W H I T E P A P E R O N

Enhancing the energy transition

N O V E M B E R 2 0 1 9

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The energy transition is one of the largest global challenges that societies are presently facing. It demands stewardship from Van Oord. Our ambition is to decarbonise societies and make them more sustainable, creating a better world for future generations. That is why we have launched our game-changing S.E.A. programme.

Our S.E.A. programme consists of three mutually reinforcing themes: Accelerating climate initiatives, Enhancing the energy transition and Empowering nature and communities. In this white paper, we focus on Enhancing the energy transition. We highlight the scale and scope of the energy transition and we propose eight key elements to account for. We advocate making use of integrated solutions. These include innovative solutions and accounting for environmental and social impact.

Enhancingthe energy transition

Empoweringnature and communities

Acceleratingclimate initiatives

Enhancing the energy transition

Energy is essential for all life on Earth.

Society’s energy choices and decisions impact the

earth’s natural sources. In order to be sustainable,

we need to choose our energy sources carefully.

Our current energy production and consumption

are responsible for a substantial part of climate

change. Therefore, the true cost of energy goes

beyond money. Economic, political and social

factors also play an essential role, because these

factors have an enormous influence on the pace

and process of the energy transition.

For Van Oord, this demands undergoing two

transitions: at company level and at global level.

Our ambition is to enhance the decarbonisation

of the world’s energy supply. Topics such as

system integration, energy storage, stakeholder

engagement and partnerships play a crucial role

in enhancing the transition towards a decarbonised

energy system.

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Increased energy demand

Last 15 years

35% •Coming 15 years

15% •

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Closer look at the energy system

To obtain more insight in the worldwide energy transition, we have

to take a closer look at what’s happening in the energy system.

Both world energy demand and supply are gradually shifting

towards renewables. Energy efficiency is also being given increased

attention. For this analysis, DNV GL (2018) has been used as the

main source.

World energy demand

The world’s energy demand increased by 35% over the past

15 years (see the graph below). For the coming 15 years, energy

demand is expected to increase by just 15%, and thereafter level

off and start to decline. This demand downshift is based on the

presumed deceleration in population and productivity growth,

and on an accelerating increase in energy efficiency.

transport buildings manufacturing

Graphic 1: Energy demand

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Transition from fossil to renewablesThe energy transition transforms the present energy system into a more sustainable

one based on renewable energy sources. Several renewable options are needed

to achieve this. The main challenge is to realise this transition at the lowest

possible cost without compromising the system’s reliability. Since the biggest

renewable sources (in 2050 solar and wind energy) produce electricity, the energy

transition must first be incorporated into the existing electrical power system.

Scale and scope of the worldwide energy transition Figure 1 presents DNV GL’s energy supply forecast, based on the categorization

fossil fuels, renewables and nuclear energy. It shows that the share of

renewables will increase dramatically at the expense of the share of fossil

sources, while the nuclear share remains more or less the same. DNV GL

further expects that as regards fossil, the absolute and relative shares of coal

and oil will decrease in time, but that those of natural gas will more or less

stabilize after a relatively small increase.

Renewable options for offshore energyWithin the scope of offshore energy, there are several renewable

options available:

- Wind - Solar

- Tidal - Bio (from algae)

- Waves - Hydrogen

The options offshore wind, solar and tidal energy are technologically the most

mature. Western Europe, for instance, focusses strongly on offshore wind energy,

resulting in a competitive offshore wind market with strong innovation efforts

and substantial cost reductions. Although tidal energy is very interesting with

a view to predictive availability, only a limited number of locations are suitable

FOSSIL FUELS

RENEWABLES

NUCLEAR

Figure 1: DNV GL’s (2018) energy supply forecast

Primary energy supply by source (1018 joules per year)

2016 2030 2050

81%

14%

5% 5%6%

74%

20%

45% 50%

for application. Moreover, maintenance costs of tidal energy systems are

a major issue due to the aggressive offshore environment.

Bridge fuel Natural gas as such is not a renewable energy source. However, we expect

this to be a bridge fuel as gas is still needed for ensuring a stable power

baseload and associated energy system reliability.

Natural gas has significant environmental advantages over coal and oil, both

in terms of GHG and particulate matter emissions. It is therefore increasingly

being used by power plants and the maritime sector. Meanwhile, natural gas

production can generate earning capacity for developing countries where

natural gas is found and will hopefully help them to build sufficient financial

resources for investing in their own energy transition. But certainly in the

long term, natural gas will encounter increasing competition from other ‘real’

renewables such as e-fuels (e.g. hydrogen). In addition, oil is not just a fuel,

but also an important resource for producing products such as plastics.

Substitutes will be developed simultaneously for these applications.

The challenges we are facing …

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In the next 15 years, the world’s energy demand will increase by 1% per annum

• 15 years

• 1%

(DNV GL, 2018)

To comply with the Paris Climate Agreement, renewable energy would need to supply

70%-85%

of electricity by 2050 (14% at present).

The central objective of the Dutch National Climate Agreement is to reduce national GHG emissions by

• 49% by 2030compared with 1990(Dutch National Climate Agreement, 2019)

The route towards a sustainable future demands immediate action, given the state of the energy system and the urgency of climate change warnings.

(World Economic Forum, Fostering Effective Energy Transition, 2019)

Time is running out. It’s time to act now!

Today’s mitigation measures are not enough to keep global warming well below

2.0°C

a more likely outcome is

3.0°C

By 2050, global shipping will have to emit an average of

• 50% less CO2 than in 2008.

(IMO, 2014)

In 2019, Van Oord signed the Green Deal Maritime and Shipping with the aim of achieving

• 70%

reduction by 2050 compared with 2008.

In 2010, the energy supply sector was responsible for approximately

35%of total

anthropogenic GHG emissions.

(IPCC, 2014)(Paris Agreement, 2015)

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4Using Carbon Capture and Storage (CCS) as interim solution Part of the interim solution when we are

moving towards fully renewable energy

is CCS. It comprises technologies that capture

carbon dioxide (CO2) emissions produced from

the use of fossil fuels in electricity generation and

industrial processes, preventing the carbon dioxide

from entering the atmosphere. In our view, CCS

is crucial in mitigating climate change and achieving

the Paris climate targets.

OUR VISION

Key elements for Enhancing the energy transition8Enhancing the energy transition represents a

challenging journey towards a decarbonised energy

system. Apart from energy efficiency measures,

there are many options for making this journey

as cost-effectively and as fast as possible. Below,

we indicate key elements that we think should be

accounted for in Enhancing the energy transition.

1System integration This represents smart pairing of fossil and

renewable energy networks. The presence

of (offshore) infrastructure for fossil

energy production and transportation may

provide opportunities to facilitate the transition

to renewable energy sources such as offshore

wind. Smart pairing of offshore wind farms and

gas infrastructure leads to optimal use of existing

infrastructure (e.g. second life). It makes the costs

socially acceptable and it is possible to maintain

a stable energy production during the transition

period. (TNO, 2018)

3Implementing energy storage and smart gridEnergy production from renewable

sources such as wind and solar is more

variable in time (intermittency) and location

specific than energy production based on fossil

fuels and nuclear. Implementing energy storage,

using a wide variety of storage options (e.g. e-fuels

such as Power-to-X and hydrogen), and smart grid

in which energy is automatically used at the time

of production can temporarily cushion volatilities

in energy demand and supply.

2Continuous roll out of projects

The transition of energy supply has largely

been stimulated by policy, particularly direct

subsidies. We observe that governments

are turning towards competitive auctions. This means

that the energy (electricity) cost price is driven by

competition. Offshore wind is therefore widely

expected to expand on a unsubsidized or - preferably -

lightly subsidized basis (Equinor, 2019). Cost price

reduction is however also driven by economies of

scale requiring a continuous roll out of new projects

based on clarity of policy and a long-term vision on

energy policy. This should lead to price certainty.

5Empowering nature

Renewable options such as wind and solar

typically need substantial surface areas.

This requires careful spatial planning,

particularly in regions with space scarcity. Due to

the designation of marine protected areas and

the construction of offshore wind farms, areas with

undisturbed seafloor are increasing. This provides

multifunctional use opportunities for restoring

biodiversity and establishing nurseries for marine

life and fishing. Van Oord applies these opportunities

in initiatives like the Rich North Sea and our

Ecoscour research programme.

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7Providing experimentation space

In physical terms, this means offering locations for

testing, for instance, new offshore wind turbines,

innovative foundation methods, e-fuel production and

restoring biodiversity. In addition, experimentation space should

also be provided in contractual terms in order to have sufficient

legal opportunities for applying innovations without being charged

for experiments that fail.

6Accelerating digitalisation

Digital technologies enable energy systems to connect

and to match energy supply and demand more efficiently.

Future digitalised energy systems, including smart grids,

may be able to identify who needs energy and to deliver it at the

right time, in the right place and at the lowest cost. (IEA, 2017)

Innovations at Borssele Wind Farm Site V

A new sustainable energy zone is under construction some 20 kilometres off the Dutch

coast: Borssele Wind Farm Site V. This site has been designated as an innovation site.

The Two Towers consortium, consisting of Van Oord, Investri Offshore and Green Giraffe,

has been awarded the concession and has therefore been given a unique opportunity to

test and demonstrate advanced technologies.

Slip Joint: To connect the monopile and transition piece, the innovative Slip Joint technology

will be applied. This technology has two major advantages: it is maintenance-free and it

reduces installation time, resulting in potential major cost savings.

ICCP optimisation: Scientific research is being carried out to improve the understanding of

the relation between Impressed Current Cathodic Protection (ICCP) performance, the forming

of hazardous gases and water replenishment in the foundation.

TSA Coating: Development of an automated and controlled system to apply Thermal Sprayed

Aluminium (TSA), a cost-effective alternative to conventional paint-based corrosion protection

system for foundations.

Oval cable entry hole: Adjusting the cable entry hole in a monopile from round to oval.

This reduces the stress concentration in the monopile. This allows for reduction of steel.

Eco-friendly scour: Testing outplacement strategies for flat oysters on scour protection to determine

which method works best for long-term establishment of oyster reefs on scour protection.

Borssele V - Web series

Eco-friendly scourTSA CoatingICCP optimisationSlip Joint Oval cable entry hole

8Stimulating demand for electrification The main driver of the energy transition is increasing

demand for electricity. After all, without (sufficient)

demand there cannot be supply. So, to enhance the

energy transition, electrification should be stimulated. For example,

industries as well as consumers can be encouraged to electrify

through further roll out of fiscal measures. Another option is carbon

pricing, an instrument that captures the external costs of

greenhouse gas (GHG) emissions, usually in the form of a price on

the carbon dioxide emitted. It provides an economic signal to

emitters, stimulates them to electrify, and the revenues can be used

to mobilize further investments in innovation and clean technology.

Experimentation space

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OUR AMBITION

To provide integrated and innovative marine solutions

United Nations Sustainable Development Goal 13: Climate Action Take urgent action to combat

climate change and its

impacts

United Nations Sustainable Development Goal 7: Affordable and clean energy Ensure access to affordable,

reliable, sustainable and

modern energy for all

“ The ambition of Van Oord is to act as an initiator for accelerating the energy transition

while also creating societal value. We are fully committed to enhancing the energy transition by enabling the large scale roll out of offshore wind. Sector-wide collaboration and innovations are key in making

this transition a success.Pieter van Oord, Chief Executive Officer, Van Oord

Flexible fall pipe vessel Stornes sailing the Sognefjord in Norway

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“ We invest in initiatives and partnerships that contribute to the sustainable implementation of our

projects. Our aim is to achieve a significant reduction in emissions. This partnership with Shell is an important

step in this process.Ronald Schinagl, Director Business Unit Netherlands at Van Oord

Van Oord and Shell partnering in biofuel pilot for vessels Van Oord and Shell are partnering in the development of new

and affordable biofuels for the shipping industry. The use of

biofuels allows a significant CO2 reduction on vessels, without

any modifications. A successful biofuel campaign in Germany

demonstrated an affordable 45% CO2 reduction on an existing

vessel without any adjustments to the actual dredging operations.

We will continue to develop new marine biofuel solutions

which do not compete with the feedstock for land-based

solutions and are scaling up the use of biofuel in our fleet.

The first biofuel pilot took place on Van Oord’s trailing suction hopper dredger HAM 316

Sprogø

Horns Rev 2

Deutsche Bucht

Windpark Fryslân

Arkona Becken Südost

Sandbank

Dan Tysk

Arklow BankScroby Sands

North Hoyle

Teesside

Nordergründe

Horns Rev 1

Prinses Amaliawindpark

Belwind

Westermeerwind

Rhyl Flats

Burbo Bank

Burbo Bank Extension

Norther

Gemini

Kriegers FlakWind Farm

Borssele I & II

London Array

Walney Extension

Borssele III & IV

East Anglia

Nysted 2

Luchterduinen

Borssele V Innovation Project

Borkum Riffgrund 2

Borkum West 2

Merkur

Kentish flats

Horns Rev 1

Barrow

Lincs

Humber Gateway

Thanet

Lynn andInner Dowsing

Robin Rigg

Northwind

Amrumbank

Rampion

0-200

T&I

ROLES & RESPONSIBILITIES

PROJECT CAPACITY (MW)

LEGEND

201-400 401+

EPCI

In progress (status 2019)

Developer

BoP

FOUNDATIONS

WIND TURBINE GENERATORS

TOTAL GIGAWATTS11,885

STATISTICS

2,761

1,596

FOUNDATIONS

YEARS OF EXPERIENCE

20

TOTAL LENGTH OF CABLE777 KM

Offshore Windpark Track Record

Greater Changhua*

* Not included in statistics, as not yet installed

TAIWAN

CHINA

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EXPERIENCE

Offshore wind projects related to Enhancing the energy transition

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Timeline

In early 2000s, Van Oord responded to the energy transition by entering the

offshore wind business. Offshore wind in the North Sea slowly got underway and

we learned a lot based on our offshore experience. Due to the Paris Agreement

and national policy responses, offshore wind now shows a huge scale

magnification. But we’re not there yet. Other offshore renewables should be

developed as well and integration with the existing fossil energy system should

be effected to meet the demand for energy during the transition period up to

at least 2050. Innovations must help to further reduce the cost so that prices

become competitive and socially acceptable. We call for a set of integrated

solutions to enhance the energy transition.

Early 2000sVan Oord entering the

offshore wind industry.

2008Prinses Amaliawindpark,

the first large Dutch

offshore wind farm.

December 2015At the Paris Climate

Conference (COP21) in

December 2015, the

participating countries

agreed that global

warming should remain

well below 2 degrees

Celsius.

2016 Completion of offshore

wind park Gemini.

2018 Launch first LNG

powered vessel, the

Werkendam. Launch

of new subsea rock

installation (SRI)

vessel Bravenes.

2019Van Oord launches

S.E.A. Sustainable Earth

Actions programme.

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In the past two decades, Van Oord has devoted itself to developing

and building offshore wind farms, thereby leveraging its offshore

expertise. Van Oord is at the forefront of work that contributes to

global, European and Dutch goals to combat the consequences of

climate change and reduce carbon emissions.

In more than fifteen years, Van Oord has completed several prominent

offshore projects as an EPC contractor, being responsible for the

engineering, procurement and construction. Construction activities

include offshore installation (of foundations for offshore wind

turbine generators (WTGs), substations and shallow water pipes),

subsea rock installation and cable laying. When appropriate,

Van Oord also participates in project development and financing.

Innovation contributes to making offshore energy more competitive

and resolving environmental challenges such as underwater noise

production. Furthermore, Van Oord operates dedicated and

advanced equipment including state-of-the-art vessels. The flexible

fall pipe vessel Bravenes for subsea rock installation and the

offshore installation vessel Aeolus are examples.

Although a strong shift has been made towards wind energy, oil & gas

is still relevant to Van Oord’s business. For the western world, shifting

away from oil and gas might be a relevant topic, but many parts of

the world cannot yet afford it. The contribution of oil and gas to the

socio-economic growth of developing countries cannot be ignored.

In these countries, oil and particularly gas are a welcome substitute

for more polluting fuels such as wood and coal.

Our market & approach “The world’s reliance on fossils is excessive, but that is unlikely to change overnight. To meet the growing demand for energy the world still needs oil & gas.

That’s why Van Oord will continue to install, stabilise and protect oil and gas infrastructure. We do this

while leading the way in the energy transition towards renewable energy by constructing

offshore wind projects. Maurits den Broeder, Managing Director Offshore

Offshore installation vessel Aeolus installing turbines at the Deutsche Bucht offshore wind farm

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Furthermore, the world’s dependence on oil and gas goes beyond the production

of energy. About half of the global oil and gas production goes towards the

petrochemical industry fabricating products such as: furniture, medicine, coffee pots,

toothpaste tubes, alarm clocks, rugs, etc. The world’s dependence on oil and gas

is excessive, but the effect of abruptly stopping could be too immense for society.

That said, we at Van Oord believe the world needs to urgently eliminate the

adverse effect of fossil energy: GHG emissions. As a society, we should therefore

move away from using fossil fuels, but the pace at which we do so is key.

Van Oord will continue to work for the oil and gas industry as well as to invest in

our impact in enhancing the energy transition.

The North Sea

The energy transition has triggered an intensive debate regarding the

spatial use of the North Sea. To solve this issue, we must focus on efficient

and effective use of the space to accommodate the energy transition.

As the North Sea is our “backyard” and has been the source of a large

amount of our business over our 150-year history; it seems apt to start

the debate here about the infrastructure needed to accommodate the

energy transition in the coming decades. In line with our sustainability

strategy and the hearts of our people, we would also like to work in a

business that supports the stakeholders and the environment.

On the one hand, we are running an accelerator programme to translate our

out-of-the-box ideas for sustainable business in the North Sea into reality.

On the other hand, we are participating in the North Sea Energy programme

to ensure that research is supporting the direction of our business. This

approach allows us to lead and be proactive. We can play to our strengths

as an established company that provides a safe pair of hands for the future.

However, this approach doesn’t come without its challenges. We are working

hard to drive the right mindset and use the right tools and skills to translate

these opportunities into sustainable business. In addition, we find that we

cannot take a leading role without the right partners and collaborations.

But…without taking risks we will not achieve the energy transition and

the sustainable horizon for future generations.

Flexible fall pipe vessel Nordnes at SNS pipeline project in Norway

WHAT WE OFFER

Integrated solutions

Van Oord prefers to get involved at an early stage

based on our capabilities in the field of design,

construction, maintenance, finance, environmental

engineering and stakeholder engagement.

We offer offshore wind farms, offshore oil and gas

solutions, eco design, and building with nature

solutions. We acknowledge that our responsibility

also includes continuous investment in state-of-

the-art vessels equipped with the latest

energy-saving and fuel technology.

We ask our business partners to commit

themselves to the highest standards in safety

and sustainability. In return, we offer more

than 150 years of expertise and access to our

global network of partnerships with clients,

subcontractors, research institutes, engineering

firms and NGOs. All this results in integrated

solutions with social, economic and environmental

spin-off.

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Cable laying vessel Nexus at work at Gemini Offshore Wind Park

CASE

Offshore Wind farm Luchterduinen

An example of integrated solutions As the EPC contractor, Van Oord was responsible for the engineering,

procurement, and construction of the foundations, the electrical

infrastructure, including the offshore transformer station, and the

installation of the turbines. Van Oord was the main contractor for

this EPC project, which was carried out for joint venture partners

Eneco and Mitsubishi Corporation.

In November 2018 Van Oord installed, in cooperation with the

North Sea Foundation, the Natuur & Milieu organisation and Eneco,

reef balls and cages containing flat oysters within offshore wind farm.

The ‘Rich North Sea’ project will investigate how nature conservation

and sustainable energy generation can reinforce one another.

This project will provide know-how and contribute to a blueprint for

underwater nature restoration at all offshore wind farms, so that this

can soon become standard when constructing new wind farms.

43 Number of turbines

23 km off the coast of Zandvoort

531,000,000 Annual yield (kWh)

150,000Households

275,000 CO2 reduction per year (tonnes)

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In July 2019, the first results of the monitoring expedition indicated

that the current oyster cage design is not fit for the prevailing

conditions at the offshore wind farm Luchterduinen test site.

Several cages had become partly buried in sand, causing the death

of oysters. Both the surviving and deceased oysters showed signs

of growth, indicating that under more favourable design conditions,

oysters can survive and grow well in offshore wind farms.

In addition, larvae were found in the oysters and in the water,

which shows that the oysters reproduced.

CASE

Offshore Wind farm Luchterduinen

Collaborating with Van Oord has made it possible to fulfil our dream of strengthening

nature within offshore wind farms. Floris van Hest, Managing Director, The North Sea Foundation

“

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Contributes to the following UN SDG’s

SDG 7 Affordable and clean energy Offshore wind farm Luchterduinen supplies sustainable energy.

SDG 8 decent work and economic growth Van Oord’s say YES to safety programme expects everyone

to take responsibility and deal with safety issues proactively.

SDG 9 Industry Innovation and infrastructure Offshore wind farm Luchterduinen was our first scalable

wind farm project that led to cost reduction.

SDG 11 Sustainable cities and communities Offshore wind farm Luchterduinen has a capacity of 129 megawatts

and supplies sustainable energy to 150,000 households.

SDG 13 Climate action This wind farm contributes to the fulfilment of the Dutch

Energy Agreement.

SDG 14 Life below water During construction, we used the FaunaGuard. An acoustic device

that safely and temporarily deters various marine fauna species,

using specialised underwater acoustics. Furthermore, we initiated the

Rich North Sea. A project that investigates how nature conservation

and sustainable energy generation can reinforce one another.

SDG 17 Partnership for the goals On the one hand, Van Oord worked with Eneco and Mitsubishi for

the construction of the wind farm. On the other hand, we worked

with Natuur & Milieu and Stichting de Noordzee in order to preserve

underwater life.

CASE

Gemini Offshore Wind Park

Social, environmental and economic spin-off The technology already exists to build a cleaner energy system

that mitigates the worst impacts of climate change, while generating

enough energy to power economies in years to come. The energy

transition has the potential to bring great benefits from social,

environmental and economic perspectives.

For Gemini Offshore Wind Park, Van Oord was both co-investor and

contractor. This project consisted of the installation of 150 4-megawatt

Siemens wind turbines. These supply a total of 600 megawatt of

renewable energy to 785,000 households. With a value of more than

EUR 1.3 billion, it was one of the largest EPC contracts in Van Oord’s

history. Given its key role in the Gemini project, Van Oord has set out to

understand and measure the value its work on Gemini creates for society.

For this purpose, Van Oord applied KPMG’s True Value methodology.

The results of the analysis are shown on page 19 in figure 2.

Such analyses highlight opportunities for marine contractor such as

Van Oord to substantiate the societal value created by offshore wind

to its stakeholders. Major spin-offs of renewable energy investments

in general include employment and the significant amount spent on

suppliers and equipment purchase. This boosts confidence in renewable

energy and transforming it into a strong and mature market in which

key players such as Van Oord dare to invest. Consequently, energy

transition drives technological as well as economic factors.

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The installation of the 150th and final turbine at the wind park is a

magnificent achievement. We are proud of everyone who contributed to the safe construction of Gemini.

Matthias Haag, CEO Gemini

“

Van Oord’s offshore installation vessel Aeolus constructing Gemini Offshore Wind park

Enhancing energy transitionGemini Offshore Wind Park

The Gemini project creates an actual social value (true value) of

€ 877 million€ 367 million€ 562 million

€ 929 millionTotal economic spin-off

Economic spin-off abroad

Economic spin-off in the Netherlands

1.25 million tonnes less CO2 emissions per year

600 MW energy for

780,000households

Preventing the exhaustion of fossil fuels provides social benefits:

422 million euros

150 turbines

Van Oord contributes to the

Dutch energy agreement by:

437 jobs created within Van Oord

creating employment

innovation

knowledge development

Health and safety incidents, which occurred during the installation, have an estimated cost to society of:

3.6 million euros

Figure 2: Socio-economic spin-off Gemini offshore wind park

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CASE

Gemini Offshore Wind Park

Energy investment

In 2018, according to the International Energy Agency

(IEA, 2019), global energy investment remained relatively

stable, at over USD 1.8 trillion, following three years of decline.

More spending in upstream oil and gas and coal supply was

offset by lower spending on fossil-fuel-based generation and

renewable power. Investment in energy efficiency was relatively

stable. The World Economic Forum (WEF, 2019) argues that

the slower growth in renewable energy investment can be

attributed mainly to falling costs in solar and wind globally,

and to the change in market conditions with reduced subsidies

in many countries. Enhancing the energy transition requires

societies to keep on track with investing in sufficient renewable

power generation and innovation. In the future, we expect that

far more will be invested in renewable energy. We observe

that the financial sector is already anticipating this.Figure 3: Global energy investment in 2018 and change compared to 2017 (Source: IEA, 2019)

0

100

200

300

400

500

600

700

800

900

1000

Power sector Oil & gas supply Energy efficiency Coal supply Renewables fortransport and heat

USD

(201

8) b

illio

n

Networks

Renewablepower

Fossil -fuelpower

Upstream

Downstream midstream &

refining

-1%+1%

Stable

+2%-1%

Buildings

Industry

TransportNuclear

Battery storage

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How a marine contractor deals with energy efficiency

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Enhancing the energy transition is not only a market driver, but affects

also business operations and business models.

For example, approximately 95% of Van Oord’s carbon footprint is linked to

its fleet, consisting of numerous specialized working vessels (hopper dredgers,

offshore installation vessels, etc.). Various technologies are available to reduce

its carbon footprint and thus transform it into a more energy-efficient fleet.

However, many of these technologies are developed for main stream

(long-distance) shipping, and are not applicable to Van Oord’s fleet operating

in a niche market near shore. Therefore, we have to develop our own

solutions and distinguish four options for dealing with energy efficiency.

1 Increased operational efficiency Sailing at economic speed,

also known as slow steaming,

is a common practise to reduce overall

fuel consumption. This principle is used

when sailing from project to project,

but can also be used within a dredging

project or during the construction of

an offshore wind farm.

Van Oord has devoted a lot of effort

over the last decades to developing

inhouse technology on process

control and continuously uses field

data and experience to improve our

knowledge and control principles.

As such, we are able to design tailor-

made dredging equipment with enough

built-in flexibility and process control,

allowing best operational efficiency over

a wide range of soils, water depths

and other project-specific parameters.

Combining operational experience,

in-depth knowledge of equipment

capabilities has led to the inhouse

development of Digital Twin software.

This software allows our inhouse

engineers to generate a number of

project execution plans and prepare

our crew prior to arrival on site with

the best possible solution.

2 Ship designOperating vessels near shore

and in shallow water will

require special focus on

phenomena such as squat and

manoeuvrability, in addition to the

conflict of minimizing resistance and

maximizing load capacity. Therefore,

a great deal of effort is put in CFD

calculations and towing tests during

the design phase. Contrary to most

vessels, the propulsion of a hopper

dredger has to be optimized for sailing

conditions as well as for trailing at

low speeds.

One of the key features of a hopper

dredger is the ability to discharge its

cargo underneath the ship through

so-called bottom doors, primarily

using gravity, and thus energy

efficient. These large openings

require special attention with regard

to the structural integrity of the hull.

Van Oord’s latest ordered LNG trailing suction hopper dredgers

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3 Alternative fuels In order to reduce emissions,

and especially the carbon

footprint, a fuel switch

towards hydrogen-based (synthetic)

fuels such as methanol is inevitable.

LNG will be used as a transition fuel in

the meantime, but global availability

is still a major constraint.

The use of second generation biofuels

(waste oil, etc.) is a short-term option

for existing vessels and a test with

a MGO price wise competitive

“drop-in” fuel, capable of achieving

45% CO2 reduction, was held in 2019.

Furthermore, Van Oord is also actively

participating in a Green Maritime

Methanol initiative and investigating

the possibility of bio LNG refined

from seaweed, a so-called third

generation biofuel.

The transition of marine fuels will take

place over the coming decades and

as of now, there is no “silver bullet”.

Therefore, our new sustainable and

global operating working vessels will

have the ability to handle the best

(locally) available alternatives to

existing hydrocarbon based fuels.

4 Engine technologyThe operational profile of

our working vessels requires

a large and dynamic power

plant, historically a medium-speed

diesel engine. Efficiency boosters,

such as waste heat recovery systems

and battery packs are implemented

in current new buildings and retrofit

initiatives for the existing fleet are

in progress.

Special attention is given to the base

load of vessels, such as HVAC. Use of

frequency-driven cooling water pumps,

ventilation, etc. is an effective manner of

reducing the power demand. The new

LNG-driven vessels will use the latent

heat of LNG for the ship’s air conditioning

systems, thus reducing the electrical

load of cooling compressors.

The shipping industry is catching up

on after treatment of exhaust gases

with regard to the automotive industry

and our current new buildings include

SCR and DPF technology.

An unconventional approach to

reduce the carbon footprint is the

marinization of carbon capture and

storage technology. This mature land-

based technology could in some cases

be a viable road towards achieving

ambitious short-term targets without

dependency on availability of new

fuels and relating machinery.

In conclusion, a significant increase

in energy efficiency and simultaneous

decrease of emissions can be achieved

by combining the four options

mentioned above. Offshore installation vessel Aeolus loading turbines for the Deutsche Bucht offshore wind farm

Van Oord’s first LNG vessel the Werkendam

| 23

Abbreviations

CCS: Carbon Capture and Storage. CCS is the process

of capturing waste carbon dioxide usually from large

point sources, such as a factory or power plant,

transporting it to a storage site, and depositing it

where it cannot enter the atmosphere, normally

an underground geological formation.

CFD: Computational Fluid Dynamics. CFD is an

important tool for obtaining a better understanding

of the flow around ships and offshore structures.

DPF: Diesel Particulate Filter. A DPF is a device

designed to remove diesel particulate matter or

soot from the exhaust gas of a diesel engine.

E-fuels: synthetic fuels generated with renewable

energy. An example of such a synthetic fuel is

hydrogen, which is produced using renewable

electricity and then combined with carbon dioxide

to form a hydrocarbon with zero net greenhouse

gas emissions. This procedure is commonly known

by Power-to-X (PtX), Power-to-Liquids (PtL) and

Power-to-Gas (PtG).

EPC: Engineering, Procurement and Construction.

A prominent form of contracting agreement in

the construction industry. An EPC contractor is

responsible for all the activities from detailed design,

procurement, construction, to commissioning and

handover of the project to the client.

GHG: GreenHouse Gas. GHGs (e.g. carbon dioxide)

cause the greenhouse effect.

HVAC: Heating, Ventilation and Air Conditioning.

HVAC is the technology of indoor and vehicular

environmental comfort. HVAC system design is a

subdiscipline of mechanical engineering, based on

the principles of thermodynamics, fluid mechanics,

and heat transfer.

IMO: International Maritime Organization.

LNG: Liquefied Natural Gas. LNG is a natural gas

(predominantly methane (CH4) with some mixture

of ethane (C2H6) that has been cooled down to

liquid form for ease and safety of non-pressurized

storage or transport.

MGO: Marine Gas Oil. MGO describes marine fuels

that consist exclusively of distillates. Distillates are all

those components of crude oil that evaporate in

fractional distillation and are then condensed from

the gas phase into liquid fractions. MGO usually

consists of a blend of various distillates and is similar

to diesel fuel, but has a higher density.

Unlike Heavy Fuel Oil (HFO), MGO does not have

to be heated during storage.

SCR: Selective Catalytic Reduction. SCR is an

advanced active emissions control technology system

that injects a liquid-reductant agent through a special

catalyst into the exhaust stream of a diesel engine.

The reductant source is usually automotive-grade

urea, otherwise known as Diesel Exhaust Fluid (DEF).

SRI: Subsea rock installation. SRI vessels stabilise

and protect subsea pipelines, cables and other

structures at depths down to 1,500 metres.

The Van Oord Kite Team surfing the Brazilian coastline

| 24

DNV GL (2018). Energy Transition Outlook 2018. A global and regional forecast to 2050. Høvik, Norway: DNV GL AS.

Dutch National Climate Agreement (2019). Retrieved from https://www.klimaatakkoord.nl/

Equinor (2019). Energy Perspectives 2019. Long-term macro and market outlook. Stavanger, Norway: Equinor ASA.

IEA (2017). Digitalization & Energy. International Energy Agency. Retrieved from https://www.iea.org

IEA (2019) World Energy Investment 2019. Retrieved from https://www.iea.org/wei2019/

IMO (2014). Third IMO GHG Study 2014, International Maritime Organization, Retrieved from

http://www.imo.org/en/OurWork/Environment/PollutionPrevention/AirPollution/Pages/Greenhouse-Gas-Studies-2014.aspx

IPCC (2014). AR5 Climate Change 2014: Mitigation of Climate Change. Chapter 7: Energy Systems. Retrieved from

https://www.ipcc.ch/report/ar5/wg3/

IPCC (2018). Special Report: Global Warming of 1.5 ºC. Retrieved from https://www.ipcc.ch/sr15/

PoR (2018). Pathways to decarbonised transport and logistics. Port of Rotterdam. Retrieved from

https://www.portofrotterdam.com/nl/nieuws-en-persberichten/de-rol-van-transport-bij-co2-reductie

The Economist (2019). Climate change is a remorseless threat to the world’s coasts. Retrieved from

https://www.economist.com/briefing/2019/08/17/climate-change-is-a-remorseless-threat-to-the-worlds-coasts?frsc=dg%7Ce

TNO (2018). Offshore Systeemintegratie als Transitieversneller op de Noordzee (Whitepaper). Delft, Netherlands: TNO. (in Dutch)

World Economic Forum (2019), Fostering Effective Energy Transition 2019, http://reports.weforum.org/fostering-effective-energy-transition-2019/?doing_wp_cron=1570458855.2607140541076660156250

References

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The Afsluitdijk: An icon of innovationHondsbossche and Pettemer Sea Defence project in the NetherlandsInnovations at Borssele Wind Farm Site V

Would you like to share your thoughts about our white paper on Enhancing the energy transition?

sea@vanoord.comBattle of the Beach a climate change education and awareness initiative for children

White paper on Accelerating Climate Initiatives Construction of the Belgian offshore wind farm Norther

Woods versus Waves

The Afsluitdijk: Levvel-blocs Saly Coastal protection in Senegal

Flexible fall pipe vessel Stornes sailing the Sognefjord in Norway

Publication DetailsVan Oord Schaardijk 211, Postbus 8574,

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T + 31 88 8260000 E sea@vanoord.com

I www.vanoord.com/sustainability

Text Van Oord

Design Bureau Wijze

Printed by Veenman+, Rotterdam

Translation Livewords, Maastricht/Amsterdam

AvailabilityThis report is also available online,

www.vanoord.com/sustainability

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