UK Content – Opportunities in
Offshore O&M
Alun Roberts, BVG Associates
Agenda
1. Costs of offshore O&M
2. Contracting and the supply
chain
3. UK content and opportunities
4. Northern Ireland an...
BVG Associates
Market analysis & business development
• Supply chain development
• Economic impact assessment
• Support to...
© BVG Associates 2013

4
© BVG Associates 2013

5
The O&M supply chain

Wind farm
asset owner

OFTO

Wind farm
operator
Turbine
maintenance

Transmission
maintenance

Servi...
How frequent

Frequency vs specialist - local opportunities

Vessel
operation

Turbine
maintenance

Onshore
admin
services...
Where does the money go
• Typical costs = £80100k/MW/year for a nearshore project
Wind turbine OMS

Fees

Marine operation...
Measuring UK content
• The percentage of the total undiscounted expenditure by the wind farm asset
owner on a wind farm th...
Local and UK content in turbine maintenance
Turbine maintenance
Turbine manufacturer’s national
resource
Health and safety...
Turbine maintenance supply chain opportunities
• Third party service
providers
• Turbine technicians
• Logistics, distribu...
Local and UK content in balance of plant maintenance
Substation maintenance

Overseas Local
12%
26%

Foundation maintenanc...
Balance of plant supply chain opportunities
• High and medium voltage
services
• Foundations – repairs and
scour and struc...
Local and UK content in marine operations
Crew transfer vessel operation
Local port
Fuel

Overseas
23%

Crew transfer vess...
Marine operations supply chain opportunities
• Vessel manufacture or
conversion
• Vessel (or helicopter)
maintenance and o...
Local and UK content in environmental surveys
Surveys
Onshore logistics

Overseas
15%

Surveys (specialist)

Local
51%

Ve...
Environmental surveys supply chain opportunities
• Environmental consultancies
• Monitoring:
• Sea mammals
• Birds
• Fishe...
Local and UK content in overheads
Local administration and services
Owners HQ
Insurance
Owners HQ
Insurance

Overseas
32%
...
Overheads supply chain opportunities
• Recruitment
• IT
• Facility management and
services
• General office services –
pri...
Local and UK content in fees
Local rent and rates

Overseas
5%
Local
12%

Use of system charges
Crown Estate rent
Miscella...
Local opportunities in the Irish Sea
Robin Rigg

First Flight

Isle of Man?

Barrow cluster

Celtic Array

Liverpool Bay c...
How local is local?
Distance
from port
< 12nm

Strategy
Quayside onshore logistics
base
Offshore logistics using
workboats...
How local is NI?
Kilkeel

Belfast

Barrow

Mostyn

Holyhead

First Flight
Barrow cluster
Celtic Array
Liverpool Bay cluste...
Implications for Northern Ireland
• There is long term economic benefit from an offshore wind farm off the
NI coast
• Loca...
Thank you
Contact aer@bvgassociates.co.uk
www.bvgassociates.co.uk
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UK Content – Opportunities in Offshore O&M, Alun Roberts, BVG Associates

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Presentation from the Supply Chain Opportunities in the Onshore and Offshore Wind Operation and Maintenance Sectors held at Down Royal Racecourse, Lisburn 27th November 2013

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UK Content – Opportunities in Offshore O&M, Alun Roberts, BVG Associates

  1. 1. UK Content – Opportunities in Offshore O&M Alun Roberts, BVG Associates
  2. 2. Agenda 1. Costs of offshore O&M 2. Contracting and the supply chain 3. UK content and opportunities 4. Northern Ireland and the Irish Sea projects © BVG Associates 2013 2
  3. 3. BVG Associates Market analysis & business development • Supply chain development • Economic impact assessment • Support to industrialisation Technical innovation & engineering analysis • Support to investment in technology • R&D programme management • Design and engineering services Project implementation • FIT project development (UK only) • SCADA & condition monitoring • O&M technical support Technical education © BVG Associates 2013 3
  4. 4. © BVG Associates 2013 4
  5. 5. © BVG Associates 2013 5
  6. 6. The O&M supply chain Wind farm asset owner OFTO Wind farm operator Turbine maintenance Transmission maintenance Service vessels Jack-up vessels Specialist services Port Replacement parts Equipment, tools Operating locally Operating anywhere © BVG Associates 2013 6
  7. 7. How frequent Frequency vs specialist - local opportunities Vessel operation Turbine maintenance Onshore admin services Cable repair How specialist © BVG Associates 2013 7
  8. 8. Where does the money go • Typical costs = £80100k/MW/year for a nearshore project Wind turbine OMS Fees Marine operations Balance of plant OMS Overheads Environmental surveys © BVG Associates 2013 8
  9. 9. Measuring UK content • The percentage of the total undiscounted expenditure by the wind farm asset owner on a wind farm that is ultimately spent through contracts awarded to companies operating in the UK • Excludes the value of contracts to UK companies that is spent on subcontracts to companies not operating in the UK • Includes the value of contracts to non-UK companies that is spent on subcontracts to companies operating in the UK Wind farm expenditure Cost of contracts to UK-based companies Cost of imported components and services Cost of contracts to overseas companies UK Content Cost of UK exported components or services (subsequently reimported) © BVG Associates 2013 Overseas content 9
  10. 10. Local and UK content in turbine maintenance Turbine maintenance Turbine manufacturer’s national resource Health and safety Equipment Turbine manufacturer’s international resource Replacement components © BVG Associates 2013 Overseas 29% Local 49% Other UK 22% 10
  11. 11. Turbine maintenance supply chain opportunities • Third party service providers • Turbine technicians • Logistics, distribution of spares and consumables • Health and safety training and equipment • Blade inspection and repair • SCADA and condition monitoring © BVG Associates 2013 11
  12. 12. Local and UK content in balance of plant maintenance Substation maintenance Overseas Local 12% 26% Foundation maintenance Cable survey and repair Substation maintenance General imported costs Other UK 76% © BVG Associates 2013 12
  13. 13. Balance of plant supply chain opportunities • High and medium voltage services • Foundations – repairs and scour and structural monitoring • Transition piece cleaning/coatings • Cable route surveys • Cable re-burial, repair, protection • Substation maintenance (onshore and offshore) © BVG Associates 2013 13
  14. 14. Local and UK content in marine operations Crew transfer vessel operation Local port Fuel Overseas 23% Crew transfer vessel manufacture Turbine access system Jack-up charter Crew transfer vessel manufacture Jack-up manufacture and charter Other UK 16% © BVG Associates 2013 Local 76% 14
  15. 15. Marine operations supply chain opportunities • Vessel manufacture or conversion • Vessel (or helicopter) maintenance and operation • Fuel • Pontoon supply and maintenance • Access systems • Marine navigation tools © BVG Associates 2013 15
  16. 16. Local and UK content in environmental surveys Surveys Onshore logistics Overseas 15% Surveys (specialist) Local 51% Vessels and equipment Other UK 55% © BVG Associates 2013 16
  17. 17. Environmental surveys supply chain opportunities • Environmental consultancies • Monitoring: • Sea mammals • Birds • Fishes • Vessels and equipment © BVG Associates 2013 17
  18. 18. Local and UK content in overheads Local administration and services Owners HQ Insurance Owners HQ Insurance Overseas 32% Local 36% Other UK 32% © BVG Associates 2013 18
  19. 19. Overheads supply chain opportunities • Recruitment • IT • Facility management and services • General office services – printing, PR © BVG Associates 2013 19
  20. 20. Local and UK content in fees Local rent and rates Overseas 5% Local 12% Use of system charges Crown Estate rent Miscellaneous non-UK products and services Other UK 83% © BVG Associates 2013 20
  21. 21. Local opportunities in the Irish Sea Robin Rigg First Flight Isle of Man? Barrow cluster Celtic Array Liverpool Bay cluster © BVG Associates 2013 21
  22. 22. How local is local? Distance from port < 12nm Strategy Quayside onshore logistics base Offshore logistics using workboats 12-40nm Quayside onshore logistics base Offshore logistics using workboats with helicopter support > 40nm Offshore logistics base (fixed or floating Source: The Crown Estate, Scottish Enterprise: A Guide to UK Offshore Wind Operations and Maintenance © BVG Associates 2013 22
  23. 23. How local is NI? Kilkeel Belfast Barrow Mostyn Holyhead First Flight Barrow cluster Celtic Array Liverpool Bay cluster <12nm 12-40nm >40nm © BVG Associates 2013 23
  24. 24. Implications for Northern Ireland • There is long term economic benefit from an offshore wind farm off the NI coast • Local suppliers may not benefit automatically to a significant degree • Owners have a greater incentive during O&M to develop a local supply chain than they do during construction • Most Irish Sea projects can be operated from local ports. The exceptions are the Celtic Array projects • Northern Ireland companies should look beyond the Irish sea market © BVG Associates 2013 24
  25. 25. Thank you Contact aer@bvgassociates.co.uk www.bvgassociates.co.uk

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