The ORE Catapult and Future Opportunities,David Arnold,Technology strategy Board


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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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The ORE Catapult and Future Opportunities,David Arnold,Technology strategy Board

  1. 1. David Arnold Strategy Director The ORE Catapult and Future Opportunities 27th November 2013
  2. 2. 2 Catapults: A new force for innovation & growth • Being established and overseen by the Technology Strategy Board • Part of a world-leading network of technology and innovation centres • Bridge the gap between business, academia, research and government. • Long-term investment to transform the UK’s ability to create new products and services • Open up global opportunities for the UK and generate sustained economic growth for the future Offshore Renewable Energy High Value Manufacturing Connected Digital Economy Satellite Applications Transport Systems Future Cities Cell Therapy Energy Systems Medical diagnosis for stratification £1bn 7 Catapults up and running in 2013 private and public sector investment 9 Catapults
  3. 3. UK’s economic opportunity 3 Vision: Renewables Installed Capacity Maximum Capacity Maximum economic value Risk of underachievement UK Economic Value
  4. 4. Offshore Renewable Energy Catapult We will: • Provide leadership to transform the Offshore Renewable Energy industry’s approach to innovation • Integrate the key players across industry, academia and the public sector • Accelerate technology readiness and procurement • Ensure the UK maximises the benefits of its economic opportunity • Return Government investment many times over A world leading centre of excellence with deep technical knowledge 4
  5. 5. Value Opportunities Ready to be Captured Rapid capacity growth expected • 18,000 MW by 2020 and more beyond £50 billion programme UK in pole position of technology development and deployment Replicating UK oil & gas historic growth of capacity & skills Opportunities in • turbine components, foundations, electricals, installation, testing, servicing….. • Wave & tidal IP development and manufacturing…… Significant first mover innovation value opportunities 40-60% of investment value is non turbine related 5
  6. 6. Challenges are our Opportunities Offshore Renewable Energy has cost reduction challenges e.g. 3040% in offshore wind ORE Catapult presents opportunities by • Working with developers, manufacturers and test agencies to enable and prove larger turbines (lower p/kWh) and their deployment • Providing new data analysis services to improve project design and installation efficiencies • Integrating developers with supply chain to standardise projects, thus enabling new entrants and allowing innovation to flow • Continually acting to derisk new technologies, leading to cheaper finance opportunities • Enabling greater knowledge / lessons learned sharing, with reach into other sectors e.g. aerospace, oil & gas and the wider Catapult portfolio An informed and interconnected ORE Catapult can resolve many sector challenges 6
  7. 7. Offshore Renewable Energy Catapult Vision “The ORE Catapult will be a leading international institution recognised for the identification, development and rapid commercialisation of innovative technology solutions, maintaining the UK’s position at the forefront of a vibrant and growing offshore renewable energy sector” Mission “In 5 years we will be the recognised “go to” institution for the delivery of interconnected technology innovation services. We will provide market access for new technologies while driving greater efficiency and will draw upon the strengths of the UK’s innovation services to create sustainable offshore wind and wave and tidal industries.” 7
  8. 8. ORE Catapult Board 8 Andrew Jamieson CEO Rob Saunders Non Executive Director Miriam Greenwood OBE Non Executive Director Baroness Helen Liddell Non Executive Director Colin Hood Chairman Alan Moore OBE Non Executive Director Prof. Sir Jim McDonald Non Executive Director
  9. 9. 9 Catapult Management Team CEO Andrew Jamieson Innovation & Technical Director TBC Innovation Programmes Director Chris Hill Strategic Development Director Steve Wyatt Head of Communications Charles Thompson Business Services Director David Currie Growing to meet ambitious programme 41 engineering and business support heads by March 2014 120-150 by 2016
  10. 10. The Catapult’s interconnections simplify the innovation landscape 10 Utilities / Supply Chain / SMEs Catapult Academia Crown Estate ETI Fraunhofers Consultants Hunterston Testing NAREC EMEC Methil Testing Funders BIS DECC TSB Carbon Trust EU etc Wavehub Deep Sea Testing Scot Gov EOWDC
  11. 11. Extending the Technology Reach Science Current Innovation & Testing in UK (understanding the physics) Technology Catapult expertise extends UK’s innovation deeper into early stage technology and research (development and furthering of new ideas) Engineering (test and manufacture) 11
  12. 12. 12 Extending the Technology Reach Partnerships and inputs underway Research Advisory Group Established Cranfield Oxford Chair Edinburgh University Utilities Industry Advisory Group OEMs Chair SSE Supply Chain Marine OEMs Collaborative Working Group and other linkages e.g. to SMEs Edinburgh Queens Exeter Sheffield Imperial Loughborough Strathclyde Swansea
  13. 13. Progress Key themes – Technology Advancement & Collaboration Standardisation • Process (BSI) • Good Practice • Technology leads from Pilot Cable Reliability • • • • Condition Monitoring HVDC Self repair Leads form Pilot Measurement & Analysis • Lidar: • Fixed • Floating • Certification
  14. 14. Progress Key themes – Technology Advancement & Collaboration Marine Farms Accelerator SMEs • EIC • RETA • Regional engagement • • • • Steering group Industry Partners Arrays Collaboration Reliability • SPARTA • Operational certification Testing • Identifying UK Capability • Use of facilities
  15. 15. Marine Farm Accelrator 15
  16. 16. Wave & Tidal Innovation Current Status High UK prospects of IP and manufacturing Success of world-leading test facility at EMEC and opportunities for Wavehub Single unit trials are promising Tidal technologies relatively advanced but need small array deployment for commercial proving Wave power has leaders but sector generally less well developed Both sectors have increasing interest from major industrials Tremendous scope to provide leadership and to resolve common issues, share learning and enable deployment at scale 16
  17. 17. 17 Wave & Tidal Innovation Opportunities Project Development Stages Scale Testing Full Scale Testing Demonstration Array Commercial Project Single Device (kW scale) Single device (50kW to 2MW) 3 to 10 devices (500kW to 10MW) 10 to 200 devices (10MW to 400MW) Marine Farm Accelerator Materials Performance Sensors Modelling ORE Catapult Opportunities Yield Analysis Site Characterisation Installation Methods O&M Electrical Systems Insurance Substructures Moorings Cable Protection Manufacturing Reliability Standards Industry Collaboration Research Collaboration The Marine Farm Accelerator is the first ORE Catapult project in the marine sector. Other projects will be developed to cover other areas of technology innovation and cost reduction. Condition Monitoring Lifetime Analysis
  18. 18. Marine Farm Accelerator Technology for First Wave and Tidal Arrays ORE Catapult programme delivered by the Carbon Trust Modelled on the successful Offshore Wind Accelerator (OWA) Steering Group of project developers (SPR, SSE, Vattenfall, Meygen, DP Energy) Liaison Group of technology developers Phase 1 has identified six work streams: • • • • • • O&M Yield Optimisation Site Characterisation Electrical Systems Installation Methods Insurance Phase 1 will drive scope for R&D projects and be completed by end 2013 Phase 2 will implement the identified R&D projects 18
  19. 19. Marine Farm Accelerator Other Marine Project Development Supporting collaboration between test sites and the resulting knowledge transfer with industry. Helping industry to respond to funding calls – identifying potential partnerships between industry and academia. Maximising the impact of ongoing funding programmes and ensuring that industry is able to benefit. Working with other Catapults to identify new approaches and innovation that could be applied in the marine sector. e.g. satellite monitoring of sites, improved sensors for site characterisation, component testing and advanced manufacturing techniques 19
  20. 20. Project Sparta Reliability Improvement thro knowledge exchange 20
  21. 21. Project Objectives Improve safety • by reducing major component failures and the frequency of offshore interventions • by providing verified data for risk analysis Improve performance • by using failure data to benchmark performance and drive reliability improvements Joint industry commitment to continuous improvement • by enhancing OEM and supply chain engagement Improve maintenance effectiveness • by using field data to optimise maintenance strategies and drive operational cost reduction Enhance industry knowledge • by providing visibility of aggregated performance data
  22. 22. Equipment Failures – Cost to the Industry Mean cost of failures £48k per MW installed The total lost revenue due to equipment failures to the UK offshore wind industry in 2012 is estimated to be around £150 If the UK meets the 2020 target of 18GW installed capacity without reducing these, it could cost the industry £860 in 2020 * Based on mean failure data (Source: WEP) with assumed 95% availability from experience million* million per year
  23. 23. Typical Costs for Offshore Wind Farm Total OPEX costs £26.8 million Lost revenue £6.5 million Total annual operational costs ~ £33 million Notes  Generic offshore wind farm comprising 83 x 3.6MW geared wind turbines  Located 15 km from shore  Service vessels deployed from shore  Model assumes capacity factor 36% and kWh price of €0.093  Corrective maintenance cost breakdown includes associated revenue losses
  24. 24. Examples of Improvement Areas Maintenance Planning Cable Repairs On average, 29% of maintenance expenditure is unplanned corrective maintenance Cable repairs account for up to 80% of offshore issues In some cases, this was as high as 60% Export cable repair costs range from £2 million to £5.6 million Click for Costs vary based on a wide range of factors, but can be significant
  25. 25. 25 Initial Solution Design: Preserving Confidentiality An OO free to connect to Data Centre with variety of communication providers with a variety of options. 2 1 3 4 5 5 Data Aggregation/transformation Process 1. Data uploaded into Database in CSV format 2. Data transformed and held in data warehouse 3. Transformed data accessed by tools 4. Results sets returned – for us in performance league table and/or original data sources (Business KPIs) 5. Results sets accessed via security permissions
  26. 26. 26 Initial Design: Each Owner Operator can view their KPIs over time and benchmark against sector high, low and average values An OO free to connect to Data Centre with variety of communication providers with a variety of options. 2 1 3 4 5 5 Data Aggregation/transformation Process 1. Data uploaded into Database in CSV format 2. Data transformed and held in data warehouse 3. Transformed data accessed by tools 4. Results sets returned – for us in performance league table and/or original data sources (Business KPIs) 5. Results sets accessed via security permissions
  27. 27. Skills Challenge 27
  28. 28. 28 Opportunity Renewable Energy Sector (RUK - 2013) 2013 Direct 16,000FTE Indirect 55,000FTE Direct 50,00FTE 2023 18,500FTE Indirect Potential 3 fold increase in jobs will be lost unless Costs to the sector are managed A collaborative approach to developing the workforce is adopted by Government, Industrial sector and academia
  29. 29. All need to be considered • Visibility of opportunity • Attractiveness to potential employees of opportunity • Support from government to deliver the opportunity • Skills required clearly identified, including evolution • UK ability to deliver the skills required • Balancing UK need to develop skills with existing EU capability • Drawing down on existing skills from “contracting” industries to cross support offshore renewable energy • Standards and consistency • Quality and visibility of education and enduring capability 29
  30. 30. What we see as the skills needed across the Offshore Wind value chain • Professional • Manufacturing and assembly • Operational • Do we fully understand where the bottlenecks are today • Where can evolving skills be utilised across different areas of the supply chain 30
  31. 31. Opportunity • Re training • Cross training/cross sector • Contracting strategies for organisations, sharing resources across contract and technical boundaries • Low volume/high margin v low margin/high volume • • Same resource used in more effective systems Training standards – Common approach • Agree industry requirements, JIP • Common programmes, structured for the long term • Identification of existing facilities, gaps in requirements or bottlenecks • Health and Safety standards, minimums • Need for retraining • Sector specific • Employer specific • Equipment specific • Potential for adjustment to common standards 31
  32. 32.