the strategic importance of offshore wind in the east...offshore renewable energy catapult...

www.orbisenergy.co.uk @orbisenergy /orbisenergy

The Strategic Importance of Offshore Wind in the East

Johnathan Reynolds5th July 2016


• Innovation & incubation centre for offshore renewable energy

• Technology transfer / acceleration

• Business and sector development

• Links to higher education research

• Access to funding and grants

• Conference and exhibition centre

• Hub for Offshore Renewables

OrbisEnergy – Who are we?


OrbisEnergy – Who are we?

• Conceived by industry

• Developed by public/private collaboration

• Owned by Suffolk County Council

• Capital investment from EEDA and EU Objective 2

• Managed by leading enterprise agency Nwes

• Specialist industry support from Nautilus Associates

• Public/Private – Delivery through partnership

OrbisEnergy Reception

Delegates enjoying the balcony facilities


TENANCY


Tenant Feedback

“Having a presence at OrbisEnergy has been integral in helping us secure planning permission for the £2.5 billion East Anglia ONE offshore windfarm project.” [SCOTTISH POWER RENEWABLES, JAN 2016]

“James Fisher Renewables has a bright future and being in OrbisEnergy is a part of it.” [JAMES FISHER & SONS PLC, JAN 2016]

“Fred. Olsen Windcarrier is situated in the heart of offshore wind in East Anglia at OrbisEnergy and co located with major players in the sector.” [FRED. OLSEN WINDCARRIER, JAN 2016]


Tenant Feedback

7.5 years and we’ve seen a lot…

• 95% occupied, supported 130+ tenants, creating 700+ new jobs in the local area

• Growth from a early concept to attracting $1bn investment

• Tenant Mergers and Acquisitions

• New multi-tenant joint venture spin-outs

• Award winning start-up companies

• Move in, grow, move out into purpose built accommodation within 6 months

• Anchor tenants moving in and rapidly becoming significant local employers

Seajacks UK –OrbisEnergy Graduate Tenant

Windcat Workboats –OrbisEnergy Graduate Tenant


INDUSTRY NETWORKING


CONFERENCING


Innovation / R&D

• Developing Technology and Innovation Networkfocussed on the Southern North Sea.

• Building strong delivery focussed partnership with the Offshore Renewable Energy Catapult

• Developing a world class partnership consisting of Universities, Research and Innovation organisations.

• Influencing New Anglia LEP’s Innovation Strategy

• Delivered, as UK partner, the FP7 €3m EU funded ‘ECOWindS’ programme. Currently scoping new ideas.


Industry Trends…

• ECOWindS – 3yr European funded collaborative R&D project between South Denmark, East of England, North-West Germany and Norway.

• Focussing on cost reduction through improving the innovation capacity of the European offshore wind servicing sector.

• Generating and validating innovation and research needs over the next 10-20 years.

www.ecowinds.eu


International Relationships

• Building strategic links with key global offshore wind markets

• MOUs signed with Massachusetts and Germany; widerengagement with New York

• EU research programme with Germany, Norway andDenmark

• Project scoping with France

• Relationship building with China and South Korea

• Strong links with Holland and Belgium


SCORE Innovation Grant

• £6 million grant investment supporting

business to develop new and innovative technologies in offshore renewables

• Grants up to £50,000 (or 40%) are available to support the development of new products, processes and ideas.

• Simple process!

• Technical expertise and support available


Case Study: Le Mark /Dirty Rigger

• £8,000 was awarded to enable the launch of its new range of heavy duty gloves, designed specifically to meet the demanding needs of workers in the offshore industry

• OrbisEnergy brokered regional businesses to test the gloves offshore to help refine the final design.

• Le Mark now undertaking global marketing campaign, led from the East!


Case Study: Norcom Technology

• £20,000 grant to enable Norcom, which develops software and hardware for navigation and hydrographic survey systems

• eChart Service will be the most advanced seabed map ever created for the North Sea.

• The service will show the precise location of all the current wind farms and proposed future developments, as well as including data pinpointing the staggering 20,000 wrecks on the region’s seabed.


Case Study: GreenSpur Renewables

• Working with Cambridge University, GreenSpur is developing a new Permanent Magnet Generator design, mitigating the need for rare-earth metals such as NeoDymium

• The £50k grant will develop a demonstration prototype, fully modelled by the University and develop projections for full scale performance and manufacturing costings.


Pro

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The Wind is in the East!

• A huge, and growing, part UK’s energy mix

• A major part of the UK’s industrial landscape

• We have created 10,000’s of new jobs

• We are creating 10,000’s more with new projects

• Investing £billions in developing new infrastructure

• Average UK content is 43% and rising!

• One of the largest economic opportunities for the East!


Strategic & Political Drivers…

• European 2020 energy & climate change targets• 20% energy from renewables across EU

• Reduction in carbon emissions of more than 20%

• 2030 decarbonisation targets? EU Energy Union?

• Post-Paris Global Climate Change Agreement – next steps?

• UK energy policy • delivering secure, affordable, low carbon energy

• 15% primary energy from renewables by 2020

• Increasing UK content in energy projects, whilst reducing costs

• Regional Strategy• Energy recognised as a major strategic growth sector

• New Anglia LEP Green Economy Pathfinder – Leading the Way


29%

22%8%

31%

9%1%

2020

Gas Coal Nuclear

Renewables Other sources Oil

Energy Policy on a slide…

26%

36%

20%

15%

2% 1%

Today

Gas Coal Nuclear

Renewables Other sources Oil

Source: DECC


Energy… the last 24 hours…

48%

4%

29%

4%

1%5%

2.50% 5.00%

Gas

Coal

Nuclear

Wind

Hydro

French Interconnector

Dutch Interconnector

Other

Source: ELEXON

6am, 5th July 2016


What a difference a year makes…

Source: Cornwall Energy

ENER

GY

PR

ICES


Crude oil price forecast

0

20

40

60

80

100

120

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

IMF oil price forecast ($/bl)

Economist price forecast ($/bl)

World Bank oil price forecast ($/bl)

Source: Nautilus Associates 2016, data from the World Bank, IMF and Economisthttp://www.worldbank.org/content/dam/Worldbank/GEP/GEPcommodities/PriceForecast_20150126.pdfhttp://www.imf.org/external/np/res/commod/index.aspxhttp://gfs.eiu.com/Article.aspx?articleType=cf&articleId=1513860135&secId=0

http://www.worldbank.org/content/dam/Worldbank/GEP/GEPcommodities/PriceForecast_20150126.pdf

http://www.imf.org/external/np/res/commod/index.aspx


Gas price forecast

Source: Nautilus Associates 2016, data from the World Bank and IMFhttp://www.worldbank.org/content/dam/Worldbank/GEP/GEPcommodities/PriceForecast_20150126.pdfhttp://www.imf.org/external/np/res/commod/index.aspx

0

2

4

6

8

10

12

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

World Bank gas price forecast ($/mm btu)

IMF bas price forecast ($/mm btu)

http://www.worldbank.org/content/dam/Worldbank/GEP/GEPcommodities/PriceForecast_20150422.pdf

http://www.imf.org/external/np/res/commod/index.aspx


Capital Investment Forecasts to 2020Source: Nautilus Associates / 4C Offshore

The East£13.1bn

United Kingdom

£83bn 604 Projects

Additional

£28bnRegionalinvestmentup to 2030


Size of the opportunity – towards 2020

East Anglia region

Source: Nautilus Associates / 4C Offshore 2016

£3.7bn

£5bn

£3.3bn

£2.5bn

£1.9bn

Offshore Wind

Offshore Oil & Gas

Oil & Gas Decom.

Gas

Biomass

Onshore Wind

Solar

£3bn

£5bn

£2bn

£1.8bn


Offshore Wind

Nuclear

Oil and Gas

CCS/CCGT

Oil and Gas Decom.

Solar

Onshore Wind

Additional opportunities – 2020 to 2030

East Anglia region

Source: Nautilus Associates / 4C Offshore 2016

£7bn

£12bn£3bn

£2bn

£3bn


Scroby Sands30 x 2 MW turbines60 MW Capacity

East Anglia’s 1st Offshore Wind Farm


Greater Gabbard140 x 3.6 MW turbines504 MW Capacity

World’s 3rd largest windfarm!


World’s largest operating windfarm!

London Array175 x 3.6 MW turbines630 MW Capacity


63%of UK’s installed capacity is off the East Anglian Coast!

The UK has more operational offshore wind farms than the Rest of the World combined!


Size of the Market


Dudgeon67 x 6 MW turbines402 MW Capacity


East Anglia ONE102 x 7 MW turbines714 MW Capacity

East Anglia THREE172 x 7 MW turbines1,200 MW Capacity

East Anglia ONE NORTH800 MW Capacity

East Anglia TWO800 MW Capacity

Pic

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: We

ste

rmo

stR

ou

gh O

ffsh

ore

Win

d F

arm


Galloper56 x 6 MW turbines336 MW Capacity


Norfolk Vanguard1,800 MW Capacity

Norfolk Boreas1,800 MW Capacity


Pro

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to M

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the strategic importance of offshore wind in the east...offshore renewable energy catapult...

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