Presentation from the Supply Chain Opportunities in the Onshore and Offshore Wind Operation and Maintenance Sectors held at Down Royal Racecourse, Lisburn 27th November 2013

1. David Arnold
Strategy Director
The ORE Catapult and Future Opportunities
27th November 2013

2. 2
Catapults:
A new force for innovation & growth
• Being established and overseen
by the Technology Strategy Board
• Part of a world-leading network of
technology and innovation centres
• Bridge the gap between business,
academia, research and
government.
• Long-term investment to transform
the UK’s ability to create new
products and services
• Open up global opportunities for
the UK and generate sustained
economic growth for the future
Offshore Renewable Energy
High Value Manufacturing
Connected Digital Economy
Satellite Applications
Transport Systems
Future Cities
Cell Therapy
Energy Systems
Medical diagnosis for
stratification
£1bn
7
Catapults up
and running in
2013
private and
public sector
investment
9
Catapults

3. UK’s economic opportunity
3
Vision:
Renewables
Installed
Capacity
Maximum Capacity
Maximum economic
value
Risk of
underachievement
UK Economic Value

4. Offshore Renewable Energy Catapult
We will:
• Provide leadership to transform the Offshore Renewable
Energy industry’s approach to innovation
• Integrate the key players across industry, academia and the
public sector
• Accelerate technology readiness and procurement
• Ensure the UK maximises the benefits of its economic
opportunity
• Return Government investment many times over
A world leading centre of excellence with deep technical
knowledge
4

5. Value Opportunities Ready to be Captured
Rapid capacity growth expected
• 18,000 MW by 2020 and more beyond
£50 billion programme
UK in pole position of technology
development and deployment
Replicating UK oil & gas historic growth of
capacity & skills
Opportunities in
• turbine components, foundations, electricals,
installation, testing, servicing…..
• Wave & tidal IP development and
manufacturing……
Significant first mover innovation
value opportunities
40-60% of investment value
is non turbine related
5

6. Challenges are our Opportunities
Offshore Renewable Energy has cost reduction challenges e.g. 3040% in offshore wind
ORE Catapult presents opportunities by
• Working with developers, manufacturers and test agencies to enable and prove larger
turbines (lower p/kWh) and their deployment
• Providing new data analysis services to improve project design and installation
efficiencies
• Integrating developers with supply chain to standardise projects, thus enabling new
entrants and allowing innovation to flow
• Continually acting to derisk new technologies, leading to cheaper finance opportunities
• Enabling greater knowledge / lessons learned sharing, with reach into other sectors
e.g. aerospace, oil & gas and the wider Catapult portfolio
An informed and interconnected ORE Catapult
can resolve many sector challenges
6

7. Offshore Renewable Energy Catapult
Vision
“The ORE Catapult will be a leading international
institution recognised for the identification, development
and rapid commercialisation of innovative technology
solutions, maintaining the UK’s position at the forefront
of a vibrant and growing offshore renewable energy
sector”
Mission
“In 5 years we will be the recognised “go to” institution
for the delivery of interconnected technology innovation
services. We will provide market access for new
technologies while driving greater efficiency and will
draw upon the strengths of the UK’s innovation services
to create sustainable offshore wind and wave and tidal
industries.”
7

8. ORE Catapult Board
8
Andrew
Jamieson
CEO
Rob Saunders
Non Executive Director
Miriam
Greenwood OBE
Non Executive
Director
Baroness Helen Liddell
Non Executive Director
Colin Hood
Chairman
Alan Moore OBE
Non Executive
Director
Prof. Sir Jim McDonald
Non Executive Director

9. 9
Catapult Management Team
CEO
Andrew
Jamieson
Innovation &
Technical
Director
TBC
Innovation
Programmes
Director
Chris Hill
Strategic
Development
Director
Steve Wyatt
Head of
Communications
Charles
Thompson
Business
Services
Director
David Currie
Growing to meet ambitious programme
41 engineering and business support heads by March 2014
120-150 by 2016

10. The Catapult’s interconnections simplify the
innovation landscape
10
Utilities / Supply Chain / SMEs
Catapult
Academia
Crown
Estate
ETI
Fraunhofers
Consultants
Hunterston
Testing
NAREC
EMEC
Methil
Testing
Funders
BIS
DECC
TSB
Carbon Trust
EU
etc
Wavehub
Deep Sea
Testing
Scot
Gov
EOWDC

11. Extending the Technology Reach
Science
Current Innovation &
Testing in UK
(understanding the
physics)
Technology
Catapult expertise
extends UK’s
innovation deeper
into early stage
technology and
research
(development and
furthering of new ideas)
Engineering
(test and
manufacture)
11

12. 12
Extending the Technology Reach
Partnerships and inputs underway
Research Advisory
Group Established
Cranfield
Oxford
Chair Edinburgh University
Utilities
Industry Advisory
Group
OEMs
Chair SSE
Supply Chain
Marine OEMs
Collaborative
Working Group
and other linkages
e.g. to SMEs
Edinburgh
Queens
Exeter
Sheffield
Imperial
Loughborough
Strathclyde
Swansea

13. Progress
Key themes – Technology Advancement & Collaboration
Standardisation
• Process (BSI)
• Good Practice
• Technology leads
from Pilot
Cable Reliability
•
•
•
•
Condition Monitoring
HVDC
Self repair
Leads form Pilot
Measurement &
Analysis
• Lidar:
• Fixed
• Floating
• Certification

14. Progress
Key themes – Technology Advancement & Collaboration
Marine Farms
Accelerator
SMEs
• EIC
• RETA
• Regional
engagement
•
•
•
•
Steering group
Industry Partners
Arrays
Collaboration
Reliability
• SPARTA
• Operational
certification
Testing
• Identifying UK
Capability
• Use of
facilities

15. Marine Farm Accelrator
15

16. Wave & Tidal Innovation
Current Status
High UK prospects of IP and manufacturing
Success of world-leading test facility at EMEC and
opportunities for Wavehub
Single unit trials are promising
Tidal technologies relatively advanced but need
small array deployment for commercial proving
Wave power has leaders but sector generally less
well developed
Both sectors have increasing interest from major
industrials
Tremendous scope to provide leadership and to
resolve common issues, share learning and enable
deployment at scale
16

17. 17
Wave & Tidal Innovation
Opportunities
Project
Development
Stages
Scale Testing
Full Scale Testing
Demonstration Array
Commercial Project
Single Device
(kW scale)
Single device
(50kW to 2MW)
3 to 10 devices
(500kW to 10MW)
10 to 200 devices
(10MW to 400MW)
Marine Farm Accelerator
Materials
Performance
Sensors
Modelling
ORE Catapult
Opportunities
Yield Analysis
Site Characterisation
Installation Methods
O&M
Electrical Systems
Insurance
Substructures
Moorings
Cable Protection
Manufacturing
Reliability
Standards
Industry Collaboration
Research Collaboration
The Marine Farm Accelerator is the first ORE Catapult project
in the marine sector. Other projects will be developed to cover
other areas of technology innovation and cost reduction.
Condition Monitoring
Lifetime Analysis

18. Marine Farm Accelerator
Technology for First Wave and Tidal Arrays
ORE Catapult programme delivered by the Carbon Trust
Modelled on the successful Offshore Wind Accelerator (OWA)
Steering Group of project developers (SPR, SSE, Vattenfall, Meygen, DP Energy)
Liaison Group of technology developers
Phase 1 has identified six work streams:
•
•
•
•
•
•
O&M
Yield Optimisation
Site Characterisation
Electrical Systems
Installation Methods
Insurance
Phase 1 will drive scope for R&D projects and be completed by end 2013
Phase 2 will implement the identified R&D projects
18

19. Marine Farm Accelerator
Other Marine Project Development
Supporting collaboration between test sites and the resulting knowledge
transfer with industry.
Helping industry to respond to funding calls – identifying potential
partnerships between industry and academia.
Maximising the impact of ongoing funding programmes and ensuring that
industry is able to benefit.
Working with other Catapults to identify new approaches and innovation
that could be applied in the marine sector. e.g. satellite monitoring of
sites, improved sensors for site characterisation, component testing and
advanced manufacturing techniques
19

20. Project Sparta
Reliability Improvement thro knowledge exchange
20

21. Project Objectives
Improve safety
• by reducing major component failures and the frequency of offshore interventions
• by providing verified data for risk analysis
Improve performance
• by using failure data to benchmark performance and drive reliability improvements
Joint industry commitment to continuous improvement
• by enhancing OEM and supply chain engagement
Improve maintenance effectiveness
• by using field data to optimise maintenance strategies and drive operational cost reduction
Enhance industry knowledge
• by providing visibility of aggregated performance data

22. Equipment Failures – Cost to the Industry
Mean cost of failures
£48k
per MW installed
The total lost revenue due to equipment failures to the UK offshore wind industry in 2012 is estimated to be around £150
If the UK meets the 2020 target of 18GW installed capacity without reducing these, it could cost the industry £860
in 2020
* Based on mean failure data (Source: WEP) with assumed 95% availability from experience
million*
million per year

23. Typical Costs for Offshore Wind Farm
Total OPEX
costs
£26.8 million
Lost revenue
£6.5 million
Total annual
operational costs
~ £33 million
Notes
 Generic offshore wind farm comprising 83 x 3.6MW
geared wind turbines
 Located 15 km from shore
 Service vessels deployed from shore
 Model assumes capacity factor 36% and kWh price of
€0.093
 Corrective maintenance cost breakdown includes
associated revenue losses

24. Examples of Improvement Areas
Maintenance Planning
Cable Repairs
On average, 29% of
maintenance expenditure is
unplanned corrective
maintenance
Cable repairs account for up to
80% of offshore issues
In some cases, this was as high
as 60%
Export cable repair costs range
from £2 million to £5.6 million
Click for
Costs vary based on a wide range
of factors, but can be significant

25. 25
Initial Solution Design:
Preserving Confidentiality
An OO free to connect to
Data Centre with variety of
communication providers
with a variety of options.
2
1
3
4
5
5
Data Aggregation/transformation Process
1.
Data uploaded into Database in CSV format
2.
Data transformed and held in data warehouse
3.
Transformed data accessed by tools
4.
Results sets returned – for us in performance league
table and/or original data sources (Business KPIs)
5.
Results sets accessed via security permissions

26. 26
Initial Design:
Each Owner Operator can view their KPIs over time and
benchmark against sector high, low and average values
An OO free to connect to
Data Centre with variety of
communication providers
with a variety of options.
2
1
3
4
5
5
Data Aggregation/transformation Process
1.
Data uploaded into Database in CSV format
2.
Data transformed and held in data warehouse
3.
Transformed data accessed by tools
4.
Results sets returned – for us in performance league
table and/or original data sources (Business KPIs)
5.
Results sets accessed via security permissions

27. Skills Challenge
27

28. 28
Opportunity
Renewable Energy Sector (RUK - 2013)
2013
Direct
16,000FTE
Indirect
55,000FTE
Direct
50,00FTE
2023
18,500FTE
Indirect
Potential 3 fold increase in jobs will be lost unless
Costs to the sector are managed
A collaborative approach to developing the workforce is
adopted by Government, Industrial sector and academia

29. All need to be considered
• Visibility of opportunity
• Attractiveness to potential employees of opportunity
• Support from government to deliver the opportunity
• Skills required clearly identified, including evolution
• UK ability to deliver the skills required
• Balancing UK need to develop skills with existing EU
capability
• Drawing down on existing skills from “contracting”
industries to cross support offshore renewable energy
• Standards and consistency
• Quality and visibility of education and enduring
capability
29

30. What we see as the skills needed across the
Offshore Wind value chain
• Professional
• Manufacturing and assembly
• Operational
• Do we fully understand where the bottlenecks are
today
• Where can evolving skills be utilised across different
areas of the supply chain
30

31. Opportunity
•
Re training
•
Cross training/cross sector
•
Contracting strategies for organisations, sharing
resources across contract and technical boundaries
•
Low volume/high margin v low margin/high volume
•
•
Same resource used in more effective systems
Training standards – Common approach
•
Agree industry requirements, JIP
•
Common programmes, structured for the long term
•
Identification of existing facilities, gaps in requirements or bottlenecks
•
Health and Safety standards, minimums
•
Need for retraining
•
Sector specific
•
Employer specific
•
Equipment specific
•
Potential for adjustment to common standards
31

32. www.ore.catapult.org.uk