A case study in offshore wind farm project management

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Navigating the Offshore ShoalsNavigating the Offshore ShoalsHow Not to Go Aground in the Great LakesHow Not to Go Aground in the Great Lakes

Wolfe Island ShoalsWolfe Island ShoalsA Case Study in Offshore Wind Farm A Case Study in Offshore Wind Farm

Project ManagementProject ManagementPulling It All TogetherPulling It All Together

An Exercise in Permitting & LogisticsAn Exercise in Permitting & Logistics

Presented by: Andrew Chant/Uwe RoeperPresented by: Andrew Chant/Uwe Roeper

Infocast Freshwater Great Lakes Infocast Freshwater Great Lakes Offshore Wind Conference Offshore Wind Conference

July 19 - 21, 2010July 19 - 21, 2010Cleveland, OhioCleveland, Ohio

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What is Wolfe Island Shoals?What is Wolfe Island Shoals?

• 300 MW Offshore Wind Facility under 300 MW Offshore Wind Facility under development by Windstream Energy Inc.development by Windstream Energy Inc.

• Approximate capital cost $1.5 BillionApproximate capital cost $1.5 Billion

• Awarded PPA under Ontario’s Feed-in Tariff Awarded PPA under Ontario’s Feed-in Tariff ProgramProgram

• Located eastern end of Lake Ontario, south of Located eastern end of Lake Ontario, south of Kingston, west of Wolfe Island Kingston, west of Wolfe Island

• Scheduled Mandatory Commercial Operations Scheduled Mandatory Commercial Operations Date – September, 2014Date – September, 2014

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Location of Wolfe Island Location of Wolfe Island ShoalsShoals

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HighlightsHighlights

• 300 MW off-shore wind 300 MW off-shore wind project with PPA, land & project with PPA, land & grid connectiongrid connection– Final stages of securing Final stages of securing

development financing development financing for permitting & designfor permitting & design

– Total Projected CapEx = Total Projected CapEx = $1.5 Billion$1.5 Billion

– Permitting & design in Permitting & design in 2010 / 20112010 / 2011

– Construction in 2012 / Construction in 2012 / 20132013

– Lake Ontario, Canada Lake Ontario, Canada

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ORTECH’s Role Who is ORTECH?• Multidisciplinary renewable energy and environmental

consulting firm• Active in renewable energy directly and through affiliates

for over 10 years• Over 30 years of experience in atmospheric sciences• Through a related company, the original developer of Wolfe

Island Wind facility completed by Canadian Hydro Developers, Inc., now TransAlta

• Client base consists of financial institutions, infrastructure investors and private developers

• Appointed Project Manager for Wolfe Island Shoals in May 2010

• Strong emphasis on advanced wind resource assessment, permitting, O & M planning and costs, financial and economic analysis

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Project Schedule

Project PhasesPhase I – Pre-Bid/FIT SubmissionObjectives: Evaluate Site

Obtain Access to LandPrefeasibility StudyPreliminary Wind StudiesVery High Risk Seed Capital

Observations: Balancing act – Need to spend enough to prove site potential but minimize pain of write off if unsuccessful

Timing: 2008-2009

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Project Schedule – Cont’d

Phase II – Design, Permitting & EngineeringObjectives: Determine Project Scope

Begin Detailed Wind Data Collection & AnalysisStart Permitting ProcessDo Preliminary LayoutCarry Out Lake Bed Soil TestingEvaluate Turbine OptionsBegin Successive Refinements of Budget &

SchedulesObservations: High Risk Capital

Tasks Must be Undertaken SimultaneouslyPhase Timing: 2010 - 2012

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Project Schedule – Cont’d

Phase III – Finalize Project • Select turbine• Optimize Layout• Complete Permitting• Execute TSA & OSA• Complete Financial Close• Make Turbine Deposit• Begin Foundation ConstructionObservations: Construction Capital Has Less RiskTiming: 2012-2013

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Project Schedule – Cont’d

Phases IV & VPhase IV – Construction• Foundations Completed• Turbines Delivered to Lay Down Site• Underwater Cabling Completed• O & M Training Undertaken• Turbine Erection Completed• Commissioning Completed

Phase V – Commercial Operation• Operation to WTG Supplier• Cheques from OPA Begin to Arrive

Timing: 2013 - 2014

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Special Problems of Offshore Wind•Permitting

•Engineering

•Logistics

•Turbine Selection

•Marine Transport

•Foundations

•O & M•Crew Training•Provincial

Content•Financing

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Permitting – More than the Usual SuspectsFederal Ministries & Agencies• Transport Canada• St Lawrence Seaway Authority• Coast Guard• Fisheries & Oceans Canada• RCMP• CBC• NRCan• Canadian Environmental Assessment

Agency

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Permitting – More than the Usual Suspects - ContinuedProvincial Ministries

• MNR

• MOE

• MOEI

• OPA

• Ministry of Culture

• Ministry of Transport

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Permitting – More than the Usual Suspects- ContinuedOther Potentially Interested Parties

• International Joint Commission

• Homeland Security

• US Coast Guard

• USAF

• NYPA

• US Army Corps of Engineers

• FAA

• NRA

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Wolfe Island Shoals – Boundary & Connection Point

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Permitting Constraints - 1

Set Backs & Boundaries

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Permitting Constraints – 2

Airports & Air Bases

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Permitting Constraints – 3 Buffers & Turbine Layout

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Permitting Constraints - 4Layout & Water Depth

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Permitting Constraints – 5

Ship Wrecks & Nesting Areas

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US Army Creates World’s Worst PowerPoint

Slide A New Standard of Excellence?

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Permitting Constraints – The Mash Up

A Contender

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Engineering

•Soil Testing

•Wind Data Collection

•Foundation Design & Construction

•Collector Systems & Underwater Cabling

•Transformer Station Location

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The Importance of Soil Testing

Photo Courtesy of Advanced Offshore Solution

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Conventional Off-shore Conventional Off-shore DesignDesign

• Conventional Turbine (eg. Siemens Conventional Turbine (eg. Siemens 2.3/93, GE 3.6/107 or Vestas 2.3/93, GE 3.6/107 or Vestas V90/3MW)V90/3MW)

• Wolfe Island shoals: 5m (15’) to 20m Wolfe Island shoals: 5m (15’) to 20m (60’) water depth (2 km to 10 km (60’) water depth (2 km to 10 km from shoreline) similar to existing from shoreline) similar to existing projectsprojects

• Limestone rock bottom suitable for Limestone rock bottom suitable for proven foundation design: Drilled proven foundation design: Drilled monopile (tentative)monopile (tentative)

• Conventional underwater cable (34.5 Conventional underwater cable (34.5 kW) with substation and on-shore kW) with substation and on-shore grid connection (230 kW)grid connection (230 kW)

• Proven Technology: Existing 200 MW Proven Technology: Existing 200 MW Wolfe Island on-shore wind farm also Wolfe Island on-shore wind farm also uses underwater cable (230 kW) to uses underwater cable (230 kW) to go from island to grid on mainland go from island to grid on mainland (installed 2009). Underwater cables (installed 2009). Underwater cables common for islands in Lake Ontario.common for islands in Lake Ontario.

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Turbine Selection• WTG Nameplate Capacity• Reliability

Logistics• Availability of Port Facilities• Transportation to Port• Access to On Shore Cranes• Scheduling• Size of Laydown Area• Shared Facilities

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Required Port Facilities

Photo Courtesy of Advanced Offshore Solutions

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O &M

•Costs

•Waterborne Access to Turbines

•Planned Maintenance

•Turbine Performance Monitoring

•Parts and Component Inventories

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Marine Transport•Availability of Special Purpose Vessels•National Shipping Restrictions: US

Jones Act, Canada Coastal Shipping Act•Marine Crane Availability•Transportation of Partially Assembled

WTGs•Possible Solution: Convert existing self

unloader.

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European Marine Transport

Photo Courtesy of Advanced Offshore Solutions

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Typical Great Lakes Self Unloader

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Crew Training

• Safety Issues

• Inclement Weather

• Subcontractors

• Housing

Provincial Content

• European Expertise

• Turbine Selection

• Underwater Cabling

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Financing

•Comparison to On Shore

•Capital Costs

•PPA Pricing

•Portfolio Financing

•Use of Tax Benefits

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Summary

• Difficult but not impossible• Requires careful planning and execution• Special problems give rise to market

opportunities for Ontario & Great Lakes suppliers

• Possible opportunity to supply services to neighbouring Great Lakes states

• There are no insurmountable problems that are not opportunities.

• “Yes we can!”

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Contact Information

To Review Presentation see Infocast Website or www.ortech.ca

For Further Information Contact:achant@ortech.ca905-822-4120 ext 463

or uroeper@ortech.ca905-822-4120 ext 248

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Thank You for Your AttentionThank You for Your Attention