Jim Lanard, Offshore Wind Development Coalition - Keynote Speaker at the marcus evans Wind Power Summit 20123 held in Dallas, TX February 25-26, 2013, delivered his presentation entitled Offshore Wind – A New Market for Land-Based Wind Developers and Their Supply Chain
Offshore Wind – A New Market for Land-Based Wind Developers and Their Supply Chain - Jim Lanard, Offshore Wind Development Coalition
1. OFFSHORE WIND –
A New Market for
Land-Based Wi d Developers and Their Supply Chain?
L dB d Wind D l d Th i S l Ch i ?
WIND POWER SUMMIT
Hosted by:
Marcus Evans
Dallas, TX
February 25, 2013
2. THE OFFSHORE WIND DEVELOPMENT COALITION
Members and Mission
• Board Members
– Apex Wind – Fishermen’s Energy
– Cape Wi d
C Wind – NRG Bluewater Wi d
Bl t Wind
– Deepwater Wind – OffshoreMW
– EDF Renewables – AWEA
• Policy and General Members
– Supply chain industries
pp y – Consultants
– Manufacturers – Engineering Firms
• Mission
– To advocate for legislative and regulatory policies that
promote the development of offshore wind
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4. 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
past five years
t fi
• 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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5. 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 (modern
projects)
• Average water depth of 22.8 m (74.8 feet)
• A
Average di t
distance f
from shore of 23 4 k (14 5 miles)
h f 23.4 km (14.5 il )
• Source: European Wind Energy Association (EWEA), Forbes
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6. OFFSHORE WIND FARM BASICS
1. Site Assessment At Sea
2. Assembly On Land
3. Measuring Wind Speeds At Sea
4. Construction S
4 C t ti At Sea
1. Foundations
2. Towers
3. Nacelles
5. Offshore Substation
6. Submarine Cable Installation
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16. European Experience
MIDDELGRUNDEN AND NYSTED, DENMARK
Nysted, Denmark - 165 MW
Middelgrunden, Denmark - 40 MW 16
17. 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
• Marine Mammal P t ti A t – FWS and NMFS
M i M l Protection Act d
• 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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19. 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-
Mid
Atlantic (including New Jersey) thereby avoiding duplicative Environmental
Impact Statement for site assessment and leasing activities
• U.S.
U S Department of the Interior’s Bureau of Ocean Energ Management
B rea Energy
(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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20. 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 (
g (PPA); DOE support for the Statoil
); pp
pilot project and for University of Maine’s 12 MW pilot project
• MA – Cape Wind’s 420 MW project commence construction end
of 2013 with PPA; auction process (in collaboration with RI)
f ( )
underway; state investing in port facilities
• RI – Deepwater Wind s 30 MW pilot project with PPA commence
Wind’s PPA,
construction end of 2013
• NY – Energy Highway Blueprint considers offshore wind
• DE – NRG lease issued, no offtake mechanism
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21. Status of U.S. Offshore Wind Industry – Other than NJ – II
• MD – NJ-like OREC bill for 200 MW; likely to be enacted Q1
2013
• VA – lease auction process underway; DOE support for
Dominion Resources’ 12 MW pilot p j
p project
• NC, SC and GA – BOEM supporting R&D and site identification
• TX – DOE support for Baryonyx s 18 MW pilot project
Baryonyx’s
• 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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22. 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 a t c pates up to 1100 MWs o o s o e ge e at o
a t a y anticipates 00 s of offshore generation
– 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 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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23. 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
• 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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24. Scale of an Offshore Wind Turbine
Rotor diameter = 154 m
Blade = 75 m
Total turbine = 500 tons
Foundation = 400 tons
Hotel Intercontinental Turbine
With tip at 12:00 Bank of America Plaza
Dallas, TX
141 meters Dallas, TX
64 meters 24
281Meters
25. THANK YOU!
For more information, please contact:
Jim Lanard, President
Offshore Wind Development Coalition
1130 C
Connecticut A
ti t Avenue , NW
Suite 300
Washington, DC 20036
JLanard@OffshoreWindDC.org
202.688.1424
202 688 1424
www.OffshoreWindDC.org
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