winfloat project update - eu sustainable energy week...• final projectconfiguration: 3 turbines...
TRANSCRIPT
WindPlus
European leadership in renewables — funding innovationBrussels, 22nd June of 2017
The WindFloat Project
WindPlus 2
• General Project Overview
• Value Proposition
• Project Status and Next Steps
• Challenges
Agenda
WindPlus
WindFloat - Project Overview
WindFloat 1 outstanding performance has encouraged Windplus to launch Phase 2:
WindFloat (Atlantic) Pre-Commercial Project
• TOTAL CAPACITY: 25 MW capacity, using 3 MVOW’s V164 turbines
(8MW) with a total investment of ~125M€
• LOCATION: 20 km off the coast of Viana do Castelo (North of
Portugal), in water depth of 85-100m, in an area of sand and
sediments, suitable for mooring
• INTERCONNECTION: to be constructed by REN, allowing a direct
connection at 60kV with no onshore of offshore substation
• CONSTRUCTION: several shipyards options available close to final
location. Turbine installation quayside
• FLOATING STRUCTURE CERTIFICATION: designed for 25 years, certified
throughout design, construction and installation by ABS, an
independent Verification Body
• STRONG INSTITUTIONAL SUPPORT:- EU: NER 300
- Portugal: Feed-in Tariff, APA
3
WindPlus 4
Project location was selected based on feasibility and maximizing production
• 150kV, AC cable, initially operated at 60kV (no need
for either onshore or offshore substation)
• To be constructed by REN
• Length: ~17-20km
• Buried in most sensitive areas
~20Km
• Final project configuration:
3 turbines
• Located in a sand area with
~85m water depth
WindFloat - Project Overview
WindPlus5
19,4% 20% 20% 20%
WindPlus, S.A.
19,4%
1,2%
WFA concluded an equity raising process with 5 shareholders
WindFloat - Project Overview
WindPlus
Description of the support mechanisms in place for the project
6
NER300
Feed-in tariff
• Equivalent to 168€/MWh during 20 years
• Composed of different support mechanisms, including
Portuguese Carbon Fund
• Part of this support is upfront to help development
• Support program for proven technologies to help commercialization
• ~30M€ in total, 30% payable in 2015 and 30% in 2017, rest in 5 years
• Subject to reaching 75% of planned production in 5 years
• Several requirements in terms of deadlines of permitting and
information sharing
Export cable• New infrastructure, part of the national grid
• Financed, developed and implemented by REN (National Grid Operator)
WindFloat - Project Overview
WindPlus
Engineering
(+O&M) FabricationTurbine supply/
installation (+O&M)
Offshore
installation
• Contract value: ~5,5M€
• Organized in phases:
‒ Pre-FEED
‒ FEED
‒ Detailed design
‒ Engineering support during
fabrication
• Includes a joint work with
MVOW to develop a
coupled model analysis
• Detailed design fully
finalized before Fabrication
contract award to minimize
change orders
• Platform certified by ABS
(certification currently
ongoing with positive
outlook)
• Engineering work with
MVOW certified by DNV-GL
(ongoing with positive
outlook)
• Contract value: ~38M€
• Scope of work (following
ABS-certified design and
specifications from PPI):
‒ Supply of steel
‒ Fabrication/supply of
structural elements
‒ Procurement of auxiliary
equipment*
‒ Final assembly (incl. dry dock
rental at Lisnave)
‒ Coating and cathodic
protection
‒ Offload
‒ Towing to port of Sines
• Part of the work will be
subcontracted
• Strict quality control and
supervision
• Fabrication process certified
by ABS
• Contract value: ~12M€
• Scope of work:
‒ Supply and delivery of
mooring & anchor
equipment and
interarray cables
following ABS-certified
design and specifications
from PPI
‒ Supply of anchor-
handling tug vessel and
other auxiliary vessels
(e.g., tugs)
‒ Anchor pre-lay
‒ Towing of structure to
final location
‒ Hook-up and connection
of hardware
‒ All associated services
like port rental, local
tugs, navigation permits,
etc.
• Offshore installation
process certified by ABS
• Contract value: ~45M€
(excl. O&M)
• Scope of work:
‒ Supply and transport of
wind turbines and towers
‒ Installation and pre-
commissioning at port
(Port of Sines and crane to
be supplied by Windplus)
‒ Final commissioning after
installation
‒ Turbine O&M
• Turbine will be site-
specific and designed
through the DNV-certified
process with PPI
• Will include all
adjustments of turbine to
a floating structure
(tower and control
software)
• DNV-GL verification of
design, loads and
expected lifetime
* Certain minor components may be procured directly by Windplus (e.g., communications) 7
Procurement strategy – minimize interfaces and clearly define responsibilities
Inter-array
cable supply
• Contract value: ~3,5M€
• Scope of work:
‒ Supply and delivery of
inter-array cables
‒ Monitoring cable
installation
‒ Specific cable
termination work
WindFloat - Project Overview
WindPlus 8
Mooring and
interarray cables are
designed for a simple
release and hook-up
1
Towing is conduted
by local regular tugs
(already identified
and open for lease on
short-term call)
Transport time is 1-2
days
2
~100km
Quays already
identified with
sufficient draft for
O&M work quayside
Large component
replacements are conducted
quayside in the port using
standard onshore cranes.
Port of Vigo has confirmed
its availability for these
activities.
Windplus already has quotes
for suitable onshore cranes
3
Total downtime can be lower than 15 days with a
total cost of less than 500k€
WindFloat – Operation & Maintenance
WindPlus 9
• General Project Overview
• Value Proposition
• Project Status and Next Steps
• Challenges
Agenda
WindPlus
Bankability
Technology
LCOE
WindFloat Technology Roadmap
10
Three Strategic Areas for Successful Implementation
Bringing the technology to be cost
competitive with other Renewable
Energy Sources
Reduce the risk to ensure the
finance ability of the commercial
projects
Develop a reliable and full scale tested solution
11
• larger turbines (x3-4)
• design life extension (x5)
• global sizing – “smaller” platform
• structural optimizations
• equipment improvement
• accessibility
• mooring improvements
• installation improvements
11
WF1 WFA
WindFloat – Competitive LCOEScale and technical/technology innovations are already delivering important savings
• Capacity:
• Production:
• Unit cost:
x4
X4,5
x1.75
• larger turbines (x 3-4)
• design life extension (x 5)
• global sizing – “smaller” platform
• structural optimizations
• equipment improvement
• accessibility
• mooring improvements
• installation improvements
WindPlus 12
• General Project Overview
• Value Proposition
• Project Status and Next Steps
• Challenges
Agenda
WindPlus 13
• Approval of export cable
• Export cable geotech (TBC)
• Export cable tender process
• REN contracting export cable
• LBI signature + FID by Windplus
• Permitting:
‒ Ponto de receção
‒ Licencia de produção
• Release APA funds
• BoD decision on FID
• Engineering:
‒ Detailed engineering design
‒ MVOW engineering (tower
and control)
‒ Tower certification (DNV)
• Main project contracts
‒ Fabrication tender
‒ Offshore installation
‒ Turbine TSA/MSA
• Financing
‒ Head of terms
‒ Kick-off meeting with lenders
‒ Due Diligence
‒ Financial close
• Funding commitment by
partners
• Notice to proceed /Steel order
• FC Kick-off platform fabrication
Jan Feb Mar
1Q17Oct Nov Dec
4Q16Apr May Jun
2Q17Jul Ago Sep
3Q17
17th December
15th December
14th December
16th December
10th December
4Q17Oct Nov Dec
Updated Project Planning until Financial Close
Project Status and Next Steps
WindPlus
Project construction
(CAPEX)
14
Current Status negotiation main project contracts
Platform
engineering
Preferred bidder
selected?
Term sheet
signed?
First contract
draft?
Advanced
contract draft?
Contract signed?
Platform
fabrication
Turbine supply
WTG installation
(crane)
Project operation
(OPEX)
Turbine O&M
Platform O&M
Platform
installation
5%
35%
44%
14%
1%
18%
54%
% of total
Capex/Opex
WindPlus
Commercial Bank 1 Commercial Bank 2
FIRST FLOATING WIND FARM EVER
FINANCED WITH NON-RECOURSE
DEBT
Consortium approved, due diligence undergoing
15
WindFloat bankabilityWFA is progressing well to achieve the first project financing of a floating structure
WindPlus
16
Project Schedule / Next Steps
NON-EXHAUSTIVE
• Project permitting
• Procurement processes
• Project financing
• Financial closing
• Export cable fabrication
• Export cable installation
• Steel order
• Fabrication 1st structure
• Assembly in dry dock
• Winter storage 1st structure
• Fabrication 2nd and 3rd
structures
• Assembly of 2nd and 3rd
structure in dry dock
• Turbine assembly in Sines
• Pre-lay of mooring systems
• Offshore installation
• Windfarm commissioning
2018 2019
J F M A M JJ F M A M J J A S O N D
2017
J F M A M J J A S O N D
2016
J J A S O N D J A S O N D
?
WindPlus 17
• General Project Overview
• Value Proposition
• Project Status and Next Steps
• Challenges
Agenda
WindPlus18
Fabrication
Sea bed
Installation
Large
correctives
Decommis-
sioning
• Fully conducted onshore
• All structures are alike
• Certification: strict guidelines from oil & gas industry
Description Implications
• Lower design risk
• Lower execution risk
• Anchoring technology with >60 year experience
• Big flexibility on soil conditions
• Lower need of geotechnical studies
• Lower geotechnical costs
and risk
• Shorter weather windows required
• Fewer and simpler operations
• No use of special installation vessels
• Lower execution costs and risk
• Lower weather risk
• Shorter weather windows required
• Fewer and simpler operations to be conducted offshore
• No use of special O&M vessels
• Lower execution costs and risks
• Lower weather risk
• Simple operation
• Minimal impact on the site
• All works done onshore
• Lower execution risk
• Lower third party risk
Floating presents significant risk advantage vs. fixed structures
WindFloat – Bankability
WindPlus
Commercial Bank 1 Commercial Bank 2
FIRST FLOATING WIND FARM EVER
FINANCED WITH NON-RECOURSE
DEBT
19
WFA is progressing well to achieve the first project financing of a floating structure
WindFloat – Bankability
WindPlus 20
Other ChallengesWindFloat
• Uncertain or inexistent legal framework (for offshore energy projects)
• Lack of offshore wind background (and industry) in the south of Europ makes it difficult to have
supply chain to perform several offshore works while the project is in development
• Wind Turbine manufacturers still need to be (technically) convinced about floating
• Contractual T&C are hard to standby during contractual negotiations (pre-commercial project
still seen as a R&D project by the supply chain)
• Fundamentally Lender’s Advisors tend to assess the project as a conventional offshore wind
project
THANK YOU!
WindPlus