gov.uk · Web view(Recommended word limit: 300 words) Estimated reduction in levelised cost of offshore wind energy (£/kWh) (see section 6.1) Lead Applicant’s Details This is the

The Department of Energy & Climate Change and the Technology Strategy Board’s

Offshore Wind Component Technologies Development and Demonstration Scheme – Second Call for Proposals:

Application Form

Submitted by:

10 May 2012

(Insert name of lead applicant or joint venture company)

(Insert project name)

Contact for Enquiries

The Application form is available to download from the Department of Energy and Climate Change website at www.decc.gov.uk/innovation .

The contact for enquiries is:

Sally Fenton

Department of Energy and Climate Change

Tel: 0300 068 6503

Email: [email protected]

Possible disclosure of information provided in response to this call

Information provided in response to this call for proposals, including personal information, may be published or disclosed in accordance with access to information regimes (these are primarily the Freedom of Information Act 2000 (FOIA), the Data Protection Act 1998 (DPA) and the Environmental Information Regulations 2004).

Applicants should state if they believe any of the information supplied by them is confidential or commercially sensitive, or should not be disclosed in response to a request for information. Applicants should also state why they consider this information to be confidential or commercially sensitive.

If we receive a request for disclosure of the information we will take account of any such explanation, but we cannot give an absolute assurance that confidentiality can be maintained in all circumstances. We will consider any requests in the light of the relevant exemptions or exceptions provided in the legislation, and will normally consult with the provider of the information before making any decision on release. An automatic confidentiality disclaimer generated by your IT system will not, of itself, be regarded by us as a confidentiality request.

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mailto:[email protected]

http://www.decc.gov.uk/innovation

DECC running header

It is important to note that some information may be commercially sensitive for a time (e.g. during the application process) but afterwards it may not be. The timing of any request for information may therefore be extremely important in determining whether or not information is disclosed or withheld.

Important: Applicants are urged to read the Call for Proposals Guidance Notes (also available on the DECC website at www.decc.gov.uk/innovation ) carefully before completing this form and are asked to ensure that they provide sufficient information to demonstrate compliance with the Requirements on Applicants, the Eligibility Criteria and the Selection Criteria.

Applicants may expand sections to fit but should maintain the structure of the application form and keep to the word and page limits indicated.

Structure of this Application Form

1. Summary Information........................................................................................................................5

2. Lead Applicant’s Details....................................................................................................................6

2.1 Other Partners...............................................................................................................................6

2.2 Partners..........................................................................................................................................7

3. Project Eligible Costs.........................................................................................................................9

4. Application Approval and Data Protection....................................................................................10

5. Project Overview..............................................................................................................................11

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6. Project Selection Criteria.................................................................................................................12

6.1 Criterion 1: Reducing the cost of offshore wind energy (30% weighting)....................................12

6.2 Criterion 2: The likelihood of successful project delivery (30% weighting)..................................13

6.2.1 Project Delivery Plan............................................................................................................13

6.2.2 Previous Related Development and Demonstration.............................................................13

6.2.3 Technical Credentials and Track Record of Applicants........................................................14

6.2.4 External Party Delivery of Goods or Services.......................................................................15

6.2.5 Procurement and Major Subcontractors...............................................................................15

6.2.6 Project Governance..............................................................................................................16

6.2.7 Permissions and Consents...................................................................................................16

6.2.8 Risk Management and Insurance.........................................................................................17

6.3 Criterion 3: Project financing – materiality, leverage and affordability (15% weighting)..............19

6.3.1 Spend Profile........................................................................................................................19

6.3.2 Project Finance.....................................................................................................................20

6.3.3 Debt Finance for the Project.................................................................................................21

6.3.4 Other Public Funding............................................................................................................22

6.3.5 In-kind Contributions to the Project.......................................................................................22

6.3.6 Additionality..........................................................................................................................22

6.4 Criterion 4: The likelihood of the subsequent commercial availability and success of the innovation (15% weighting)....................................................................................................................24

6.4.1 Commercialisation................................................................................................................24

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6.4.2 Project Success Measures...................................................................................................24

6.5 Criterion 5: Project contribution to the expansion of the offshore wind sector (10% weighting). .26

6.5.1 Supply Chain Development..................................................................................................26

6.5.2 Knowledge Sharing...............................................................................................................26

6.5.3 Impact on Jobs.....................................................................................................................26

7. Decommissioning.............................................................................................................................28

8. Supporting Documents....................................................................................................................29

Annex 1 – Grant Payment Milestone Schedule Template..........................................................................30

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1. Summary Information

Name of project:

Company name:

Size of company (small, medium or large enterprise – as defined in Annex I of the EU General Block Exemption Regulation) or sizes of each partner if collaboration

Applicant’s internal reference number (optional):

Size of Capital Grant applied for (£k):

Total eligible project costs (£k)

Grant Funding Intensity (Grant funding as a % of total eligible cost):

Summary description of project:

(Recommended word limit: 300 words)

Estimated reduction in levelised cost of offshore wind energy (£/kWh) (see section 6.1)

http://ec.europa.eu/competition/state_aid/reform/gber_final_en.pdf



Offshore Wind Components Scheme – Second Call for Proposals – Application Form

2. Lead Applicant’s DetailsThis is the organisation to which DECC will offer the grant and to which all grant and revenue payments will be made.

Company name:

UK company registration number:

Address of registered office:

Contact address (if different):

Contact name:

Direct line telephone:

E-mail:

Name of authorised signatory:

Position in organisation:

2.1 Other Partners

If the application is from a single company that will carry out the project by itself, then please tick the first box below. If the application is from several companies acting in collaboration, please indicate whether the project partners will collaborate via a Collaboration Agreement or by forming a Joint Venture Company.

Single Company

Collaboration Agreement*

Joint Venture Company**

In the case of a collaboration agreement the Applicant above will be the Lead Partner. In the case of a consortium collaborating via a Joint Venture the Applicant named in Section 1.2 above will be the Joint Venture Company.

* For consortia collaborating via a Collaboration Agreement, please provide a copy of the signed Collaboration Agreement.

** For consortia proposing to operate through a Joint Venture Company please confirm that the Joint Venture Company has been formally set up and provide a copy of the legal agreement by which the parties to the Joint Venture agree to operate.

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2.2 Partners

Please list all other project partners below (adding tables if necessary). In the case of a consortium that is collaborating via a collaboration agreement these will be the other parties to the agreement. In the case of a consortium collaborating via a Joint Venture it will be all the parties to the Joint Venture.

Partner 1

Company name:




Contact name:

Telephone:

E-mail:



Partner 2

Company name:




Contact name:

Telephone:

E-mail:


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3. Project Eligible CostsPlease refer to Article 31 of the EU General Block Exemption Regulation. Aid can be provided towards certain eligible costs of the research project to the extent that these are used for the research project. These costs include:

• Personnel costs;

• Instruments and equipment;

• Buildings and land;

• Contractual research, technical knowledge and patents bought or licensed from outside sources at market price;

• Additional overheads incurred directly as a result of the project;

• Other operating expenses including costs of materials, supplies and similar products.

Please list in the table below (extend if necessary) the total eligible costs expected to be incurred by each project partner in the project. Please list the costs by partner. If there are more than two partners, please add additional columns to the tables. Note that the costs declared in this table should be used to calculate the size of the capital grant application.

Table 3.1: Total Project Eligible Costs (£k)

Lead Partner or Joint Venture Company Partner 2 TOTAL

Capital Equipment

Materials

External labour (sub-contracts)

Project Management Own Labour (incl.overheads)

Other Own Labour (including Overheads)

Professional fees

Travel and Subsistence

Other (specify)

TOTAL PROJECT ELIGIBLE COSTS

Total Grant Applied For (£k):

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4. Application Approval and Data ProtectionPlease obtain signatures of all project partners (for collaboration agreements) or partners in the Joint Venture Company and any other private sector funding partners that will be formally involved in the whole Project, irrespective of whether they are each seeking a DECC grant, to indicate their approval of this Application. Each signatory must have the authority to commit the proposed funding from his or her organisation.

Name Signature Company & position Date

Data Protection:

The information in this application will be used as the source of the information for the database record of the project. To comply with data protection legislation, you need to sign this "waiver".

Please indicate which parts of the application, if any, are commercially confidential.

There is no objection to this information being incorporated in a computer database for programme management purposes and to the publication of all information in this Application not explicitly identified to DECC as commercially confidential.

Signed on behalf of the Applicant or Lead Applicant:

Name: Date: Position:

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5. Project OverviewPlease give a full description of the project and the innovative technology /technologies that will be developed and demonstrated. Please include details on:

the component technology to be used, including diagrams;

how it differs from other similar concepts;

the innovation stage of the proposed technology or technologies (the proposed technology should be at the later stage of development; not yet commercially viable but with its potential already shown – perhaps through early prototypes or non-operational trials);

how it will advance the reliability, availability and deployment of 5+MW offshore wind turbines;

how it will reduce the cost and advance the deployment of large scale offshore wind energy;

how the technology will be demonstrated and, if you have identified a site, its location, and if you have not yet finalised a site, the sites you are considering;

any relevant drawings or other information should be attached to support the Application.

Project Description:

(Expand as required – this section should be no longer than 4 sides, excluding diagrams and images)

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6. Project Selection CriteriaPlease refer to the ‘Project Selection Criteria’ section in the Scheme Guidance Notes for further guidance on how applications will be assessed against the five project selection criteria.

6.1 Criterion 1: Reducing the cost of offshore wind energy (30% weighting)

A levelised cost of energy ‘calculator’ is available online on the DECC website with the scheme application form and guidance notes (at www.decc.gov.uk/innovation ) or from DECC (email: [email protected]) to enable applicants to assess the cost reductions expected from their proposed project.

Applicants are strongly recommended to use the cost of energy calculator to produce an estimated quantitative assessment of the impact of the proposed project on the levelised cost of offshore wind energy (cost per predicted kWh generated) assuming the project is successful and the innovation is subsequently commercialised and taken up.

Please provide an evidence-based justification for your assessment, including the following information as relevant:

Current lifecycle component costs for the proposed technology, including capital costs (equipment, installation and commissioning) and all costs associated with operation and maintenance of the system.

Details of how these expected lifecycle costs compare to the costs for current industry-standard components.

Where relevant, the impact on generation capability (per turbine basis), including any effect on load factor, availability and/or expected lifetime of the system.

How lifecycle costs might reasonably be expected to change over time with increased deployment (for example, through economies of scale of production or improved performance), including an outline of key uncertainties and risks.

Criterion 1: Reducing the cost of offshore wind energy


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6.2 Criterion 2: The likelihood of successful project delivery (30% weighting)

6.2.1 Project Delivery Plana. Please provide a detailed project plan (which we suggest you include as an annex to

your application form). This should show all key tasks and their timescales. The plan should show at least the following:

• Task durations and dependencies (including any inputs required from DECC or other parties and any other external dependencies);

• Component technology design;

• Component manufacture;

• The installation and demonstration of the technology/component in the Project;

• Project milestones;

• Project stage gate for reviews of project; and

• Reports on progress against this plan.

b. Please complete the payment milestone template in Annex 1 with details of the proposed grant payment milestones and how they relate to project deliverables.

6.2.2 Previous Related Development and DemonstrationPlease give a detailed description of the technology’s previous demonstration, at any scale, and describe how you have used the results of the previous technology demonstration to predict the performance of the devices you intend to deploy in this Project.

You should include details of the location, dates and scale. You should clearly demonstrate the difference(s) between the technology previously demonstrated and the technology to be deployed in your Project and why the technology in your project offers an advance? Any relevant diagrams, drawings or other information should be attached to support the Application.

Criterion 2: Previous Related Development and Demonstration:

(Expand as required - this section should be no longer than 4 sides, excluding diagrams and images)

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6.2.3 Technical Credentials and Track Record of ApplicantsPlease provide evidence that the Applicant and any collaborating organisations possess the technical ability and resources to carry out the Project. You should also seek to demonstrate the Applicant’s ability, willingness and intention to commence implementation of the project immediately. This should include descriptions of previous work carried out under the following headings:

Offshore Wind Energy Technology Development – Please provide evidence of technical expertise in the theory and practice of offshore wind energy. This should include brief CVs of lead project team members with relevant expertise listing the activities during which they acquired this expertise.

Please provide evidence of the Applicant(s) track record in carrying out the activities listed below – this should include descriptions of previous projects carried out, including the date, location, client and project size:

Major Engineering Works

Offshore Operations

Design, Engineering and Manufacturing

Criterion 2: Technical Credentials and Track Record of Applicants:


Offshore Wind Energy Technology Development:

Major Engineering Works:

Offshore Operations:

Design, Engineering and Manufacturing:

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6.2.4 External Party Delivery of Goods or ServicesWill an external party be delivering goods or services worth more than 20% of the total project value? If yes, please identify the external parties and explain how you will ensure that these parts of the project do not give rise to delays in the delivery of the project (e.g. contract penalties, assurances, etc).

Criterion 2: External Party Delivery of Goods or Services


6.2.5 Procurement and Major SubcontractorsPlease list all subcontracts above £100,000 in value and provide evidence that the chosen contractors were selected by competitive tender (adding tables if necessary).

Subcontract 1:

Description of contract

Value of contract

Organisations invited to tender (must be 3)

Selection criteria

Chosen bidder

Reasons for choice

Subcontract 2:

Description of contract

Value of contract

Organisations invited to

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tender (must be 3)

Selection criteria

Chosen bidder

Reasons for choice

6.2.6 Project GovernanceIf the project team includes several partners please provide details of the roles of each member company and the governance arrangements in place to ensure smooth delivery of the project and to minimise organisational risk. If the application form is submitted by one company acting independently, please detail the mechanisms in place to manage the contracts outlined in Sections 6.2.5.

Criterion 2: Project Governance


6.2.7 Permissions and ConsentsDoes your project require the granting of a seabed lease by The Crown estate?

Yes

No

If the answer to the above is yes, please indicate what the status of your application is.

Before deployment can take place you may require a number of statutory consents and it is the responsibility of the applicant to identify and carry out all actions needed to obtain these consents. Please list below all other consents that have been identified, applied for and granted (adding additional tables as required for further consents). For consents that have not yet been granted, we would like to know the current status of the application.

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Description of required consent

Date applied for

Date granted

If not yet granted, describe the current status of the application.

If not yet granted, when is it expected to be granted?

Date consent lapses

6.2.8 Risk Management and InsurancePlease use the table below to describe all significant risks associated with your project, the mitigation measures in place and the responsibility of team members for mitigation.

Risk Owner of risk: (responsible for dealing with the risk)

Risk rating: (probability x impact)

High, Medium or Low (to be defined by applicant)

Proximity: when is the risk likely to impact the project

Mitigation actions: implemented or planned responses to risks

Financial:

Technology:

Timescales:

Regulatory:

Supply chain and infrastructure reliance associated with delivery of project:

Integration between project participants:

Programme Management:

Others (e.g. risks associated with securing demonstration site):

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Please identify all significant risks to third parties that could arise as part of the Project and impact on achievement of project objectives. Please identify who the third parties might be and give clear descriptions of what action is being taken to a) reduce the likelihood of the risk and b) reduce the effects should it occur.

Criterion 2: Risks to third parties

(Expand as required - this section should be no longer than 2 sides, excluding diagrams and images )

Please attach a copy of the insurance policy or policies applicable to the project, or if a policy has not yet been issued a proposal from your insurer, for the Project showing the risks covered, exclusions and excesses.

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6.3 Criterion 3: Project financing – materiality, leverage and affordability (15% weighting)

6.3.1 Spend ProfilePlease provide a quarterly breakdown of the activity and eligible costs associated with them in table below:

Table 6.3.1: Project details by quarter and the costs (£k) associated with them

FY 2012-2013 (April 2012 – March 2013)

FY 2012-13 / Q2

FY 2012-13 / Q3

FY 2012-13 / Q4

Total costs for FY

2012-13

Capital Equipment

Materials

External labour

Own labour (including project management costs)

Professional Fees

Travel and subsistence

Other (please specify)

TOTAL

Table 6.3.1 (continued): Project details by quarter and the costs (£k) associated with them.

FY 2013-2014 (April 2013 – March 2014)

FY 2013-14 / Q1

FY 2013-14 / Q2

FY 2013-14 / Q3

FY 2013-14 / Q4

Total costs for FY

2013-14

Capital Equipment

Materials

External labour

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Professional fees



TOTAL

Table 6.3.1 (continued): Project details by quarter and the costs (£k) associated with them.

FY 2014-2015 (April 2014 – March 2015)

FY 2014-15 / Q1

FY 2014-15 / Q2

FY 2014-15 / Q3

FY 2014-15 / Q4

Total costs for FY

2014-15

Capital Equipment

Materials

External labour


Professional fees



TOTAL

6.3.2 Project FinancePlease list the sources of funding for the Project in the tables below (adding lines if necessary for other partners / other sources).

Cash Contributions from Partners

Project (£k)

Lead Partner or Joint Venture Company

Partner 2

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Partner 3

Partner 4

Cash Contributions from Other Funding Sources for the Project

Project (£k)

Source 1 (specify)

Source 2 (specify)

Source 3 (specify)

Please provide a copy of annual accounts for the last two years – accounts are required for each partner in a consortium. If the latest accounts are more than 12 months old, applicants must provide management accounts. If the applicant or any partner has been trading for less than two years, they must submit cash flow forecasts and trading forecasts for the next two years.

6.3.3 Debt Finance for the ProjectPlease list all sources of debt finance, including Venture Capital details, for the Project (copying the table for additional lenders).

Provider:

Contact name:

Contact address:

Telephone:

Fax:

e-mail:

Name of authorised signatory

Position in organisation

Please provide evidence of firm unconditional commitments from all sources of finance. If this cannot be provided at this time, please provide letters of intent from all those that intend to be private sector funders of your Project.

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These letters of intent must demonstrate that the balance of funding required to fund the Project will be provided and this is only conditional on DECC support to the Project.

6.3.4 Other Public FundingMatch funding from other public sources, including EU funding, are allowable and if applicable to this Project should be declared in Section 6.3.2 of the Application Form. Funding from other public sources is allowable up to the maximum thresholds under the EU General Block Exemption Regulation for State Aid, and are detailed in the Call for Proposals Guidance Notes. Please sign below, if other sources of public funds are applicable to this Application.

I declare that the funding from other public sources is allowable and within the maximum thresholds set under the EU General Block Exemption Regulation for State Aid.

Signed on behalf of the Applicant:

Name: Date: Position:

Source of contribution Description of goods or services to be supplied

Equivalent monetary value (£k)

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6.3.6 AdditionalityPlease provide an analysis of the viability of the proposed project with or without grant support.

If you are an applicant from a large enterprise, please also outline how grant funding sought would increase the size, scope or speed of completion of the proposed innovation.

Additionality:


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6.4 Criterion 4: The likelihood of the subsequent commercial availability and success of the innovation (15% weighting)

6.4.1 CommercialisationPlease set out how you intend to approach the commercialisation of the proposed technologies and systems. Your answer should include:

expected timescales for commercialisation;

a preliminary description of the market opportunity;

expected further level of investment needed to commercialise the technology;

details of the expected cash flow (£) projections (if applicable) for the component technology.

how you would ensure market competitiveness of developed technologies / systems

details on the performance assumptions that underlie your economic analysis of the project.

any evidence you can provide showing commitment to commercialising the technology from investors or partners of good standing. Letters of intent, etc, can be attached to the application.

Criterion 4: Commercialisation Plan


6.4.2 Project Success MeasuresDescribe the predicted performance measures for the component/technology and how you will know if it has been a success:

1. Mid-way through project;

2. At the end of project;

3. 5 years after completion of project.

Criterion 4: Success Measures:

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6.5 Criterion 5: Project contribution to the expansion of the offshore wind sector (10% weighting)

6.5.1 Supply Chain DevelopmentPlease describe how your proposed project will broaden or strengthen the offshore wind supply chain.

Criterion 5: Supply Chain Development:


6.5.2 Knowledge SharingPlease describe any wider learning expected to be secured from this project which will be of wider benefit to the offshore wind industry. Outline how this learning will be shared with the industry.

Criterion 5: Knowledge Sharing:


6.5.3 Impact on JobsIf applicable, please provide in the table below the details of jobs you estimate your proposed project will retain or create:

Table 1.5.3: Impact on Jobs Number Location

Number & location of jobs (full-time equivalents) retained as a result of Project

Number & location of new jobs (full-time equivalents) created as a result of Project

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Estimate number and location of new jobs that will be created as part of the route to market

TOTAL

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7. DecommissioningDecommissioning is a statutory requirement under the provisions of the Energy Act. Please give a detailed description of the plan for decommissioning of the Project – including answers to the following, if applicable to the application:

When the decommissioning will be carried out and length of time anticipated for full recovery.

Who will carry out the decommissioning?

How the decommissioning will be carried out (identifying any risks of recovery and how they will be managed)?

How the seabed will be returned to its original condition and monitored post decommissioning.

How much you estimate that the decommissioning will cost. Please provide an independent assessment of the cost of decommissioning carried out by a consultancy organisation with recognised expertise in this field.

Decommissioning:

(Please expand as required – or write “N/A” if decommissioning is not relevant to your application.)

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8. Supporting DocumentsPlease confirm that you have enclosed the required supporting documents listed below.

Document description Is the document included with this application?

If not, please explain.

Copy of signed Collaboration Agreement - only necessary for consortia collaborating via a Collaboration Agreement (requested in section 2.1 of this application form)

Copy of Joint Venture Agreement legal agreement - only necessary for consortia operating through a joint venture agreement (section 2.1)

Project delivery plan (section 6.2.1)

Payment milestone schedule (section 6.2.1)

Copy of insurance documents for the project (section 6.2.8)

Copy of annual accounts for the last two years (section 6.3.2).

Please list any other supporting documents (e.g. letters of intent)

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9. Annex 1 – Grant Payment Milestone Schedule TemplatePlease find below the payment milestone schedule template which is requested in section 6.2.1.

Milestone description Date due

Maximum grant payable

(£)

Evidence of achievement to be

provided

How evidence will be verified (e.g. site visit)

1

2

3

4

Etc.

Final mile-stone

Delivery of final project report to DECC

[10% of total eligible grant]

[Total proposed grant:

© Crown copyright 2012

Department of Energy & Climate Change

3 Whitehall Place

London SW1A 2AW

www.decc.gov.uk

URN 12D/092