energizing west michigan with offshore wind power
TRANSCRIPT
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Energizing West Michigan with Offshore Wind Power
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West Michigan’s greatest assets
• Access to the world via cheap transportation via the water
• An unmatched manufacturing base with a world class quality control standard honed by the auto industry
• Innovation
• Entrepreneurial DNA
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Critical factors to establish a turbine manufacturing base
• Stable regional energy market • Suitable sites for wind farms• Test facilities for new turbine design• Incentives to establish manufacturing facilities• Support for training new employees • Strong supply chain potential within reasonable distance
Scandia Wind intends to share its broad network and experience to enhance the
current work underway to diversify Michigan into the wind industry.
“In order to stimulate manufacturing there is need for a sizeable local market, with a competitively priced power purchase agreement and a strong grid connection available to service the expansion of a large offshore project””
A major US Original Equipment Manufacturer (OEM) of wind turbines
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The Aegir project -- a catalyst to attract an OEM?
• Make the project large – offer unit volume to the turbine manufacturer willing to build manufacturing facilities in the region:
– an onshore wind farm of 150 MW– two offshore facilities (2x500 MW)– one test site
• Facilitate an in-house test facility connected to the BC Cobb plant or former waste water treatment site on Muskegon Lake
• Make a public/private partnership between the manufacturer and the State, enhancing public economic support for the test turbine and test program
• Work with the state to get a permanent support scheme in place to establish a permanent market for offshore wind power in the Great Lakes
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Why Now?
• Michigan needs to be first in the lakes
• Whoever is first has the manufacturing and infrastructure head start
• The Competition is leading:– Ohio– New York– East Coast– Ontario
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Scandia Wind OffshoreA proposal West Michigan
Make the West Michigan lakeshore region an offshore wind energy hub with the goal to generate 3,000 new jobs in the renewable energy industrial sector
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What is important for siting offshore wind farms?
• Better wind conditions than onshore. 10% change in mean wind is 30% change of mean power production (rule of thumb)
• Transmission capacity in existing power lines.
• Proximity to major consumption areas
• Ability to build bigger than onshore
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Wind speeds on Lake Michigan
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Wind Quality and LoadCenters in the U.S.
Michigan is situated near three large load centers
• Blue - high wind potential
• Brown - large demand centers
• Green - little wind and smaller demand centers.
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Aegir I
Aegir II
Aegir III
Ludington
Muskegon
Grand Haven
• 150 MW at Muskegon Wastewater Treatment Plant
• Two off-shore sites: 500 MW each
• 5 – 10 MW wind turbines
• 100 – 200 turbines
• 300 – 450 feet high towers
• $3-$4 billion investment
• 3.7 billion kWh per year based on 9 m/s average wind speed
• Powering over 300,000 US households
The Aegir project sketch, approximately 1,150 MW
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Ludington, south viewpoint angle
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Silver Lake, northwest viewpoint angle
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Mears Park Pentwater, west/southwest viewpoint angle
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Kirk Park, west/northwest viewpoint angle
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Grand Haven, west/northwest viewpoint angle
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Electrical interconnection example Havsul I
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Installation offshore in Europe, challenges in the US
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Concrete Foundation for the US challenges
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Placing the Wind Turbine – Concrete Foundations
• Potential Additional Manufacturing Opportunity.
• A 1,000 Megawatt wind farm would require (approximately):
o 1 million tons of concreteo 200,000 tons of steelo 2 million man-hours of labor for foundationso Foundation Production Cost: $500 million - $1 billion
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Aviation lighting and watercraft navigation
• No operational aviation lighting on a daily basis:
o Radar system to detect aircrafto Activates the aviation lighting system when
aircraft come within a certain distance o Activates radio message to the pilot if
entering an inner circle of the wind farmo FAA approved
• Fog horns and naval navigation lighting:
o Fog horns and naval navigation lighting must
be heard from at least 2 mile distance from
the outer boundaries of the wind farmo Will in normal circumstances never be heard from the shore. Only under
very specific weather conditions will the fog horns be heard
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Goals for the Aegir Project
• Successfully develop, build and operate:
o 150 MW onshore wind farm o 1,000 MW offshore wind power in Lake Michigan
• Develop the offshore wind industry using the Aegir project as a stepping stone:
o Attract a turbine manufacturer to the region o Develop the supply chain connected to the manufacturing facilitieso Develop the port of Muskegon as center for offshore renewable activitieso Establish O&M facilities in Mason County and Muskegon
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Additional Goals
Link with university research and technology development efforts
• Increase the offshore wind knowledge base of universities and research facilities in Muskegon area
• Turbine research facility connected to MAREC
• Technicians for O & M -- trained at local community colleges
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Test turbine site
MAREC,R&D
Current SAPPI site, potential manufacturing site
O&M Site
Aegir 2 grid interconnection
Renew(able) Muskegon
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10 MW 100 meter hub height
B.C. Cobb plant in Muskegon 198 meters
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Turbine manufacturing and supply chain “ripple effect”
In creating an industry epicenter in Muskegon, many job opportunities will be generated.
By succeeding attracting an OEM to Muskegon, approximately 3,000 jobs could be created.
Most jobs would be in the supply chain -- creating opportunities for existing and new businesses in the region.
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Estimated total job creation to construct the Aegir project
Aggregated results from the Siragrunnen (S) and Mariah (M) projects:
• Approximately 3,500 man-years in the construction phase (S)• Approximately 100 direct permanent jobs in the operational phase (S)• Approximately 200 to 300 indirect jobs in the operational phase (rule of thumb)
• Potentially approximately 3,000 jobs in turbine supply chain activities that can become permanent jobs (M)
Separate analysis will be performed for the Aegir project
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Cost distribution typical offshore project
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Going Forward – Estimated Timetable
•Local advice•Define layout•Comp model
Counties, Twps, and Munis advice
•MISO application•Lease application
•Environmental studies•Non environmental studies•Permits applications•Wind measurementsGrid access
approvalsLease approval
All permits issued
•Financing•Commercial agreements
Financial closure •Construction
Commissioning
2009 - 2010 2011-2012 2011-2013
2013-2015 2015-2020
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Sample of Permits NeededState
MI Public Service Comission
Department of Environmental Quality
Great Lakes Submerged Lands
MI Endangered Species Law
Water Quality Certification
Federal
US Army Corps Of Engineers
National Environmental Policy Act
US Coast Guard
Costal Zone Management Act
Fish and Wildlife Service
Eagles Protection Act
Migratory Bird Treaty Act
National Historic Pres Act
Federal Aviation Agency
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Studies to be Performed (for approvals by State and Federal agencies)
Over 20 studies to be performed, including (among others):
• Habitat/Biological (above water, below water)
• Cultural Heritage
• Native Tribes fishing impacts
• Private Industry
• Transportation/Navigation
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Summary: Why is the Aegir Project being considered in Michigan?• Excellent wind conditions
• Feasible water depths
• Excellent grid capacity
• The Ludington pump storage facility, potentially working as a “battery” for the wind farm
• The B.C. Cobb plant in Muskegon will likely be closed, providing approximately 500 MW of grid capacity
• Close to major load centers reducing transfer losses
• Strong political drivers towards offshore
• Reduces CO2 emissions by 2.2 million tons yearly
• The Aegir project will reproduce all energy used to put it into operation appr 42 times
• The Aegir project will be carbon neutral after appr 7 months in operation
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Next steps as we see it (subject to local authorities input)
Discuss the options with the local authorities:
• Gauge interest in moving forward• Modifications of the project
– Fixed distance from the shore– Overall shape and size
• Compensation model• Presentations to the local boards• Counties’ advice on stopping the project or moving it into the further studies,
preferably by September 1
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Compensation Model
Scandia Wind Offshore proposes the following compensation model for the Aegir Project:
• $2,000 per megawatt (“Fixed”) annual compensation paid to Muskegon County and Ottawa County
Or• A “revenue-share” model (“Variable”): a percentage (to be determined) of
gross revenue produced by the proposed wind farm
Or• A mutually-agreed upon combination of the Fixed and Variable
compensation models
A Public/Private Partnership whereby Muskegon County and Ottawa County
receive a profit-share in the project
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Request of the Counties
Approval of the project is not requested at this point, merely advice as to whether the
View change is acceptable in order to move forward with environmental, socioeconomic and technical studies
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The Aegir project:
Energy
Clean
Jobs
www.theaegirproject.com
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Kilde: StatoilHydro
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Kilde: StatoilHydro