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Offshore Wind Seminar:
Building the Supply Chain in South Jersey
Sponsored by:
Offshore Wind Seminar:
Building the Supply Chain in South Jersey
In Partnership with:
Opening Remarks
Susan Coan, Atlantic City Electric
SNJDC Energy and Environment Committee Co-Chair
Panelists
Sy Oytan Diane Baxter, Ph.D., P.E., LEEDSector Lead, Offshore Wind Associate PrincipalNJ Economic Development Authority GZA GeoEnvironmental
Kris OhlethSenior Stakeholder Relations Manager
Ørsted
ModeratorGrant van WyngaardenSenior Supply Chain Development Manager Susan CoanØrsted Regional Vice President
Atlantic City Electric
Brandon BurkePolicy and Outreach DirectorBusiness Network for Offshore Wind
New Jersey Economic Development Authority
Sy OytanSector Lead Offshore Wind
6
NEW JERSEY’S
OFFSHORE WIND
ECONOMY
7
c
New Jersey is
committed to a clean
energy future and
building a local
offshore wind industry
is core to this vision
- Phil Murphy
Governor
1 Includes Newark Liberty International Airport, Philadelphia International Airport, John F. Kennedy International Airport, and LaGuardia International Airport
Why choose New Jersey for OFFSHORE WIND?
Heart of the East
Coast Wind Belt
An emerging hub for US
offshore wind
Talent for the entire
wind ecosystem
A place for every
employee
One of the largest offshore wind talent pools in Northeast, with 90,000+ workers
Access to the #1 ranked pre-K-12 education system in the nation
Access to the high-skilled and blue collar workers needed across your entire business
Choice of commutable city, small town, country, and coastal living
Robust talent pipeline, supported by 150+ higher education institutions supporting meaningful R&D in energy innovation
A fraction of the cost of New York and Philadelphia – and just a short train ride away!
Lease areas designed for utility-scale projects and cost-optimization
Incredible offshore wind resources and access to lease areas across the East Coast
Easily access the globewith ~600 nonstop destinations from airports in the region1
Unmatched regional connectivity by locating at the heart of the Northeast corridor
Broad and strong political commitment to offshore wind industry leadership
1.1 GW of project awarded and 7.5 GW of procurements scheduled over the next 10 years
Major investments in port infrastructure to support offshore wind
Financial support to grow a local supply chain and develop the required offshore wind workforce
8
EMERGING HUB FOR
U.S. OFFSHORE WIND
STRONG POLITICAL COMMITMENT
TO THE WIND INDUSTRY
7,500 MW OF PROCUREMENT
PIPELINE
A VALUE AND SUPPLY CHAIN
GROWTH STRATEGY
PORT INVESTMENTS TO
SUPPORT OFFSHORE WIND
9
Offshore wind is the our Government’s top priority
SOURCE: State of New Jersey website, "Governor Murphy Announces New Jersey Offshore Wind Supply Chain Registry“; New Jersey Board of Public Utilities
Our state
will be making
focused investments
in the clean energy
economy and
positioning New Jersey
as the leader in
offshore wind.
- Phil Murphy
New Jersey
Governor
One of the largest single solicitation of 1,100 MW awarded in June 2019
Offshore Wind Pipeline of 7,500 MW
Draft Energy Master Plan released June 2019 (roadmap to achieving a 100% clean energy economy by 2050)
Wind Innovation & New Development (WIND) Institute (public-private partnership) will serve as a hub for research, innovation, and workforce development for the offshore wind industry
10
New Jersey has a clear procurement timeline for the 7.5 GW
▪ Offshore Wind Economic Development Tax Credit and job training commitment
Renewable Energy Bill
▪ Energy Master Plan to achieve 100% clean energy by 2050▪ 2.0 GW of storage by 2030
Executive Order 28
BPU OREC Solicitation
▪ Award for first 1.1 GW in June 2019, in time for ITC
SOURCE: State of New Jersey website; New Jersey Board of Public Utilities “2019 Annual Report on New Jersey Offshore Wing and Implementation of Executive Order No. 8”; Press search
New Jersey has made clear commitments to offshore wind and clean energy in the law…
…and identified a clear procurement schedule
2018
2019
2020
2021
2022
1.1 GW
1.2 GW
1.2 GW
11
New Jersey has the port capacity and infrastructure to support development, operations, and maintenance
$170M+ invested in Port of Paulsboro (specifically for offshore wind)
Largest and most advanced port on the US East Coast (Port of New Jersey/New York)
130+ miles of coastal access to NJ, NY, and Delaware lease sites support O&M businesses
Offshore Wind Strategic Plan studying additional port capacity
Extensive warehousing and logistics capabilities
#1 state for fiber and broadband (best prepared for smart and connected ports)
SOURCE: US Department of Transportation, ChooseNJ, New Jersey website
12
New Jersey has access to the United States’ largest and most competitive offshore wind lease areas
Access to wind resources all along the East Coast
SOURCE: US Department of Interior, Bureau of Ocean Energy Management, WindEurope, IWR, NYSERDA “New York State Area for Consideration for the Potential Locating of Offshore Wind Energy Areas”, 4COffshore, Bureau of Ocean Management
▪ Proximity to existing and proposed lease areas
▪ Ability to interconnect with New York (Equinor) and Maryland (Orsted) sites
Lower-cost, faster development in New Jersey
▪ 344,000 acres close to shore (10-25 nautical miles)
▪ Shallow water depths (under 30m)
▪ Strong wind speeds (avg. annual wind speed of 8.5 m/s, significantly higher during peak)
▪ 1,100 MWs or more supported by each lease
▪ Designed for utility scale development
13
New larger turbine models will require more space and new manufacturing capacities; existing facilities would not be suitable
SOURCE: Press search
Hub height
2016
150m
Ø 180m
8 MW
Rotor diameter
Electrical output
2024
>150m
Ø 220m
12 MW
Current turbines are mostly 8.5-9.0 MW Models of 10-12 MW are expected to be installed in 2022-2028
2030
>180m
Ø >220m
14 MW
Future models are likely to exceed 14 MW
12 MW to be used
for Ocean Wind1
14
The largest wind turbine in the World (GE Haliade-X) will be used in NJ’s first project (Ocean Wind)
4th
highest share of bachelor
degree+ holders in the US
150+
higher education institutions
in the region
90,000+
workers with offshore wind-
adjacent skills
LARGE AND ACCESSIBLE
TALENT POOL
A WORKFORCE READY
FOR OFFSHORE WIND
PIPELINE OF TOP TALENT
15SOURCE: US Census Bureau, WalletHub, The Integrated Postsecondary Education Data System (IPEDS)
TALENT FOR THE
ENTIRE WIND
ECOSYSTEM
16
Potential total NJ job creation - full-time equivalent years*
Summary of FTE jobs to 2030 (FTE job years)
Job type
Project management and development 2,970
Turbine manufacturing 5,910
Balance of plant manufacturing 7,630
Installation and commissioning 1,650
Operations, maintenance and service 5,331
Total 23,491
* One full-time equivalent (FTE) year is the equivalent of one person employed full time for a year. It could be, for example, two people employed full time for 6 months or two people employed 50% of the time for a year.
Summary of FTE jobs operations, maintenance and service jobs
from 2031 to 2055 (25 year wind farm life)
Average FTE jobs / year 1,010
Total FTE job years 25,489
SOURCE: BVG Associates 2019
▪ Unsurprisingly, there is a high proportion of workers engaged in installation and maintenance, production and management
▪ There are also small but significant numbers of those in general back office occupations, in IT, human resources, sales and marketing, and finance.
17
Who’s here: major global offshore wind companies, like Ørsted, have already moved here
EMERGING HUB FOR US OFFSHORE WIND
Orsted is a Danish renewable energy company with $11B in revenue
A market leader in offshore wind projects (~30% share, more than double its closest competitor; provides power for 12M+ people)
Operates America’s first offshore wind farm (Block Island)
Established Atlantic City, NJ office in 2018
Won New Jersey’s 1,100 MW solicitation in 2019 to build Ocean Wind project
18
Major global offshore wind companies, like EnBW, have already moved here
SOURCE: ChooseNJ; Hudson Reporter, “The answer is in the wind”; North American Wind Power, “German Offshore Developer EnBW Opens Jersey City Office” (May 2019)
EMERGING HUB FOR US OFFSHORE WIND
[New Jersey] is
where the offshore
wind industry will
take off. We’re quite
confident this is the place
to be, and we’re not just
here to start, but we’re
here to stay.
- Holger Grubel
Head of Offshore
Wind Portfolio,
EnBW
EnBW is a $25B German energy company
Longtime offshore wind leader, having constructed Germany’s first offshore wind farm
Opened its first North American offices in Jersey City, NJ in 2019. Reasons include:
▪ NJ’s leadership in developing an offshore wind ecosystem
▪ Unbeatable location: superior access to domestic and international markets
▪ Unmatched talent pool
▪ Growing supply chain
▪ Superior quality of life for their employees
19
Monopile (turbine foundation) production facility being planned in New Jersey
EMERGING HUB FOR US OFFSHORE WIND
[New Jersey] is
where the offshore
wind industry will
take off. We’re quite
confident this is the place
to be, and we’re not just
here to start, but we’re
here to stay.
- Holger Grubel
Head of Offshore
Wind Portfolio,
EnBW
EEW is a German monopile production company with $800M revenue
• 114 m (375 ft) long
• 10 m (33 ft) diameter
Potentially 500 new jobs to be created
• 13 cm (5 in) thickness
• 2500 t (5m lb) weight
20
New Jersey has a suite of financing and incentive programs, including a $100M offshore wind tax credit program
For full program information, visit NJEDA.com
▪ Small and medium sized business loans
▪ Loan guarantees▪ Tax-exempt bond financing (for
manufactures and port developments)▪ Brownfield and Contaminated Site
Remediation Program▪ Business Action Center (Site selection,
one-stop permitting, and advocacy)▪ Workforce development and job
training grants
▪ Angel Investor Tax Credit program▪ Technology Business Tax Credit
Transfer program▪ Salem County & Urban Enterprise
Zone Energy Sales Tax Exemption
▪ Offshore Renewable Energy Certificate (OREC) Program
▪ Offshore Wind Energy Tax Credit Program
▪ Workforce Development & Job training programs (P.L. 2018, c.17)
▪ Events to support industry partnering
Financing and support tools
Incentive programsOffshore wind industry
development tools
SUPPORT PROGRAMS
21
Offshore Wind Tax CreditSUPPORT PROGRAMS
Program OverviewDesigned to provide reimbursement for capital investments in industry-specific facilities located in the seven southern counties of New Jersey
10% of the credit per year over a ten-year period
▪ Minimum investment of $50 million in a qualified wind energy facility;
▪ Tenant’s investment of at least $17.5 million
Must employ at least 300 new, full-time employees within the State1
1. New jobs created with supply chain partners can count towards overall jobs requirements
Corporate business tax credit is equal to 100% of a taxpayer’s capital investment in a wind energy facility located in an eligible wind energy zone
Net benefits cap
valued on a
10-year basis,
but can be extended
up to 20-years with
verifiable commitments
to maintain a
longer-term
presence
in the state
22
SUPPORT PROGRAMS
Offshore Wind Supply Chain Technical Assistance Program
Program OverviewSupports local companies to develop the skills and competencies needed to participate in New Jersey’s growing offshore wind (OSW) industry
An OSW advisory and certification company will help participating NJ small- and medium-sized businesses:▪ Assess their current
capacity to supply the OSW market
▪ Develop an action plan to get up to the current industry standards
Companies that complete the program will be independently certified with industry credentials that are important for securing contracts.
The proposed Offshore
Wind Technical Assistance
Program is another positive
step to assure the industry
that New Jersey businesses
are ready and eager to support
developers and manufacturers
as they continue to advance
projects in New Jersey
- Joseph L. FiordalisoPresident, NJBPU
▪ 75% of program cost will be covered
▪ Proposal anticipates that participating companies will be responsible for a portion of the cost to ensure their commitment to full participation and completion of the program
23
SUPPORT PROGRAMS
Offshore Wind Supply Chain Registry
Program OverviewThe free, searchable registry creates a profile of each business, including their contact information and core competencies, and makes the information available to other businesses and projects throughout the offshore wind industry.
About 460 businesses have joined the registry
Resource for companies looking to buy from and partner with NJ-based firms
Registers you in the Business Network for Offshore Wind’s national supply chain registry
Receive special invitations to offshore wind events and resources
Governor Murphy
has set a bold vision
for 100 percent
clean energy by 2050 and
businesses up and down the
supply chain will be a driving
force behind achieving this
critical goal
- Tim SullivanCEO, NJEDA
24
We’d love to connect with you!
Sy Oytan
Offshore Wind Sector Lead
Phone: +1 609-649-6923
Email: [email protected]
Julia Kortrey
Project Officer
Phone: +1 609-858-6907
Email: [email protected]
Ocean Wind: NJ’s First Offshore Wind Farm and Supply Chain Needs
Kris Ohleth & Grant van Wyngaarden, Ørsted
Ocean WindLeading the way toward New Jersey’s clean energy future
First +1GW project
Hornsea One
Located off the Yorkshire coast in the UK, this 1,200 MW project was the first project to exceed 1,000 MW
27
Pioneering the offshore wind industryOcean Wind will be one of the largest offshore wind farms in the world
The world’s largest
Hornsea Two
Located off the Yorkshire coast in the UK, this 1,400 MW project will be the largest wind farm ever constructed
The largest in the U.S.
Ocean Wind
Located off the coast of New Jersey, this 1,100 MW project will now be the third largest in the world and the largest in the U.S.
28
Ørsted Offshore: Global overview25+ years of experience and unparalleled track record
The world’s firstVindeby, 1991
5 MW
America’s firstBlock Island Wind Farm, 2016
30 MW
The world’s largestWalney Extension, 2018
659 MW
The global leader in offshore wind
› 5,600 MW in operation
› 4,300 MW under construction
› 1,150+ turbines spinning
› 25 offshore wind farms in operation
29
Ørsted U.S. Offshore WindAttractive and geographically diverse portfolio of offshore wind assets: potential for 8-10GW
In Operation
Block Island Wind Farm 30MW
Awarded
Revolution Wind (50-50 JV w/ Eversource): 704MW (400MW to RI, 304MW to CT)
South Fork Wind Farm (50-50 JV w/ Eversource): 130MW
Sunrise Wind (50-50 JV w/ Eversource): 880MW
Ocean Wind (with the support of PSEG): 1,100MW
Skipjack Wind: 120MW
Coastal Virginia Offshore Wind (EPC contract): 12MW demo project
Under Development
Bay State Wind (50-50 JV w/ Eversource)
Garden State Offshore Energy (50/50 JV with PSEG)
Constitution Wind (50/50 JV with Eversource)
30
Ocean Wind projectØrsted, with the support of PSEG, has received an award to build New Jersey’s first offshore wind farm
Ocean Wind lease area
▪ 3,500MW potential capacity
▪ 160,500 acre lease area
▪ 65-100 feet water depths
Atlantic City
Provide more than half a million New Jersey homes with clean, reliable power.
Directly create several thousand construction jobs along with thousands of ancillary jobs, and approximately 70 permanent jobs to support the project over its 25+ year lifetime.
Make significant investments in New Jersey’s offshore wind infrastructure through the Ocean Wind Pro-NJ Trust, which will support Minority Business Enterprises, Women Business Enterprises and small businesses entering the offshore wind industry and enable infrastructure resiliency projects throughout South Jersey.
Partner with universities and research organizations to support educational initiatives and R&D on offshore wind.
The Ocean Wind project will:
Haliade-X
– 12 MW offshore wind turbine, the most powerful and efficient offshore wind turbine in the world to date
– Rotor diameter of 722 feet
– Each blade on the turbine is 351 feet long sweeping a total area of 409,000 square feet
– One turbine can generate 67 GWh annually, 45% more annual energy production than the most powerful machines on the market today
– Distance between water and rotor tip when in lowest position: 91.86 ft
– Nacelle height of 502 ft
Ocean Wind turbineGE Haliade-X 12 MW offshore wind turbine
31
GE Haliade-X
853 ft
32
Engagement across the spectrum of stakeholders
Local community –
Engagement early and often in the local communities near the project location
NGOs –
Local, state, regional, and national non-profits
Fishing –
Commercial and recreational, plus shore-side supply chain
Academic –
University, college, and other academic partners
Research and Development –
National labs, research institutions, private entities
What’s next for Ocean Wind?
33
Land acquisition in Atlantic City to develop our Operations and Maintenance facility
Kick off of our Live Classroom program in Atlantic City
Announcement of our Pro-NJ Grantor Trust
RFIs are out and RFPs are coming
Supply Chain
Building a wind farm
35
Supply chain opportunities across phases
36
Devex Capex Opex Decom.
Consenting Turbines Vessels & helicopters Vessels & helicopters
Surveys Foundations (Monopile/Transition Piece)
Inspection Inspection
Inspection Array & export cables Survey Survey
Outline design & engineering Offshore substation & compensator station
Monitoring Monitoring
Monitoring Onshore substation Equipment & safety Offshore operations & removals
Contracting; legal, financial Electrical equipment Spare parts Onshore disassembly
Land agreements Onshore & offshore installation Repair services Waste management & recycling
Vessels & helicopters Offshore exchange/ installation
Inspection/ survey/ monitoring Consumables
37
Ocean Wind schedule
Schedule
Ongoing Stakeholder engagement
2019 Project engineering and design continues
2019 Federal permits submitted
2022 Permit approvals received
2022 Onshore construction begins
2023 Offshore construction begins
2024 Project brought online
Ocean Wind procurement schedule
38
2020 2021 2022
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Accommodation/SOV
Export cable supply
Offshore substation supply
Guard vessel
Export cable installation
Components
WTG installation vessel
CTV - Construction & O&M
Offshore substation engineering
Scope
Array cable supply
Foundation & offshore substation installation
Array cable installation
Foundation sec. steel
Onshore substation supply
Foundation supply
SCADA
Expected Request for Proposal
Assumed Contract signing
Common themes for successfully working with Ørsted
39
Safety
Schedule
Transparency
Adaptability
Competitive
Collaborative
Quality
Which questions do we ask potential contractors?
40
– How does your company view the market potential based on facts and other “drivers” you find important?
– What do you wish to sell? Which products and services do you have that fit best with focus on your core?
– Who are your potential customers and who are their customers –how well do you know this business?
– Do you know the high-level specifications and requirements –can you comply or get there?
– What is your realistic lead-time?
– Which commercial structure can you create to be attractive and how?
– What do you need from Ørsted? Or your potential customer to offer the optimal package (HSE and TCO)?
– Oceanwind.com
– Supplier registration
– New Jersey Supplier Day – Q1 2020
How to get involved
41
U.S Market for Offshore Wind
& BNOW ResourcesBrandon Burke, Business Network for Offshore Wind
OF
FS
HO
RE
WIN
DU
S.O
RG
NJ OFFSHORE WIND SUPPLY CHAIN REGISTRYw w w .njosw supp lychain.com
GZA’s 10 Years of Experience with Offshore Wind Farms
Southern New Jersey Development CouncilDecember 18, 2019
Presented by:
Diane Baxter, Ph.D., P.E.
Presentation Outline
• GZA Geotechnical Investigations
• GZA Port Development
• Working in the Offshore Wind Industry
GZA Geotechnical Investigations• Block Island Wind Farm (Rhode Island) is the first and only offshore wind farm in the US.
• GZA performed the geotech offshore investigation in 2009
Geotechnical Investigations
• South Fork Wind Farm, MA
• Geotechnical Investigation 2018
• Skipjack Wind Farm, MD
• Geotechnical Investigation 2018
Block Island, South Fork and Skipjack Wind Farms – Geotechnical Investigations
• Design and implement
offshore geotechnical
investigation
• Laboratory testing
• Soil properties
• Preliminary foundation
analysis – pile foundations
for jackets, monopiles, and
gravity
Geotechnical Offshore Investigations • Lift boat from Gulf of Mexico
• Drill platform was cantilevered off the side of the deck
• Collect soil samples and conduct in situ testing
• Management of logistics (water, refuel, crew changes)
• 24/7 operations
• DOSECC Exploration Services
• Salt Lake City, Utah• Atlas Copco T3WDH drill rig
• Soil samples. Classification, strength, and density
• Sampling/drilling tools lowered into drill string through wireline.
Drilling Operations
Geophysical Logging• Downhole logging tools
• Density
• P-S Suspension Logger
• shear wave velocity
• Natural Gamma
• Geotechnical design of the New Bedford Marine Commerce Terminal, MA. Purpose built for
offshore wind staging.
Port Development
• Geotechnical design and
evaluation of the Port of
Providence for staging of the
Block Island Wind Farm
• Bearing capacity of the
port
• Evaluation and
underwater survey of the
old granite seawall
• Temporary foundation
design
Port Development
Working in the US Offshore Wind Industry Block Island Wind Farm 2009
• European firms were waiting for US market to develop. Industries in the Gulf of Mexico
were very busy with oil and gas and not interested in US offshore wind.
South Fork and Skipjack Wind Farms 2018
• Many federal lease site, state power purchase agreements, and European developers
• GZA competing with large European firms with 20 years of offshore wind experience
• US firms at a disadvantage. Some states have incentives for local content.
Industry is evolving
• Expertise from GOM, oil and gas, Europe. Applied to Northeast.
Working in the US Offshore Wind Industry Similarities of this Industry
• Large construction project. Marine oriented.
Differences of this Industry
• New standards and regulations. BOEM. ISO. Evolving.
• Higher safety standard
• More project planning and training
How did GZA adapt for this industry and recommendations for companies wanting to work in OSW
• Build on what you know
• Willing to take on something
new. Solve problems
• Open to new technology and
methodologies
• Educate yourself. Investment.
AWEA Offshore Conference,
IPF Providence 2020
Thank You
Block Island Wind Farm under Construction (2016)
Discussion
Audience Q&A
Closing Remarks
Steve Kehs, Vice-President, Triad Associates
SNJDC Economic Development Committee Co-Chair
Special Thank You to
For their support and assistance with today’s seminar
Register for New Jersey’s Offshore Wind Supply Chain
Visit:
https://www.njeda.com/OET/Offshore-Wind
