Going with the Wind

As Costs Plummet, Offshore Wind Farm Projects Are Soaring

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ArticleESG1 March 2019

PM Network

Fister Gale, Sarah

How to cite this article:

Fister Gale, S. (2019). Going with the Wind: As Costs Plummet, Offshore Wind Farm Projects Are Soaring. PM Network, 33(0), 12–13.
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Offshore wind projects have long been plagued by high technology and connectivity costs, making initiatives all but impossible without government subsidies. "But in the last few years, we've seen a reversal in the upward cost trend," says Walt Musial, principal engineer and manager of offshore wind at the National Renewable Energy Laboratory, Golden, Colorado, USA.

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PHOTO COURTESY OF ØRSTED

Gode wind park, approximately 45 kilometers (30 miles) off the German mainland

Offshore wind projects have long been plagued by high technology and connectivity costs, making initiatives all but impossible without government subsidies. “But in the last few years, we've seen a reversal in the upward cost trend,” says Walt Musial, principal engineer and manager of offshore wind at the National Renewable Energy Laboratory, Golden, Colorado, USA.

Shrinking costs and greater industry experience, among other factors, are making these projects more attractive to state and utility sponsors, he says. Offshore wind farm projects are now popping up around the globe, in a bid to generate more sustainable energy and lessen the dependence on fossil fuels.

47 gigawatts Amount of installed offshore energy Europe will add over the next decade.

Source: Wood Mackenzie

Europe, the current leader for offshore wind farm capacity, had an estimated 16 gigawatts of installed offshore energy at the end of last year, but will add 47 gigawatts over the next decade, according to global energy consultancy Wood Mackenzie. The United States is poised for a similar uptick. Maturing regulatory policies, aggressive investment goals and new state incentives are driving projects along the East Coast, Mr. Musial says. Offshore wind farm projects are also picking up across Asia to address the ongoing power challenges and demand for cleaner energy. China, Taiwan, Japan and South Korea have all set ambitious wind power goals, with many large offshore projects underway or planned for the coming years.

These projects are especially appealing for energy giants whose skills translate easily to wind. Project teams that have worked on offshore drilling sites already have experience installing foundations on the seabed, conducting sea-based environmental assessments and managing advanced technology in combination with infrastructure development in a high-risk environment, says John Olav Tande. He is the chief scientist of energy for Sintef Energy Research, an independent research institute, Trondheim, Norway.

Global oil and gas companies Royal Dutch Shell and Equinor (formerly Statoil), for instance, are now among the biggest offshore wind farm project sponsors. And Ørsted (formerly Dong Energy) has fully divested itself of all “black energy” projects and is now solely focused on wind and renewable energy. The company is one of the largest offshore wind developers, with projects in Denmark, Germany, the United Kingdom, the United States and Taiwan.

To execute these initiatives, project teams will need to fully understand current regulations and subsidies, and they should look for opportunities to source equipment and talent locally, Mr. Musial adds. “Building local supply chains can ease project costs and help build capacity to support projects in the future.”—Sarah Fister Gale

Gust of Renewability

Projects to build offshore wind farms are multiplying. In particular, various European countries, China and the United States are poised for growth.

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New grid-connected capacity from projects expected to come online by 2020 (in gigawatts)

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Sources: Global Wind Turbine Technology Market Report, Wood MacKenzie, 2018; Global Solar PV Market Outlook Update: Q3 2018, Wood MacKenzie, 2018

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IMAGE COURTESY OF EQUINOR

Flotation Devised

Traditional offshore wind farms are built close to shore, where they can be fixed to steel structures not far beneath the waterline. The process can be labor-intensive and disruptive to the environment.

Floating wind farms aim to overcome such obstacles. “It's how the industry will evolve,” says John Olav Tande, chief scientist, energy, Sintef Energy Research, an independent research institute, Trondheim, Norway.

A floating farm is assembled in the harbor, then pulled by tugboats out to sea where it is anchored to the seafloor. Open water allows for more and larger turbines without disrupting local fishermen or fishing beds, Mr. Tande says. And since the wind farm is built onshore, it eliminates the need for transporting workers to and from the job site. “If you get sufficient volume, floating wind farms can be built faster and cheaper,” he says.

But the approach is still novel, and efficiencies have yet to be realized. A prototype was proven successful in 2009, and the first official project, Hywind Scotland, was launched by Equinor (formerly Statoil) in Scotland in 2015 and went online in 2017. The project's five turbines were assembled in Norway then transported by tugboats to offshore Scotland. Various organizations are now exploring pilot projects, including in France, Portugal and Norway.

Since roughly 80 percent of potential wind energy occurs over deep water, this innovation could transform the way wind power is generated, Mr. Tande says. But there are many lessons to be learned. “You need to know the seabeds, the sea conditions and how to build structures that are robust enough to withstand those conditions. Grid connection, operation, maintenance and control are other areas that need to be addressed,” he says. Organizations can overcome these challenges, he says, but it will take strong collaboration between project owners, equipment manufacturers and researchers to make these initiatives viable.

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