European Strategic Cluster Partnership in Blue Energy

Analysis of Blue Energy International Markets

Focus on Wave & Tidal Energy

Temse, 26th of February 2019

International (outside Europe) analysis focused on 3 emerging Blue Energy technologies

Introduction

Floating Offshore Wind (FOW)

Tidal Current

Wave Energy

Preliminary analysis on 20 pre-identified countries

2

Introduction

Brazil

Argentina

Chile

Mexico

United States

Canada

Namibia

South AfricaNew Zealand

Australia

Philippines

Indonesia

India

Singapore

Japan

China

Taiwan

Republic of Korea

Barbados

Puerto Rico

Analyzed countries

12 criteria analysed and quantified per country

3

Variables taken into account

Introduction

Potential resource and location

Installed capacity (2014-2020)

Operational projects

R&D projects

Test Sites

Projects and test sites locations

National Strategy for blue energy

Public Funding for blue energy

Key players for blue energy

Events of blue energy

Ease of doing business

1

2

3

4

5

6

7

8

9

1 2

3

4

5

6

7

8

9

Market Incentives for blue energy

Blue energy country profile*

(*) The contents could vary depending on the situation of each country and the availability of information

10

11

12

1011

12

4

Country prioritization

8 countries considered medium/high interest >> 6 market reports >> 3 exploratory trips

Country prioritization matrix

Blue energy current situation and future expectations

Su

pp

ort

Me

ch

an

ism

s

High interest

Medium interest

FOW

Tidal

Wave

Highlighted in red expected but

not current installed capacity

5

CONTENTS

01. Socio-economic context

02. Regulatory framework

03. Energy mix

04. Market analysis

• Potential resource

• Installed and planned capacity

• R&D

• Value Chain

• Blue energy sector development

Annex 1: Exploratory mission

Market reports: Table of contents

Six market reports available

Key insights :U.S. Market Analysis

7

California has just amended its RPS to 50% by 2030, from the

previous 33% by 2020, which it has almost met

TX5.880 MW (2025)

WA15% (2020)

OR50% (2040)

CA50% (2030)

MT15% (2015)

NV25% (2025) UT

20% (2025)

AZ15% (2025)

CO30% (2020)

NM20% (2020)

OK15% (2015)

KS20% (2020)

SD10% (2015)

ND10% (2015) MN

26,5% (2025)

WI10% (2015)

IL25% (2025)

MO15% (2021)

NC12,5% (2021)

VA15% (2025)

MI15% (2021)

NY50% (2030)

PA18% (2020)

DE25% (2025)

NH24,8% (2025)

ME40% (2017)

IA105 MW

SC2% (2021)

NJ22,5% (2020)

IN10% (2025) OH

12,5% (2026)

MD25% (2020)

CT23% (2020)

MA15% (2020)

RI38,5% (2035)

VT75% (2032)

Many southeastern states have no renewable standard

or target

Renewable Portfolio Standard

Renewable Portfolio Goal

Hawaii has the most aggressive RPS requirement (100% by 2045), followed

by Vermont (75% by 2032)

National renewable policies have been considered by Congress but have yet to

be signed into law

30 U.S. states have renewable portfolio standards that establish mandatory goals for utilities regarding renewable energies

Renewable portfolio standards and goals (2017)

Another eight states have voluntary renewable energy goals, with only 12 having no standard or target, mainly concentrated in the

southeast of the country

Note: Some states include more specific requirements which further incentivize the deployment of particular market segments or energy technologies

Sources: Database of State Incentives for Renewables & Efficiency, State Renewable Portfolio Standards and Goals 2017

Regulatory framework and funding schemes

8

Regulatory framework and funding schemes

Sources: Department of Energy (DOE), Department of Interior (DOI), Federal Energy Regulatory Commission (FERC), National Renewable Energy Laboratory (NREL),

Environmental Protection Agency (EPA), Bureau of Ocean Energy Management (BOEM), National Ocean Council (NOC), Pacific Marine Energy Center (PMEC)

…which are mainly engaged in the formulation and implementation of policies and strategies for the development of industrial and energy system

Main agents of U.S. energy system

• The Department of Energy (DOE) is

the main responsible in the regulation

of the generation, transport and

distribution of electricity in the United

States

• The mission of the Energy Department

is to ensure America’s security and

prosperity by addressing its energy,

environmental and nuclear challenges

through transformative science and

technology solutions

• The Federal Energy Regulatory

Commission (FERC) is an independent

agency that regulates the interstate

transmission of electricity, natural gas,

and oil

• It also reviews proposals to build

liquefied natural gas (LNG) terminals

and interstate natural gas pipelines as

well as licensing hydropower projects.

• The EPA is in charge of environmental

regulation and their mission is to

protect human health and the

environment

• It regulates power plants’ emission

norms

• NREL advances the science and

engineering of energy efficiency,

sustainable transportation, and

renewable power technologies and

provides the knowledge to integrate

and optimize energy systemsPu

blic

Bo

die

s

Ren

ewab

le E

ner

gy

• The Mission of the Bureau of

Ocean Energy Management is to

manage development of U.S.

Outer Continental Shelf energy

and mineral resources in an

environmentally and

economically responsible way

• The National Ocean Council

was charged with implementing

the National Ocean Policy

• The organization has been

abolished by President Donald

Trump in June 2018 and will be

replace by a new 'streamlined'

committee that will focus on

science and technology and

resource management

Blu

e En

ergy

Department of Energy (DOE)

Federal Energy Regulatory

Commission (FERC)

• The Office of Energy Efficiency and

Renewable Energy (EERE) has the

mission of create and sustain American

leadership in the transition to a global

clean energy economy. Its vision is a

strong and prosperous America

powered by clean, affordable, and

secure energy

Environmental Protection Agency (EPA)

Bureau of Ocean Energy Management

National Renewable Energy Laboratory (NREL)

Department of Interior (DOI)

• The Department of the Interior protects

and manages the Nation's natural

resources and cultural heritage;

provides scientific and other information

about those resources

• It is a Cabinet-level agency that

manages America's vast natural and

cultural resources

National Ocean Council (NOC)

Pacific Marine Energy Center

• The Pacific Marine Energy

Center South Energy Test Site

(PMEC-SETS) is an Energy

Department-funded, grid-

connected, full-scale test facility

for wave energy conversion

technologies—the first of its kind

in the United States

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Water Power Technologies Office Budget Overview

WPTO

$35 $41 $41 $45

$59 $70

$19 $17 $19

$25

$25

$35

$-

$20

$40

$60

$80

$100

$120

Mill

on

es

MHK Hydro

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U.S. Marine Energy Resources

WPTO

Technically

Extractable

Theoretically

Extractable

OCEAN

CURRENT

TOP 20 TIDAL

OPPORTUNITIESWAVE ENERGY

INTENSITY

1,500 TWh/yr is technically

extractable from the U.S. marine

energy resource – equivalent to

nearly 30% of U.S. generation.

Developing just one-sixth of the available wave energy in the five

Pacific states could power more than five million homes.

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Current State of the Marine Energy Industry

WPTO

The U.S. is home to more

than a third of all active

marine energy companies

operating globally.

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Marine Energy Research Challenges and Recent WPTO R&D Awards

WPTO

Difficult Engineering

Installing and Operating Reliable Systems

Prolonged Testing and Design Cycles

Technology / Market Information and Supply Chains

• Crosscutting PTO Components

• Advanced Controls

• Innovative Structures

• Survivable Wave Energy Converters

• Marine Installation, Operations, and Maintenance

• Advanced Technology Integration and Demonstration

• Innovation, Testing, and Validation of MHK Environmental

Monitoring Instrumentation Performance

• Wave Energy Converters System Advancement

• Wave Energy Test Facility

• Open Topic – MHK Technology Development

Marine Energy

Strategic R&D Challenges

Recent Competitive Award

R&D Research Areas

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Installed and planned capacity

U.S. has 9 blue energy projects, counting operational, under development and early planning projects with a total planned capacity of 2.2 GW by 2030 Blue energy installed capacity

Floating

Offshore

Wind

Tidal Current

Wave power

• Aqua Ventus I - Led by The DeepCwind Consortium, the project will deploy two 6

MW turbines

• Morro Bay FOW project - Led by Trident Winds and EnBW North America, the

project will consist of approximately 100 floating offshore wind systems with a total

capacity of more than 600MW over 30 miles off the coast of Morro Bay

• Northern California FOW project - Led by a public-private consortium, the project

will consist of a 100-150 megawatts floating offshore wind farm more than 20 miles off

the coast of Eureka

• Oahu FOW projects - Led by a Alpha Wind Energy, the project will consist of two

FOW farms with 51 floating 8 MW turbines (408 MW) generation capacity each in

Hawaii

• Progression FOW project - Led by a Progression Energy and Principle Power, the

project will consist of 40-50 WindFloat turbines with a total generation capacity of 400

MW) in Hawaii

• Roosevelt Island Tidal Energy Project (RITE) - First commercially-licensed tidal

power project in the U.S. for the installation of 1MW turbine in the East River (New

York)

• Maine Tidal Energy Project - 20-year power purchase contract for the energy

generated by a TidGen turbine installed in Cobscook Bay

• Muskeget Channel project

• BOLT Livesaver

• OE Buoy

• StingRAY WEC

• NWEI’s Azura

1. Northern California

2. FOW project

3. Morro Bay

4. FOW project

1. Aqua Ventus

1. Oahu FOW

projects

2. Progression

1. Maine Tidal

2. Muskeget

Channel

3. RITE

1. NWEI’s Azura

2. StingRAY

3. BOLT Livesaver

4. OE Bouy

Hawaii

Demonstrator projects at the Wave Energy

Test Site in Hawaii

U.S. could be world leader in terms of floating offshore wind installed capacity provided that all of the under-development and early

planning projects are deployed

• The BOLT Lifesaver, a point-absorber device, completed a one-year demonstration project at

the Navy’s WETS in Hawaii in April 2017. The device uses five power take-off units, each

rated for a capacity of 10 kW. Over the length of the project, the device generated 22,364

kWh, with an average output of 3.2 kW, and the largest continuous power export lasting 200

days. This project provided excellent data on device reliability and performance, and also

exposed areas for improvement in structures and materials for a more robust design

BOLT Livesaver

(Fred Olsen)

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Installed and planned capacity

U.S. Navy’s Wave Energy Test Site (WETS) in Hawaii is the most active location for wave energy projects in U.S.

Wave power projects detail

• The OE Buoy, an oscillating water column design, is slotted for half-scale device testing in the

later-half of 2018 at the Wave Energy Test Site in Hawaii. The deployment will last

approximately one year and will provide useful performance data for model validations,

reliability performance, and opportunities for cost reductions

OE Bouy

• Columbia Power Technologies (CPT) is planning to test a one-third scale system of their

StingRAY wave energy converter device at the Wave Energy Test Site in Hawaii in the later-

half of 2018. As a precursor to this open water testing, CPT conducted testing on the Sting-

RAY’s drive train at the National Wind Technology Center (NWTC) using their state-of-the-art

dynamometer in 2016 and 2017. This deployment will provide valuable reliability data as well

as indicate opportunities for design improvements and optimization

StingRAY WEC

• Northwest Energy Innovations’ (NWEI) Azura™ is a multimode, point absorber WEC that

extracts power from both the heave and surge motions of waves to maximize energy capture.

NWEI has previously tested their technology in Oregon in 2012, and a half-scale device was

tested with 98% availability for 19 months beginning in June 2015 at the 30 m berth at WETS.

NWEI is currently developing a full scale Azura™ to be tested at the U.S. Navy’s WETS in

Hawaii. The proposed testing will allow to determine the energy capture matrix of a full scale

device, resulting in a more accurate assessment of LCOE

NWEI’s Azura

Sources: Marine Energy International Study, US Navy, OES

Tidal Current and Wave Power R&D projects (2017)

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R&D

The R&D projects related to tidal current and wave power are made in collaboration and led by private companies, national labs and the US Navy

Sources: Ocean Energy Systems, Department of Energy, National Renewable Energy Laboratory, Tidal Energy Today

ABB along with partners at Texas A&M’s Advanced Electrical Machines Lab and Resolute Marine Energy developed and tested an integrated magnetic-

gear generator. This innovative design has advanced the state-of-the-art for power take-off systems for wave energy converters. The test results of the 10-

kW prototype indicated the generator could be ideal for low-speed, high-torque applications like wave energy, or even tidal and wind. The prototype was part

of a DOE-funded project to research novel direct-drive generators that could eliminate hydraulic components in some wave energy power take-off systems

NREL completed deployment of two buoys with high-accuracy sensors to record wave and tide movement off the coasts of Oregon and Maine, areas

known to be potential hot spots for marine energy development. The work is part of larger project funded by DOE, in concert with SNL and the PNNL, to

analyze wave and tidal energy sites with great potential for development and gather data to validate the computer modeling tools that industry uses to design

devices

Ocean Renewable Power Company completed full-scale testing of a specialized bearing system and associated driveline components. The research

was funded by WPTO and was completed in collaboration with the University of Maine. This is the first phase of the project, future phases will center on

development of a more robust electrical generator to reduce failure rates

SNL, in conjunction with the U.S. Navy, tested advanced controls on a WEC at the Navy’s Maneuvering and Seakeeping (MASK) Basin in Bethesda,

Maryland. This testing will support the Lab in control algorithm development, numerical simulation, and future model testing to increase the power output of

WEC devices. The Navy’s MASK Basin, used in the finals of the Wave Energy Prize, has a state-of-the-art wave maker that is capable of making precise

waves for hours. This allows researchers to quickly test the converter’s control systems under numerous wave conditions and see the response.

NNMREC conducted several laboratory experiments with cross-flow turbines and simulations of wave energy converters which highlighted the potential for

elevated power generation from dense array configurations, particularly when machine learning is used to coordinate control strategies across the array.

Also in 2017, Environmental researchers at NNMREC achieved automatic detection and classification of marine animals using an integrated instrumentation

system and advanced standardized approaches for characterizing biological environments at wave and current energy sites. Core research outcomes also

included direct measurements of extreme wave conditions, methods to model and mitigate debris interactions, and robotic autonomy from inspection and

maintenance activities. In aggregate, this research adds to the growing suite of innovative tools and capabilities that can reduce the leveled cost of energy

(LCOE) of marine renewable energy

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R&D

U.S. has advanced infrastructures for testing activities of tidal current, wave energy and floating offshore wind

Blue energy test sites

AgentU.S. Navy’s Wave

Energy

✓

-

-

OTEC Test Site

✓

✓

✓

PMEC – Lake

Washington Test

Site

✓

✓

-

PMEC – Tanana

River Test Site

✓

✓

-

PMEC – South

Energy Test Site

✓

-

-

PMEC – North

Energy Test Site

(NETS)

✓

✓

✓

Camp Rilea Test

Site

✓

-

-

Southeast National

Marine Renewable

Energy Center

(SNMREC)

-

✓

-

Jennette’s Pier

Wave Energy Test

Facility

✓

-

-

Agent

Field Research

Facility

(FRF)

✓

✓

-

Center for Ocean

Renewable Energy

(CORE)

✓

✓

-

Bourne Tidal Test

Site (BTTS)

-

✓

-

UMaine

Deepwater

Offshore Wind

Test Site

✓

-

✓

Sources: Ocean Energy Systems, Department of Energy, DOE, Tidal Energy Today

Hawaii Hawaii Oregon Alaska Oregon Oregon Oregon

Florida North Carolina Massachusetts MaineNorth Carolina New Hampshire

www.sli.do

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