A Study of the Supply Chain Requirements and Irish Company Capability in the Offshore Wind, Wave and Tidal Energy Sector
April 2012
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A Study of the Supply Chain Requirements and Irish Company Capability in the Offshore Wind, Wave and Tidal Energy Sector
Report prepared by Nick O’Neill, SLR Consulting Brian O’Mahony, Sustainable Energy Authority of Ireland Brendan Dollard, Enterprise Ireland Karen Conroy, Enterprise Ireland Sarah O’Callaghan, Enterprise Ireland
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About us SLR Consulting is a leading environmental consultant with a network of 19 offices across Ireland and the UK. The company was established in 1994 and has gained a reputation for assisting both private and public sector Clients to achieve successful project implementation by providing objective and robust environmental and engineering advice and assessment. SLR’s success and growth to date is based upon providing Client-focused advice that is technically sound and makes business sense. It is also because SLR focuses on building mutually beneficial relationships with other companies and Clients. Fundamental to SLR’s established track record as a specialist environmental consultant is the fact that senior and experienced personnel are actively involved in undertaking, managing and delivering projects. We believe that nominated Project Directors and Project Managers have a key role in actively directing assessments and working closely with the Client Manager to deliver a satisfactory product in a timely and cost effective manner. One of SLR’s strengths is its ability to draw-on and deliver the full spectrum of environmental services from in-house staff. The company employs specialists across almost 30 separate technical disciplines, including many of direct and/or indirect relevance to this appointment (including geotechnical engineering, civil engineering, geology, hydrology and hydrogeology). Within SLR, technical discipline teams routinely work together on multidisciplinary projects and senior project managers have a high level of awareness as to the significance of disparate planning, design and construction issues to each technical discipline. SLR Consulting has over 25 geoscience professionals based in Dublin and they work in a wide range of business areas including: •
Minerals and Mining;
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Energy;
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Planning Development and Infrastructure;
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Waste.
The Sustainable Energy Authority of Ireland (SEAI) was established as Ireland’s national energy authority under the Sustainable Energy Act 2002. SEAI’s mission is to play a leading role in the transformation of Ireland to a society based on sustainable energy structures, technologies and practices. To fulfil this mission, SEAI aims to provide well-timed and informed advice to government and deliver a range of programmes efficiently and effectively, while engaging and motivating a wide range of stakeholders and showing continuing flexibility and innovation in all activities. SEAI’s actions will help advance Ireland to the vanguard of the global clean technology movement, so that Ireland is recognised as a pioneer in the move to decarbonised energy systems. SEAI’s key strategic objectives are: •
Energy efficiency first – implementing strong energy efficiency actions that radically reduce energy intensity and usage
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Low-carbon energy sources – accelerating the development and adoption of technologies to exploit renewable energy sources
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Innovation and integration – supporting evidence-based responses that engage all actors, supporting innovation and enterprise for our low-carbon future
The Sustainable Energy Authority of Ireland is part financed by Ireland’s EU Structural Funds Programme, co-funded by the Irish Government and the European Union. Following the announcement in January 2008, by the Minister for Communications, Energy and Natural Resources, of a package of measures to stimulate and accelerate the development of Ocean Energy in Ireland, the Ocean Energy Development Unit (OEDU) was established, as a collaborative initiative of SEAI, the Marine Institute and Department of Communications, Energy and Natural 3
Resources (DCENR), to co-ordinate and manage the implementation of the Ocean Energy Strategy. The OEDU is located in SEAI. Enterprise Ireland (EI) is the primary Irish Government agency charged with developing and promoting Irish enterprise. The mission of EI is to accelerate the development of world-class Irish companies to achieve strong positions in global markets, resulting in increased national and regional prosperity. EI’s strategy to support and drive Irish exporting companies is based on: •
Helping companies to win export sales
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Building competitiveness
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Fostering entrepreneurship
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Driving innovation and industry-led R&D
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Developing management capability
The agency also has a major role in delivering Ireland’s Strategy for Science Technology and Innovation, including support for research collaboration and commercialisation – key components of promoting a successful, smart economy. This strategy will continue to underpin and develop a strong, sustainable and world-class indigenous business sector. In 2010 Ireland’s indigenous CleanTech sector employed close to 12,000 people and had exports of €370m. EI works with over 400 CleanTech clients across various industry sectors including engineering, construction, electronics, Information and Communication Technology (ICT) and services. Its primary focus is on growing exports and employment in the key sub-sectors of renewable energy, energy efficiency, water, waste-to-energy and CleanTech services (see www.enterpriseireland.com).
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Contents 1
Introduction .................................................................................................... 11
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The Offshore WW&T Energy Supply Chain ....................................................... 13
3
4
5
6
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Irish Companies’ Capability to Supply Products and Services ............................ 15
3.1 3.2 3.3 3.4
Design and Consenting ..................................................................................................................................... 15 Manufacturing ....................................................................................................................................................... 16 Installation and Commissioning..................................................................................................................... 21 Operations, Maintenance and Supporting Services ............................................................................... 23
Industry Priorities and Challenges .................................................................... 25
4.1 4.2 4.3 4.4 4.5 4.6
Cost reduction in offshore wind ..................................................................................................................... 25 Supply-chain constraints ................................................................................................................................... 25 Deployment challenges..................................................................................................................................... 26 Procurement – pre-qualification .................................................................................................................... 26 Move to local and regional supply chains .................................................................................................. 26 Flexible and adaptive approach ..................................................................................................................... 26
Actions to Maximise the Involvement of Irish Companies................................. 27
5.1 5.2 5.3 5.4 5.5 5.6 5.7
Networking – developing and facilitating clusters and joint ventures ........................................... 27 Offshore wind test site ....................................................................................................................................... 27 Pre-qualification of tenders .............................................................................................................................. 28 Wave and tidal – investment in R&D ............................................................................................................ 29 Bringing ICT to wind, wave and tidal ............................................................................................................ 30 Development of an online Offshore WW&T Energy Directory ........................................................... 30 Marketing of the Irish CleanTech sector internationally ....................................................................... 30
Conclusions ..................................................................................................... 31
6.1 6.2 6.3
General ..................................................................................................................................................................... 31 Offshore wind supply chain ............................................................................................................................. 31 Wave and tidal energy supply chain............................................................................................................. 32
Appendix: Research and Demonstration Infrastructure in Ireland..................... 33
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List of Tables Table 1: Typical Project Developers and EPIC Companies .................................................................................. 14 Table 2: Design and Consenting ................................................................................................................................... 15 Table 3A: Wind Turbine Manufacture ......................................................................................................................... 17 Table 3B: Wind Turbine Manufacture.......................................................................................................................... 17 Table 3C: Wind Turbine Manufacture ......................................................................................................................... 17 Table 4A: Wave Energy Device Manufacture ........................................................................................................... 18 Table 4B: Wave Energy Device Manufacture ............................................................................................................ 19 Table 5A: Tidal Energy Device Manufacture ............................................................................................................. 20 Table 5B: Tidal Energy Device Manufacture ............................................................................................................. 20 Table 6: Associated Equipment/Plant ......................................................................................................................... 21 Table 7A: Installation and Commissioning ............................................................................................................... 22 Table 7B: Installation and Commissioning ................................................................................................................ 22 Table 8A: Operations, Maintenance and Supporting Services .......................................................................... 24 Table 8B: Operations, Maintenance and Supporting Services .......................................................................... 24 Table 9: Potential Cluster Areas for Companies ...................................................................................................... 27 Table 10: Supplier Information Required by FPAL ................................................................................................. 28 Table 11: Irish Companies’ Capability ......................................................................................................................... 31
List of Figures Figure 1: Tiered layout of supply chain ...................................................................................................................... 13 Figure 2: Development Protocol for Ocean Energy ............................................................................................... 29 Figure 3: Government Support for Industry and R&D .......................................................................................... 30 Figure 4: SmartBay .............................................................................................................................................................. 34
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Executive Summary The Sustainable Energy Authority of Ireland (SEAI) and Enterprise Ireland (EI) appointed SLR Consulting to undertake an assessment of the offshore wind, wave and tidal (WW&T) energy supply chain in Ireland. This report provides an assessment of the sector and Ireland’s current capability to supply it with products and services. It also identifies gaps in the supply chain and highlights niche areas of opportunity particularly suited to Irish companies. In addition, a directory of Irish companies that have current capability to supply the sector and companies with the potential to supply is being produced. 1
The offshore WW&T energy sector Currently the UK is the global leader in installed offshore wind capacity. It has over 1.5 gigawatts (GW) operating around the coast. This is expected to rise to 3GW by the end of 2012. 2 In Europe in 2010, 308 new offshore wind turbines, mostly in UK waters, worth some €2.6bn, were fully grid-connected. 3 This offers immediate opportunities to Irish companies in a geographically and culturally close market. If Irish companies gain experience in the UK, this can be transferred to other markets that are at earlier stages of development. Tidal and wave device technology is not as advanced as offshore wind. The UK and Ireland have seen significant R&D activity in these areas, and both Ireland and Scotland now have tidal devices generating renewable electricity. In wave energy, a number of ¼-scale devices have been tested off Ireland, and tests of full-scale prototype wave energy devices have been undertaken in the UK. However, this technology has yet to reach commercial maturity. Given this stage of development, the sector does not currently offer the same immediate commercial opportunities as offshore wind. It is important that Ireland develops a strong supply-chain to the existing Irish and UK device developers in order to be in a position to supply to, potentially, a much larger sector in the future. Working in the same environment, the wave and tidal energy sector and the offshore wind sector face common challenges and, in some areas, have similar supply-chain needs. Experience gained and challenges overcome by Irish companies in the supply of either sector will be transferable between sectors and to other markets, and will help to realise the potential of Ireland’s domestic offshore renewable energy resource.
The supply chain The offshore and marine renewables supply chain is comprised of four main tiers. The Top Tier or Tier 1 consists of the owner/developer of the offshore wind development. These Tier 1 companies usually partner with a main contractor (Tier 2) to provide engineering, procurement and installation services. Known as EPIC contractors, these in turn partner with a range of sub-suppliers (Tier 3 and 4) to meet their procurement needs. Most Irish companies will be seeking to become suppliers to the EPIC contractors or indeed their Tier 3 or Tier 4 suppliers.
The capability of Irish companies Focusing on the present and future opportunities in offshore WW&T energy, Ireland’s considerable experience in the construction, engineering, electronics, environmental services and ICT means that Irish companies are capable of providing specific solutions to the challenges facing the industry. Our analysis shows that there are a number of supply-chain requirements for which Ireland has strong and immediate capabilities, such as:
Irish Offshore Wind, Wave and Tidal Energy - Products & Services Directory, Enterprise Ireland 2012. Charles Hendry speech to the National Offshore Wind Association of Ireland Annual Conference, November 2011. 3 The European offshore wind industry key trends and statistics 2010, BWEA 2011. 1 2
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Project design: site investigations, planning applications, resource assessment (wind/wave/tidal), plant and farm design, electrical and grid connection, communications and ICT, design of landside facilities, detailed design, device and array design, research and design, communications and stakeholder management, cable route design
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R & D: modelling, CFD, FEA, wave tank testing, simulation
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Environmental impact assessment: landscape and land use, cultural heritage, ecology, ornithology, marine ecology, benthic, marine mammals, sub-tidal habitats, water quality, socio-economic, transport, air quality, terrestrial noise, offshore physical environment, marine cultural heritage, commercial fisheries, including aquaculture, navigation and marine noise
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Survey and support vessel operations: deployment of measurement sensors, bathymetry, geotechnical investigation, vessel support for environment activities, cable route survey, logistics support
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Ancillary equipment: general steelwork, walkways, ladders, tanks, vessels, pipework
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Electrical/Controls: motors, actuators, sensors, SCADA, switchgear and transformers
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Mooring systems: design of cables, chain, buoys, anchors
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Onshore Convertors/Substations: construction of onshore substation, civil engineering and component manufacture/supply
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Training in offshore technology: safety systems and survival techniques
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ICT solutions: software for real-time turbine monitoring and maintenance, sensor networks, wireless and fibre communications platforms, data management and internetbased visualisation geographic information systems (GIS), advanced simulation, modelling and forecast technologies
Offshore wind-supply chain opportunities where Irish companies have some limited capability or transferable skills include: •
Concrete Foundations
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Wind Turbine and Foundations Installation (service and support vessels)
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Wind Turbine Towers (steel, concrete)
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Wave Energy Hull & PTO systems
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Installation Project Management
A number of critical supply-chain gaps and bottlenecks are identified in areas where Irish companies have very limited capability. These include: •
Wind Turbine Manufacture: gearboxes, bearings and casings and forgings elements
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Subsea Cables and Cable Installation
Recognising the challenges Winning international business in the WW&T area will be a challenge for Irish companies for a number of reasons:
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The UK is now in Round 3 of its offshore wind development programme. Many of the larger contractors have already secured their supply chain and a number of partnerships and joint ventures are already in place.
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An offshore wind test-bed site to attract foreign and indigenous companies to test new offshore wind technologies is not yet available in Ireland. Several European economies with 8
strong wind resources are developing such test-bed sites and using them to attract international project developers or suppliers to locate in their jurisdictions. Irish companies cannot currently validate their products or services in the domestic market given the limited scale of development of offshore wind in Ireland to date.
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Given the high costs involved in offshore WW&T, managing supply-chain risk is a key consideration in the selection of suppliers by developers and contractors. The sector generally uses either the First Point Assessment Limited (FPAL) or the Utilities Vendor Database accreditation (UVDB) pre-qualification systems to shortlist suppliers.
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Wave and tidal devices are not yet fully commercial; the transition from the R&D phase to commercialised products and services presents both a challenge and an opportunity.
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Wind, wave and tidal offers significant opportunities for Ireland’s strong ICT sector in areas such as wireless communication, remote monitoring and control and environmental sensors. To date these opportunities have received limited focus from the sectors in the absence of immediate local commercial opportunities.
Meeting the challenges •
To win business, it is essential that Irish companies immediately begin to forge international partnerships and joint ventures with companies already engaged in the UK offshore wind supply chain. Furthermore, there is considerable opportunity for companies that can provide real cost savings and innovative solutions to contractors.
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An offshore wind test-bed site could enable Ireland to attract international offshore wind developers, which could create a facility where domestic companies can innovate and develop new solutions.
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It is important that Irish companies wishing to compete in this sector achieve the First Point Assessment Limited (FPAL) or Utilities Vendor Database (UVDB) accreditation.
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It is essential that Ireland’s support for wave and tidal research and development be maintained. There is now potential to create a networked Irish supply chain around wave and tidal devices which will lead to future opportunities for Irish companies, in areas such as precision engineering, mechanical and electrical engineering, wireless communications, control systems and environmental sensors, to supply to international ocean energy projects.
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Excellent work is already underway in bringing ICT to the wave and tidal sectors through initiatives such as the Marine Institute’s SmartBay cluster and SEAI supported test facilities in Galway, Mayo and Cork. However, there is scope to bring this opportunity to a wider software and ICT audience to assess the potential for technology transfer.
Actions to meet the challenges Enterprise Ireland (EI): At a sectoral level, EI has undertaken a number of information seminars and events for client companies seeking to understand the structure and workings of the offshore wind and marine renewables supply chain. These workshops are focused on practical steps to access the markets and are supported through EI overseas office advisors. EI’s client companies are supported to attend key industry events and trade fairs. On an individual level, companies are offered a range of practical and financial supports to help them access new market opportunities. In 2012, EI aims to develop complementary cluster(s) of Irish companies in the offshore wind supply chain and work intensively with these companies to ensure they are marketready. A promotional programme, including inward buyer visits, study visits and trade missions, will be developed to meet company needs. In addition, in 2012 EI plans to launch an ‘Irish Offshore Wind, Wave and Tidal Energy - Products and Services Directory’ that can be used as marketing collateral by 9
EI, and other state agencies. It will provide details of Irish companies with the capability to supply the WW&T sector. Sustainable Energy Authority of Ireland (SEAI): Ireland’s offshore wind resource potential is vast, given Ireland’s extensive area of offshore territory in the Atlantic and the Irish Sea. Marine energy has the potential to generate enough electricity to exceed domestic demand by 2030. A comparison of electricity demand and marine energy generation potential shows the opportunity for Ireland’s energy infrastructure to become export-driven in the 2020–2030 timeframe. SEAI has commissioned a number of reports and analyses in this area; these show that the demand levels for major equipment and services for WW&T in Ireland, with the expected development of offshore wind in UK waters adjacent to the Irish Exclusive Economic Zone, will create an expanded potential market for Irish equipment and services 4 SEAI is supporting the development of world-class research and test facilities such as the Galway Bay ¼ Scale Wave Energy Test Site and SmartBay Ireland (the national facility for marine ICT, in Galway Bay), the Atlantic Marine Energy Test Site off Belmullet, Co Mayo, and the upgraded wave tank facilities of the HMRC that will be housed in the IMERC initiative being funded through PRTLI. SEAI has recognised the importance of collaboration with significant industry entities in the supply chain. The development process for the national wave test site project (AMETS) has, from an early stage, involved collaborations with Tier 1 entities such as ESBI and Vattenfall. This is ensuring that the project will meet the needs of industry and maximise the return for Ireland from the project. Ireland’s centre of excellence in ocean energy R&D, the HMRC in Cork, has an exceptional record in participation in and leadership of EU Framework projects and has international profile. SEAI has supported the enhancement of this facility to meet programme future needs from industry and its move to IMERC at Ringaskiddy Co. Cork. IMERC aims to leverage diverse research and industry expertise through the development of an innovation cluster. Three public bodies University College Cork, the Cork Institute of Technology, and the Irish Naval Service have embarked on an alliance, which forms the core of IMERC, are working to provide researchers, technology developers, companies (especially SMEs) and investors with the critical tools to build value creating relationships, to make alliances and supporting infrastructure more accessible and effective in the maritime and energy sectors IDA: One of the quickest ways to involve Irish companies in the offshore wind sector would be through the supply of components and services to a turbine manufacturer based in Ireland. Large turbine manufacturers have set up many production plants around the globe – usually in countries that are developing a large number of offshore wind farms. If one such company could be attracted to Ireland it would be a significant boost to the supply chain opportunity. As one of its target CleanTech areas, the IDA considers offshore wind-turbine manufacturers as an attractive candidate for foreign direct investment. If successful, this would be an immediate route to market for Irish suppliers of products and services As outlined above, a number of agencies are engaged in the development of the offshore WW&T sector. This work should be coordinated to help deliver the significant potential this sector offers Ireland. International awareness of Ireland’s capability would significantly benefit the export opportunity for Irish companies.
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‘Industrial Development Potential of Offshore Wind in Ireland’, Garrad Hassan 2010 10
1 Introduction This study was commissioned by SEAI and Enterprise Ireland to: •
identify and understand the supply-chain requirements of the offshore wind, wave and tidal (WW&T) energy industry
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understand the current capability of Irish companies to supply products and services to the offshore WW&T energy supply chain
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inform the development of appropriate strategies to assist Irish companies to successfully access opportunities
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make recommendations on structural issues facing the sector in Ireland
The study looks at the current opportunities provided by the roll-out of offshore wind and the future development of wave and tidal projects. The demand for such renewable energy is driven by EU and national climate and energy targets. The 20-20-20 targets provide for a 20% reduction in EU greenhouse-gas (GHG) emissions, a 20% increase in EU energy efficiency, and 20% of EU energy consumption to be from renewable sources, all by 2020. Each EU member state has been set an individual target for reducing energy consumption (in the form of heat, transport and electricity). These targets have contributed to rapid growth in offshore wind as EU economies need to decrease their reliance on fossil fuels, reduce GHG emissions and meet their carbon reduction commitments. The broad UK carbon commitment target is to “ensure that 15% of our energy demand is met from renewable sources by 2020 in the most cost-effective way”. 5 Devolved administrations have set ambitious targets: the Scottish government aims to deliver 100% renewable electricity by 2020 and the Northern Ireland Executive is targeting 40% of electricity from renewables by 2020. Offshore wind in the UK will be a very significant contributor to meeting these targets. At present the UK is the world leader in installed offshore wind and marine renewables. To date, 15 offshore wind projects are fully operational across the UK, with an installed capacity of 1.5 GW. A further eight projects are under construction, with a combined capacity of 2.7 GW. With the completion of Round 2 and the commencement of Round 3 construction, immediate opportunities exist within the offshore wind sector in the UK. The UK Department of Energy and Climate Change (DECC) Renewables Roadmap commits to provide up to £20m over the next four years to support innovation in wave and tidal devices. It has also committed that by early 2012 it will commission marine energy testing facilities at the National Renewable Energy Centre (NaREC), in Northumberland, and will put in place a strategy to help develop Marine Energy Parks in order to stimulate the supply chain. Under the Renewable Energy Directive 2009/28/EC, Ireland is legally bound to achieving 16% of all energy (transport, electricity, heat) consumed in 2020 from renewable sources, with a minimum subtarget of 10% in the transport sector. As set out in the National Renewable Energy Action Plan (NREAP), the target will be achieved from 40% in the electricity sector (RES-E), 10% in the transport sector and 12% in the heat sector, which amounts to 16% overall. There are two electricity scenarios to 2020 included in the NREAP. The first modelled scenario sets out the trajectory for Ireland achieving its target domestically, while the other is a non-modelled renewable export scenario. This illustrates Ireland’s potential to become an exporter of RES-E to other EU member states between now and 2020, were the appropriate conditions (economic, technical and environmental) to develop to allow this to happen and subject to a comprehensive cost-benefit analysis. The Renewable Energy Directive provides for the use of co-operation mechanisms under which the renewable value of energy can be traded. The use of these mechanisms for renewable trade is currently the subject of a cost-benefit analysis commissioned by SEAI together with the Department of Communications, Energy and Natural Resources (DCENR), the Commission for Energy Regulation 5
UK Crown Estate (www.thecrownestate.co.uk/), 2011. 11
(CER) and EirGrid. At the British Irish Council summit in June 2011, the parties agreed to examine the potential for renewable trade between the jurisdictions; exploration of export scenarios for renewable trade is on-going in that context also. To date, two foreshore leases have been granted in Irish waters off the east coast in respect of offshore wind farms: Arklow Bank (520 MW) and Codling Bank (1100 MW) in the Irish Sea. However, these projects have not yet been built, apart from 25 MW of the Arklow project. Separate to these, three offshore wind projects – Dublin Array off Bray Head, Co Wicklow in the Irish Sea (364 MW); Oriel in Dundalk Bay, Co Louth, in the Irish Sea (330 MW), and Fuinneamh Sceirde Teo – Outer Galway Bay, Atlantic coast (100.8 MW) – have received Gate 3 grid connection offers and are in various stages of the foreshore consent process. The take-up of Gate 3 offers is not yet known. Many European countries such as the UK, Germany, Denmark, Sweden and Norway are now firmly behind offshore wind as a future energy solution with the ability to enable the efficient meeting of the 20-20-20 targets. The growth of offshore wind is set to accelerate further in Europe in the coming decade. The Irish wave and tidal energy industry comprises a group of companies focused on the precommercial design stage of developing energy devices. They are knowledge-based and innovative, and have the potential to create valuable technology. They have attracted the attention of international venture capital companies. Other areas involved in wave/tidal energy research include sensor networks, wireless and fibre communications platforms, data management and internetbased visualisation, geographic information systems, advanced simulation, modelling and marine forecast technologies. 6 There has also been strong Irish involvement in the EU-funded FP7 project ‘Components for Ocean Renewable Energy Systems (CORES)’ research cluster, focusing on new components and concepts for ocean energy converters. This project tested a wave energy device in Galway Bay in 2011.The project was coordinated by the Hydraulics and Maritime Research Centre (HMRC) in University College Cork and had 13 partners from seven EU countries. The HMRC was responsible for system integration, commissioning, operation and maintenance of the project. Personnel were trained in offshore survival at the National Maritime College of Ireland. The growth of the wave and tidal sector is happening apace, albeit with a longer commercial development timeframe than offshore wind. The UK is the largest projected market, with 110 MW of installed capacity forecast by 2015 (Canada is the second largest market). The target for marine energy in Ireland is 500MW installed by 2020.
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Socio-Economic Marine Research Unit, NUIG, 2010. 12
2 The Offshore WW&T Energy Supply Chain The offshore wind supply chain is comprised of four tiers. The wave and tidal energy supply chain is likely to have a similar form. The Top Tier or Tier 1 (T1) consists of the owner/developer of the offshore wind development. Tier 1 companies include SSE, EDF, Iberdrola, E.ON, Vattenfall, Nova Scotia Power, ESBI, Bord Gáis and independent power producers such as DONG Energy and Mainstream Renewable Power. These T1 companies usually partner with a main contractor to provide engineering, procurement and installation services. Known as EPIC contractors (Tier 2), these include companies such as Siemens, GE and ABB. These EPIC contractors in turn partner with a range of sub-suppliers – Tier 3 and 4 (T3, T4) – to meet their procurement needs. Most Irish companies will be seeking to become suppliers to the EPIC contractors or indeed their Tier 3 suppliers.
T1: Owner/ Developer Design & Consenting
Manufacturing
T2: Design Related Services
T2: EPIC Contractor
Installation and commissioning
Operation and Maintenance
T2: Owner/Developer or O&M Contractor
T3: Devices & Components (Wind turbines, wave and tidal devices, cables) T3: ICT
T3: Device Maintenance by Manufacturers T3: Transport & Accommodation
T3: Project Management & ICT
T3: Training
T3: Equipment/ Plant (Cables, converters/substations)
T3: Vessels & Port Facilities
T3: Vessels & Port Facilities T3: Turbine/Device Installation & Foundations
Figure 1: Tiered layout of supply chain
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Typical Tier 1 Companies:
Typical Tier 2 Companies:
Project Owner/ Developers
EPIC
ESBI (Ireland) Bord Gáis Energy (Ireland) Centrica Renewable Energy (UK) SSE (UK) EDF (France) Iberdrola (Spain) E.ON (Germany) RWE (Germany) Statkraft (Norway) Vattenfall (Sweden) Fortum (Finland) Nova Scotia Power (Canada) Mainstream Renewable Power
Siemens GE ABB AMEC J P Kenny Atkins Technip Subsea 7 RES Offshore GL Garrad Hassan K2 Management
Table 1: Typical Project Developers and EPIC Companies
This study examines the supply chain in terms of four stages in an offshore development: 1. Design and Consenting 2. Manufacturing - Wind turbine manufacture - Wave energy device manufacture - Tidal energy device manufacture - Associated plant 3. Installation and Commissioning 4. Operations and Maintenance In the following chapter, Ireland’s known capability to supply each stage of a development is evaluated. It is important to note that the companies included here result from this initial study and from current client lists from the state agencies. They do not comprise an exhaustive list of Ireland’s capability potential, but rather a snapshot of known capability. In each supply-chain segment, a traffic-light system is used to illustrate Ireland’s current capability: o
Red indicates a supply-chain requirement for which Ireland currently has limited or no current capability.
o
Amber indicates a supply-chain requirement for which Ireland has some capability.
o
Green indicates a supply-chain requirement for which Ireland has strong capability.
This labelling is not a reflection on the capability or competency of any one company, rather a reflection of the competencies of a sectoral group. It is also important to note that, even where no current capability exists, that is not to say that Ireland will not or cannot develop capability. Indeed, these may be areas of significant opportunity. A comprehensive listing of companies and their capability will be included in the forthcoming ‘Irish Offshore Wind, Wave and Tidal Energy – Products and Services Directory’.
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3 Irish Companies’ Capability to Supply Products and Services 3.1
Design and Consenting
The Design and Consenting stage consists of the initial services required at the commencement of a project and to bring the project through to submission of consenting and completion of design. This stage involves the following activities: 1)
Project design: This covers the design activities that bring a project through the early phases of design. Typical services are: consents, foreshore licence, site investigations, planning applications, resource assessment (wind/wave/tidal), plant and farm design, electrical and grid connection, communications and ICT, design of landside facilities, detailed design, device and array design, research and design, communications and stakeholder management, cable route design.
2)
Environmental impact assessment: This consists of preparation of project documentation and understanding of the environmental impacts of the project. A number of surveys are required and the data produced will need to be analysed and interpreted. Typical services are: landscape and land use, cultural heritage, ecology, ornithology, marine ecology, benthic, marine mammals, sub-tidal habitats, water quality, socio-economic, transport, air quality, terrestrial noise, offshore physical environment, marine cultural heritage, commercial fisheries including aquaculture, navigation and marine noise.
3)
Survey vessel operation: This fieldwork gathers data for the design and impact-assessment activities. Typical services are: deployment of measurement sensors, bathymetry, geotechnical investigation, vessel support for environment activities, cable route survey, and marine archaeology.
Design and Consenting Project design
Environmental impact assessment
Companies with capability to supply
Atkins, ESBI, DPS Engineering, Galetech Energy Service, Hydrographic Surveys, IMAR Survey, Lotusworks, Mainstream Renewable Power, Malachy Walsh, Mott MacDonald, Ove Arup, PM Group, RPS, RPS, Site Investigations, Tobin
Status
Small number of companies with extensive experience
Allegro, Aqua-Fact, Atkins, AWN, Biospheric Engineering, Brady Shipman Martin, Byrne O’Cleirigh, Coastal and Marine Environmental, Coastal Zone Services, Cunnane Stratton Reynolds, Ecological Consultancy Services, Environmental Resource Management, Fehily Timoney, Ican, INIS, IWDG, Macro Works, Marine Institute, MDM, Merc, Moore Marine Services, MPA, Natura Environmental Consultants, PMCE, Renewable Power Generation, RPS, Ryan Institute, Environmental, Marine and Energy Research, SLR Consulting, TEC Large number of companies but with limited offshore experience
Traffic Light
GREEN
AMBER
Table 2: Design and Consenting 15
Survey vessel operation IMAR, Irish Hydrographic, Mainport Group, Marine Institute
Good experience. Limited availability of large and geotechnical vessels GREEN
3.2
Manufacturing
3.2.1 Wind Turbine Manufacture The Wind Turbine Manufacture stage involves the complete set of components to supply a wind turbine, including rotor, tower and nacelle. A wide variety of material and components is required, varying from castings to electrical and software control systems. These are divided into seven subsegments below: 1)
Generators, bearings and gearbox – Wind turbines are typically asynchronous generators (induction generators), which use gearboxes. There are turbines now using direct-drive turbines without gearboxes. All turbines require large bearings to support the turbine, rotor and shaft.
2)
Castings and forgings – A wind turbine has large components such as hub, gearbox housing and shaft. These are usually located near the manufacturing site or port due to their size.
3)
Blades – These are generally a specialist component for offshore wind turbines and supplied by the OEM turbine supplier. These are typically larger than onshore turbines. Research and development is being carried out into rotor design, addressing fatigue loads and optimisation of power performance. The blades often measure over 100 metres in length.
4)
Towers – Typical offshore towers have been conical tubular steel. Towers are manufactured in small conical sub-sections which are welded rolled into shape and then welded together to form long tower sections. Research and development is being carried out into alternative materials such as concrete. Due to the size of towers they are usually manufactured close to a port or deployment site. Towers are generally designed by the turbine manufacturer as the entire wind turbine is ‘Type Approved’ as a unit.
5)
Ancillary equipment – general steelwork, walkways, ladders, tanks, pipework
6)
Electrical/Controls – including motors, actuators, sensors, SCADA, switchgear and transformers
7)
Foundations – The foundations are typically steel or hybrid steel/concrete. Generally steel and hybrid foundations have been used to date. In hybrid foundations the concrete is used as ballast in the bottom section.
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Wind Turbine Manufacture
Capability
Status
Generators, bearings and gearbox Adtec Aerauto, Conor Gray, Denby Eng, E-TEC Power Management, Reliance Bearing and Gear, Siemens, Sunstream Energy Limited supply experience at large scale
Traffic Light
Castings and forgings
Blades ÉireComposites Teo, Garlester Ltd
No experience with large-scale castings/forging
AMBER
Companies do not have experience of building large blades
RED
RED
Table 3A: Wind Turbine Manufacture
Wind Turbine Manufacture
Capability
Status
Traffic light
Towers Bonnar Eng, Eutec Eng, Foynes Eng, Harland and Wolff, Mercury Eng, Radley Eng, Thompson Eng, W.I. Ltd. Good experience with steel fabrication Can leverage concrete and steel experience for R&D opportunities
Ancillary equipment A large number of engineering firms are capable of making items such as walkways, ladders, tanks, pipework and other general steelwork Good experience with steel fabrication Companies will be required to familiarise themselves with the quality standards required
AMBER
GREEN
Electrical/Controls ABB, Anord Control Systems, E-TEC Power Management, Parkmore Switchgear, Schneider Electric, Siemens Ireland, Whitelite Good experience with onshore wind turbines and associated industries High capability
GREEN
Table 3B: Wind Turbine Manufacture
Wind Turbine Manufacture Foundations Capability
Status
Concrete: Banagher Precast Concrete, Concast Precast Group, CRH, Ecocem, Irish Cement, Irish Dredging Company, Lagan Group Steel: Bonnar Eng, Eutec Eng, Foynes Eng, Harland and Wolff, Mercury Eng, Radley Eng, Thompson Eng, W.I. Ltd Good concrete design and manufacture capability Reasonable steel fabrication capability but weak facilities at ports Can leverage experience from other industries (e.g. construction)
Traffic light
AMBER Table 3C: Wind Turbine Manufacture 17
3.2.2 Wave Energy Device Manufacture The Wave Energy Device Manufacture stage consists of specialised areas from fabrication of hulls to moorings and power take-off systems. 1)
Hull – Wave energy devices have requirements for a hull structure which is similar to that in ships, typically fabricated with steel plate. There is research underway into alternative materials such as concrete. Due to size and mass such structures are typically fabricated alongside a port or harbour.
2)
Power Take-Off – A variety of power take-off systems are being developed for wave energy devices. They can be classified as: pneumatic (air turbine), hydraulic, electrical and magnetic (rotary generators, linear generators), direct drive and mechanical systems. These power take-off systems, with the exception of direct-drive applications, generally use mechanical gearboxes/linkages for motion rectification and control.
3)
Ancillary equipment – general steelwork, walkways, ladders, tanks, pipework.
4)
Electrical/Controls – including motors, actuators, sensors, SCADA, SW, HW, switchgear and transformers.
5)
Mooring – Floating wave energy devices absorb energy from the sea and thus require flexible, sophisticated mooring systems to ensure that energy absorption is low and the device is free to move but also constrained with sufficient station keeping. The development of mooring systems for ocean energy applications is expected to require new materials, designs and innovative solutions.
Wave Energy Device Manufacture
Capability
Status
Traffic light
Hull
Power take-off
Ancillary equipment
Bonnar Eng Ltd, Eutec Eng Ltd, Foynes Eng Ltd, Harland and Wolff, Mercury Eng, Radley Eng, Thompson Eng (Carlow), W.I.Ltd Reasonable steel fabrication capability but weak facilities at ports Good concrete design and manufacture capability
Blue Power, Conor Gray, Sutherland, E-TEC Power, Sunstream
A large number of engineering firms are capable of making items such as walkways, ladders, tanks, pipework and other general steelwork Good experience with steel fabrication
Some experience in other markets, which can be leveraged
AMBER
Companies will be required to familiarise themselves with the quality standards required
AMBER
Table 4A: Wave Energy Device Manufacture
18
GREEN
Wave Energy Device Manufacture Electrical/Controls Capability
Status
Traffic light
Mooring
Blue Power, Conor Gray, Sutherland, E-TEC Power, Sunstream, ABB, Anord Control Systems, E-TEC Power Management, Parkmore Switchgear, Schneider Electric, Siemens Ireland, Whitelite, Wire Ropes Ltd, Swan Net Gundry, Silver Strand Rope Works Ltd, MCS Kenny, Marine Systems Ltd Some experience in other markets, which can be leveraged Good experience with wind turbines and associated industries High capability Good design expertise
Wire Ropes Ltd, Swan Net Gundry, Silver Strand Rope Works Ltd, MCS Kenny, Marine Systems Ltd, Technology From Ideas Good design expertise
GREEN
GREEN
Table 4B: Wave Energy Device Manufacture
3.2.3 Tidal Energy Device Manufacture The Tidal Energy Device Manufacture stage uses many components in common with offshore wind and wave energy, but there are additional requirements; for example, since they are deployed under water the requirements of the blades will be different and there would be a lot of subsea work. The main sub-segments are device shell, blades, electrical/control and device base. 1)
Device shell – similar to a hull and generally constructed of steel plate and framework
2)
Blades – Typical materials are glass reinforced plastic and reinforced polymers similar to wind turbines
3)
Ancillary equipment – general steelwork, walkways, ladders, tanks, pipework
4)
Electrical/Controls – including motors, actuators, sensors, SCADA, SW, HW, switchgear and transformers
5)
Base – The subsea base or structure supports the device and typically is either piled to the seabed or uses a gravity base. Typical materials would be steel or concrete.
19
Tidal Energy Device Manufacture Device shell Capability
Status
Traffic Light
Blades
Bonnar Eng, Eutec Eng, Foynes Eng, Harland and Wolff, Mercury Eng, Radley Eng, Thompson Eng, W.I. Ltd Good experience with steel fabrication Limited experience in large-scale manufacturing
Ancillary equipment
ÉireComposites Teo, Garlester Ltd
Technology for offshore blades is still in development Few companies with extensive experience
AMBER
A large number of engineering firms are capable of making items such as walkways, ladders, tanks, pipework and other general steelwork Good experience with steel fabrication Companies will be required to familiarise themselves with the quality standards required
AMBER
AMBER
Table 5A: Tidal Energy Device Manufacture
Tidal Energy Device Manufacture Electrical/Controls Capability
Status
Traffic Light
Base
ABB, Anord Control Systems, E-TEC Power Management, Parkmore Switchgear, Schneider Electric, Siemens Ireland, Whitelite Good experience with wind turbines and associated industries High capability
Bonnar Eng Ltd, Eutec Eng Ltd, Foynes Eng Ltd, Harland and Wolff, W.I. Ltd, Thompson Eng (Carlow), Radley Eng, Mercury Eng Good concrete design and manufacture capability Reasonable steel fabrication capability but weak facilities at ports Can leverage experience from other industries (e.g. construction)
GREEN
AMBER
Table 5B: Tidal Energy Device Manufacture
3.2.4 Associated Equipment/Plant The Associated Equipment/Plant stage consists of the balance of plant and equipment required to complete a wind, wave or tidal project. There are generally three main areas: submarine cables, offshore convertor/substation, and onshore civil work. The infrastructure to bring the energy from the device to shore, control it and transmit to customer/market typically consists of inter-array submarine electrical cables between the devices, substation (located offshore or onshore) and export cable which brings the power back to shore. Control and monitoring equipment is required for projects. This can be located offshore in substation or convertor platforms or onshore facilities. These systems include medium and high voltage (MV/HV) transformers, switchgear, power electronics, control and monitoring systems.
20
1)
Subsea cables – MV/HV submarine cables which can be laid on the seabed and protected or buried below the seabed surface
2)
Offshore convertor/substation – ancillary equipment; general steelwork, walkways, ladders, tanks, pipework
3)
Onshore/civil work/converter/substation – This includes construction of onshore substation, cable transition joints, and route/ducts. Many of the activities here are common to onshore wind farms and other construction projects.
Associated Equipment/Plant Subsea cables Capability
Status
Traffic Light
n/a
No MV/HV subsea cable supply in Ireland Limited supply internationally Long lead time
Offshore converter/substation Harland and Wolff, Foynes Eng, Mercury Eng.
Typically large, requiring integration of many contractors Limited supply internationally
RED
AMBER
Onshore/civil work/ converter/substation ABB, ESBN, ESBI, Siemens. A large number of engineering firms are capable of delivering projects in this area Good experience
GREEN
Table 6: Associated Equipment/Plant
3.3
Installation and Commissioning
The Installation and Commissioning stage covers the activities to install the turbine/devices and general plant and to ensure that the complete project is operating as required. It can be divided into seven areas: 1)
Installation project management – This covers the services required to manage the construction/installation of the project through to commissioning. Commissioning usually involves standard electrical tests for the electrical infrastructure as well as inspection of the civil and marine components and provision of certification, quality and safety records.
2)
Port facilities – These are the facilities required at the deployment site. There have been initiatives to develop clusters around ports for these opportunities in Europe, such as at Bremerhaven, Mostyn, Shannon Foynes or DONG in Belfast.
3)
Turbine and foundation installation – This includes installation vessels, equipment, J-tubes. Typically these activities are carried out by large vessels and cranes which can handle large turbines and equipment. These would be supported by medium and small vessels during installation. In the last few years specialised vessels have been designed and deployed to support wind-farm projects. Similarly, OpenHydro has developed a specialised deployment barge to address deployment and retrieval of its device.
4)
Wave energy device installation – Typical services are mooring placement vessels, tow-out vessels, service vessels, subsea work and ROVs. Mooring systems and devices can be installed by wide range of vessels such as barges, tugs, and support vessels.
5)
Tidal energy device installation – Typical services are mooring placement vessels, tow-out vessels, service vessels, subsea work and ROVs.
21
6)
Subsea cable installation – This includes submarine cables between devices (inter-array) and export cable back to substation/shore. These activities are specialised and most projects require large cable-laying vessels. A lead-time of 18 months is generally considered necessary for cable-laying vessels.
Installation and Commissioning
Capability
Status
Traffic Light
Installation project management DPS Eng, Lotusworks, Mainstream Renewable Power, PM Group, RPS
Port facilities Cork, Drogheda, Dublin, Shannon Foynes, Galway, Greenore, Harland and Wolff, Killybegs, Rosslare
Good experience with onshore projects Lack of extensive offshore experience
Further development of infrastructure required to support large-scale projects
AMBER
AMBER
Turbine and foundation installation Arctic Shipping Agency, Burke Shipping, Fastnet Shipping, Island Shipping, Mainport Group, MSV International, Pacific Blue, Sinbad Marine. No large installation vessels or jackup barges Good service and support vessels AMBER
Table 7A: Installation and Commissioning
Installation and Commissioning
Capability
Status
Traffic Light
Wave energy device installation Arctic Shipping Agency, Burke Shipping, Fastnet Shipping, Island Shipping, Mainport Group, MSV International, Pacific Blue, Sinbad Marine Good small/medium support vessels
Tidal energy device installation Open Hydro (Proprietary), Arctic Shipping Agency, Burke Shipping, Fastnet Shipping, Island Shipping, Mainport Group, MSV International, Pacific Blue, Sinbad Marine Common industry solution not decided Piling – typical large jack-up barge required which is only available internationally Good small/medium support vessels
AMBER
AMBER
Table 7B: Installation and Commissioning
22
Subsea cable installation Little capability apart from supply boat operations
Little expertise in Ireland Requires significant capital investment
RED
3.4
Operations, Maintenance and Supporting Services
After commissioning, the project is managed by an operations and maintenance team. The long-term availability of onshore wind turbines is generally in excess of 97% and it is expected that offshore projects would reach similar metrics. The team will be responsible for planned, opportunistic and corrective maintenance activities. Specialised services are required to provide access to projects; usually special access vessels or helicopters are used. The typical expenditure for an offshore wind farm is considerably higher than for onshore wind farms, and marine activities are generally five to ten times more expensive than land-based activities. Access to offshore projects is dependent on weather conditions and there are restrictions for access due to wave heights, wind speeds and visibility. As specialised vessels/cranes are required and generally this same equipment would be used to service multiple projects, management and logistics is very important. Large-scale projects may justify dedicated equipment. 1)
Maintenance – Typically, offshore equipment such as wind turbines is maintained under long-term service contracts with the wind-turbine manufacturer. It is expected that wave and tidal devices would follow the same model. Experience has shown that, as wind turbines come out of warranty, wind-farm managers consider additional options such as third-party providers and in-house expertise, providing the opportunity for development of local expertise.
2)
Operations – This includes monitoring and management of the project and associated activities. It has been shown that many of the shutdowns for turbines have been caused by faults or electrical trips; to minimise unplanned visits for such events, automatic reset and remote-control facilities are common.
3)
Onshore facilities – Access to onshore facilities, equipment and people is important to minimise downtime. Typical onshore facilities include engineering, storage and administration. O&M is usually carried out from a nearby port. These ports would accommodate technical service people, their equipment and vessels for access. Since requirements for regular maintenance are modest, many smaller ports would be able to provide this service.
4)
Transport and accommodation – Access for maintenance can be challenging and specialised vessels or helicopters are used. Marine access requirements vary from small vessels supplying people and equipment for light O&M work to larger vessels with cranes for heavy maintenance. Light/smaller vessels are available and lead-time for building up capability is relatively small. Larger vessels have a long lead time and currently there is poor availability of such vessels.
5)
Training – As the offshore sector develops there will be increasing demands on personnel with offshore skills. The National Maritime College of Ireland (NMCI) is the national training centre for master mariners and cadets in navigation and marine engineering. This is now part of IMERC (Irish Maritime and Energy Resource Cluster) which aims to develop a strong and broad base of expertise in maritime operations, maritime ICT, ecosystem governance and ocean engineering, as well ensuring a strong focus on niche areas such as wave test tank modelling, simulation, training and governance. Ireland’s centre of excellence in ocean energy, the Hydraulics and Maritime Research Centre (HMRC) in Cork, has an exceptional record in participation in and leadership of EU Framework projects and has an international profile.
6)
R&D – companies and institutes providing R&D services and facilities. Offshore wind technology is continually evolving so there are opportunities to develop new solutions to problems such as reliability and early fault diagnosis. Installation costs are high and there is considerable research underway to try to reduce this. Wave and tidal technology is not yet at full commercial viability and a great deal of research is being carried out worldwide. (See Appendix for more information on marine renewables research in Ireland.)
23
Operations, Maintenance and Supporting Services Maintenance
Operations Lotusworks and existing wind turbine manufacturer teams in Ireland
Irish ports and service and engineering companies located at ports
Status
Lotusworks and existing wind turbine manufacturer teams in Ireland Leverage skill from onshore to offshore Marine activity more challenging, with specialist skills needed
Leverage skill from onshore to offshore Marine activity more challenging, with specialist skills needed
Focus on meeting needs of Irish and Irish Sea developments
Traffic Light
AMBER
AMBER
Capability
Onshore facilities
AMBER
Table 8A: Operations, Maintenance and Supporting Services
Operations, Maintenance and Supporting Services Transport and Accommodation Capability
Status
Traffic Light
Arctic Shipping Agency, Burke Shipping, Fastnet Shipping, Island Shipping, Mainport Group, MSV International, Pacific Blue, Sinbad Marine and Ports Small/medium vessels are available Larger vessels have a long lead time and currently there is poor availability
Training
R&D
NMCI, IMERC, FAS
HMRC (UCC), IMERC, LKIT, NMCI, UCD, TCD, DCU, NUIG
Good skills to support offshore training at NMCI and IMERC
Internationally recognised ocean energy R&D centre at HMRC (UCC) Limited offshore wind research capability
AMBER
GREEN
Table 8B: Operations, Maintenance and Supporting Services
24
GREEN
4 Industry Priorities and Challenges 4.1
Cost reduction in offshore wind
A major focus of all developers and main contractors in the offshore wind supply chain is to reduce costs. Suppliers that can provide innovative low-cost solutions will find a ready market. In the UK in July 2011, the government formed a Cost Reduction Task Force which is expected to produce a costreduction strategy document by mid-2012. This will set out the steps required to reduce the costs of electricity generated from offshore wind to £100 per MWh. UK estimates in 2010 put the cost of generating electricity from offshore wind at £157-£186 per MWh.7 Since 2008, the UK’s Carbon Trust has been working in partnership with industry to reduce cost in the supply chain for offshore wind and tidal energy. The Offshore Wind Accelerator (OWA) is the Carbon Trust’s flagship collaborative R&D programme. Eight international energy companies are participating: DONG Energy, E.ON, Mainstream Renewable Power, RWE, Scottish Power Renewables, SSE Renewables (formerly Airtricity), Statkraft and Statoil. The programme aims to reduce the cost of offshore wind by 10%. It brought together British SMEs and local suppliers with the eight major energy companies to find collaborative R&D solutions to cost challenges. For offshore wind the main cost challenges were identified as: • • • •
turbine foundation design and installation techniques access to distant turbines for maintenance wind farm array layout reducing electricity transmission losses
The need to increase automation, to improve quality and reduce costs and the requirement for quayside factories to minimize logistic and transport difficulties were also highlighted. A similar programme focusing on wave and tidal is the Carbon Trust’s Marine Energy Accelerator, which ran from 2007 to 2010. For wave and tidal, the cost challenges identified were: • •
4.2
lowering the costs of specific components in existing marine energy devices, such as structural materials, mooring, rotors and power take-off (PTO) systems developing strategies on how to improve ways in which marine energy devices can be installed, operated and maintained at a lower cost
Supply-chain constraints
The growth of the offshore wind market means that the demand for critical items, including blades, bearings and gearboxes, is highly concentrated and produces pinch points in the supply chain. For example demand is currently outstripping supply for: • • • • •
Copper, for cables, transformers, generators, etc Rare earth minerals, for high permeability permanent magnets Large casting and forging, for bearings, shafts and gearing systems High-powered semiconductors, for control, power conditioning and AC/DC conversion High modulus carbon fibre for wind-turbine blades
These shortages raise opportunities for Irish companies to develop alternative technical solutions; for example, the shortage of copper may lead to the development of aluminium conductors for submarine cables and super-conductors for transformers and generators.
7
UK Electricity Generation Costs Update, Mott MacDonald, June 2010. Report for DECC. 25
4.3
Deployment challenges
The deployment of wave and tidal energy converters is not yet a streamlined or standardised process and no one system is suitable for the different devices that are currently being deployed. The experience of Irish company OpenHydro has shown that the appropriate equipment for installing tidal turbines does not exist in the general marine market; it needed to build its own installation device. A cost-effective deployment method is essential for developing commercial farms and this is a good opportunity for Irish marine engineering firms. For example, there is currently a project underway involving Mainstream Renewable Power and UCD that aims to develop a cost-effective tower base for offshore wind farms that is easier to transport and install.
4.4
Procurement – pre-qualification
Suppliers will need to prove product reliability, certification, quality management and a good health and safety record. As many of the offshore wind developers and EPIC contractors come from or have experience in the oil and gas industry, standards have passed from it to the offshore wind sector. Many EPIC contractors use the First Point Assessment Limited (FPAL) or the Utilities Vendor Database accreditation (UVDB) pre-qualification system to source and shortlist suppliers.
4.5
Move to local and regional supply chains
As the industry matures and the supply-chain requirement become more standardised, developers and EPIC contractors will move to regional sourcing of supplies to reduce cost and improve lead times. This is the stated supply-chain strategy of Vestas and offers opportunity for competitive Irish companies to enter a new market or access a supply chain, even at a later stage.
4.6
Flexible and adaptive approach
Buyers need short and flexible reaction times from suppliers. Many of the wave-energy device companies operate tight schedules dictated by investor funding cycles that often conflict with accepted engineering delivery times. Suppliers need to be flexible and adaptable to these different timescales. Relationships have developed between buyers, prototype engineers and suppliers during the pre-commercial development stage. When scaling up is required for commercial deployments, many small-scale innovative engineering/manufacturing companies are unable to meet the demand. At the manufacturing stage, the buyer function is controlled by an EPIC contractor and new suppliers with appropriate scale and resources are often selected.
26
5 Actions to Maximise the Involvement of Irish Companies This chapter looks at the steps being taken by government and its agencies to assist Irish companies in maximising their involvement with the offshore WW&T energy supply chains. It also considers other actions that could help companies to access the market.
5.1
Networking – developing and facilitating clusters and joint ventures
Collaboration and joint venturing is proposed as a possible route to market for Irish companies. A number of Irish companies, including ports and marine service companies, could form a joint venture (JV) to compete against international companies for the provision of products and services to WW&T energy projects. An example of such a joint venture in Scotland is the 50:50 JV between Leiths and Ferguson Transport which has been established to promote and operate the dry-dock facility at Kishorn. The JV combines the quarrying, concrete and construction materials expertise of Leiths with the port operations, shipping, stevedoring and transport skills of Ferguson Transport. A further example is the recent cooperation between Lotus Works, Mainport Shipping and William O’Brien Ltd to provide a broader range of services to offshore wind-farm developments off southern England. The following table outlines areas of potential clusters for companies. Through a series of workshops, Enterprise Ireland is to encourage the creation of company clusters and joint ventures between Irish companies and companies abroad.
Sector ICT companies
Construction companies O&M companies
Areas Demand forecasting Mooring design O&M Training simulations Concrete and composites Construction of quayside factories Civil engineering Development of training processes and procedures Installation Maintenance
Wireless communications Data collection and analysis Network solutions Transportation of components Vessel skipper training Health and safety
Table 9: Potential Cluster Areas for Companies
5.2
Offshore wind test site
Many of the major offshore wind-turbine manufacturers have expressed strong interest in the concept of an offshore wind test site in the Irish Sea, which the industry views as having ideal water depth and wind regime characteristics. Given the scale of deployment expected in north-west Europe over the next decade, demand for good test sites is expected to be strong. The development of an offshore test site in the Irish Sea could generate significant economic activity in Ireland: •
A wide range of onshore and offshore services would be needed by turbine manufacturers and utilities to use the site.
•
Irish companies in the sector would be better able to prove their product and service capabilities. They would also have much higher visibility with potential customers among the major turbine manufacturers and associated utility companies.
27
•
The test site would be a focus around which Ireland could attract foreign direct investment from global turbine manufacturers and the major European utility companies in the offshore wind space.
In summary, the availability of an offshore wind test site could enable Ireland to attract international offshore wind developers to test/trial new products and services in Irish waters; this could lead to the development of offshore wind design/manufacturing opportunities. This in turn would create an opportunity for domestic companies to innovate and develop new solutions.
5.3
Pre-qualification of tenders
Buyers of products and services in the offshore wind industry have common criteria for selecting suppliers. These include: •
product reliability
•
financial stability
•
track record of providing offshore services
•
references
•
certification for quality management
•
health and safety procedures and record
•
appropriate insurance cover
•
robust data management and IT processes and policies
Most of these criteria are the ones addressed by FPAL/UVDB, the pre-qualification supplier selector service predominantly used by the offshore oil and gas industry and utilities sectors respectively. The shared database of suppliers enables buyers to cost-effectively manage their supply chain. Because many of the companies supplying services to the offshore marine renewable sector are also supplying the oil and gas sector and are registered with FPAL/UVDB, it is likely that these or a similar pre-qualification process will be adopted for the marine renewables supply chain. To become a member, potential suppliers must meet criteria in relation to financial performance, health, safety and environmental policies, permits, competence and training (as outlined in the table below). Enterprise Ireland is to introduce and facilitate Irish companies that wish to pre-qualify for work in offshore WW&T energy.
Supplier information required by buyers registered with FPAL General Company Information
Competence and Training
Products and Services
Innovation and Improvement
Contacts
Business Awards
Legal Information
Industry Collaboration Projects
Financial Information including accounts
Development Grants
Associated Companies
Health and Safety Management
Quality Management
Environmental Management
Research and Development
Corporate Responsibility
Table 10: Supplier Information Required by FPAL 28
5.4
Wave and tidal – investment in R&D
Good research infrastructure is critical to supporting the development of new technologies and solutions, as well as stimulating the supply chain for the offshore wind and marine renewables in Ireland. To date, Ireland’s research focus has been predominantly on the design, development and testing of wave and tidal renewables technology. Figure 1 outlines the phases of development for typical ocean energy devices along with centres where the devices can be tested. This phased development approach is used by government and industry when assessing technologies for investment.
Figure 2: Development Protocol for Ocean Energy In Ireland industry investment by technology development companies engaged with SEAI is already significant involving companies such as OpenHydro, Wavebob and Ocean Energy Ltd. All of these have benefited from critical government support provided through SEAI and EI. Further, significant expenditure is being undertaken and planned. The government approach to funding is summarised in Figure 2. This involves collaboration between the state agencies whereby, in general, Science Foundation Ireland (SFI) supports fundamental research, EI supports industry-led 3rd level research, SEAI supports industry concept and development projects. EI and the IDA further support the commercialisation of companies that successfully come through this process. SEAI’s Ocean Energy Development Unit (OEDU) was set up to stimulate the development and deployment of OE devices and systems and is responsible for implementing the National Ocean Energy Strategy.
29
SFI Basic 3rd level research
IDA Overseas devices and developers OEDU – Industry research: early concept to full-scale prototype
Enterprise Ireland Industry-led 3rd level research
Enterprise Ireland Arrays and commercialisation
Figure 3: Government Support for Industry and R&D
5.5
Bringing ICT to wind, wave and tidal
The marine ICT SmartBay cluster, run by the Marine institute, is bringing together ICT technology suppliers and marine technology companies to develop new products and services in areas such as wireless communications, remote monitoring and control and marine environment sensors. The Hydraulic and Maritime Research Centre (HMRC) in Cork provides excellent facilities to test these devices. There is scope to bring this opportunity to a wider software and ICT audience and to assess the potential for technology transfer. Enterprise Ireland will continue to
promote this agenda through the convergence of ICT and OE and with the wider CleanTech sector.
5.6
Development of an online Offshore WW&T Energy Directory
In 2012 Enterprise Ireland is launching an ‘Irish Offshore Wind, Wave and Tidal Energy - Products and Services Directory’ for Irish companies that will be used as marketing collateral by EI, SEAI and other state agencies. It will provide details of Irish companies that have the capability to supply the offshore WW&T energy sector.
5.7
Marketing of the Irish CleanTech sector internationally
Several agencies are engaged in the development of the WW&T sector. Stronger interagency cooperation is required to deliver the potential this sector offers Ireland. International recognition of Ireland’s capability would help Irish companies win overseas business. Enterprise Ireland will coordinate this action with other agencies such as the IDA, SEAI, the Marine Institute, etc.
30
6 Conclusions 6.1
General •
Irish companies’ current capability to supply the sector is summarised in the table below:
Strong Capability
Capable
Immediate opportunities
Skills transferable to:
Project design
Concrete foundations
R&D
Wind turbine towers (steel, concrete)
Environmental impact assessment
Wave energy hull and PTO systems
Survey and support vessel operations
Installation project management
Ancillary equipment manufacture Electrical/Controls Mooring systems design Onshore convertors/substations construction Training in offshore technology, safety systems and survival techniques ICT solutions Table 11: Irish Companies’ Capability •
When entering international markets it is essential that Irish companies comply with all the required standards and regulations. It is likely that FPAL/UVDB or a similar pre-qualification process will be adopted for the WW&T supply chain.
•
Ireland’s considerable experience in construction, engineering, electronics, environmental services and ICT means that we are well positioned to provide solutions to the offshore wind market and the nascent wave and tidal supply chain.
•
In 2012 Enterprise Ireland is launching an ‘Irish Offshore Wind, Wave and Tidal Energy – Products and Services Directory’ for Irish companies that can be used as marketing collateral by Enterprise Ireland, SEAI and other state agencies.
•
The creation of a national brand for this sector would enable Ireland’s capability to be better marketed and understood internationally and would demonstrate a national commitment to the sector.
6.2
Offshore wind supply chain •
The UK is now in Round 3 of its offshore wind development programme. Many of the larger contractors have already secured their supply chain and a number of partnerships and joint ventures are in place.
•
Many Irish companies wishing to supply into the offshore wind supply chain cannot validate their products or services in the domestic market given the limited scale of development of offshore wind in Ireland to date. A test-bed site for offshore wind would be an invaluable resource in this regard.
•
Proximity to the UK market favours Ireland as some elements of supply chains will become more standardised and contractors will increasingly seek local suppliers to reduce costs and 31
lead times. However, Ireland should not seek to compete solely for more commodity elements of the offshore wind supply chain. It is important for innovative Irish companies to move quickly to seek out international partnerships and joint ventures and to influence standardised industry approaches to design and consenting, installation and commissioning, and operations and maintenance. This would help to ensure that Irish technologies and innovativeness are not ‘locked out’ in the future. •
Opportunities exist for innovative companies that can address industry challenges such as cost reduction, increasing reliability and improving access.
•
One of the quickest ways to involve Irish companies in the offshore wind sector would be through the supply of components and services to a turbine manufacturer based in Ireland. Large turbine manufacturers have set up many production plants around the globe, usually in countries that are developing a large number of offshore wind farms. If one such company could be attracted to Ireland it would be a strong boost to the supply chain in Ireland.
6.3
Wave and tidal energy supply chain •
Tidal and wave devices offer a more medium to long-term opportunity, given the longer technology development timeframe. On the plus side, Irish companies wishing to supply this sector have a good opportunity to collaborate domestically given the research focus on device development and testing in Ireland.
•
Existing offshore test facilities enable Irish companies to test and validate new products and services These facilities are also being used to attract key international device development companies. This will help boost the domestic market R&D products and services within Ireland. An opportunity exists to create a collaborative Irish supply chain around wave and tidal devices. There are future export opportunities for Irish companies in areas such as precision engineering, mechanical and electrical engineering, wireless communications, control systems and environmental sensors to international OE projects.
•
The development of efficient solutions in for SmartBay and wave and tidal device R&D has a role to play in improving the competitiveness of Irish companies in the OE supply chain.
32
7 Appendix: Research and Demonstration Infrastructure in Ireland Test sites Atlantic Marine Energy Test Site (AMETS), Belmullet, County Mayo The Sustainable Energy Authority of Ireland plans to develop the Atlantic Marine Energy Test Site (AMETS), focused on wave energy, which is proposed to be located off Annagh Head, west of Belmullet in County Mayo. The purpose of this site is to provide a location for the temporary mooring and deployment of wave energy machines so that their performance in generating electricity and their survivability can be tested and demonstrated in open ocean conditions. It is proposed that the site operate for up to 15 years with devices on site intermittently throughout the year. A foreshore lease application for the project was submitted in December 2011.
Galway Bay SEAI and the Marine Institute established an OE test site for ¼-scale prototypes of wave energy devices in Galway Bay in 2006, following the issue of a foreshore lease for the site in March that year by the Department of Communications, Marine and Natural Resources. The test site is situated on the north side of Galway Bay, approximately 2 km to the south-east of Spiddal. To avoid conflict with shipping, it is marked by navigation markers on four corners. The site is 37 hectares in area and is in 21-24 metres of water. Technology developers can avail of two berths for wave energy devices at the test site. The site provides an opportunity for developers to test the survivability and the electricity generation potential of the device at an intermediate development level, i.e. between wave-tank testing and commercial testing.
Smart Bay The SmartBay concept emerged from the Marine Institute in 2005 and quickly developed into a test platform pilot to support strategic research in the marine or associated sectors. The pilot, supported by the Marine Institute and Dublin City University (DCU), gained momentum when both Intel and IBM signalled strong support and began to use the facility. A joint funding proposal to the Higher Education Authority (HEA) in 2009 resulted in a grant to the consortium (DCU, NUIG, and NUIM) of €3.8m over five years to provide the operational funding to support the test platform currently in place and managed by the Marine Institute. With core funding in place and a willingness on the part of the Marine Institute to provide the current SmartBay infrastructure (physical and informational) to a new entity, the sponsors agreed to create a separate not-for-profit company. Aware of the bigger economic opportunity that this company could leverage, the sponsors have expanded the SmartBay concept and vision and set a much broader objective: to advance the smart application of ICT in the use and harvesting of marine resources. This requires the new company to meet the specific obligations of the core funding grant but also to create an “industry-led” services company that is capable of sustaining itself and is internationally recognised as a brand that provides unique high-value services. This creates a paradigm shift in Ireland’s commercialisation capability by providing core supports to research and innovation (technology or service) projects while creating its own unique professional services capability. This will enable SmartBay to add value to the information it handles, participate with its own core capability in the research projects, and actively promote, broker, or license the technologies it supports (benchmarking and demonstration) or bundles (integration into higher-level solutions) on its infrastructure.
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Figure 4: SmartBay
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Marine renewables research centres in Ireland Hydraulics and Maritime Research Centre – University College Cork The Hydraulics and Maritime Research Centre (HMRC) is a centre of excellence based in Cork for ocean renewable energy and coastal engineering. It provides support to the maritime industry as well as engaging in fundamental R&D.
Wave Energy Research Team, Mobile and Marine Robotics Research Centre – University of Limerick The Wave Energy Research Team (WERT) was established in 1990 in the University of Limerick. Its goal is to develop turbine technology for wave energy power plants for the Irish, European and international markets.
Department of Earth and Ocean Sciences – National University of Ireland, Galway A nucleus of specialists is being assembled in NUI-G. A new specialist team has been created focusing on mooring systems and other technologies. The university is closely associated with the riser specialist company MCS (a spin-off from the university).
Department of Electronic Engineering – National University of Ireland, Maynooth The control of wave energy devices is being investigated at NUIM. This project involves the development of control systems technology for optimal control of point absorber wave energy devices. The essential idea is to control device damping, ballast, and ballast position in order to absorb the maximum amount of wave energy, while maintaining the integrity of the device in storm conditions.
School of Planning, Architecture and Civil Engineering – Queen’s University of Belfast Queen’s University developed wave energy modelling expertise and considerable experience on Wells turbine research over a 35-year period. In this respect it has collaborated with the University of Limerick. The QUB tank test facilities include a main tank in Belfast and a new tank in Portaferry, Co Down. Both wave tanks can produce random sea states while the new tank can include spreading in two wave directions simultaneously.
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