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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 • Very good wind conditions • Favorable water depths • Favorable sea bed conditions • Proximity to shore • Proximity to existing grid • Proximity to export cables to the continent • Large hydro power facilities in the region • Regional power deficit Siragrunnen Wind farm Key numbers: • • • • • • • • 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 • 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 • 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 • Blue - high wind potential • Brown - large demand centers • Green - little wind and smaller demand centers. MISO Transmission Capacity Southwest of Ludington Michigan Great Lakes Offshore Wind Council (GLOW) -- Suggestions for focus points • • • • • • • • • 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: • 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) • A royalty payment to the State of Michigan – a lease payment and/or royalty payment based on production • Target an amount that maximizes stakeholder participation while maintaining an attractive rate of return for the project’s institutional investors/owners Indirect Compensation: • Job creation during construction and after commissioned (operations and maintenance) • OEM facilities/operations; maintain project size and scope – a large project could attract industry supply-chain, more jobs • Regional power plant fleet is aging; replace and support growth in power consumption, while addressing Michigan’s Renewable Portfolio Standard To-do list • Schedule additional Public Information meetings in Mason and Oceana counties • • • • • 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 • • • • 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