Battery energy storage is a critical technology to reducing our dependence on fossil fuels and build a low carbon future. Renewable energy generation is fundamentally different from traditional fossil fuel energy generation in that energy cannot be produced on demand. Coal can be burned whenever power is needed—wind and solar energy rely on the wind blowing and the sun shining. Solar energy presents a particular problem in that it cannot be pro....
As technological advancements occur through new developments in the offshore wind energy industry, there will be times where these large projects may impact the cultural heritage of humanity's past in our waters. Federal, State, and Tribal government agencies in the United States have regulations in place to protect archaeological cultural resources within and outside their territorial boundaries. The success of offshore projects relies on buildi....
The growth and rapid evolution of the offshore wind industry and the introduction of new, US Jones Act-compliant offshore wind vessels mean that wind operations may involve the use of Jones Act seamen, maritime employees, and other non-maritime employees. Such workers variously fall under the purview of the Jones Act, the Longshore and Harbor Workers’ Compensation Act (LHWCA), and other laws that determine their rights and remedies in cases of ....
Identifying trees, grasslands, and wetlands on landscape-scale project sites has never been simple or clear-cut.
Aerial photos are subject to divergent interpretations. Field surveys incur higher costs from hours spent documenting and mapping observations, and datasets such as the National Land Cover Database can be too coarse to capture nuances in the terrain.
While landscapes change constantly, regulatory officials request informati....
The Eaglesledge Energy project looks to integrate carbon recapture with a focus to recapture upwards of 90% of carbon production further reducing the environmental footprint.
Located on the edge of the Bakken Oil Formation and with access to a vibrant oil and gas supply chain, this location is ideal to add value to one of Canada's greatest natural resources.
This project will create an industry-leading Clean Fuels Refinery (CFR) that generates high quality products, minimizes carbon emissions, and services local and regional needs. Using the latest state-of-the-art technology and refining process, the plant will significantly reduce the impact on our environment.
ELE's strategy is to help advance Saskatchewan's oil and gas sector by working with local businesses, workforce, and communities to generate long-term sustainable economic benefits in the region.
The planned CFR will produce predominantly ultra-low sulfur diesel, gasoline, and jet fuel. The CFR will produce 30,000 barrels per stream day (bpsd). The modular design can be expanded to increase capacity up to 85,000 bpsd to further service regional demand. The refinery size is uniquely designed for construction efficiency and to produce local supply for local demand in a cost-effective and sustainable way.
The company is dedicated to embracing solar power as a key component of our commitment to a sustainable and clean energy future. By harnessing the sun's abundant and renewable energy, we can provide our customers with an eco-friendly and cost-effective alternative to traditional energy solutions, empowering businesses and entities to take control of their energy consumption while significantly reducing their carbon footprint.
To meet these needs, a 125MW solar facility is an integral part of the CFR. A small portion of the production will be utilized by the refinery operations, with the bulk supporting the power grid and local industry demands in the region.
ELE's forward-looking approach doesn't stop at conventional energy sources. The company is actively exploring the possibilities of carbon capture and utilization technologies, positioning ourselves and the Province of Saskatchewan at the forefront of this emerging field. By investing in this technology, ELE's aim to revolutionize the energy landscape and redefine what it means to be a responsible energy provided in the 21st century.
The Company approach is rooted in innovation, technical excellence, and a relentless pursuit of efficiency. By employing cutting-edge technology and fostering a culture of continuous learning, ELE strives to push the boundaries of what is possible in the energy sector.
The Company strategy is to help advance Saskatchewan's oil and gas sector by working with First Nations, as well as local businesses, workforces, and communities, to generate long-term sustainable economic benefits in the region.
In a joint letter to Congress, a diverse coalition of more than 40 national and regional organizations and companies requested robust funding for electric transmission deployment and research in the Department of Energy (DOE)’s Fiscal Year 2025 budget.
In the letter, the groups highlight how upgrading and expanding the nation’s transmission network has taken on new immediacy.
“For the first time in two decades, demand for electricity is rising,” the groups explain.“Capacity exists to support this increasing demand and with the right investments can be brought online quickly.”
The groups underscore the national security benefits of a modernized transmission system, noting reports of a sharp uptick in direct cyber and physical attacks on the grid.
The letter signatories ask Congress to consider specific funding requests for DOE’s Grid Deployment Office, Office of Electricity, and Loan Programs Office, along with additional borrowing authority for the Transmission Facilitation Program. Such funding “is critical to unleashing domestic clean energy resources, safeguarding against emerging threats, catalyzing billions in private capital investment, creating thousands of good-paying jobs, and delivering low-cost energy to families and businesses,” the groups write.
The signatories on the letter include Advanced Energy United, Advanced Power Alliance, Advancing Modern Powerlines (AMP) Coalition, Alliance for Clean Energy New York, American Clean Power Association, American Council on Renewable Energy, Berkshire Hathaway Energy, Business Council for Sustainable Energy, Ceres, Clean Energy Buyers Association, Clean Grid Alliance, Conservative Energy Network, CTC Global, EarthGrid, Grid Action, Grid United, Hannon Armstrong Sustainable Infrastructure, Innergex, International Brotherhood of Electrical Workers Local Unit 1245, Interwest Energy Alliance, Invenergy LLC, League of Conservation Voters, Longroad Energy, MAREC Action, National Electrical Manufacturers Association, National Wildlife Federation, Natural Resources Defense Council, NextEra Energy Transmission, Niskanen Center, Oceantic Network, Onward Energy, Pattern Energy, RENEW Northeast, Renewable Northwest, Sierra Club, Silicon Valley Leadership Group, Solar Energy Industries Association, Sol Systems, Southern Renewable Energy Association, SouthWestern Power Group, Third Way, VEIR, and Working for Advanced Transmission Technologies (WATT) Coalition.
Click here to download a copy of the coalition letter.
American Council on Renewable Energy | www.acore.org
Three Sixty Solar Ltd. (Cboe CA: VSOL) (OTC: VSOLF) (“Three Sixty,” “Three Sixty Solar,” or the “Company”) is pleased to announce it has closed the first tranche of a private placement (the “Private Placement”) of units of the Company (the “Units”) at a price of $0.15 per Unit. Each Unit consists of one common share in the capital of the Company (a “Share”) and one half of one Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder thereof to purchase one additional Share (a “Warrant Share”) at a price of $0.50 per Warrant Share for a period of 24 months from the date of issuance. The total size of the Private Placement is up to the sale of 3,333,334 Units for aggregate gross proceeds of up to approximately $500,000.
All securities issued in connection with the first tranche of the Private Placement are subject to a statutory hold period in accordance with applicable securities legislation. The Company will use the proceeds from the sale of the Units for an investor awareness campaign, payment of outstanding liabilities and for general working capital.
The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This news release will not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
All references to currency in this news release are to Canadian currency. The Private Placement remains subject to final approval of the Cboe Canada Inc. stock exchange.
Toyota Motor North America ('Toyota') announces that it has entered a Cooperative Research and Development Agreement (CRADA) with the U.S. Department of Energy's Argonne National Laboratory to investigate the development of a direct recycling process for lithium-ion batteries, which are prevalent in new electric vehicles. The focus of the research will be on cathode chemistries made of nickel, manganese, and cobalt.
Toyota and Argonne National Laboratory Investigate Recycling of Lithium-Ion Batteries
"Having Argonne utilize our commercial battery products will help us evaluate the direct recycling process at an industrial scale, in addition to other battery recycling technologies to maintain a diverse portfolio of recycling options for a diverse array of battery platforms and chemistries," says Nik Singh, Senior Scientist in the Toyota Research Institute of North America (TRINA)'s Materials Research Department. "Toyota is in a unique position to bridge aspects of fundamental research with product evaluation, development and commercialization, to help its U.S. battery manufacturing achieve better circularity and supply chain security."
For the project, Toyota will provide Argonne with both end-of-life and new Toyota batteries. Argonne will adapt and test its patent-pending direct recycling process with the batteries. Further, TRINA, Toyota's in-house entity for exploring next-generation technologies, will lend its expertise to validate this "proof-of-concept" study.
"Based on preliminary projections, direct recycling can potentially offer significant cost and carbon footprint savings," says Sarah Kennedy, Operations Manager of Toyota's Battery Lifecycle Solutions Business Development team. "Toyota's Battery Lifecycle Solutions entity will help identify the appropriate pathway for the potential future commercialization of this technology, pending the outcome of the CRADA, as the project is projected to deliver a net improvement in battery materials manufacturing costs, waste and carbon footprint."
The collaborative project with Argonne is part of Toyota's pursuit of designing a closed-loop battery ecosystem aimed at maximizing sustainability. In 2015, Toyota announced the Environmental Challenge 2050, a set of goals to achieve carbon neutrality across the vehicle lifecycle by 2050. For electrified vehicles, this includes battery recycling, whether after first use or after being repurposed or refurbished, to ensure that raw materials are extracted and put back into the production process.
Additional information about the project and Argonne's research at its ReCell Center can be found here.
First Solar, Inc. (NASDAQ: FSLR) announced an agreement to supply Birch Creek Energy (“Birch Creek”) with 547 MW of advanced Series 6 Plus Bifacial thin film photovoltaics (PV) modules. The St. Louis-based renewable energy company plans to deploy the modules in projects across its development pipeline in the United States.
“We are pleased to establish this relationship with First Solar, which we expect will enable certainty of module supply for a critical part of our development pipeline,” said Dan Siegel, CEO of Birch Creek. “By choosing to buy our modules from First Solar, we are strengthening our domestic content strategy with a trusted partner that delivers a competitive product.”
“Birch Creek’s decision to partner with us is a validation of our technology and competitiveness, and the value of pricing and supply certainty,” said Georges Antoun, chief commercial officer, First Solar. “We thank the team at Birch Creek for their trust and look forward to building on this relationship.”
First Solar, which exited 2023 with 6 GW of annual US nameplate capacity, is the largest solar manufacturer in the Western Hemisphere.
First Solar's investments in US manufacturing are also believed to make it the most significant enabler of American jobs among solar manufacturers. According to a recent study commissioned by First Solar, current operations supported an estimated 16,245 direct, indirect, and induced jobs in 2023, representing approximately $1.6 billion in annual labor income. As First Solar grows to an expected 14 GW in annual US nameplate capacity in 2026, the company is forecast to support an estimated 30,060 direct, indirect, and induced jobs across the country. The study projects that every direct job First Solar supports in 2026 will support 7.3 jobs nationwide.
In addition to expanding its Ohio footprint to over 7 GW of annual nameplate capacity this year, First Solar expects to invest over $2 billion in new manufacturing facilities in Alabama and Louisiana, which are expected to come online in 2024 and 2025, respectively. Additionally, First Solar is on track to commission approximately $450 million in R&D innovation infrastructure in Perrysburg, Ohio, in the second half of this year.
First Solar’s responsibly produced, advanced thin film PV modules set industry benchmarks for quality, durability, reliability, design, and environmental performance.
G7 leaders tasked the International Renewable Energy Agency (IRENA) to track and monitor the group’s collective contribution toward the global renewable tripling target by 2030. The target was established by the UAE Consensus last November at COP28, aligning global climate ambitions with IRENA’s 1.5°C pathway, mapped out by the Agency’s World Energy Transitions Outlook.
“Trust and transparency go hand in hand,” said IRENA Director-General Francesco La Camera, who is attending the G7 Ministers’ Meeting on Climate, Energy and Environment. “IRENA will respond swiftly to the request by G7 members to track the group’s progress toward the global target to triple renewable power capacity by 2030.”
Citing an IRENA brief for the G7, the communiqué indicates that the group’s solar PV expansion target by 2030 is on track if some enhancements to existing policies are made in a timely manner. It notes the need for further acceleration in offshore wind deployment through enhanced and flexible policy efforts, faster permitting, and offshore grid extension.
“The G7 is making notable strides in accelerating solar PV deployment, and there is commitment to the development of offshore wind. Advancing all forms of renewables, along with infrastructure modernisation, will be essential for G7 nations to realise their energy transition aspirations,” Mr. La Camera added.
The G7 communiqué commits the group to increase system flexibility through grid reinforcement, in line with IRENA analysis of key metrics that suggests efforts need to be accelerated. The group also called for the significant expansion of energy storage capacity, by more than six-fold by 2030, from 230 GW in 2022. This falls within the range of IRENA’s recommendations for energy storage capacity by 2030.
It also calls on international organisations, including IRENA, to continue their work on industrial decarbonisation, particularly standards and technology development for hard-to-abate sectors as outlined in a second brief published as a contribution to the G7 discussions.
G7 countries also recognised the urgent need to increase the group’s efforts in developing countries, committing to supporting the Accelerated Partnership for Renewable Energy in Africa (APRA). Under the auspices of APRA, Kenya and IRENA will convene the first APRA Investment Forum in September 2024 to accelerate the deployment of renewables-based energy systems and green industrialisation in APRA Member countries.
In a third IRENA brief, published at the G7 Ministers’ Meeting on Climate, Energy, and Environment, under the request of the Italian G7 Presidency, informs that the flow of public money into the African energy sector continued to decline, and the necessary conditions for low-cost finance are not in place. This must be reversed, according to the brief.
In line with these findings, IRENA recently launched a call for developers working in APRA member countries to submit projects for inclusion at the upcoming APRA Investment Forum for an opportunity to engage with financial institutions, potentially opening funding opportunities.
At the request of the Italian G7 Presidency, IRENA issued key inputs to the G7 Ministers’ Meeting on Climate, Energy and Environment.
Weidmuller USA, a leading provider of smart industrial connectivity and automation products and solutionsheadquartered in Richmond, Va., has been awarded a Top Workplaces 2024 honor by Richmond Times-Dispatch Top Workplaces. This marks the third consecutive year that Weidmuller USA has received the RTD’s Top Workplaces award in the Midsize Category (125-399 employees).
The list of distinguished winners is based solely on employee feedback gathered through a third-party survey administered by employee engagement technology partner Energage LLC. The confidential survey uniquely measures the employee experience and its component themes, including employee responses on feeling Respected & Supported, Enabled to Grow, and Empowered to Execute, to name a few.
“We are extremely proud and honored to be recognized as a Top Workplace in the greater Richmond area for three years in a row,” said Mollie O’Donnell Neeter, Senior Director of Human Resources at Weidmuller USA. “Our core values guide us in building a collaborative, innovative, and supportive workplace culture that fosters growth and success for our talented employees. These amazing team members inspire their colleagues and customers every day, and they are the reason that Weidmuller is receiving this prestigious award.”
“Once again, Weidmuller has been recognized as a Top Workplace in Richmond and we are absolutely thrilled,” said Matthew Greiner, Vice President of Controlling & Administration at Weidmuller USA. “We strive to create a world-class employee experience in an exceptional environment where everyone can thrive and reach their full potential. This significant award is very special because it signifies that our team members feel a strong connection to the company and to each other. That’s definitely something to celebrate!”
“Earning a Top Workplaces award is a badge of honor for companies, especially because it comes authentically from their employees,” said Eric Rubino, Energage CEO. “That’s something to be proud of. In today’s market, leaders must ensure they’re allowing employees to have a voice and be heard. That’s paramount. A Top Workplaces award does this, and it pays dividends.”
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 ....
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.
Interestingly, the study found that insufficient access to finance was notconsidered 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.
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.
Variations in country-to-country deployment creates disparities in energy transition progress. For instance, the 2022Inflation 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.
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.
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.
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.
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.
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.
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.
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.
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 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.
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Interestingly, 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.
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.
