is 51,630 MWs (September 2012) = more p y , ( p )

than 20% of the world’s installed wind power• Source: AWEA

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European Offshore Wind Statistics

• By 2030, more than 375,000 people to be employed directly in the sector – 160,000 onshore and 215,000 offshore. , ,

• More than 20 years of offshore wind growth in Europe• 55 wind farms in 10 countries• 1,662 turbines in the water• 4,995 MW nameplate• Average nameplate capacity of just under 200 MW (modernAverage nameplate capacity of just under 200 MW (modern

projects)• Average water depth of 22.8 m (74.8 feet)

A di t f h f 23 4 k (14 5 il )• Average distance from shore of 23.4 km (14.5 miles)• Source: European Wind Energy Association (EWEA), Forbes

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OFFSHORE WIND FARM BASICS

1. Site Assessment At Sea

2. Assembly On Land2. Assembly On Land

3. Measuring Wind Speeds At Sea

4 C t ti At S4. Construction At Sea

1. Foundations

2. Towers

3. Nacelles

5. Offshore Substation

6. Submarine Cable Installation

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SITE ASSESSMENT AT SEA

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ASSEMBLY ON LANDLong-lead time of components/major payments required well in advance of delivery

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MEASURING WIND SPEEDS AT SEA

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CONSTRUCTION AT SEA – I

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CONSTRUCTION AT SEA – II

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CONSTRUCTION AT SEA – III

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OFFSHORE SUBSTATIONS

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SUBMARINE CABLE INSTALLATION – I

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SUBMARINE CABLE INSTALLATION – II

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European ExperienceMIDDELGRUNDEN AND NYSTED, DENMARK

Nysted, Denmark - 165 MW

16Middelgrunden, Denmark - 40 MW

FEDERAL JURISDICTION OF OFFSHORE WIND FARMS

• OCSLA, as amended by the Energy Policy Act of 2005 – BOEM• Submerged Lands Act – BOEM • NEPA – CEQ and Other Agencies

M i M l P t ti A t FWS d NMFS• Marine Mammal Protection Act – FWS and NMFS• Estuary Protection Act – FWS• National Marine Sanctuary Act – NOAA• Migratory Bird Treaty Act – FWS• Endangered Species Act – CEQ• Marine Protection, Research. and Sanctuaries Act – EPA, ACOE, NOAA• Clean Water Act – EPA• Rivers and Harbors Act – ACOE• Clean Air Act – EPA and BOEM• Federal Power Act – FERC• Coastal Zone Management Act – NOAA• Federal Aviation Act – FAA• National Historic Preservation Act – NPS• Other Agency Involvement: DOD, Homeland Security, USCG

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PERMITTING TIMELINE

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Status of the Offshore Wind Industry – Federal

• Federal Investment Tax Credit (ITC) extended in fiscal cliff legislation

• DOE issues seven awards for Advanced Technology Demonstration Projects for offshore wind

– Funding levels could reach to $180 million

• Finding of No Significant Impact (FONSI) for Wind Energy Areas in Mid-Finding of No Significant Impact (FONSI) for Wind Energy Areas in MidAtlantic (including New Jersey) thereby avoiding duplicative Environmental Impact Statement for site assessment and leasing activities

U S Department of the Interior’s B rea of Ocean Energ Management• U.S. Department of the Interior’s Bureau of Ocean Energy Management (BOEM) moving forward for offshore wind farm leases on the Outer Continental Shelf

• BOEM continuing to refine rules and regulations for offshore wind engineering and design, construction, installation, operation and maintenance and decommissioning

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Status of U.S. Offshore Wind Industry – Other than NJ – I

• ME – Statoil’s 12 MW pilot plant on floating foundations with Power Purchase Agreement (PPA); DOE support for the Statoil g ( ); pppilot project and for University of Maine’s 12 MW pilot project

• MA – Cape Wind’s 420 MW project commence construction end f ( )of 2013 with PPA; auction process (in collaboration with RI)

underway; state investing in port facilities

• RI Deepwater Wind’s 30 MW pilot project with PPA commence• RI – Deepwater Wind s 30 MW pilot project with PPA, commence construction end of 2013

• NY – Energy Highway Blueprint considers offshore windNY Energy Highway Blueprint considers offshore wind

• DE – NRG lease issued, no offtake mechanism

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Status of U.S. Offshore Wind Industry – Other than NJ – II

• MD – NJ-like OREC bill for 200 MW; likely to be enacted Q1 20132013

• VA – lease auction process underway; DOE support for Dominion Resources’ 12 MW pilot projectp p j

• NC, SC and GA – BOEM supporting R&D and site identification

• TX DOE support for Baryonyx’s 18 MW pilot project• TX – DOE support for Baryonyx s 18 MW pilot project

• OH – DOE support for LEEDCo’s 27 MW pilot project

• OR – DOE support for Principle Power’s 30 MW pilot project

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Status of U.S. Offshore Wind Industry – New Jersey I• DOE support for Fishermen’s Energy 25 MW pilot project; NJ Board of

Public Utilities (BPU) support for Fishermen’s wind resource assessment equipment

• New Jersey Offshore Wind Economic Development Act – Signed by Governor Christie, August 19, 2010– Law initially anticipates up to 1100 MWs of offshore generationa t a y a t c pates up to 00 s o o s o e ge e at o– 350 MW wind farm costs in range of $1.5 billion to $2 billion– New Jersey law could bring up to $6 billion of investment to the state, exclusive

of Atlantic Wind Connection’s New Jersey Energy Link

• Offshore Wind Renewable Energy Certificate (OREC) regulations, exclusive of the funding mechanism, expected to be formally re-adopted February 2013adopted February 2013

• BPU consultant Boston Pacific providing assistance to develop funding mechanism with proposed rule expected from the BPU in Q2 2013.

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Status of U.S. Offshore Wind Industry – New Jersey II• Federal – State Task Force working on description of auction procedures and

delineation of auction zones for New Jersey; expected delivery date by BOEM of these proposals mid-March

– Three to five zones anticipated, each of which to be bid separately by interested developers

– Footprint of each zone to be large enough to accommodate utility-scale wind farms

• Once Task Force work completed, BOEM to publish draft Proposed Sale Notice (PSN), followed by 60-day comment period

• Final Sale Notice (FSN) to be published Q3 or Q4 2013• Final Sale Notice (FSN) to be published Q3 or Q4 2013

• Developers then participate in federal auction process for offshore wind farm leases off coast of New Jersey

• Auctions may be conducted prior to finalization of NJ OREC regulations and before OREC applications submitted to BPU by interested developers

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Scale of an Offshore Wind Turbine

Rotor diameter = 154 mBlade = 75 mTotal turbine = 500 tonsTotal turbine 500 tonsFoundation = 400 tons

Bank of America PlazaDallas, TX 281Meters

Turbine With tip at 12:00

141 meters 24

Hotel IntercontinentalDallas, TX64 meters

THANK YOU!

For more information, please contact:

Jim Lanard, PresidentOffshore Wind Development Coalition

1130 C ti t A NW1130 Connecticut Avenue , NWSuite 300

Washington, DC 20036

JLanard@OffshoreWindDC.org202 688 1424202.688.1424

www.OffshoreWindDC.org

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