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Opportunities in Offshore Renewables for Scottish SMEs from Oil & Gas:
An Holistic Approach to ‘Supply Chain’
Kenny Wiggins 26th January 2015
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Topics to Cover
• Introduction to SeaEnergy PLC
• The Supply Chain Process – a holistic view
• Update on the Offshore Wind JIAP
• Joint Industry & Academic Project:
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SeaEnergy PLC
• A Scottish public limited company listed on the AIM. • Its subsidiaries & associates form an energy services group,
headquartered in Aberdeen.
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• One subsidiary company, SeaEnergy Renewables Limited, founded in 2007, won the rights to develop three offshore wind sites in Scotland. • These included Inch Cape, Beatrice, and Moray, in conjunction with
other partners, where following early development of these offshore wind sites, in June 2011 the Company announced the sale of its interest in SeaEnergy Renewables Limited to Repsol and EDPR.
• SeaEnergy PLC then strategically refocused on offshore energy services for both Offshore Wind and Oil & Gas.
• SeaEnergy Marine • Max and Co. (digital media, 3D visualisation) • SeaEnergy Ship Management • Consulting
• GoSeaEnergy Joint Venture • Plus a range of legacy holdings in Oil & Gas
• R2S (Visual Asset Management)
• The SeaEnergy Group is now comprised of multiple entities:
SeaEnergy PLC
• Since 2012, key offshore energy projects have been undertaken with a variety of leading clients & as a group SeaEnergy operates internationally in Europe, North America, the Gulf of Mexico (both U.S. & Mexico), plus SE Asia. 4
• SeaEnergy Consulting, has 5 principal areas of focus:
• Asset Integrity Management • Operations and Maintenance (O&M), Visual Asset Management, ISO55000 & PAS55
Strategic Support, Contingency Planning.
• Marine • Operations and Maintenance, Marine Operations, ISM (audit), Design, Performance
Assessment, Safety Culture including embedding High Reliability Behaviour.
• Subsea • Inspection, Repair and Maintenance (IRM), Process Optimisation, Asset Information
including Schematics, Animations and 3D Modelling.
• Strategic • Organisational Development, Organisational Assessment, High Reliability, Managing
Criticality, Business Continuity Management, Risk Assessment, Contingency Planning
• Alliance Management • Project Management, Innovative Collaboration, Strategic Facilitation
• The Supply Chain Process - KEY to The Overall Business Process
• Some of the Myths about the Supply Chain Process.
• Its just about buying bits or services – not! • It is far wider, it needs to be an integrated business process
• Its about cheapest price – not! • It should be about best value – but is buyer dependent.
• Its a one way relationship – not! • A successful customer/supplier relationship must be 2-way
• It should have mutual dependency
• Technology is the best way you drive improvements in the Supply Chain – ??? • Its not just about technology
• Technology will not optimise a business in isolation
The Supply Chain – Holistic View:
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The holistic definition we choose to use!
“ The Supply Chain Process – The Creation of Demand through to delivery to Point of Use! ”
Note: This is not a definitive list, you must decide what fits the situation, but they are related!!
An Integrated Supply Chain Process:
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Total Project Cost includes:
• All Costs Throughout the Project Life Cycle – impact on LCoE
• Delivery/landed Costs
• Inventory Holding Costs
• Cost of money – financing cost
• Technical support costs throughout the project
• Warranty costs / Equipment down-time
• Total of Capex, Opex, Decom Combined – Totex
• Unfortunately the definition of best value will depend on the ‘buyer’.
© driven2deliver ltd
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Offshore Wind JIAP:
• A Joint Industry & Academic Project:
• In Industry driven initiative by SeaEnergy PLC (Secretariat):
• In partnership with the ORI (Offshore Renewable Institute):
• Together with a series of Industrial, Academic & Enterprise Participants.
Offshore Wind JIAP
A Joint Industry Academic Project
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• The Offshore Wind Joint Industry Academic Project is a collaboration between developers, operators, suppliers and academic institutions with the aim to maximise the competitiveness of the offshore wind industry.
• It represents innovative, industry-led thinking on integrated approaches to supply chain processes and methods to maximise value from consent to customer. The focus will be on the relationship between the planning, design, and capital investment (CAPEX) period and the operations and maintenance (OPEX) period. The project will take a whole-life approach to offshore wind farm value as viewed through the lens of levelised cost of energy.
Offshore Wind – JIAP (Joint Industry & Academic Project)
Project Secretariat – SeaEnergy PLC
Offshore Wind JIAP
A Joint Industry Academic Project
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Exec Summary:
Background - The Industry Challenge
LCOE* FID** £140/MWh (2011) £100/MWh 2020
Notes:
*Levelised cost of energy (LCOE):
** Financial Investment Decision (FID): Financial Investment Decision date
Offshore Wind JIAP
A Joint Industry Academic Project
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So what was/is the position?
Supply Chain Development:
? Cross lifecycle thinking
? Inter-project collaboration
? O&M clustering
? Supply chain vertical consolidation
? Project benchmarking and experience transfer
? Supplier horizontal consolidation
? Offshore sector co-operation
? Sector experience transfer
? Increased production quantities
Technology Development:
Larger turbines
New foundation concepts
Higher Voltage Cables
HV DC conversion & transmission
Direct drive technologies
Hydraulic technologies
New installation concepts
? Installation optimisation
? Low cost O&M technologies
? Port Infrastructure?
Offshore Wind JIAP
A Joint Industry Academic Project
Technology – The Recipe for Success ?
• Take the ingredients for an optimal supply chain and season it with a dash of technology and the future will be:
£100/MWh or less?
• But how do we know it will taste
good before we fill the pot and turn up the heat?
Technology
Offshore Wind JIAP
A Joint Industry Academic Project
Phase 0 – The Scoping Phase:
• Defined Objective of JIAP • Brought in Industrial, Academic & Enterprise
Participants • Sought Alignment with industry bodies
• SR, RUK, OWPB, & OREC
• 4 Workshops Held across Scotland • Westhill, Dundee, Glasgow & Edinburgh • Plus additional presentations • Numerous 1 to 1 sessions
• Identified Potential JIAP Working Groups • Report Published in October ‘14
• Phase 0 now complete.
Offshore Wind JIAP
A Joint Industry Academic Project
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Phase 0 Output – Proposed Work Groups:
Overarching Focus:
• Making Optimal Decisions & understanding the linkages in the decision making process:
Supported by Work Groups:
• WG1 - LCOE models in evaluating the impact of decisions in the supply chain
• WG2 - Specification Process
• WG3 - Contracting Strategies for Project Planning & Execution
• WG4 - Effective, Integrated & Collaborative Supply Chain
Offshore Wind JIAP
A Joint Industry Academic Project
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Phase 0 Output - Integrated Decision Making: Offshore Wind JIAP
A Joint Industry Academic Project
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• LCoE Working Group (WG1) started in Q4 ‘14, with ETP funding for ORI,
• report due February 2015
• Output of Phase 0 – interaction with OWPB & TCE: (incl. OWIG)
• Supply Chain WS Contracting Strategies WS
• Innovation WS The Crown Estate
• Invited to PB Work-stream meetings:
• Supply Chain: Contracting Strategies: Innovation : Feb/Mar ‘15
• Following November 2014 OWIC Meeting, OWPB funding package agreed.
• OWPB have listing of Top Level Activities to Support
• Best JIAP alignment through OWPB – Contracting Strategies WS (Keith Waller)
• Advised that JIAP could be one of the delivery arms for the OWIC agreed activity
• Seeking Alignment with ‘Team Scotland’ on Supply Chain WG
• follow on from ‘Scenario Mapping’
Current Position - JIAP: Offshore Wind JIAP
A Joint Industry Academic Project
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•Take the Holistic View of the Supply Chain •Review Potential Alliances!
• Devise a compelling argument for the buyer!
• Ensure Processes do not stand alone, they need to be integrated! • The Industry needs to be ‘Supplier Ready' •The Supply Chain Process is a KEY to The Overall Business Process
© driven2deliver ltd
In Summary:
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