Transcript Document
Scandia Wind Offshore
Offshore Lake Michigan:
Feasibility Study for the Aegir Project
Scandia Wind Offshore’s consultant consortium
Stoel Rives
EMD International A/S
Legal
Technical feasibility study
Hoffman Brobst
Finance proformas,
project audit
Havgul Clean Energy
Project development
Michigan public
agencies
Permitting, approvals,
environmental data
Natural Resource
Group
Environtmental and
permitting consultant
RnR Engineering
Grid consultant
Havgul’s experience
• Andmyran wind park, 160 MW
• The Havsul project, 1500 MW
• Kvitfjell, 200 MW
• Siragrunnen, 200 MW
• Havøygavlen, 40 MW
Havgul’s Siragrunnen project, 200 MW
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Very good wind conditions
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Favorable water depths
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Favorable sea bed conditions
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Proximity to shore
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Proximity to existing grid
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Proximity to export cables to the
continent
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Large hydro power facilities in the region
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Regional power deficit
Siragrunnen Wind farm
Key numbers:
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200 MW
3 - 8 MW turbines
25 - 67 number of turbines
90 - 140 metres hub height
App 40 km2
Ca 670 GWh yearly production
Total cost estimate: $680 million
App 700 job – years in the
construction phase
*The Havsul project, 1500 MW
Km2
Inst. Effekt in MW
No of turbines
Produkction in TWh per year
Havsul I
Havsul II
Havsul IV
Totalt
49
350
78
1.0
122
800
178
2.2
37
350
78
1.0
208
1.500
334
4,2
Havsul I, Gamlemsveten 8 MW
Havsul projects: Extensive studies performed
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19 EIS subjects studied, including:
– Bird studies
– Under water biology studies
– Wild life studies
– Flora and fauna studies
– Social economic studies
– Cultural heritage studies
– Ship navigation, drifting, search and rescue
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Extensive technical studies
– Wind measurements
– Water depth measurements
– Sea bed analysis
– Cost analysis
– Grid analysis
Offshore turbine installation
Offshore foundations
Concrete Foundation History
Turbine Foundation Themes
Concrete Foundation Features
*A 1,000 Megawatt wind
farm would require
(approximately):
o 1 million tons of
concrete
o 200,000 tons of
steel
o 2 million manhours of labor for
foundations
o Foundation
Production Cost:
>$200 million
www.viciventus.no
Deepwater Jacket Foundation: the Owec
Tower solution
www.owectower.no
Large Turbine Technology
Clipper 10 MW
Clipper 7.5 MW
REpower 5 MW
Germany: hard push for offshore wind power
Germany: successful business Hub, a case study
Support for Michigan’s offshore wind energy
production is growing…an opportunity for
Mason and Oceana counties?
Objective
To develop a 1,000 MW offshore wind farm in Lake
Michigan
Why
• Strong political drivers towards offshore
• Many studies are being performed
• Few developers active today in Lake Michigan
• Possibly faster time-to-market vs. onshore due to fewer land lease issues
• Other than land, more or less the same issues as onshore
Table of Contents
• Track record
• Equipment
• Feasibility study
• Defined suitable areas
• Wind conditions
• Grid conditions
• Compensation models
•The Way Forward
Feasibility study
• Grid study:
o Estimate interconnection and transmission capacities, i.e. define wind farm size
o Define interconnection points
o Describe interconnection application processes
• Sea conditions:
o Accurate electronic sea maps
o Sea bed conditions
o Wave heights
•Wind assessment study:
o Micrositing
o Production calculations
o Preliminary visualizations
•Turbine foundations
o Technical design
o Production methods and facilities
o Site identifications for production and installation
o Installation methodology
o Job creation
• EIS screening study:
o List all studies to be conducted above water
o List all studies to be conducted below water
o Permit execution
•Secure area control, describe the process:
o Where to apply
o How to apply
o All legal contracts and approvals: aviation, defense, ship traffic, etc
•First draft progress plan
Aegir land-based stakeholder area
The Aegir project sketch, approximately 1,000 MW
3.7 miles
App
100 sq
miles
Ludington Pumped Storage Plant
Ludington Pump Storage Plant Diagram
Wind speeds on Lake Michigan
Wind Quality and Load
Centers in the U.S.
Michigan is situated near three
large load centers
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Blue - high wind potential
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Brown - large demand
centers
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Green - little wind and smaller
demand centers.
MISO Transmission Capacity
Southwest of
Ludington
Michigan Great Lakes Offshore Wind Council
(GLOW) -- Suggestions for focus points
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Define how much wind power the State wants -- onshore and offshore -- based
upon State goals for renewables and emissions reductions
Legislation
Wind measurements, different procedure
Define standard EIS procedures based upon the 22 criteria
Set the criteria where possible
Create an overview outlining all agencies with wind farm approval impact
Create an overview detailing all stakeholders in Michigan, and advise regarding
“best practice” information collection and distribution
Grid
• how to influence the grid solutions
• Financial models
Support schemes for offshore wind farms
Compensation models
Direct Compensation:
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Deliver local revenue – an amount that is meaningful to the regional stakeholders via an
annual payment; likely a per megawatt-based formula -- a fixed amount to a Community
Trust; or a royalty payment based on production (or a combination thereof)
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A royalty payment to the State of Michigan – a lease payment and/or royalty payment based
on production
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Target an amount that maximizes stakeholder participation while maintaining an attractive
rate of return for the project’s institutional investors/owners
Indirect Compensation:
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Job creation during construction and after commissioned (operations and maintenance)
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OEM facilities/operations; maintain project size and scope – a large project could attract
industry supply-chain, more jobs
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Regional power plant fleet is aging; replace and support growth in power consumption, while
addressing Michigan’s Renewable Portfolio Standard
To-do
list
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Schedule additional Public Information meetings in Mason and Oceana counties
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Continue to meet with stakeholders
Continue discussions with Consumers Energy and DTE Energy
Partner with riparian owner, submit joint lease application to the State
Documentation process – studies, permits and approvals
Technical engineering
The Way Forward
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Emphasis on Feasibility Study stage in process, no decisions yet
Local support is critical, no way forward without it
Wind Farm size and shape to be determined by gathering input from all
stakeholders as well as engineering considerations
“Give and Take” acknowledgement by all stakeholders