New Bedford port terminal to support offshore wind installation

New Bedford, Massachusetts has been chosen as the location for a new multi-purpose marine commerce terminal to be used by Cape Wind Associates for its first-in-the-nation offshore wind farm in Nantucket Sound.

To be built in the port of New Bedford, the terminal will support the delivery, assembly, and installation of offshore wind turbines, as well as shipping and other commercial activities.

The project is still in the engineering and design phase, but the cost of construction is estimated at US$35 million and is expected to be financed by state, federal, and city resources. A consortium of state and local agencies will operate the terminal.

The terminal will consist of a 1,200 linear foot bulkhead with deepwater access and roughly 20 acres of surface space. This terminal will initially be used as a support facility for Cape Wind and its turbine supplier, Siemens, to build the first offshore wind project. The 21-acre terminal will accommodate the docking of vessels that deliver wind turbine parts as well as barges to transport components from port to the installation area, in addition to lay down space.

Such a terminal is expected to enhance Massachusetts’ position as the “first mover” in offshore wind, with a port facility ideally suited to offshore wind, and located in proximity to other areas far off the coastline that are under consideration for future wind installations.

The Massachusetts Clean Energy Centre has commissioned a transmission study outlining methods for connecting multiple offshore wind projects to the onshore power grid.

The federal government is commencing a leasing process for federal waters farther from the coast of Massachusetts and all along the Atlantic Coast, which could lead to dozens of offshore wind projects, many of which could make use of this terminal.

Vattenfall to be responsible for construction of DanTysk project

Swedish state-owned utility Vattenfall has disclosed that its DanTysk offshore wind farm will entail investment of over €1 billion.

The North Sea wind farm will be situated roughly 70 kilometres to the west of the German island of Sylt.

The 288 MW project is being and implemented as a joint venture by Vattenfall and Stadtwerke München (SWM).

In the joint venture DanTysk Offshore Wind GmbH, Vattenfall has 51% and SWM 49% of the shares. Vattenfall will be responsible for construction, which will begin in 2012, and operation of the wind farm. The amount covers the development to completion at the end of 2013 to early 2014.

The DanTysk wind farm will consist of 80 wind turbines erected in an area of approximately 70 square kilometres in water that is up to 30 metres deep. Siemens will deliver the turbines, which will be commissioned in 2013.

Relevant authorities have approved the project and the preparations are in full swing. The first supplier contracts have been signed, and foundation construction and cable laying contracts are currently under negotiation. 

Offshore wind power to account for 8% of global wind power by 2015

The offshore wind market is expected to grow at a compound annual growth rate (CAGR) of 43% between 2010 and 2015 and account for approximately 8% of the global wind power market in 2015, according to Denmark’s MAKE Consulting.

2009 proved to be a fruitful year for the offshore industry with 620 MW installed, representing an annual growth of 80% compared to 2008. The cumulative installed base climbed above the 2 GW mark. 2010 is expected to almost double the annual installed capacity with several large projects coming online primarily in Northern Europe.

The majority of near-term development will primarily take place in Northern Europe. Offshore wind is expected to constitute around 20% of European wind power installation in 2015.

The global offshore project pipeline is rapidly expanding. The UK and Germany have extensive project pipelines accounting for around 65% of current known projects in Northern Europe.

Offshore activity in Asia is mainly driven by China, which is set to be the next large offshore market with South Korea in second place.

The first offshore wind project has yet to be installed in the Americas, where current development activity is limited to the U.S. and Canada. Earlier this month, US Interior Secretary Ken Salazar and Cape Wind Associates signed the nation’s first lease for commercial offshore wind energy development on the Outer Continental Shelf.

The lease authorises Cape Wind to construct the 130 turbine offshore wind farm on Horseshoe Shoal in Nantucket Sound, and to operate the facility for a period of 25 years. Last month, the U.S. Department of Energy unveiled a draft plan that calls for the US to install 54,000 MW of offshore wind power capacity by the year 2030, which would require more than 100 Cape Wind-sized projects.

According to MAKE Consulting, the expected growth in the offshore industry will result in increased pressure on the value chain. Foundations and vessels are likely to be in short supply as the industry takes off, and towers and blades may well pose a bottleneck for offshore WTGs in the 5+ MW class. Furthermore, infrastructure development is required to handle the increasing size of WTGs. Despite obstacles, the offshore market is gradually maturing as a result of improved offshore incentives, binding renewable energy targets, supply chain build-up, and increased experience.

Cost escalation on Greater Gabbard project to impact Fluor Q3 results 

Irving, Texas-based construction and engineering company Fluor has shared that its third quarter results will include a charge of approximately $163 million for estimated cost increases on the Greater Gabbard Offshore Wind Project.

The project experienced a variety of execution challenges, including material and equipment delivery issues, primarily relating to the installation of wind turbine generators and subsea cabling. Following an evaluation of third quarter events, the company has revised estimates to include substantial costs for additional marine vessels and other subcontractor costs associated with equipment installation, equipment repairs and the estimated schedule impact which has been exacerbated by weather-related delays.

The company, which was awarded a $1.8 billion fixed price contract in 2008, expects the project to be completed in early 2012.

To date, all 140 monopiles and tower transition pieces have been installed and 53 of 140 wind turbine generators are in place. Installation and commissioning of the remaining wind turbine generators, subsea inter-array cabling, and grid substations are expected to continue through the latter part of 2011.

Rhode Island Ocean SAMP completed

Rhode Island Governor Donald L. Carcieri has recognised the completion of First-in-the-Nation Ocean Special Area Management Plan (SAMP).

The Rhode Island Ocean SAMP, or Ocean SAMP is an attempt to provide a comprehensive understanding of the complex and rich ecosystem of the state’s offshore resources.

The plan will serve as a federally recognised coastal management and regulatory tool. Leading this project is the R.I. Coastal Resources Management Council (CRMC), the state’s coastal management agency.

Research projects undertaken by URI scientists will provide the essential scientific basis for Ocean SAMP policy development.

The plan will help determine the ideal locations for offshore wind projects in state and federal waters.

The SAMP lays out enforceable policies and recommendations to guide the CRMC in promoting a balanced and comprehensive ecosystem-based management approach for the development and protection of Rhode Island’s ocean-based resources within the Ocean SAMP study area. The Ocean SAMP will also dictate the location of the state’s offshore wind projects.

Maryland needs to overcome hurdles to rely on offshore wind power

Maryland must first overcome several economic and political hurdles if offshore wind power is to become a feasible part of its energy mix, according to a new study by the University of Maryland Centre for Integrative Environmental Research (CIER).

The study, “Maryland Offshore Wind Development, offshore wind development”, investigates four aspects of developing wind in waters of the coast of Maryland: the regulatory and policy environment for offshore wind development; optimal interconnection points for bringing offshore power onshore; estimated investment costs; and potential conflicts between research and military activities, and wind farm siting.

The study finds that offshore wind holds the potential to help Maryland meet both expected increases in electricity demand and renewable energy targets set by the legislature six years ago. Under these standards, one-fifth of the electricity sold in the state by 2022 must come from renewable sources.

However, according to the study, Maryland will have to address several hurdles to move forward. These include likely interference with the NASA Wallops radar installation, as well as military operations. For this, it is being highlighted that an attempt to collaborate with the U.S. military and other users could reconcile any conflicts - if the parties are willing to compromise.

Inadequate transmission facilities on Maryland’s Eastern Shore that would raise the cost of moving the energy produced to the utility grids is another issue that needs to be addressed. The report suggests that delivering energy produced by wind turbines in Maryland waters to the electric utility grid could be accomplished most economically in Delaware.

Previous studies found that connecting to the grid near Ocean City, Md. would cost an estimated 10 times more than at Bethany Beach, De. - about US$200 million vs. US$20 million. A difference of only 20 miles raises costs 10-fold, said co-investigator Andrew Blohm, a CIER researcher. While this does not prevent placement of offshore wind facilities in Maryland waters, it does complicate the interconnection process and may require a more regional approach to development, Blohm said.

The overall cost of developing and operating wind turbines in shallow or in deep waters off Maryland’s coast would be about the same - roughly US$1,850 per kilowatt, the study finds. Turbines in deeper waters may be better positioned to capture more wind energy, but transmission costs are higher, said co-investigator Yohan Shim, a CIER researcher. Ultimately, the study finds that either location would be about the same in terms of economic feasibility.

The study underlined that there are a number of limitations to fully understanding the potential conflicts between offshore wind development and mid-Atlantic operations. First, the impact of wind turbines on fixed radar is generally well understood. However, there is a need for additional information regarding the impact of wind turbines and mobile radar units. An examination of mobile radar interference and potential opportunities to mitigate impacts would be valuable to users of radar and wind power companies alike.

Vestas bags 128 MW order from SMUD

Vestas has received a 128 MW order from Sacramento, California-based community-owned electric utility Sacramento Municipal Utility District (SMUD) for the Solano 3 project in California.

The order is for 24 V90-3.0 MW and 31 V90-1.8 MW turbines.

The contract includes delivery and commissioning along with up to a 15-year service and maintenance agreement. Delivery is scheduled for the second half of 2011 and commissioning expected in early 2012.

Vestas’ manufacturing operations in Colorado will produce the main components for this order. All blades for the Solano 3 project will be produced at Vestas’ blade factory in Windsor, all tower sections will be manufactured at Vestas’ factory in Pueblo, the nacelles for the V90-1.8 MW turbines will be assembled at Vestas’ factory in Brighton, and the V90-3.0 MW nacelles will be assembled in Denmark.

Previously, Vestas supplied SMUD 23 V47-660 kW turbines for Solano 1 in 2005 and 29 V90-3.0 MW turbines for Solano 2 in 2007, which was the first project in North America to use V90-3.0 MW turbines.

Bristow targets offshore wind power market

Helicopter transportation services provider Bristow Group plans to be the first company to offer a dedicated service for the global offshore wind-power industry. The company has made an entry into the renewable energy market.

As per the information available, the company plans to work closely with wind turbine manufacturers and wind farm operators to ensure helicopter access is considered when designing and operating turbines and substations.

Bristow would be providing crew-change flights as well as freight transport, aerial reconnaissance and rescue facilities.

REpower announces preliminary half-year results

REpower Systems AG has announced that it generated total performance of  €515.2 million and recorded a turnover of €499 million according to provisional calculations. These figures correspond to a decline of around 16.5% and 18.2% respectively compared to the same period of the previous year (total performance: €617mn, turnover: €609.7mn).

In contrast, earnings before interest and taxes (EBIT) improved from  €31.3 million to €34.3 million. The order volume also increased by 61.3% to €2.58 billion.

During today’s Annual General Meeting in Hamburg, REpower's shareholders will, among other things, vote on a dividend payment of €1.57 per share and on the transformation of REpower to a European Company (Societas Europaea, SE). 

At the end of September 2010, REpower's order backlog shows a contractually assured order volume of €2.58 billion compared to EUR 1.6 billion at the previous year’s record date. This corresponds to an increase by 61.3%. Accordingly, the order backlog increased from 1,307 MW (592 wind turbines) to 2,254 MW (864 wind turbines).

The company's final half year results and the complete six months’ report are shceduled to be published November 12, 2010.