Energizing Cleveland with Offshore Wind: An Update … Fabrication + Installation Costs ... Energizing Cleveland with Offshore Wind ... 3rd party resulting in final selection

Energizing Cleveland with Offshore Wind: An Update on

the Icebreaker Project

Hosted by

Val Stori, Clean Energy Group

May 4, 2016

Northeast Wind Resource Center Webinar

Housekeeping

About WINDExchange

WINDExchange is the U.S. Department of Energy (DOE) Wind Program's platform for disseminating credible information about wind energy. The purpose of WINDExchange is to help communities weigh the benefits and costs of wind energy, understand the deployment process, and make wind development decisions supported by the best available information.

On March 11, 2014, the U.S. Department of Energy (DOE) announced six Wind Energy Regional Resource Centers that were selected through a competitive process administered by the National Renewable Energy Laboratory (NREL).

The Northeast Wind Resource Center

The Northeast Wind Resource Center (NWRC) is the regional epicenter for salient, unbiased information on land-based and offshore wind energy in the Northeastern United States. Published research, studies, and analyses associated with the issues impacting public acceptance of wind deployment are available in the NWRC Resource Library.

The NWRC is supported in part by a grant from the US Department of Energy, and is managed by Clean Energy Group and Sustainable Energy Advantage. The Maine Ocean & Wind Industry Initiative serves as key liaison to the wind industry.

www.northeastwindcenter.org

Today’s Guest Speakers

• Dr. Lorry Wagner, President, LEEDCo

• Kristian Jacobsen, Head of Business Development, Universal Foundation

Great Moments are Bornfrom Great Opportunity

This is Our Time,Innovate to Generate

A non-profit, public private partnership created to build an offshore wind power industry in Lake Erie

1. Create jobs and economic prosperity

2. Generate “locally grown” clean energy

A non-profit, public private partnership created to build an offshore wind power industry in Lake Erie

1. Create jobs and economic prosperity

2. Generate “locally grown” clean energy

The City of Cleveland

The City of Avon Lake

The City of Euclid

The City of Lakewood

The Village of Bratenahl

The City of Lorain

Lakefront Communities

Environmental Organizations

Ohio Environmental Council

The Sierra Club

Environment Ohio

Mom’s Clean Air Force

Earth Day Coalition

Organized Labor

International Brotherhood of Electrical Workers

International Order of Masters, Mates, and Pilots

Pipe Fitters Local 120

IN-KY-OH Regional Council of Carpenters

Building Laborers Local 310

A non-profit, public private partnership created to build an offshore wind power industry in Lake Erie

1. Create jobs and economic prosperity

2. Generate “locally grown” clean energy

The City of Cleveland

The City of Avon Lake

The City of Euclid

The City of Lakewood

The Village of Bratenahl

The City of Lorain

Lakefront Communities

Environmental Organizations

Ohio Environmental Council

The Sierra Club

Environment Ohio

Mom’s Clean Air Force

Earth Day Coalition

Organized Labor

International Brotherhood of Electrical Workers

International Order of Masters, Mates, and Pilots

Pipe Fitters Local 120

IN-KY-OH Regional Council of Carpenters

Building Laborers Local 310

Senator Brown (D)

Senator Portman (R)

Rep. Kaptur (D)

Rep. Joyce (R)

Rep. Fudge (D)

Rep. Ryan (D)

Ohio

Pennsylvania

Kathy Dahlkemper – Erie Co. Exec., Former Rep. (D)

Senator Wiley (D)

Rep. Kelly (D)

Rep. Thompson (R)

Other

Betty Sutton – St. Lawrence Seaway Director,

Former Ohio Rep. (D)

Cleveland Mayor Frank Jackson (I)

Ohio Governor John Kasich (R)

4 Ohio Lakefront County Commissioners (D&R)

Stakeholder Engagement

General Public

Organized Labor

in Last 3 Years200

Public Engagements

Since 2006

375+

Lakefront Property Owners

Lakefront Communities

Supply Chain

Regulatory Officials

Wind Industry

Business Community

Environmental Groups

Elected Officials

Civic Organizations Universities/Schools

Water-Use Organizations

92%Support the Project

60%Signed the Pledge

7,931Pledges Collected

$12.72Average Pledge

“I pledge to buy a portion ofmy electricity from theGreat Lakes’ first offshorewind project. I want thispremium source ofelectricity and would bewilling to pay an additional$________ per month.”

The Power Pledge15,000+ Homes Visited – 92% Support Icebreaker

Icebreaker Updates

• Location Moved 1 Mile Farther Out

• 2nd Geotechnical Campaign Completed

• A New Foundation: Quiet & Gentle

• PPA for 65% by April 25, 2016

• PJM Interconnect Agreement Complete

• Fred. Olsen Investment

• Aquatic Species Studies Commissioned

Project Icebreaker

Sensitive area no longer occupied

Original lease block -reference only

Geotech Site InvestigationGeotechnical Campaign August 2015

• 7 Sites• 17 CPT Soundings• 10 Boreholes• 6 Surficial Samples• 272 Lab Tests

Partners & Participants

Ohio Geological Survey Fred. OlsenCoastal Zone Management DOSECCState Historic Preservation Office GardlineDonjon Marine USCGMcNeilan & Assoc. USACE

Icebreaker

• No System Impacts

• No System Upgrades

• Signed July 12, 2015

Icebreaker PPA Status

• 65% Power Committed

• Signed PPA by April 25, 2016

• Credit-worthy counterparty

• Actively engaged for the remaining 35%

Icebreaker Permitting Progress

State of Ohio

Kickoff, April 13

Aquatic Species, May 1 in water

Balance during 2016

Federal – U.S. Army Corps

Kickoff, April 2016

Balance during 2016

Turbine Installation Partner

Mono Bucketby Universal Foundation

Mono Bucket in ActionThe No Noise, No Disturbance Foundation

Mono Bucket in the AtlanticRight Whales Survey - Fins Up!

OSW Area

Water Depth WTG Soil Profile

Mono Bucket Monopile Jacket

VA/MD/NJ

25 3 MW1 (loose Sand)

$1,938 $1,840

2 (soft Clay) $2,274 $2,387

6 MW 1 (loose sand) $2,996 $3,439 $4,599

2 (soft Clay) $3,166 $3,769 $4,512

RI/MA 50 6 MW 1 (loose sand) $3,675 $5,692

3 (stiff Clay) $3,257 $5,522

Comparative Fabrication + Installation Costs (in thousands of USD)

Thank You! Spin Long & Prosper

Lorry Wagner, [email protected]

216-965-0615

A Game Changer in Offshore Wind Foundations

- silently reducing costs

Energizing Cleveland with Offshore Wind

GoToWebinar by Clean Energy Group

4 May 2016

Offshore installation Ships (2)

Service boats (8)

550 technicians, supervisors

and PMs

Offshore sub- and topside structures

Offshore marshaling site

Project development activities since 1996

20 years of experience and

1,500 employees in Renewable Energy

Experience from more than

2,000 suction buckets installed world-wide!

Universal Foundation - Suction installation process

1. The suction pump unit is attached to the foundation

2. The foundation is lowered to the seabed

3. Deadweight and gravity ensures self-penetration into the seabed

4. The pump unit enables under-pressure inside the bucket and a water-pulse

alongside the skirt tip ensure local seabed liquefaction – the combination ensures

soil penetration

5. Verticality is controlled to reach required inclination tolerance (+/- 0,25 degrees -

+/- 0,1 degrees achieved in real life average so far)

6. The suction pump unit is recovered

Project execution track record (key projects only)

KEY ACHIEVEMENTS

WTG load testing and monitoring

Comprehensive data collection

Most researched foundation in the business

Floating installation concept proven

Integrated scour protection system validated

2015 proved full decommissioning capability

Delivery of a full EPCI solution

Installation at a UK R3 “true offshore site”

Foundations already hit by 50year design wave (20m)

Tests at Dudgeon, Dogger Bank and Hornsea

Data collection through 29 installations

De-risking and confirmation of design parameters

Early market engagement

Detailed design of 6 foundations

TIMELINE

2002 –

still operational

2009 – 2015

2013 –

still operational

Sep. 2014–

results are

being analyzed

Mid. 2015-

PROJECT NAME

FREDERIKSHAVN (DK)

UF supporting a Vestas V90

3MW WTG

HORNS REV 2 (DK)

Foundation supporting a met

mast

DOGGER BANK (UK)

Foundations supporting two

met. masts

TRIAL INSTALLATION (UK)

Installations to test soil

sensitivity and verify design

parameters

ICEBreaker – Lake Eire (US)

Detailed design ongoing

Universal Foundation

- Frederikshavn, Denmark, 2002-still operational

Project reference: Frederikshavn – Denmark - 2002 – Vestas V90 3.0MW turbine

Bucket diameter 12m, height 6m, weight 135t

Project reference: Horns Rev 2 – Denmark - 2009– Met Mast for biggest wind farm in Denmark

Bucket diameter 12m, height 6m, weight 165t

Universal Foundation

- Horns Rev 2 – Denmark – 2009-2015

…And continue to prove the cradle to grave approach…

Horns Rev 2 decommissioning

One met mast fully recovered

Operational since 2009

Removed July 2015

Source: DBB Jack-Up

Project reference: Dogger Bank 2013 – 2 met masts for the largest UK Round 3 project (7.4GW)

Bucket diameter 15m, height 7.5m, weight 350t

Universal Foundation

- Dogger Bank, United Kingdom, 2013-still operational

Universal Foundation

- Dogger Bank, United Kingdom, 2013-still operational

Noise-free installation process

Fish and other marine habitat undisturbed during installation

Trial Installation, United Kingdom– de-risking installation and optimizing design

29 installations performed in 24 days…

… resulting in a unique soil data base in

offshore wind!

UF continue on planned path towards commercialization

Commercial scale projects

First contract for commercial wind farm at

Lake Eire in the US

12 months of comprehensive due diligence work by

3rd party resulting in final selection

Installation targeted to 2018

The project commitment builds on an already strong

Fred. Olsen market presence in the US

Source: Recharge, June 2015

LEEDCo ICEBreaker– Why the Lakes?

Shallow water across Lake Erie

Massive wind resource

Ambitious target to deploy 5GW offshore wind

High public support towards the project

Local supply chain available

Is foundation innovation the way forward to

reduce LCoE by 30% in offshore wind?

Source: BVG Associates

Monopile UF Mono Bucket

1. Multiple lifts - multiple vessels 1. One lift – one vessel

2. Upending tools 2. Suction pump unit

3. Pile hammer 6-800 kEUR/month

4. Pile gripper

5. Marine growth removal

6. Grout spread + curing temp./time

7. Noise mitigation 2-300 kEUR/unit

8. Scour protection (another vessel)

9. Shimming plates

10. Flange correction tool

Translating to cost savings of >30% in installation

INSTALLATION

Fast and Simple installation is key to success!

Going from a complex marine spread…

Going from a complex marine spread…

Source: IHC

Going from a complex marine spread…

… And the 160db problem…– cost out of 20mEUR according to Vattenfall

Source: Vattenfall

… to one foundation, one vessel and one suction unit…

and noise free installation!

Installation Equipment Spread

on Brave Tern for Dogger Bank

Click on Unit + transport frame

Lifting yoke

Control room

Universal Foundation – A Fred. Olsen related company

Universal Foundation

- A hybrid design

Design verified up to 55 m.w.d. with up to 8MW WTG

Suitable for a wide range of soil profiles

Modular design, utilising existing supply chain

25% less steel than comparable monopile

No grouted connections - integrated transition piece

No seabed preparations, integral scour prevention

Single-lift or self-floating installation

Noise free installation – self-levelling

Completely removable

A solid foundation to REDUCE LCoE

The offshore inhabitants are already convinced…

Source: Hamburger Abendblatt, November 2014

Thank you for attending our webinar

Val Stori Clean Energy Group/

Northeast Wind Resource Center [email protected]

Northeast Wind Resource Center: www.northeastwindcenter.org

DOE Wind Exchange: http://energy.gov/eere/wind/windexchange