Block ip Trap
Mar 27, 2024
ACP Statement on Empire Wind’s South Brooklyn Marine Terminal Project Labor Agreement

The American Clean Power Association (ACP) released the following statement from Anne Reynolds, ACP Vice President for Offshore Wind, after Equinor, union leaders, and elected officials from New York announced a Project Labor Agreement (PLA) for the construction of the South Brooklyn Marine Terminal (SBMT), which will support and serve as a staging area for the Empire Wind 1 project:

“Today’s announcement is a demonstration that the offshore wind industry is making good on its promise of creating local, family-sustaining jobs. Project Labor Agreements are an important way to build stakeholder partnerships and advance offshore wind projects. These agreements bring together contractors, unions, and project developers to cooperate on local workforce development and prioritize safety and workforce training. Additionally, Empire Wind 1 will revitalize the South Brooklyn Marine Terminal by reinvesting in a disadvantaged community. Congratulations to both Equinor and the Building Construction Trades Council of Greater New York. This PLA will benefit New York workers and shows the benefits offshore wind power projects can bring to the United States and our coastal regions.”

ACP | cleanpower.org

Mar 27, 2024
United Rentals Completes Acquisition of Yak Access

United Rentals, Inc. (NYSE: URI) (“United Rentals” or “the company”) announced that it has completed its previously announced acquisition of Yak Access, LLC, Yak Mat, LLC and New South Access & Environmental Solutions, LLC (collectively, “Yak”) from Platinum Equity for approximately $1.1 billion in cash. The transaction and related expenses were funded through a combination of newly issued senior unsecured notes and existing capacity under the company’s ABL facility.

Yak is a leader in the North American matting industry with a fleet of approximately 600,000 hardwood, softwood, and composite mats providing surface protection across both construction and maintenance, repair and operations applications. Yak predominantly serves customers in the utility and midstream verticals. For the year ended December 31, 2023, Yak generated $171 million of adjusted EBITDA on $353 million of adjusted revenue across over 40 U.S. states.

Matthew Flannery, chief executive officer of United Rentals, said, “Today we are very excited to welcome Yak to the United Rentals family. This is an acquisition with both strong strategic and financial merits. Not only does it augment our growth capacity with the addition of a leading North American matting solutions provider but it also further differentiates our one-stop-shop value proposition to customers. Combined, this has proven to be a winning strategy for building long-term value for our investors.”

The company plans to update its 2024 financial outlook to reflect the combined operations when it releases financial results for the first quarter in April.

United Rentals | unitedrentals.com

 Yak Access | https://www.yakaccess.com/

Mar 27, 2024
Premier Truck Rental Welcomes Matt Rademacher as Michiana Territory Manager

Premier Truck Rental (PTR), a nationwide custom work truck and trailer rental company, is pleased to announce that Matt Rademacher has joined the team as the Michiana Territory Manager. In this role, Matt will spearhead efforts to assist contractors with their truck and trailer rental needs across Indiana and Michigan.

Matt Rademacher, PTR's Michiana Territory Manager, will be focusing on assisting contractors with their truck and trailer rental needs across Indiana and Michigan.

Matt Rademacher, PTR's Michiana Territory Manager, will be focusing on assisting contractors with their truck and trailer rental needs across Indiana and Michigan.

Located in Michigan, Rademacher has 11 years of sales experience in the automotive sector, joining the PTR team in January of this year. As the Michiana Territory Manager, Rademacher will be working to provide fleet solutions to utility and renewable contractors in the region, forging new partnerships and expanding the company's footprint across both states.

Expressing his enthusiasm for the opportunity, Matt shared, "I'm excited to be part of PTR's rapid growth trajectory. The unique value proposition that PTR brings to the fleet rental industry gives us a competitive edge, benefiting our nationwide customer base." He added, "My goal is to support our Michigan and Indiana customers effectively, providing them with innovative solutions that drive their profitability."

Chandler Shady will be supporting Matt in building the Michiana territory as his Inside Sales Representative.

Brandie Cotton, PTR's VP of Sales, said, "We're glad to have Matt on board as our Michiana Territory Manager. His background in the automotive industry will help us grow our book of business in both Michiganand Indiana, serving the region surrounding our HQ. Welcome, Matt!"

Rademacher will be based in Rockford, Michigan.

Premier Truck Rental | https://rentptr.com/

 

Mar 27, 2024
SouthCoast Wind Submits Bid in Tri-State Solicitation

Below is a statement from SouthCoast Wind on today's Tri-state offshore wind solicitation.

“Today marks a pivotal moment for the SouthCoast Wind project and the offshore wind industry in New England. The first ever tri-state offshore wind solicitation demonstrates an unshakeable commitment to a clean energy future for all and we are proud to submit our bid. After years of extraordinary work by our team, the SouthCoast Wind project is on schedule to deliver abundant and renewable power to New England’s electric grid by 2030.” Michael Brown, CEO, SouthCoast Wind 

SouthCoast Wind bid Project 1 to deliver 1200 MW of power. 

SouthCoast Wind | www.southcoastwind.com 

 

Mar 27, 2024
TANAKA to Install 500 kW Fuel Cell System to Promote the Use of Hydrogen Energy at Production Plants

TANAKA Holdings Co., Ltd. (Head office: Chiyoda-ku, Tokyo; Group CEO: Koichiro Tanaka) announces that TANAKA Precious Metals will install a stationary pure hydrogen fuel cell system with a maximum generating capacity of 500 kilowatts (kW), one of the largest in private-sector use in Japan, at the Shonan Plant in Kanagawa Prefecture, a key recycling business site for TANAKA. It has decided to install an H2Rex pure hydrogen fuel cell system manufactured by Toshiba Energy Systems & Solutions Corporation to optimally control generating efficiency. Operation is scheduled to commence in 2026.

Rendering of the system to be installed at TANAKA; Photo courtesy of Toshiba Energy Systems & Solutions

Rendering of the system to be installed at TANAKA; Photo courtesy of Toshiba Energy Systems & Solutions

Initiatives for Achieving Carbon Neutrality

TANAKA is currently carrying out Operation Polaris*2 with the objective of achieving carbon neutrality by 2050. To achieve at least a 50% reduction of CO2 emissions by 2030 (compared to 2013 levels), proactive steps are being taken, including enhancing energy efficiency, optimizing manufacturing processes, implementing green energy solutions, and pursuing additional measures aimed at emission reduction. The recent decision to use hydrogen energy is a part of these efforts.

Pure Hydrogen Fuel Cell Systems

The pure hydrogen fuel cell system to be introduced generates electricity by making use of a chemical reaction that combines hydrogen and oxygen, the reverse of the electrolysis of water. Since the system directly uses hydrogen to generate electricity, unlike household fuel cell systems that extract hydrogen from city gas and other sources, it is able to generate electricity with high efficiency and zero CO2 emissions. Additionally, in the event of a disaster, the system can be used to supply backup electric power without interruption. Such systems also give consideration to the local environment, due to their low noise and vibration.

Effects of Introduction

With the introduction of this system, 25% of the electricity used at the Shonan Plant will be switched to power generated by the fuel cell system, with an expected reduction in CO2 emissions of 1,979 tons annually (this and subsequent figures are estimates by TANAKA). This is equivalent to 32% of the plant’s CO2 emissions reduction target for 2030.

Participation in Councils for Achieving Carbon Neutrality

TANAKA will continue to expand its use of hydrogen energy even after the introduction of the system. In conjunction with this, hydrogen demand will increase, and TANAKA has high hopes for Kawasaki City*3, an advanced hydrogen city in Kanagawa Prefecture, and seeks to build a hydrogen supply base in the waterfront area. TANAKA joined the Kawasaki Carbon Neutral Industrial Complex Formation Promotion Council and the Kawasaki Carbon Neutral Port Formation Promotion Council, two public-private collaborative bodies made up of companies and other organizations in agreement with the city’s vision and strategies that were established to investigate and promote measures for achieving carbon neutrality. By joining the councils, TANAKA hopes to deepen collaboration with the city and other member companies.

Installation Plan and Overview of System

The TANAKA Shonan Plant

TANAKA Kikinzoku Kogyo K.K. Shonan Plant
Location: Hiratsuka City, Kanagawa Prefecture
Scheduled start of operation: April 2026
Capital investment: 2.0 billion yen

 

 

The TANAKA Shonan Plant

 

H2Rex 500 kW pure hydrogen fuel cell system (five 100-kW units) made by Toshiba Energy Systems & Solutions Corporation

System Features

  • 95% of total efficiency, approx. 80,000-hour of durability by design
  • Heavy-duty salt resistance specifications suitable for installation even in areas susceptible to salt damage, such as ports
  • Autonomous operating function that can maintain operation even during blackouts
  • Optimal EMS that increases follow-up speed in load-following power generation by five times compared to conventional systems

Specifications

Rated output: 500 kW, three-phase, three-wire AC 210 / 220 V
Total efficiency: 95% (low heating value (LHV) basis)
Dimensions: W 2.8 m × D 2.0 m × H 1.9 m (per unit)

A Leading Manufacturer of Fuel Cell Electrode Catalysts

Electrode catalyst for fuel cells

TANAKA has been continuously developing electrode catalysts for fuel cells using primarily platinum since the 1980s and currently supplies electrode catalysts for polymer electrolyte fuel cells (PEFC) globally. The FC Catalyst Development Center, located on the grounds of the Shonan Plant, will manufacture and recycle catalysts using hydrogen energy, enabling continuous, stable supplies even during times of disaster. TANAKA will continue further research on precious metal catalysts with the aim of contributing to the widespread adoption of fuel cells and the development of a hydrogen society.

*1: As of March 2024, according to research by Toshiba Energy Systems & Solutions

*2: Operation Polaris is a project carried out per the TANAKA Precious Metals Statement on Carbon Neutrality. With Polaris (the North Star) as a symbol of a fixed guide, the project title incorporates the sense of making steady progress toward achieving its CO2 reduction targets.

*3: Kawasaki City (Kanagawa Prefecture) established the Kawasaki Hydrogen Strategy for the Realization of a Hydrogen Society in 2015 and can be said to be an advanced hydrogen city that has carried out various demonstration projects in cooperation with involved companies.

Council website: https://www.city.kawasaki.jp/590/page/0000139903.html

TANAKA Precious Metals | https://tanaka-preciousmetals.com/en/

Mar 27, 2024
Brimfield School District in Illinois Set to Host Solar Farm and Gain Cost Savings

Brimfield Community Unit School District (CUSD) #309 in Brimfield, Illinois, has chosen the Nexamp community solar program to reduce its annual electric expenses and add more renewable energy to the Ameren utility grid. Under a 20-year contract, the district, which includes Pre-Kindergarten through twelfth grade students across two separate school campuses, will save more than $22,000 each year of the agreement. 

The solar farm, called Jubilee Solar and sited on school grounds just beyond the high school baseball field, will be a visual reminder of the role the district is playing in environmental sustainability and the health of the larger community. The project will generate 3 Megawatts of solar energy from approximately 5,500 solar panels mounted on a tracker system that follows the sun throughout the day. Brimfield CUSD 309 will receive a 23% allocation of the overall project while much of the rest of the project will be reserved for individual residents in the area who can enroll directly in the Nexamp community solar program. 

“As we looked at ways to increase our sustainability efforts and have a positive impact in the community, we were drawn to the idea of playing such an active role in bringing more renewable energy to the local grid. We have space on our district campus and by working with Nexamp to get a solar farm constructed on site, we can immediately realize several benefits, such as cost savings, educational opportunities, and leading by example,” said Chad Jones, Brimfield Superintendent of Schools.

The project qualifies under the Illinois Shines Public Schools category, which enables public schools across the state to host community solar projects, realize significant savings, and extend those savings to the broader community.

“The Public Schools category provides an excellent framework for schools across Illinois that are interested in hosting a community solar project,” notes Joe Fiori, Vice President of Business Development at Nexamp. “It enables schools to maximize the educational and financial benefits. Nexamp will still own and operate the facility over the life of the agreement.”

Additional capacity remains on Nexamp projects across multiple markets and utility service territories. Businesses and organizations interested in learning more about commercial offtake should visit https://www.nexamp.com/power-purchase-agreements

Nexamp | www.nexamp.com

Mar 27, 2024
Maine Governor Janet Mills to Speak at Offshore Wind Industry Conference

Oceantic Network announced Maine Governor Janet Mills as a featured speaker at its annual International Partnering Forum (IPF),hosted by bpFugroRWE, and Shell Renewables and Energy Solutions, happening April 22-25 in New Orleans. Gov. Mills will speak about the value of international partnerships, and later, discuss the potential for floating offshore wind to deliver economic benefits and clean, renewable energy for homes and businesses in Maine. 

“Floating offshore wind will provide countless opportunities for companies in the offshore wind supply chain,” said Liz Burdock, founder and CEO of Oceantic Network. “We’re thrilled to have Governor Mills offer her unparalleled insight on industry development, based on her experience as Maine’s governor, and illustrate floating offshore wind’s viability beyond the West Coast.” 

Gov. Mills will take part in an IPF panel discussion, How Transatlantic Government Partnerships are Maximizing Offshore Wind Opportunities, on Wednesday, April 24, at 11:00 a.m. CST. She will be joined on the panel by Bureau of Ocean Energy Management (BOEM) Director Liz KleinNorway’s Ambassador to the U.S. Anniken Krutnes, and British Consul General Richard Hyde. The discussion will focus on the importance of collaboration to offshore wind’s advancement, drawing on Gov. Mills’ experience with the New England for Offshore Wind partnership made up of Maine and several Northeast states. The conversation will be moderated by Tony Appleton, Offshore Wind Director at Burns & McDonnell. 

Gov. Mills will also participate as a keynote speaker and deliver opening remarks on Wednesday, April 24, at 2:00 p.m. CST at the Network’s FloatON Summit, a new event at IPF dedicated to sharing knowledge, best practices, and innovations in floating offshore wind. Maine has the potential to be a leader in the development of domestic floating offshore wind due to its rich maritime heritage, proposed purpose-built deepwater port, record of floating offshore wind innovation, and a commitment to groundbreaking research on offshore wind’s coexistence with fisheries and the environment. Gov. Mills will discuss her efforts as the state’s governor to advance the floating offshore wind industry not just in Maine, but nationwide. 

“Building off our previous events, the Summit will cover more aspects of floating offshore wind technology than ever before,” added Burdock. “FloatON will be a forum for examining the industry’s existing challenges through a fresh lens and considering the unseen potential of emerging technologies.” 

Oceantic Network | https://oceantic.org/

Alternative Energies May 15, 2023

Mobilizing to Win

The United States is slow to anger, but relentlessly seeks victory once it enters a struggle, throwing all its resources into the conflict. “When we go to war, we should have a purpose that our people understand and support,” as former Secretary ....

Alternative Energies Jun 26, 2023
8 min read
Investing in the Future: Mobilizing capital and partnerships for a sustainable energy transition

Unleashing trillions of dollars for a resilient energy future is within our grasp — if we can successfully navigate investment risk and project uncertainties.

The money is there — so where are the projects?

A cleaner and more secure energy future will depend on tapping trillions of dollars of capital. The need to mobilize money and markets to enable the energy transition was one of the key findings of one of the largest studies ever conducted among the global energy sector C-suite. This will mean finding ways to reduce the barriers and uncertainties that prevent money from flowing into the projects and technologies that will transform the energy system. It will also mean fostering greater collaboration and alignment among key players in the energy space.

stocksInterestingly, the study found that insufficient access to finance was not considered the primary cause of the current global energy crisis. In fact, capital was seen to be available — but not being unlocked. Why is that? The answer lies in the differing risk profiles of energy transition investments around the world. These risks manifest in multiple ways, including uncertainties relating to project planning, public education, stakeholder engagement, permitting, approvals, policy at national and local levels, funding and incentives, technology availability, and supply chains.

These risks need to be addressed to create more appealing investment opportunities for both public and private sector funders. This will require smart policy and regulatory frameworks that drive returns from long-term investment into energy infrastructure. It will also require investors to recognize that resilient energy infrastructure is more than an ESG play — it is a smart investment in the context of doing business in the 21st century.

Make de-risking investment profiles a number one priority

According to the study, 80 percent of respondents believe the lack of capital being deployed to accelerate the transition is the primary barrier to building the infrastructure required to improve energy security. At the same time, investors are looking for opportunities to invest in infrastructure that meets ESG and sustainability criteria. This suggests an imbalance between the supply and demand of capital for energy transition projects.

How can we close the gap?

One way is to link investors directly to energy companies. Not only would this enable true collaboration and non-traditional partnerships, but it would change the way project financing is conceived and structured — ultimately aiding in potentially satisfying the risk appetite of latent but hugely influential investors, such as pension funds. The current mismatch of investor appetite and investable projects reveals a need for improving risk profiles, as well as a mindset shift towards how we bring investment and developer stakeholders together for mutual benefit. The circular dilemma remains: one sector is looking for capital to undertake projects within their skill to deploy, while another sector wonders where the investable projects are.

This conflict is being played out around the world; promising project announcements are made, only to be followed by slow progress (or no action at all). This inertia results when risks are compounded and poorly understood. To encourage collaboration between project developers and investors with an ESG focus, more attractive investment opportunities can be created by pulling several levers: public and private investment strategies, green bonds and other sustainable finance instruments, and innovative financing models such as impact investing.

sunset

Expedite permitting to speed the adoption of new technologies

Another effective strategy to de-risk investment profiles is found in leveraging new technologies and approaches that reduce costs, increase efficiency, and enhance the reliability of energy supply. Research shows that 62 percent of respondents indicated a moderate or significant increase in investment in new and transitional technologies respectively, highlighting the growing interest in innovative solutions to drive the energy transition forward.

Hydrogen, carbon capture and storage, large-scale energy storage, and smart grids are some of the emerging technologies identified by survey respondents as having the greatest potential to transform the energy system and create new investment opportunities. However, these technologies face challenges such as long lag times between conception and implementation. 

If the regulatory environment makes sense, then policy uncertainty is reduced, and the all-important permitting pathways are well understood and can be navigated. Currently, the lack of clear, timely, and fit-for-purpose permitting is a major roadblock to the energy transition. To truly unleash the potential of transitional technologies requires the acceleration of regulatory systems that better respond to the nuance and complexity of such technologies (rather than the current one-size-fits all approach). In addition, permitting processes must also be expedited to dramatically decrease the period between innovation, commercialization, and implementation. One of the key elements of faster permitting is effective consultation with stakeholders and engagement with communities where these projects will be housed for decades. This is a highly complex area that requires both technical and communication skills.

The power of collaboration, consistency, and systems thinking

The report also reveals the need for greater collaboration among companies in the energy space to build a more resilient system. The report shows that, in achieving net zero, there is a near-equal split between those increasing investment (47 percent of respondents), and those decreasing investment (39 percent of respondents). This illustrates the complexity and diversity of the system around the world. A more resilient system will require all its components – goals and actions – to be aligned towards a common outcome.

Another way to de-risk the energy transition is to establish consistent, transparent, and supportive policy frameworks that encourage investment and drive technological innovation. The energy transition depends on policy to guide its direction and speed by affecting how investors feel and how the markets behave. However, inconsistent or inadequate policy can also be a source of uncertainty and instability. For example, shifting political priorities, conflicting international standards, and the lack of market-based mechanisms can hinder the deployment of sustainable technologies, resulting in a reluctance to commit resources to long-term projects.

electric little car

Variations in country-to-country deployment creates disparities in energy transition progress. For instance, the 2022 Inflation Reduction Act in the US has posed challenges for the rest of the world, by potentially channeling energy transition investment away from other markets and into the US. This highlights the need for a globally unified approach to energy policy that balances various national interests while addressing a global problem.

To facilitate the energy transition, it is imperative to establish stable, cohesive, and forward-looking policies that align with global goals and standards. By harmonizing international standards, and providing clear and consistent signals, governments and policymakers can generate investor confidence, helping to foster a robust energy ecosystem that propels the sector forward.

Furthermore, substantive and far-reaching discussions at international events like the United Nations Conference of the Parties (COP), are essential to facilitate this global alignment. These events provide an opportunity to de-risk the energy transition through consistent policy that enables countries to work together, ensuring that the global community can tackle the challenges and opportunities of the energy transition as a united front.

Keeping net-zero ambitions on track

Despite the challenges faced by the energy sector, the latest research reveals a key positive: 91 percent of energy leaders surveyed are working towards achieving net zero. This demonstrates a strong commitment to the transition and clear recognition of its importance. It also emphasizes the need to accelerate our efforts, streamline processes, and reduce barriers to realizing net-zero ambitions — and further underscores the need to de-risk energy transition investment by removing uncertainties.

The solution is collaborating and harmonizing our goals with the main players in the energy sector across the private and public sectors, while establishing consistent, transparent, and supportive policy frameworks that encourage investment and drive technological innovation.

These tasks, while daunting, are achievable. They require vision, leadership, and action from all stakeholders involved. By adopting a new mindset about how we participate in the energy system and what our obligations are, we can stimulate the rapid progress needed on the road to net zero.

 

Dr. Tej Gidda (Ph.D., M.Sc., BSc Eng) is an educator and engineer with over 20 years of experience in the energy and environmental fields. As GHD Global Leader – Future Energy, Tej is passionate about moving society along the path towards a future of secure, reliable, and affordable low-carbon energy. His focus is on helping public and private sector clients set and deliver on decarbonization goals in order to achieve long-lasting positive change for customers, communities, and the climate. Tej enjoys fostering the next generation of clean energy champions as an Adjunct Professor at the University of Waterloo Department of Civil and Environmental Engineering.

GHD | www.ghd.com

Dr. Tej Gidda

Wind Sep 15, 2023
6 min read
Lessons Learned: The first case of heavy maintenance on floating wind

The Kincardine floating wind farm, located off the east coast of Scotland, was a landmark development: the first commercial-scale project of its kind in the UK sector. Therefore, it has been closely watched by the industry throughout its installation. With two of the turbines now having gone through heavy maintenance, it has also provided valuable lessons into the O&M processes of floating wind projects. 

In late May, the second floating wind turbine from the five-turbine development arrived in the port of Massvlakte, Rotterdam, for maintenance. An Anchor Handling Tug Supply (AHTS)

vessel was used to deliver the KIN-02 turbine two weeks after a Platform Supply Vessel (PSV) and AHTS had worked to disconnect the turbine from the wind farm site. The towing vessel became the third vessel used in the operation.

This is not the first turbine disconnected from the site and towed for maintenance. In the summer of 2022, KIN-03 became the world’s first-ever floating wind turbine that required heavy maintenance (i.e. being disconnected and towed for repair). It was also towed from Scotland to Massvlakte. 

Each of these operations has provided valuable lessons for the ever-watchful industry in how to navigate the complexities of heavy maintenance in floating wind as the market segment grows. 

floating yellow

The heavy maintenance process

When one of Kincardine’s five floating 9.5 MW turbines (KIN-03) suffered a technical failure in May 2022, a major technical component needed to be replaced. The heavy maintenance strategy selected by the developer and the offshore contractors consisted in disconnecting and towing the turbine and its floater to Rotterdam for maintenance, followed by a return tow and re-connection. All of the infrastructure, such as crane and tower access, remained at the quay following the construction phase. (Note, the following analysis only covers KIN-03, as details of the second turbine operation are not yet available). 

Comparing the net vessel days for both the maintenance and the installation campaigns at this project highlights how using a dedicated marine spread can positively impact operations. 

For this first-ever operation, a total of 17.2 net vessel days were required during turbine reconnection—only a slight increase on the 14.6 net vessel days that were required for the first hook-up operation performed during the initial installation in 2021. However, it exceeds the average of eight net vessel days during installation. The marine spread used in the heavy maintenance operation differed from that used during installation. Due to this, it did not benefit from the learning curve and experience gained throughout the initial installation, which ultimately led to the lower average vessel days.

The array cable re-connection operation encountered a similar effect. The process was performed by one AHTS that spent 10 net vessel days on the operation. This compares to the installation campaign, where the array cable second-end pull-in lasted a maximum of 23.7 hours using a cable layer.

Overall, the turbine shutdown duration can be broken up as 14 days at the quay for maintenance, 52 days from turbine disconnection to turbine reconnection, and 94 days from disconnection to the end of post-reconnection activities. 

offshore

What developers should keep in mind for heavy maintenance operations

This analysis has uncovered two main lessons developers should consider when planning a floating wind project: the need to identify an appropriate O&M port, and to guarantee that a secure fleet is available. ‍

  • Identification of the O&M port

Floating wind O&M operations require a port with both sufficient room and a deep-water quay. The port must also be equipped with a heavy crane with sufficient tip height to accommodate large floaters and reach turbine elevation. Distance to the wind farm should also be taken into account, as shorter distances will reduce towing time and, therefore, minimize transit and non-productive turbine time. 

During the heavy maintenance period for KIN-03 and KIN-02, the selected quay (which had also been utilized in the initial installation phase of the wind farm project), was already busy as a marshalling area for other North Sea projects. This complicated the schedule significantly, as the availability of the quay and its facilities had to be navigated alongside these other projects. This highlights the importance of abundant quay availability both for installation (long-term planning) and maintenance that may be needed on short notice. ‍

  • A secure fleet

At the time of the first turbine’s maintenance program (June 2022), the North Sea AHTS market was in an exceptional situation: the largest bollard pull AHTS units contracted at over $200,000 a day, the highest rate in over a decade. 

During this time, the spot market was close to selling out due to medium-term commitments, alongside the demand for high bollard pull vessels for the installation phase at a Norwegian floating wind farm project. The Norwegian project required the use of four AHTS above a 200t bollard pull. With spot rates ranging from $63,000 to $210,000 for the vessels contracted for Kincardine’s maintenance, the total cost of the marine spread used in the first repair campaign was more than $4 million.

Developers should therefore consider the need to structure maintenance contracts with AHTS companies, either through frame agreements or long-term charters, to decrease their exposure to spot market day rates as the market tightens in the future.

yellow and blue

While these lessons are relevant for floating wind developers now, new players are looking towards alternative heavy O&M maintenance options for the future. Two crane concepts are especially relevant in this instance. The first method is for a crane to be included in the turbine nacelle to be able to directly lift the component which requires repair from the floater, as is currently seen on onshore turbines. This method is already employed in onshore turbines and could be applicable for offshore. The second method is self-elevating cranes with several such solutions already in development.

The heavy maintenance operations conducted on floating turbines at the Kincardine wind farm have provided invaluable insights for industry players, especially developers. The complex process of disconnecting and towing turbines for repairs highlights the need for meticulous planning and exploration of alternative maintenance strategies, some of which are already in the pipeline. As the industry evolves, careful consideration of ports, and securing fleet contracts, will be crucial in driving efficient and cost-effective O&M practices for the floating wind market. 

 

Sarah McLean is Market Research Analyst at Spinergie, a maritime technology company specializing in emission, vessel performance, and operation optimization.

Spinergie | www.spinergie.com

Sarah Mclean

Alternative Energies Jul 15, 2023
7 min read
Choosing the Right Partner Mitigates Project Risk

According to the Energy Information Administration (EIA), developers plan to add 54.5 gigawatts (GW) of new utility-scale electric generating capacity to the U.S. power grid in 2023. More than half of this capacity will be solar. Wind power and battery storage are expected to account for roughly 11 percent and 17 percent, respectively.

A large percentage of new installations are being developed in areas that are prone to extreme weather events and natural disasters (e.g., Texas and California), including high wind, tornadoes, hail, flooding, earthquakes, wildfires, etc. With the frequency and severity of many of these events increasing, project developers, asset owners, and tax equity partners are under growing pressure to better understand and mitigate risk.

chart

Figure 1. The history of billion-dollar disasters in the United States each year from 1980 to 2022 (source: NOAA)

In terms of loss prevention, a Catastrophe (CAT) Modeling Study is the first step to understanding the exposure and potential financial loss from natural hazards or extreme weather events. CAT studies form the foundation for wider risk management strategies, and have significant implications for insurance costs and coverage. 

Despite their importance, developers often view these studies as little more than a formality required for project financing. As a result, they are often conducted late in the development cycle, typically after a site has been selected. However, a strong case can be made for engaging early with an independent third party to perform a more rigorous site-specific technical assessment. Doing so can provide several advantages over traditional assessments conducted by insurance brokerage affiliates, who may not possess the specialty expertise or technical understanding needed to properly apply models or interpret the results they generate. One notable advantage of early-stage catastrophe studies is to help ensure that the range of insurance costs, which can vary from year to year with market forces, are adequately incorporated into the project financial projections. 

The evolving threat of natural disasters

Over the past decade, the financial impact of natural hazard events globally has been almost three trillion dollars. In the U.S. alone, the 10-year average annual cost of natural disaster events exceeding $1 billion increased more than fourfold between the 1980s ($18.4 billion) and the 2010s ($84.5 billion).

forest fire

Investors, insurers, and financiers of renewable projects have taken notice of this trend, and are subsequently adapting their behavior and standards accordingly. In the solar market, for example, insurance premiums increased roughly four-fold from 2019 to 2021. The impetus for this increase can largely be traced back to a severe storm in Texas in 2019, which resulted in an $80 million loss on 13,000 solar panels that were damaged by hail.  

The event awakened the industry to the hazards severe storms present, particularly when it comes to large-scale solar arrays. Since then, the impact of convective weather on existing and planned installations has been more thoroughly evaluated during the underwriting process. However, far less attention has been given to the potential for other natural disasters; events like floods and earthquakes have not yet resulted in large losses and/or claims on renewable projects (including wind farms). The extraordinary and widespread effect of the recent Canadian wildfires may alter this behavior moving forward.

A thorough assessment, starting with a CAT study, is key to quantifying the probability of their occurrence — and estimating potential losses — so that appropriate measures can be taken to mitigate risk. 

All models are not created equal

Industrywide, certain misconceptions persist around the use of CAT models to estimate losses from an extreme weather event or natural disaster. 

submerged cars

Often, the perception is that risk assessors only need a handful of model inputs to arrive at an accurate figure, with the geographic location being the most important variable. While it’s true that many practitioners running models will pre-specify certain project characteristics regardless of the asset’s design (for example, the use of steel moment frames without trackers for all solar arrays in a given region or state), failure to account for even minor details can lead to loss estimates that are off by multiple orders of magnitude. 

The evaluation process has recently become even more complex with the addition of battery energy storage. Relative to standalone solar and wind farms, very little real-world experience and data on the impact of extreme weather events has been accrued on these large-scale storage installations. Such projects require an even greater level of granularity to help ensure that all risks are identified and addressed. 

Even when the most advanced modeling software tools are used (which allow for thousands of lines of inputs), there is still a great deal that is subject to interpretation. If the practitioner does not possess the expertise or technical ability needed to understand the model, the margin for error can increase substantially. Ultimately, this can lead to overpaying for insurance. Worse, you may end up with a policy with insufficient coverage. In both cases, the profitability of the asset is impacted. 

Supplementing CAT studies

In certain instances, it may be necessary to supplement CAT models with an even more detailed analysis of the individual property, equipment, policies, and procedures. In this way, an unbundled risk assessment can be developed that is tailored to the project. Supplemental information (site-specific wind speed studies and hydrological studies, structural assessment, flood maps, etc.) can be considered to adjust vulnerability models.

This provides an added layer of assurance that goes beyond the pre-defined asset descriptions in the software used by traditional studies or assessments. By leveraging expert elicitations, onsite investigations, and rigorous engineering-based methods, it is possible to discretely evaluate asset-specific components as part of the typical financial loss estimate study: this includes Normal Expected Loss (NEL), also known as Scenario Expected Loss (SEL); Probable Maximum Loss (PML), also known as Scenario Upper Loss (SUL); and Probabilistic Loss (PL). 

Understanding the specific vulnerabilities and consequences can afford project stakeholders unique insights into quantifying and prioritizing risks, as well as identifying proper mitigation recommendations. 

Every project is unique

The increasing frequency and severity of natural disasters and extreme weather events globally is placing an added burden on the renewable industry, especially when it comes to project risk assessment and mitigation. Insurers have signaled that insurance may no longer be the main basis for transferring risk; traditional risk management, as well as site and technology selection, must be considered by developers, purchasers, and financiers. 

As one of the first steps in understanding exposure and the potential capital loss from a given event, CAT studies are becoming an increasingly important piece of the risk management puzzle. Developers should treat them as such by engaging early in the project lifecycle with an independent third-party practitioner with the specialty knowledge, tools, and expertise to properly interpret models and quantify risk. 

Hazards and potential losses can vary significantly depending on the project design and the specific location. Every asset should be evaluated rigorously and thoroughly to minimize the margin for error, and maximize profitability over its life.

 

Chris LeBoeuf Chris LeBoeuf is Global Head of the Extreme Loads and Structural Risk division of ABS Group, based in San Antonio, Texas. He leads a team of more than 60 engineers and scientists in the US, UK, and Singapore, specializing in management of risks to structures and equipment related to extreme loading events, including wind, flood, seismic and blast. Chris has more than 20 years of professional experience as an engineering consultant, and is a recognized expert in the study of blast effects and blast analysis, as well as design of buildings. He holds a Bachelor of Science in Civil Engineering from The University of Texas at San Antonio, and is a registered Professional Engineer in 12 states.

ABS Group | www.abs-group.com

 

 

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