Association for Project Management14 April 2011

Richard Rigg Project Director

Dong Energy is a leading offshore wind developer, having built around half of all offshore wind farms globally. (50%)

E.ON is one of the world’s leading power and gas companies. It’s renewable division (E.ON Climate and Renewables) is one of the largest renewable energy companies in the world. (30%)

The Masdar Initiative is Abu Dhabi’s multi-faceted, multi-billion dollar investment in the development and commercialisation of innovative technologies in renewables, alternative and sustainable energies as well as sustainable design. (20%)

Consortium partners

Project overview

• 1000MW consented

• 20km from coast (Kent & Essex)

• Export cables >50km

• Wind farm area up to 245 km2

• 50 year lease

• Phase 1 – 630MW

• Phase 2 – 370MW

• Phase 2 depends on successful bird studies

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London Array - Site selection

Crown Estate Rounds 1 and 2

As the owner of the seabed the Crown Estate has a central role in the delivery of UK offshore wind

Round 2 – Fully Commercial

• 15 Sites• Agreements for lease in

Territorial Waters and UKCS• 40/50 year leases depending

on site capacity

• Option fees according to size

Round 1 – Demonstration Projects

•18 Projects, 13 locations•30 turbines maximum•20MW minimum installed•10 km2 maximum area•22 year leases

London Array is a Round 2 Project

Crown Estate Round 3

• Rapid development of offshore wind capacity is key to the delivery of the UK's share of the EU target of 20 per cent renewable energy by 2020.

• Round 3 leasing programme anticipates the delivery of up to 25 GW (gigawatts) of new offshore wind farm sites by 2020.

• The Crown Estate will be inviting potential partners to bid for development zones

• Successful bidders will have exclusive rights to develop wind farms in specified zones.

• The selected partners will remain wholly responsible for construction and operation of wind farm sites.

Crown Estate Rounds 1, 2 and 3.

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Thames Estuary – Round 1, 2 and 2.5 Windfarms

London Array

Gunfleet Sands

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Phase one overview

• FID – May 2009

• Wind farm area c. 100 km2

• Siemens 3.6MW turbines

• 175 turbines, 630MW

• Monopile foundations

• 2 x offshore substations

• 4 x 150kV cables

• Onshore substation at Graveney, North Kent

• Construction/O&M at Ramsgate, Kent

Project Gestation

Apr 01 – First Project Heads of Terms

Dec 03 – Crown Estate agreement for lease

Jun 05 – Consent applications submitted

Jun 06 – Swale BC rejected application for substation

Dec 06 – Offshore consents granted

Mar 07 – Substation public inquiry - decision Aug 07

Jul 08 – Shell’s share to DONG (50%) and E.ON (50%)

Oct 08 – E.ON sold 40% of its share to Masdar

Apr 09 – Budget assistance for Round 2 projects

May 09 – Investment decision & turbine contract

Jul 09 - Construction of onshore substation started

Mar 11 - Offshore construction started

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(Resolution)

Development

• Environmental Impact Assessment

• Technical Design Statement (FEED)

• Environmental Statement

• Consent Applications

• Offshore and onshore consents received

Procurement and Construction

• Framing Workshop

• Review 1 – Pre-Tender (contract strategy & design concepts)

• Review 2A – Pre-FID

• Review 2B – Pre-Construction

• Review 3 – After 1 year full operation

Project Management Process

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• Multi-contract approach adopted by the Participants

• 12 Contract Packages, including installation vessels and O&M facilities

• JV Project Team managing ITT, tender negotiations and contracting

• Legal advice on contracts provided by Pinsent Masons

• Interfaces between packages managed by Project Team

• Participant Procurement Compliance Panel (PPCP) ensures compliance with Contracting and Procurement Policy

• Contract strategy changed as result of the tender process:

• Turbine supplier declined to install turbines

• Foundation contractor agreed to install turbines in addition to foundations but did not have the right vessels

• London Array had to free issue the installation vessels

Procurement approach

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Wind turbines

Foundations

Offshore substations

Siemens Wind Power to supply 175 3.6MW turbines, fitted with new 120m rotor

JV between Par Aarsleff A/S and Bilfinger Berger GmBH to supply 177 monopiles and 175 transition pieces

WTG and foundation installation

Installation by Aarsleff A/S and Bilfinger Berger GmBH

Future Energy (JV of Fabricom, lemants and Geosea) to supply and install offshore substation platforms (electrical eqpt from Siemens T&D) and to supply transition pieces

Export cable supply Nexans Norway to supply 220km of 150kV export cable

Main contractors (Phase one)

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Main contractors (Phase one)

Array cable supply

Offshore installation vessels

JDR Cable Systems to supply 210km of 33kV array cables

Export and array cable installation

Installation by by Visser and Smit Marine Contracting and Global Marine Systems Limited

Onshore substation Siemens Transmission and Distribution Ltd

MPI Adventure and A2SEA Sea Worker

O&M base design and construction

Designed by BBLB Architects, contractor Mansell

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(Resolution)

Implementation schedule for phase one

Q2Q4Q3Q2Q1

2012

Q1

2013

Q3 Q4 Q1

2011

Foundation installation

Grid connection

Offshore substation installation

Export cable installation 2011 & 2012

Array cable installation

Wind turbine installation

Wind farm fully operational

Onshore substation

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• Strong local opposition to onshore substation

• Public Inquiry – Jul 06 to Aug 07

• Architectural competition - winner accepted by Inspector

• Competitive tender for layout design for local authority approval

• Negotiated contract for onshore & offshore electrical equipment

• Siemens T&D started onshore construction in Jul 09

• Civil works and landscaping for Phase 2 completed with Phase 1

• Oct 11 grid connection date for 125MW

• Jun 12 grid connection date for 630MW

• Phase 1 transmission assets to be transferred to an OFTO

Cleve Hill - 400kV onshore substation

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Cleve Hill - 400kV onshore substation

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Cleve Hill transformer delivery

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Cleve Hill - 400kV onshore substation

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(Resolution)

• Max tidal range: 5.40m

• Water depths between 0 and 25 m LAT + tide:Shallow areas problematic for installation vesselsDeep areas need large foundations, long jack-up legs

• Tidal currents: NW to SW and 0.8 to 1.5m/s:Implications for diving operations and scour

• Large global seabed changes:Cable exposure, foundation stability, structural frequencies

• Relatively poor soil conditions:Large piles and deep seabed pile penetration requiredJack-up leg penetrationUXOs and marine archaeology

Phase one site characteristics

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Foundation Installation (Aarslef Bilfinger Berger)• Monopiles and TP's shipped from Aalborg to Harwich by barge• Installation vessel loaded with monopiles and TP's, relocates to

specific foundation location and jacks up• Monopiles installed to correct level• Transition piece placed on top and grouted in place

Wind Turbine Installation (Aarslef Bilfinger Berger)• Turbines shipped from Esbjerg to Harwich by barges • Installation vessel loaded with turbines, relocates to specific

foundation location and jacks up• Turbines installed (turbines commissioned by Siemens WP)

Installation Vessels (Free issue by London Array)• MPI Adventure: self-propelled jack up barge.• A2Sea Sea Worker: non-propelled jack up barge.

Foundation and turbine installation

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Installation vessels

A2Sea SeaWorker

MPI Adventure (new build)• Adventure built in China for MPI by COSCO

• Free LAL issue to ABJV

• Due to mobilise with ABJV May 2011

• Sea Worker on site Feb 11

• Needed for shallow locations

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• Failure of DNV designed grout

connections on operational

projects after contract placed

with Aarsleff Bilfinger Berger

(ABJV)

• Redesign of monopiles and TPs

has caused delay, needing

acceleration measures to

maintain programme

• London Array has adopted DNV

conical rather than the shear

key solution to the problem

Foundations - monopiles and transition pieces

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Foundations - monopiles and transition pieces

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Foundations - monopiles

Upending bucket Upending monopile

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Foundations - monopiles

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• Two 1400t offshore substations transform 33kV from turbines to 150kV

• Substations assembled in Belgium by FE JV, Siemens are supplying and installing electrical equipment

• Substations to be shipped to site by barge and installed by “The Rambiz”.

Image: Gunfleet Sands, courtesy of Dong Energy

Offshore substations

• Substation TPs heavier than those for turbines and require heavy lift vessel – Matador 3

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Offshore substation fabrication - Hoboken

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New build Stemat Spirit

•4600 tonnes of export cable

•Deep locations and able to beach

•Avoids unnecessary joints

Cable installation

Generic cable installation issues

•Overruns from previous contracts

•Financial strength of contractors

•Cable damage during installation

Array Cable – shallow – Jan Steen Deep – CS Sovereign

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Solstice