ORBISENERGY: THE HUB FOR OFFSHORE RENEWABLES

JOHNATHAN REYNOLDS

The energy / low carbon sector• Global market for low carbon sectors - £4.3 trillion• UK has the 6th largest market share– £107.3 billion– 52,263 companies active in the sectors– Employing 896,100 people

• Suffolk’s profile:– £1.46 billion turnover per annum– 605 companies active in the sectors– Employing 9,700 people

Policy Context

• European 20/20/20 energy & climate change targets– 20% energy from renewables by 2020– Reduction in carbon emissions of more than 20%

• UK energy policy– delivering secure, affordable, low carbon energy– 15% primary energy from renewables by 2020– Increasing UK content in energy projects, whilst reducing costs

• UK economic policy – low carbon economic growth– Focus on high value growth sectors– localism / local enterprise partnerships

UK Energy Roadmap•The growth potential in this

sector is very substantial

•EU targets – binding and non-negotiable

•Increasing the rate of deployment to realise this potential will require substantial reduction in costs.

•Need to overcome supply chain barriers to lower costs and deploy at scale for both 2020 and beyond.

Suffolk’s Economic Priorities• The region is already a major generator and

supplier of energy• East Anglia is at the centre of the world’s

largest market for offshore wind energy, estimated at over 90GW across Europe, exceeding £250bn.

• The Southern North Sea will be a major European hub for large scale storage of gas and captured carbon (CCS), potentially generating billions for UK plc.

• Nuclear power in the region is worth in excess of £10bn over the coming years

Offshore Gas – Southern North Sea

• UK’s second largest energy manufacturing and service base

• Southern North SeaFirst area in UK for offshore gas

• 150 SNS platforms, 2 interconnectors

• 50+ coming through Bacton, Norfolk

• 40 years innovation and opportunity

• Specialist knowledge

Geosciences | Shallow Water | Satellite O&M | Mature Asset Management

Civil Nuclear Power• Nuclear power generation in the East of

England is not a new concept.

• New nuclear power in the region is worth in excess of £10bn over the coming years

• 2 Decommissioning sites at Sizewell A, Suffolk and Bradwell, Essex worth around £2bn

• Regional strengths in planning, construction, civil engineering and operations/maintenance.

• Transferable engineering skills. At the time Sizewell B was being built it was the largest civil engineering project second only to the channel tunnel.Source: British Energy

Sizewell B Impact:• 1000 regional companies • 5000 staff at peak construction

• 750 full-time staff• £30m p.a. in the community• 67m tCO2e since coming online

Offshore Wind

• Heart of world’s largest offshore wind market!

• Some 90GW+ to be developed, with

investments more than £250bn

• 732 offshore turbines, already generating

2.52GW off region’s coast

• 75 under construction, and 506 approved which

will generate a further 2.2GW

• 45GW+ in planning/approved for development

• 10,000’s turbines to be installed

• UK’s largest economic opportunitiesSource: Renewable UK WED, June 2013

Proximity to market

• East of England - £30bn• UK - £271bn• Europe - £647bn

Size of the opportunity – towards 2020

Source: OrbisEnergy - UK Projects

UK offshore wind £138bn

Size of the Market

Source: 4C Offshore

Supply chain make-up • Diverse Manufacturing base • Fabrication facilities and yards• Engineering

• Marine• Electrical• Mechanical• Civil and construction• Geotechnical• Precision engineering

• Composites• Sub-sea and marine services• Professional services, consultancies

Skills & Training

• Diverse skills base• Transferable skills from:

• Offshore oil & gas• Automotive• Marine• Ex-Military/Forces

• Specialist facilities:• Lowestoft College• West Suffolk College• EPISCentre – industry led skills centre• University Campus Suffolk• University of East Anglia

Sector challenges

• Market uncertainty• Investment and Financial incentives• Cost reduction • Infrastructure• Manufacturing capacity• Supply chain capability• Supplier Pre-Qualification standards• Skills, education and training• Standards; lack of commonality, transferability

OrbisEnergy – What are we?• Innovation & incubation centre

offshore renewable energy• Technology transfer / acceleration • Business and sector development• Anchor tenants include:

SSE | East Anglian Offshore Wind• Links to higher education research• Access to funding and grants• Conference and exhibition centre• Catalyst for growth and regeneration• Hub for Offshore Renewables

OrbisEnergy – Who are we?• Conceived by industry• Developed by public/private

collaboration• Owned by Suffolk County Council• Capital investment from EEDA and EU • Managed by leading enterprise agency

NWES• Specialist industry support from Nautilus

Associates.

Public/Private – Delivery through partnership

OrbisEnergy – What we do?

Tenancy Options

Supply Chain Development

& Business Support

Technology & Innovation

R&D

Conferencing / Meetings

Inward Investment*

Skills & Training*

* delivered in partnership with other bodies

OrbisEnergy - Supply Chain

Our approach to developing the supply chain• Support for businesses that have already secured

opportunities within the sector• Engagement with businesses that are aware of the

sector and whose competencies and capability should allow for their pursuit of supply chain opportunities

• Exploring diversification opportunities for companies unaware of the sector, prioritising gaps in the supply chain

OrbisEnergy – Innovation / R&D• Scoping focussed Technology and Innovation

Network focussed on the Southern North Sea. • Building strong delivery focussed partnership with

the Catapult Centre for Offshore Renewable Energy• Developing a world class partnership consisting of:

• CEFAS• Cranfield University / Centre for Offshore

Technology• University of East Anglia / Adapt Group• University Campus Suffolk• Others as appropriate

• Delivering, as UK partner, the FP7 €3m EU funded ‘ECOWindS’ programme. Leading on offshore wind R&D themes for the next decade.

Conferencing and Events

• Bringing the industry to Lowestoft and to our tenant and business community

OrbisEnergy – International Links

• Building strategic links with key global offshore wind markets

• MOU developed with Massachusetts wider engagement with New York

• EU research programme with Germany, Norway and Denmark

• Relationship building with China and South Korea and France

• Strong links with Holland and Belgium• Exploring links with Spain and Portugal

OrbisEnergy – ECOWindS

• European Clusters for Offshore Wind Servicing (ECOWindS)

• 3 year EU funded joint project between clusters of South Denmark, East of England, North-West Germany and Norway.

• Main objective is to improve the innovation capacity of the European offshore wind servicing sector.

www.ecowinds.eu

Centre for Offshore Renewable Engineering (CORE)• Dedicated areas for focussed

investment• Closest proximity to market

opportunity (UK and EU) • Significant availability of land and

sites.• Enterprise Zones with specific

financial incentives• Easy access to skills and supply

chain expertise from offshore engineering sectors

Liverpool

OrbisEnergy – What’s next?

Currently assessing market demands and needs, however early results suggest:• Graduation units, serviced flexible units, from 1,000 sq ft• Larger units, workshop/storage 5-15,000 sq ft • Additional office space, flexible units as per existing

OrbisEnergy space• Office/clean workshop/lab, flexible units for R&D

prototyping activities • Bespoke R&D facilities • Training facilities/infrastructure

Questions?

Contact:Johnathan ReynoldsBusiness Development

T: +44 (0) 1502 509266 / +44 (0) 7787 518643E: johnathan.reynolds@nwes.org.uk W: www.orbisenergy.co.uk