David Arnold

Strategy Director

The ORE Catapult and Future Opportunities

27th November 2013

Catapults:

A new force for innovation & growth

• Being established and overseen

by the Technology Strategy Board

• Part of a world-leading network of

technology and innovation centres

• Bridge the gap between business,

academia, research and

government.

• Long-term investment to transform

the UK’s ability to create new

products and services

• Open up global opportunities for

the UK and generate sustained

economic growth for the future

9 Catapults

£1bn private and

public sector

investment

7

Catapults up

and running in

2013

Offshore Renewable Energy

High Value Manufacturing

Connected Digital Economy

Satellite Applications

Transport Systems

Future Cities

Cell Therapy

Energy Systems

Medical diagnosis for

stratification

2

UK’s economic opportunity

Renewables

Installed

Capacity

UK Economic Value

Vision:

Maximum Capacity

Maximum economic value

Risk of

underachievement

3

Offshore Renewable Energy Catapult

We will:

• Provide leadership to transform the Offshore Renewable Energy industry’s approach to innovation

• Integrate the key players across industry, academia and the public sector

• Accelerate technology readiness and procurement

• Ensure the UK maximises the benefits of its economic opportunity

• Return Government investment many times over

A world leading centre of excellence with deep technical knowledge

4

Value Opportunities Ready to be Captured

Rapid capacity growth expected • 18,000 MW by 2020 and more beyond

£50 billion programme UK in pole position of technology development and deployment Replicating UK oil & gas historic growth of capacity & skills Opportunities in

• turbine components, foundations, electricals, installation, testing, servicing…..

• Wave & tidal IP development and manufacturing……

Significant first mover innovation value opportunities

40-60% of investment value

is non turbine related

5

Challenges are our Opportunities

Offshore Renewable Energy has cost reduction challenges e.g. 30-

40% in offshore wind

ORE Catapult presents opportunities by

• Working with developers, manufacturers and test agencies to enable and prove larger

turbines (lower p/kWh) and their deployment

• Providing new data analysis services to improve project design and installation

efficiencies

• Integrating developers with supply chain to standardise projects, thus enabling new

entrants and allowing innovation to flow

• Continually acting to derisk new technologies, leading to cheaper finance opportunities

• Enabling greater knowledge / lessons learned sharing, with reach into other sectors

e.g. aerospace, oil & gas and the wider Catapult portfolio

An informed and interconnected ORE Catapult

can resolve many sector challenges

6

Offshore Renewable Energy Catapult

Vision

“The ORE Catapult will be a leading international institution recognised for the identification, development and rapid commercialisation of innovative technology solutions, maintaining the UK’s position at the forefront of a vibrant and growing offshore renewable energy sector”

Mission

“In 5 years we will be the recognised “go to” institution for the delivery of interconnected technology innovation services. We will provide market access for new technologies while driving greater efficiency and will draw upon the strengths of the UK’s innovation services to create sustainable offshore wind and wave and tidal industries.”

7

ORE Catapult Board 8

Prof. Sir Jim McDonald

Non Executive Director

Colin Hood

Chairman

Andrew

Jamieson

CEO

Baroness Helen Liddell

Non Executive Director

Alan Moore OBE

Non Executive

Director

Rob Saunders

Non Executive Director

Miriam

Greenwood OBE

Non Executive

Director

Catapult Management Team 9

CEO

Andrew Jamieson

Innovation & Technical

Director

TBC

Innovation Programmes

Director

Chris Hill

Strategic Development

Director

Steve Wyatt

Head of Communications

Charles Thompson

Business Services Director

David Currie

Growing to meet ambitious programme

41 engineering and business support heads by March 2014

120-150 by 2016

The Catapult’s interconnections simplify the

innovation landscape

Catapult

NAREC Carbon Trust

ETI

EMEC Wavehub

Hunterston

Testing

Methil

Testing Deep Sea

Testing EOWDC

Utilities / Supply Chain / SMEs

Academia

BIS

DECC

Scot

Gov

EU

etc

Funders

Crown

Estate

Consultants

TSB

Fraunhofers

10

Extending the Technology Reach

Science (understanding the physics)

Technology

(development and furthering of new ideas)

Engineering (test and manufacture)

Current Innovation &

Testing in UK

Catapult expertise

extends UK’s

innovation deeper

into early stage

technology and

research

11

Extending the Technology Reach

Partnerships and inputs underway

12

Cranfield Imperial

Queens Sheffield

Loughborough

Strathclyde Oxford

Exeter

Swansea

Edinburgh Research Advisory

Group Established

Chair Edinburgh University

Industry Advisory

Group

Chair SSE

Collaborative

Working Group

and other linkages

e.g. to SMEs

Utilities

OEMs

Supply Chain

Marine OEMs

Progress Key themes – Technology Advancement & Collaboration

Standardisation

• Process (BSI)

• Good Practice

• Technology leads from Pilot

Cable Reliability

• Condition Monitoring

• HVDC

• Self repair

• Leads form Pilot

Measurement & Analysis

• Lidar:

• Fixed

• Floating

• Certification

Progress Key themes – Technology Advancement & Collaboration

SMEs

• EIC

• RETA

• Regional engagement

Marine Farms Accelerator

• Steering group

• Industry Partners

• Arrays

• Collaboration

Reliability

• SPARTA

• Operational certification

Testing

• Identifying UK Capability

• Use of facilities

Marine Farm Accelrator 15

Wave & Tidal Innovation Current Status

High UK prospects of IP and manufacturing

Success of world-leading test facility at EMEC and opportunities for Wavehub

Single unit trials are promising

Tidal technologies relatively advanced but need small array deployment for commercial proving

Wave power has leaders but sector generally less well developed

Both sectors have increasing interest from major industrials

Tremendous scope to provide leadership and to resolve common issues, share learning and enable deployment at scale

16

Wave & Tidal Innovation Opportunities

17

Scale Testing Full Scale Testing Demonstration Array Commercial Project

Single Device

(kW scale)

Single device

(50kW to 2MW)

3 to 10 devices

(500kW to 10MW)

10 to 200 devices

(10MW to 400MW)

ORE Catapult

Opportunities

Yield Analysis

Site Characterisation

Installation Methods

Substructures

Moorings

Standards

O&M

Electrical Systems

Insurance

Cable Protection

Manufacturing

Reliability

Condition Monitoring

Lifetime Analysis

Materials

Performance

Sensors

Modelling

Industry Collaboration

Research Collaboration

Marine Farm Accelerator

The Marine Farm Accelerator is the first ORE Catapult project

in the marine sector. Other projects will be developed to cover

other areas of technology innovation and cost reduction.

Project

Development

Stages

Marine Farm Accelerator Technology for First Wave and Tidal Arrays

ORE Catapult programme delivered by the Carbon Trust

Modelled on the successful Offshore Wind Accelerator (OWA)

Steering Group of project developers (SPR, SSE, Vattenfall, Meygen, DP Energy)

Liaison Group of technology developers

Phase 1 has identified six work streams:

• O&M

• Yield Optimisation

• Site Characterisation

• Electrical Systems

• Installation Methods

• Insurance

Phase 1 will drive scope for R&D projects and be completed by end 2013

Phase 2 will implement the identified R&D projects

18

Marine Farm Accelerator Other Marine Project Development

Supporting collaboration between test sites and the resulting knowledge

transfer with industry.

Helping industry to respond to funding calls – identifying potential

partnerships between industry and academia.

Maximising the impact of ongoing funding programmes and ensuring that

industry is able to benefit.

Working with other Catapults to identify new approaches and innovation

that could be applied in the marine sector. e.g. satellite monitoring of

sites, improved sensors for site characterisation, component testing and

advanced manufacturing techniques

19

Project Sparta

Reliability Improvement thro knowledge exchange

20

Project Objectives

Improve safety

• by reducing major component failures and the frequency of offshore interventions

• by providing verified data for risk analysis

Improve performance

• by using failure data to benchmark performance and drive reliability improvements

Joint industry commitment to continuous improvement

• by enhancing OEM and supply chain engagement

Improve maintenance effectiveness

• by using field data to optimise maintenance strategies and drive operational cost reduction

Enhance industry knowledge

• by providing visibility of aggregated performance data

Equipment Failures – Cost to the Industry

The total lost revenue due to equipment failures to the UK offshore wind industry in 2012 is estimated to be around £150 million*

If the UK meets the 2020 target of 18GW installed capacity without reducing these, it could cost the industry £860 million per year in 2020

* Based on mean failure data (Source: WEP) with assumed 95% availability from experience

Mean cost of failures

£48k per MW installed

Typical Costs for Offshore Wind Farm

Total OPEX costs

£26.8 million

Lost revenue £6.5 million

Notes

Generic offshore wind farm comprising 83 x 3.6MW

geared wind turbines

Located 15 km from shore

Service vessels deployed from shore

Model assumes capacity factor 36% and kWh price of

€0.093

Corrective maintenance cost breakdown includes

associated revenue losses

Total annual

operational costs

~ £33 million

Examples of Improvement Areas

Maintenance Planning

On average, 29% of

maintenance expenditure is

unplanned corrective

maintenance

In some cases, this was as high

as 60%

Cable Repairs

Cable repairs account for up to

80% of offshore issues

Costs vary based on a wide range

of factors, but can be significant

Export cable repair costs range

from £2 million to £5.6 million

Click for

Initial Solution Design: Preserving Confidentiality

25

An OO free to connect to

Data Centre with variety of

communication providers

with a variety of options.

Data Aggregation/transformation Process

1. Data uploaded into Database in CSV format

2. Data transformed and held in data warehouse

3. Transformed data accessed by tools

4. Results sets returned – for us in performance league

table and/or original data sources (Business KPIs)

5. Results sets accessed via security permissions

5

1

2

3

4

5

Initial Design: Each Owner Operator can view their KPIs over time and

benchmark against sector high, low and average values

26

An OO free to connect to

Data Centre with variety of

communication providers

with a variety of options.

Data Aggregation/transformation Process

1. Data uploaded into Database in CSV format

2. Data transformed and held in data warehouse

3. Transformed data accessed by tools

4. Results sets returned – for us in performance league

table and/or original data sources (Business KPIs)

5. Results sets accessed via security permissions

5

1

2

3

4

5

Skills Challenge 27

Opportunity

Renewable Energy Sector (RUK - 2013)

2013 18,500FTE Direct

16,000FTE Indirect

2023 55,000FTE Direct

50,00FTE Indirect

Potential 3 fold increase in jobs will be lost unless

Costs to the sector are managed

A collaborative approach to developing the workforce is

adopted by Government, Industrial sector and academia

28

All need to be considered

• Visibility of opportunity

• Attractiveness to potential employees of opportunity

• Support from government to deliver the opportunity

• Skills required clearly identified, including evolution

• UK ability to deliver the skills required

• Balancing UK need to develop skills with existing EU capability

• Drawing down on existing skills from “contracting” industries to cross support offshore renewable energy

• Standards and consistency

• Quality and visibility of education and enduring capability

29

What we see as the skills needed across the

Offshore Wind value chain

• Professional

• Manufacturing and assembly

• Operational

• Do we fully understand where the bottlenecks are

today

• Where can evolving skills be utilised across different

areas of the supply chain

30

Opportunity

• Re training

• Cross training/cross sector

• Contracting strategies for organisations, sharing resources across contract and technical boundaries

• Low volume/high margin v low margin/high volume • Same resource used in more effective systems

• Training standards – Common approach • Agree industry requirements, JIP

• Common programmes, structured for the long term

• Identification of existing facilities, gaps in requirements or bottlenecks

• Health and Safety standards, minimums

• Need for retraining

• Sector specific

• Employer specific

• Equipment specific

• Potential for adjustment to common standards

31

www.ore.catapult.org.uk