A case study in offshore wind farm project management


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A case study in offshore wind farm project management

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A case study in offshore wind farm project management

  1. 1. Navigating the Offshore Shoals How Not to Go Aground in the Great Lakes Wolfe Island Shoals A Case Study in Offshore Wind Farm Project Management Pulling It All Together An Exercise in Permitting & Logistics Presented by: Andrew Chant/Uwe Roeper Infocast Freshwater Great Lakes Offshore Wind Conference July 19 - 21, 2010 Cleveland, Ohio
  2. 2. What is Wolfe Island Shoals? <ul><li>300 MW Offshore Wind Facility under development by Windstream Energy Inc. </li></ul><ul><li>Approximate capital cost $1.5 Billion </li></ul><ul><li>Awarded PPA under Ontario’s Feed-in Tariff Program </li></ul><ul><li>Located eastern end of Lake Ontario, south of Kingston, west of Wolfe Island </li></ul><ul><li>Scheduled Mandatory Commercial Operations Date – September, 2014 </li></ul>
  3. 3. Location of Wolfe Island Shoals
  4. 4. Highlights <ul><li>300 MW off-shore wind project with PPA, land & grid connection </li></ul><ul><ul><li>Final stages of securing development financing for permitting & design </li></ul></ul><ul><ul><li>Total Projected CapEx = $1.5 Billion </li></ul></ul><ul><ul><li>Permitting & design in 2010 / 2011 </li></ul></ul><ul><ul><li>Construction in 2012 / 2013 </li></ul></ul><ul><ul><li>Lake Ontario, Canada </li></ul></ul>
  5. 5. ORTECH’s Role <ul><li>Who is ORTECH? </li></ul><ul><li>Multidisciplinary renewable energy and environmental consulting firm </li></ul><ul><li>Active in renewable energy directly and through affiliates for over 10 years </li></ul><ul><li>Over 30 years of experience in atmospheric sciences </li></ul><ul><li>Through a related company, the original developer of Wolfe Island Wind facility completed by Canadian Hydro Developers, Inc., now TransAlta </li></ul><ul><li>Client base consists of financial institutions, infrastructure investors and private developers </li></ul><ul><li>Appointed Project Manager for Wolfe Island Shoals in May 2010 </li></ul><ul><li>Strong emphasis on advanced wind resource assessment, permitting, O & M planning and costs, financial and economic analysis </li></ul>
  6. 6. Project Schedule <ul><li>Project Phases </li></ul><ul><li>Phase I – Pre-Bid/FIT Submission </li></ul><ul><li>Objectives: Evaluate Site </li></ul><ul><li>Obtain Access to Land </li></ul><ul><li>Prefeasibility Study </li></ul><ul><li>Preliminary Wind Studies </li></ul><ul><li>Very High Risk Seed Capital </li></ul><ul><li>Observations: Balancing act – Need to spend enough to prove site potential but minimize pain of write off if unsuccessful </li></ul><ul><li>Timing: 2008-2009 </li></ul>
  7. 7. Project Schedule – Cont’d <ul><li>Phase II – Design, Permitting & Engineering </li></ul><ul><li>Objectives: Determine Project Scope </li></ul><ul><li>Begin Detailed Wind Data Collection & Analysis </li></ul><ul><li>Start Permitting Process </li></ul><ul><li>Do Preliminary Layout </li></ul><ul><li>Carry Out Lake Bed Soil Testing </li></ul><ul><li>Evaluate Turbine Options </li></ul><ul><li>Begin Successive Refinements of Budget & Schedules </li></ul><ul><li>Observations: High Risk Capital </li></ul><ul><li>Tasks Must be Undertaken Simultaneously </li></ul><ul><li>Phase Timing: 2010 - 2012 </li></ul>
  8. 8. Project Schedule – Cont’d <ul><li>Phase III – Finalize Project </li></ul><ul><li>Select turbine </li></ul><ul><li>Optimize Layout </li></ul><ul><li>Complete Permitting </li></ul><ul><li>Execute TSA & OSA </li></ul><ul><li>Complete Financial Close </li></ul><ul><li>Make Turbine Deposit </li></ul><ul><li>Begin Foundation Construction </li></ul><ul><li>Observations: Construction Capital Has Less Risk </li></ul><ul><li>Timing: 2012-2013 </li></ul>
  9. 9. Project Schedule – Cont’d <ul><li>Phases IV & V </li></ul><ul><li>Phase IV – Construction </li></ul><ul><li>Foundations Completed </li></ul><ul><li>Turbines Delivered to Lay Down Site </li></ul><ul><li>Underwater Cabling Completed </li></ul><ul><li>O & M Training Undertaken </li></ul><ul><li>Turbine Erection Completed </li></ul><ul><li>Commissioning Completed </li></ul><ul><li>Phase V – Commercial Operation </li></ul><ul><li>Operation to WTG Supplier </li></ul><ul><li>Cheques from OPA Begin to Arrive </li></ul><ul><li>Timing: 2013 - 2014 </li></ul>
  10. 10. Special Problems of Offshore Wind <ul><li>Permitting </li></ul><ul><li>Engineering </li></ul><ul><li>Logistics </li></ul><ul><li>Turbine Selection </li></ul><ul><li>Marine Transport </li></ul><ul><li>Foundations </li></ul><ul><li>O & M </li></ul><ul><li>Crew Training </li></ul><ul><li>Provincial Content </li></ul><ul><li>Financing </li></ul>
  11. 11. Permitting – More than the Usual Suspects <ul><li>Federal Ministries & Agencies </li></ul><ul><li>Transport Canada </li></ul><ul><li>St Lawrence Seaway Authority </li></ul><ul><li>Coast Guard </li></ul><ul><li>Fisheries & Oceans Canada </li></ul><ul><li>RCMP </li></ul><ul><li>CBC </li></ul><ul><li>NRCan </li></ul><ul><li>Canadian Environmental Assessment Agency </li></ul>
  12. 12. Permitting – More than the Usual Suspects - Continued <ul><li>Provincial Ministries </li></ul><ul><li>MNR </li></ul><ul><li>MOE </li></ul><ul><li>MOEI </li></ul><ul><li>OPA </li></ul><ul><li>Ministry of Culture </li></ul><ul><li>Ministry of Transport </li></ul>
  13. 13. Permitting – More than the Usual Suspects - Continued <ul><li>Other Potentially Interested Parties </li></ul><ul><li>International Joint Commission </li></ul><ul><li>Homeland Security </li></ul><ul><li>US Coast Guard </li></ul><ul><li>USAF </li></ul><ul><li>NYPA </li></ul><ul><li>US Army Corps of Engineers </li></ul><ul><li>FAA </li></ul><ul><li>NRA </li></ul>
  14. 14. Wolfe Island Shoals – Boundary & Connection Point
  15. 15. Permitting Constraints - 1 <ul><li>Set Backs & Boundaries </li></ul>
  16. 16. Permitting Constraints – 2 <ul><li>Airports & Air Bases </li></ul>
  17. 17. Permitting Constraints – 3 <ul><li>Buffers & Turbine Layout </li></ul>
  18. 18. Permitting Constraints - 4 <ul><li>Layout & Water Depth </li></ul>
  19. 19. Permitting Constraints – 5 <ul><li>Ship Wrecks & Nesting Areas </li></ul>
  20. 20. US Army Creates World’s Worst PowerPoint Slide <ul><li>A New Standard of Excellence? </li></ul>
  21. 21. Permitting Constraints – The Mash Up <ul><li>A Contender </li></ul>
  22. 22. Engineering <ul><li>Soil Testing </li></ul><ul><li>Wind Data Collection </li></ul><ul><li>Foundation Design & Construction </li></ul><ul><li>Collector Systems & Underwater Cabling </li></ul><ul><li>Transformer Station Location </li></ul>
  23. 23. The Importance of Soil Testing Photo Courtesy of Advanced Offshore Solution
  24. 24. Conventional Off-shore Design <ul><li>Conventional Turbine (eg. Siemens 2.3/93, GE 3.6/107 or Vestas V90/3MW) </li></ul><ul><li>Wolfe Island shoals: 5m (15’) to 20m (60’) water depth (2 km to 10 km from shoreline) similar to existing projects </li></ul><ul><li>Limestone rock bottom suitable for proven foundation design: Drilled monopile (tentative) </li></ul><ul><li>Conventional underwater cable (34.5 kW) with substation and on-shore grid connection (230 kW) </li></ul><ul><li>Proven Technology: Existing 200 MW Wolfe Island on-shore wind farm also uses underwater cable (230 kW) to go from island to grid on mainland (installed 2009). Underwater cables common for islands in Lake Ontario. </li></ul>
  25. 25. <ul><li>Turbine Selection </li></ul><ul><li>WTG Nameplate Capacity </li></ul><ul><li>Reliability </li></ul><ul><li>Logistics </li></ul><ul><li>Availability of Port Facilities </li></ul><ul><li>Transportation to Port </li></ul><ul><li>Access to On Shore Cranes </li></ul><ul><li>Scheduling </li></ul><ul><li>Size of Laydown Area </li></ul><ul><li>Shared Facilities </li></ul>
  26. 26. Required Port Facilities Photo Courtesy of Advanced Offshore Solutions
  27. 27. <ul><li>O &M </li></ul><ul><li>Costs </li></ul><ul><li>Waterborne Access to Turbines </li></ul><ul><li>Planned Maintenance </li></ul><ul><li>Turbine Performance Monitoring </li></ul><ul><li>Parts and Component Inventories </li></ul>
  28. 28. <ul><li>Marine Transport </li></ul><ul><li>Availability of Special Purpose Vessels </li></ul><ul><li>National Shipping Restrictions: US Jones Act, Canada Coastal Shipping Act </li></ul><ul><li>Marine Crane Availability </li></ul><ul><li>Transportation of Partially Assembled WTGs </li></ul><ul><li>Possible Solution: Convert existing self unloader. </li></ul>
  29. 29. European Marine Transport Photo Courtesy of Advanced Offshore Solutions
  30. 30. Typical Great Lakes Self Unloader
  31. 31. <ul><li>Crew Training </li></ul><ul><li>Safety Issues </li></ul><ul><li>Inclement Weather </li></ul><ul><li>Subcontractors </li></ul><ul><li>Housing </li></ul><ul><li>Provincial Content </li></ul><ul><li>European Expertise </li></ul><ul><li>Turbine Selection </li></ul><ul><li>Underwater Cabling </li></ul>
  32. 32. Financing <ul><li>Comparison to On Shore </li></ul><ul><li>Capital Costs </li></ul><ul><li>PPA Pricing </li></ul><ul><li>Portfolio Financing </li></ul><ul><li>Use of Tax Benefits </li></ul>
  33. 33. Summary <ul><li>Difficult but not impossible </li></ul><ul><li>Requires careful planning and execution </li></ul><ul><li>Special problems give rise to market opportunities for Ontario & Great Lakes suppliers </li></ul><ul><li>Possible opportunity to supply services to neighbouring Great Lakes states </li></ul><ul><li>There are no insurmountable problems that are not opportunities. </li></ul><ul><li>“ Yes we can!” </li></ul>
  34. 34. Contact Information <ul><li>To Review Presentation see Infocast Website or www.ortech.ca </li></ul><ul><li>For Further Information Contact: </li></ul><ul><li>[email_address] </li></ul><ul><li>905-822-4120 ext 463 </li></ul><ul><li>or [email_address] </li></ul><ul><li>905-822-4120 ext 248 </li></ul>
  35. 35. Thank You for Your Attention