UK Content – Opportunities in Offshore O&M, Alun Roberts, BVG Associates

UK Content – Opportunities in Offshore O&M Alun Roberts, BVG Associates

Agenda

1. Costs of offshore O&M 2. Contracting and the supply

chain 3. UK content and opportunities 4. Northern Ireland and the Irish

Sea projects

2 © BVG Associates 2013

BVG Associates

Market analysis & business development • Supply chain development • Economic impact assessment • Support to industrialisation

Technical innovation & engineering analysis • Support to investment in technology • R&D programme management • Design and engineering services

Project implementation • FIT project development (UK only) • SCADA & condition monitoring • O&M technical support

Technical education




The O&M supply chain

Wind farm asset owner

Turbine maintenance

Equipment, tools

Transmission maintenance

Service vessels

Operating locally

Operating anywhere

Jack-up vessels

Specialist services Port Replacement

parts

Wind farm operator

OFTO


Frequency vs specialist - local opportunities


How

freq

uent

Vessel operation

How specialist

Turbine maintenance

Cable repair Onshore

admin services

Where does the money go

• Typical costs = £80-100k/MW/year for a near-shore project


Wind turbine OMS

Balance of plant OMSMarine operations

Environmental surveys

Overheads

Fees

Measuring UK content

• The percentage of the total undiscounted expenditure by the wind farm asset owner on a wind farm that is ultimately spent through contracts awarded to companies operating in the UK

• Excludes the value of contracts to UK companies that is spent on subcontracts to companies not operating in the UK

• Includes the value of contracts to non-UK companies that is spent on subcontracts to companies operating in the UK


Wind farm expenditure

Cost of contracts to UK-based companies

Cost of imported components and

services UK Content

Cost of contracts to overseas companies

Cost of UK exported components or services

(subsequently reimported)

Overseas content

Local and UK content in turbine maintenance


Local49%

Other UK22%

Overseas29%

Turbine maintenance

Turbine manufacturer’s international resource Replacement components

Turbine manufacturer’s national resource Health and safety Equipment

Turbine maintenance supply chain opportunities

• Third party service providers

• Turbine technicians • Logistics, distribution of

spares and consumables • Health and safety training

and equipment • Blade inspection and repair • SCADA and condition

monitoring


Local and UK content in balance of plant maintenance


Substation maintenance Foundation maintenance Cable survey and repair Substation maintenance General imported costs

Local26%

Other UK76%

Overseas12%

Balance of plant supply chain opportunities

• High and medium voltage services

• Foundations – repairs and scour and structural monitoring

• Transition piece cleaning/coatings

• Cable route surveys • Cable re-burial, repair,

protection • Substation maintenance

(onshore and offshore)


Local and UK content in marine operations


Crew transfer vessel manufacture Jack-up manufacture and charter

Local76%

Other UK16%

Overseas23%

Crew transfer vessel operation Local port Fuel Crew transfer vessel manufacture Turbine access system Jack-up charter

Marine operations supply chain opportunities

• Vessel manufacture or conversion

• Vessel (or helicopter) maintenance and operation

• Fuel • Pontoon supply and

maintenance • Access systems • Marine navigation tools


Local and UK content in environmental surveys


Vessels and equipment

Surveys Onshore logistics Surveys (specialist) Local

51%

Other UK55%

Overseas15%

Environmental surveys supply chain opportunities

• Environmental consultancies • Monitoring:

• Sea mammals • Birds • Fishes

• Vessels and equipment


Local and UK content in overheads


Owners HQ Insurance

Local administration and services Owners HQ Insurance Local

36%

Other UK32%

Overseas32%

Overheads supply chain opportunities

• Recruitment • IT • Facility management and

services • General office services –

printing, PR


Local and UK content in fees


Miscellaneous non-UK products and services

Local rent and rates Use of system charges Crown Estate rent

Local12%

Other UK83%

Overseas5%

Local opportunities in the Irish Sea


First Flight

Robin Rigg

Celtic Array

Barrow cluster

Liverpool Bay cluster

Isle of Man?

How local is local?


Distance from port Strategy

< 12nm Quayside onshore logistics base

Offshore logistics using workboats

12-40nm Quayside onshore logistics base

Offshore logistics using workboats with helicopter support

> 40nm Offshore logistics base (fixed or floating

Source: The Crown Estate, Scottish Enterprise: A Guide to UK Offshore Wind Operations and Maintenance

How local is NI?


Kilkeel Belfast Barrow Mostyn Holyhead

First Flight

Barrow cluster

Celtic Array

Liverpool Bay cluster

<12nm

12-40nm

>40nm

Implications for Northern Ireland

• There is long term economic benefit from an offshore wind farm off the NI coast

• Local suppliers may not benefit automatically to a significant degree

• Owners have a greater incentive during O&M to develop a local supply chain than they do during construction

• Most Irish Sea projects can be operated from local ports. The exceptions are the Celtic Array projects

• Northern Ireland companies should look beyond the Irish sea market


Contact [email protected]

www.bvgassociates.co.uk

Thank you

mailto:[email protected]

Date post:	07-May-2015
Category:	Business
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UK Content – Opportunities in Offshore O&M, Alun Roberts, BVG Associates

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