Erhvervs-, Vækst- og Eksportudvalget 2014-15 (1. samling)
ERU Alm.del Bilag 30
Offentligt
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Promising concept for
turnkey deliveries
of
major
complex facilities
Since November 2013 a concept for turnkey deliveries
for off shore wind farms has been developed in a joint
effort between Frederikshavn, MHI Vestas Offshore
Wind and Universal Foundation. This concept results
in lower prices per installed MW and greater compet­
itiveness for those enterprises taking part. Greater
competitiveness and the accumulation of knowledge
have taken place and will continue to be realized via
collaboration between major international enterprises
and small and mediumsized regional and local busi­
nesses in North Jutland, with the major enterprises’
capabilities (technology, organisation, etc.) contri­
buting to knowledge building and job creation amongst
the small and mediumsized businesses.
In collaboration with enterprises such as DONG Energy,
the Danish Energy Agency, major EU utilities, 3F, MHI
Vestas Offshore, Fred. Olsen wind companies, Taihan
Electric Wire, Daewoo International, Kuehne + Nagel,
Spar Nord Bank, Arbejdernes Landsbank, Nordea and
selected small and mediumsized businesses, Frede­
rikshavn (the municipal authority, utility company, port
and Erhvervshus Nord business development), Invest
In Denmark and Kotra have developed the concept in
line with the following roles and distribution of respon­
sibilities.
Role of MHI Vestas, Universal Foundation:
To carry out the Demonstration Project FRH – the Engine
Opportunities:
Stepstone
Demonstration
project FRH
ENGINE
•
Near shore projects
•
Offshore projects
•
Denmark
•
UK
•
Germany
•
Scandinavia
Logistic Hub
Foundation
Group
Sea Cable
Group
Marshall
Port
Role of Kotra and Invest In
Denmark:
To support the Demonstration
Project
•
International relations
•
National business
development
•
Support further expansion
to new projects
The Concept
Role of Erhvervshus Nord and Frederikshavn Port
To support the large pie
•
Logistic hub
•
Marshal Port
•
Foundation Group
•
Sea Cable Group
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The concept is demonstrated in practice within offshore wind via the implementation of Demonstration Project
Frederikshavn, where the project’s success criteria are being realised with visibly good results.
1. “Ready quayside 15 November 2015 – DKK XX mill. per MW”
2. “Frederikshavn as Marshalling Port for offshore wind”
3. “Two Korean companies established in Frederikshavn”
4. “The Concept is applied to the sale of 450 MW nearshore wind farms”
The scalable concept that is being implemented in a
straightforward manner and at high speed in Demon­
stration Project Frederikshavn, which is described in
more detail below, will realize the objectives that poli­
ticians, ministries, agencies, the wind industry and
pension funds have been calling for: ”Lower prices per
installed MW and job creation”.
The project exploits Region North Denmark’s skills, lo­
cation and the extension of the Port of Frederikshavn,
combined with excellent and well­established infra­
structure to/from Norway and Sweden via Color Line
and Stena Line and motorways to/from continental
Europe, with the objective being to encourage the wind
industry to establish final assembly and logistics hubs.
Working with major international enterprises involved
in an extensive array of energy sources (oil/gas, hydro­
power, wave power, biogas, etc.) and with major con­
struction tasks will enable business relationships to be
created and thereby opportunities to exploit the con­
cept, in which the line­up will be put together in a way
similar to that at Demonstration Project Frederikshavn.
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Demonstration project Frederikshavn
and
the European market for
offshore wind
Demonstration Project Frederikshavn (The Project) is
based on the development of up to six next­generation
multi­megawatt offshore wind turbines with related
foundations and sea cables. The Project and concept
for turnkey delivery of offshore wind farms will act
as the gateway to the huge market for offshore wind
power in the North Sea in immediate continuation of
the project in Frederikshavn. The Project provides the
participating parties, including interested Korean com­
panies, with the opportunity to promote skills, prod­
ucts, ability to supply and commitment to the growing
offshore market with respect to – amongst others – the
9 leading energy companies that control 75% of all UK
Round 3 projects, and to act as a partner on future
offshore tenders. The prerequisite for involvement is a
common interest in developing a best practice example
to the industry at unprecedented cost levels of 20­30%
below current levels.
FREDERIKSHAVN
4
0
GW offshore wind turbines
in Northern Europe by 2020
The political goal within the EU is to provide 40 GW of
offshore wind power by 2020. With only around 7 GW
provided to date, there is a huge potential of 33 GW by
2020, which corresponds to 5­6,000 wind turbines and
a total investment well in excess of 100 billion EUR.
Denmark is contributing to this positive development by
means of the proposed developments at Horns Rev 3
(400 MW), Kriegers Flak (600 MW) and 400 MW in near­
shore projects. The realisation of these goals will con­
tribute to the development of an energy source that re­
duces CO
2
for the benefit of the environment, and which
will ensure Europe’s energy security and independence
from the politically driven gas and oil supplies. At the
same time, there is increasing political pressure to re­
duce costs by a considerable amount in the industry in
order to ensure that offshore wind power is competitive
in relation to fossil fuels.
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Industrialisation and increased competition
will boost
the competitiveness of
offshore wind power
Leading industrial players such as DONG Energy Wind
Power, MHI Vestas Offshore Wind and Siemens Wind
Power are targeting cost reductions of 30­50% in rela­
tion to current levels.
Reductions of this magnitude have proved to be very
difficult to achieve when based on current technolo­
gy. Wind turbine manufacturers such as Siemens and
Vestas have therefore begun to focus on developing
the wind turbines of the future in which capacity is in­
creased to 8­10 MW per wind turbine (as opposed to
today’s preferred wind turbine capacity of 3.6 MW). This
will result in more efficient high­performance wind tur­
bines, which will in turn have considerable impact on
the so­called Levelized Cost of Energy. Similarly, con­
siderable savings have to be found on the Balance of
Plant (BoP) components – including foundations, sub­
stations, cables and installation. At present, the turbine
represents approx. 40­45% of CAPEX, whereas the
foundation represents approx. 20­30%. Due to the fact
that wind turbines will increase in size and capacity,
and offshore projects will be located in deeper water
(up to 50 m against approx. 20 m today) further from
the shore (30 km today as opposed to more than 200
km in the future), current BoP component technology
will have great difficulty in realising significant cost
cuts. There is therefore a pressing need for smarter and
cheaper methods of developing offshore wind projects
– innovation and greater competition are both ways of
ensuring this.
Technologies of the future
and
innovative concepts
are being tested in Frederikshavn
Demonstration Project Frederikshavn is all about test­
ing the technology of tomorrow and using an innova­
tive method of collaboration to bring a new concept for
turnkey delivery of offshore wind farms to the market,
whereby suppliers of approx. 85­90% of the wind farm
(turbines, foundations, sea cables and installation) will
see significant reductions in construction price. The
Visible short­term result hereof will be the up to six off­
shore wind turbines on the approved site in the waters
off the coast of Frederikshavn.
The Project is unique in a European perspective, as it is
currently the only approved site without performance
limitations and with broad local political support. This
will enable new technology to be trialled as early as
2015/2016, resulting in lifetime costs for offshore wind
power being reduced by 30­50% and being done so pri­
or to the development of the 1,400 MW wind farms at
Horns Rev 3, Kriegers Flak and nearshore projects by
2020, thus underpinning Denmark’s energy vision. In
addition, it will pave the way for the provision of tech­
nology for 33,000 MW in the North Sea, where Frede­
rikshavn is aiming to act as a manufacturing base and
discharge port for the entire supply chain.
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Frederikshavn as
marshal port
The Port of Frederikshavn is perfectly located at close
proximity to major offshore wind developments in Den­
mark, Germany and the UK. Furthermore, the strategic
location also makes it of interest to the oil and gas indu­
stry. The Port of Frederikshavn is a municipally­owned
limited liability company with a healthy and robust fi­
nancial status. The port has a strong interest in carrying
out Demonstration Project Frederikshavn, since this ac­
tivity can accelerate the phases of the port’s expansion
for the benefit of all companies at the port. Key areas of
interest include:
Marshal Port wind energy activities:
Logistics hub, where wind energy components (blades,
nacelles, towers, foundations, sea cables, etc.) are recei­
ved, stored, reloaded and distributed to sites to be in­
stalled.
Final assembly hub, where wind energy components un­
dergo preparation, “final assembly” and accommodation.
Installation and service hub, where the wind energy in­
dustry – in collaboration with local and regional busines­
ses – delivers installation and service concepts to sites
as alternatives to already existing hubs.
The Port of Frederikshavn is preparing the tender for
expansion of the port of the order of DKK 600­700 milli­
on this autumn. With the municipal authority as its ow­
ner, it goes without saying that the Port of Frederikshavn
has an interest in terms of jobs and the positive spill­
over effect on the local community that will result from
higher levels of activity within the offshore wind power
sector. The expansion of the port will meet the require­
ments of the offshore wind power sector such that fa­
vourable establishment conditions can be offered with
long­term perspectives.
Future
potential
The Project is set to be a best practice example for deli­
very of a turnkey model for offshore wind farms based
on the strong involvement of local, national and inter­
national stakeholders. The Project is perfectly timed
in advance of the major offshore wind projects in the
North Sea set to go forward from 2017 onwards.
The lessons learned from the Project and the innovative
cooperation model can easily be transferred to inter­
national offshore markets, including – but not limited
to – the USA, Japan and Korea to develop sustainable
offshore wind energy based on best practice experience
from Frederikshavn and the North Sea project zones.
The concept holds the potential to be easily duplicated
to other major energy infrastructure projects, including
biogas, solar, tidal and wave energy. The resulting po­
tential is huge!
Building on strong
Korean relations
Building on the strong relation to and support of KOTRA
Denmark and Invest in Denmark the Concept has alrea­
dy produced a supply chain consortium for deliveries of
onshore and offshore cables in Denmark and Norway
including Daewoo International Corporation, Taihan Ele­
ctric Wire Co., Kühne + Nagel and Delpro Wind. Efforts
are made to form similar supply chain consortiums re­
garding foundation fabrication. The Project will provide
Korean participants with a stepping stone along with
Danish partners to a growing European offshore wind
industry with limited risk and high exposure towards
key industry stakeholders, including leading European
utilities and developers. Successful participation will be
the first step towards a potential market of 33 GW!
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The Concept with job
creation
and
accumulation of knowledge
The technical, economic and organizational capabili­
ties of major consortia are necessary in order to carry
out Danish nearshore and offshore projects. Technical
requirements and forms of procurement do not allow
small and medium­sized businesses in the selected ar­
eas to be involved until the winners of the projects have
been identified. Recommendations have been made to
the Danish Energy Agency that the award criteria should
include the criteria below, such that weighting/grading
takes into account innovative solutions that maintain
the primary objective of ”Job creation and lower price
per MW”, as well as the ability to involve local authori­
ties and their subsidiaries (port, utility supply, business
development, etc.) without any risks to the public enter­
prises concerned.
• Price
• Organization
• Creation of added value locally and regionally
The concept that is to be demonstrated in Frederik­
shavn will be rolled out on nearshore projects in which
the Concept’s primary objective is guaranteed by the
participating municipal authorities and MHI Vestas and
Universal Foundation respectively. The Concept can
give Denmark a leading position and guarantee approx.
7,000 – 8,000 full­time equivalents in connection with
planned and approved nearshore and offshore projects.
In collaboration with other nearshore municipal author­
ities, Frederikshavn will be leading the way through
the establishment of the marshalling port, production
of foundations and the sea cable logistics hub. The
nearshore projects can be implemented more quickly
than the Danish Energy Agency’s current timetable. The
creation of added value in the Concept is a catalogue
in which, through performance of the project, major in­
ternational enterprises can prove that they have lived
up to their promises, at the same time as which all
parties are able to earn money. A crucial factor is that
small and medium­sized businesses will benefit from
the fact that they will receive training in offshore re­
quirements (technology, organization, quality, etc.) from
the major enterprises, which thus act as locomotives.
This ensures the creation of jobs and accumulation of
knowledge which can be exploited by small and medi­
um­sized businesses in public invitations to tender, for
example with regard to so­called super hospitals, the
Fehmarnbelt Fixed Link and Danish Rail Network ten­
ders. Major tenders – both public and private – should
ideally lead to the creation of jobs – and not to losses
for banks or disappointed company owners and local
communities.
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