Tekmar Nets Offshore Wind Gig in Japan – Offshore Engineer

July 8, 2022

Credit: Ian Dyball/AdobeStock

Tekmar Group has secured a contract to provide an integrated engineering solution, including Cable Protection Systems ("CPS") and Cable Hang-Off Clamps, for an offshore wind farm project in Japan. The contract is expected to be delivered in 2023.

The company did not say who the client was. The financial details were not shared either.

Alasdair MacDonald, CEO of Tekmar Group, said: "We are pleased to be announcing this significant contract award, which represents an important strategic milestone as we extend our geographical reach into the Japanese offshore wind market. This contract builds on the encouraging contract momentum we have established, highlighted by the record order book of 20.1m we announced with our first-half results, and demonstrates how our CPS solution offers superior technical capability and value in de-risking complex subsea engineering projects for the market.

MacDonald said"We also see this recent contract momentum as an important indicator that the level of market activity is improving and are also pleased to update that we had a strong cash collection towards the end of our June quarter. This supports our confidence in the stability of the business as the market environment improves.

"The company has launched a formal sale process and further communication with shareholders on this process will be made as and when appropriate to do so. In the meantime, it is business as usual for Tekmar as we remain focused on delivering on our plans and we look forward to keeping shareholders updated with our continued progress."

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Tekmar Nets Offshore Wind Gig in Japan - Offshore Engineer

Norwegian Government Steps In to End Offshore Workers’ Strike – The Maritime Executive

Oseberg South was among the platforms affected (Equinor file image)

PublishedJul 5, 2022 4:34 PM by The Maritime Executive

A labor dispute nearly derailed up to half of Norway's gas production this week, just as the nation's oil firms were ramping up output to meet urgent European demand. Norway's government stepped in Tuesday to halt the strike and order the union back to work, citing the extreme impact that the shutdown would have on the energy market.

The strike affected senior employees, managers and technical staff represented by the union Lederne. Last week, these critical offshore workersvoted down a pay raise package of 4-4.5 percent - a deal which other offshore unions had already accepted - and opted to go on strike.

The labor action started Monday at three fields, Gudrun, Oseberg South and Oseberg East. On Wednesday, it would have expand to cover Aasta Hansteen, Heidrun, Kristin and Tyrihans. By the end of the week, the strike would have rolled out to Gullfaks C, Gullfaks A and Sleipner, which will also force closure at Kvitebjoern, Utgard, Sigyn, Gugne and Gina Krog.By Wednesday, the nation's gas output would have dropped by nearly 300,000 boepd - about 13 percent, according to industry association Norwegian Oil and Gas. Oil output would have fallen by about 130,000 bpd the same day, restricting supply in an ultra-tight global market. If the planned rollout had been fully carried out through the end of the week, it would have taken out more than half of Norwegian gas production, NOG said. Europe gets about 25 percent of its gas from Norway's offshore sector, and with Russia cutting down its gas exports ahead of the winter heating season, European customers aremore dependent on the Norwegian supply than ever.

Norway's labor ministry stepped in Tuesday to put an end to the strike, and Lederne agreed to return to work.

"The announced escalation is critical in today's situation, both with regards to the energy crisis and the geopolitical situation we are in with a war in Europe," Labour Minister Marte Mjos Persen said. "It is unjustifiable to allow gas production to stop to such an extent that this strike in the next few days is estimated to lead to."

It is the second time in weeks that Persen has been forced to step in and end a labor dispute. An aircraft technician strike in Norway grounded hundreds of flights in June, and Persen ultimately ordered a return to work, citing the hazard to healthcare patients who need air transport.

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Norwegian Government Steps In to End Offshore Workers' Strike - The Maritime Executive

Offshore Wind Presentation To Be Held In Lacey – Patch

LACEY, NJ Interested in learning more about offshore wind? New Jersey Resource Project, a community non-profit organization, is hosting a presentation to educate residents about offshore wind in Lacey on July 13.

The presentation will explain both concerns and benefits of offshore wind, according to the event's description.

"Our goal it to make sure offshore wind works for us and help sustain our communities for generations," NJRP wrote.

Two offshore wind projects are planned in the area. Atlantic Shores Offshore Wind would be off the shore of Long Beach Island, while Ocean Wind 1 is planned for Ocean City.

Residents of Ocean City have voiced concerns about Ocean Wind 1, which would involve installing a substation in Lacey at the former Oyster Creek power plant. Read More: Wind Farm Substation To Be Built In Lacey

Critics of Ocean Wind 1 say that the project would harm the local environment and hurt tourism.

The presentation will be held on July 13 at 7 p.m., at 15 E Lacey Rd in Forked River. To RSVP or learn more, contact Jody at 732-575-0609 or jody@newjerseyop.org.

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Offshore Wind Presentation To Be Held In Lacey - Patch

Dustin Varnell joins IMCA U.S. offshore wind team – Marine Log

Written by NickBlenkey

Dustin Varnell

The International Marine Contractors Association (IMCA) has appointed Dustin Varnell to its business development team. Based in Rhode Island, Varnell will focus on the U.S. offshore wind energy market, complementing the work of Bruce Gresham, IMCAs director of client engagement in the U.S.

As a master mariner on dynamically positioned (DP) vessels, Dustin is very familiar with IMCAs work in the field, which is very beneficial in representing the association to existing and new member companies in the U.S. wind industry, said IMCA CEO Allen Leatt. We look forward to closely engaging with industry in the northeast U.S. and helping to support the production goal of 30GW by 2030 in a safe and efficient way.

A Massachusetts Maritime Academy graduate, Varnell has 20 years experience in offshore energy and marine operations. He spent over 15 years offshore as a ships officer working internationally on large-scale projects in Asia, the Gulf of Mexico, and Brazil. He is a master mariner, an experienced DP operator and has shipyard and vessel construction experience that includes projects in the U.S., Japan and Singapore.

He has spent the last four years in construction and operational planning in the developing U.S. offshore renewable energy industry.

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Dustin Varnell joins IMCA U.S. offshore wind team - Marine Log

New Economic Substance Requirements and Nexus Approach Regarding Tax Exemption for Offshore Passive Income in Hong Kong – Lexology

Hong Kong was placed on Annex II of the EUs list of non-cooperative jurisdictions for tax purposes, commonly known as the EU watchlist last year. In response, the Hong Kong government pledged to make changes to its foreign source income exemption (FSIE) regime in relation to certain types of passive income by the end of 2022. After several rounds of discussions, the Hong Kong government and the EU agreed on the required changes to the FSIE regime in June this year. Upon implementation of the new FSIE regime (the target date being 1 January 2023), it is generally expected that Hong Kong will be removed from the EU watchlist upon the next review. Under the new FSIE regime, only the following types of offshore passive income, interest income, dividends, disposal gains and IP income (In-scope Offshore Passive Income), will be affected, and active income will not be affected. For the In-scope Offshore Passive Income, new economic substance rules and a nexus approach have been introduced for non-IP income and IP income respectively.

Under the new FSIE regime, the In-scope Offshore Passive Income will be deemed to be sourced from Hong Kong and chargeable to profits tax if:

Economic Substance Requirements for Offshore non-IP Income

A taxpayer will need to satisfy the following economic substance requirements in order to claim income tax exemption for its offshore interest income, dividends and disposal gains:

Participation Exemption for Dividends and Disposal gains

If a taxpayer does not meet the above economic substance requirements, it may still claim participation exemption in respect of its offshore dividends and disposal gains, provided that the following conditions are satisfied:

Note that the availability of above participation exemption is subject to the following anti-abuse rules:

Nexus Approach for Offshore IP Income

Under the new FSIE regime, the extent of exemption from profits tax for offshore IP income depends on the nexus between the income receiving benefits and the expenditures contributing to that income, which is in line with the nexus approach adopted by the OECD. Under the nexus approach, only income from a qualifying IP asset (see note 1 below) can qualify for preferential tax treatment based on a nexus ratio as follows:

Note that:

a. activities undertaken by the taxpayer in Hong Kong; b. activities outsourced to unrelated parties to take place inside or outside Hong Kong; and c. activities outsourced to related parties in Hong Kong to take place inside Hong Kong.

Unilateral tax credit

As a new double taxation relief, unilateral tax credit in respect of the In-scope Offshore Passive Income will be provided to taxpayers who have paid taxes in jurisdictions which have not entered into double taxation agreements with Hong Kong.

Next Steps for the Hong Kong Government

The Hong Kong government is currently seeking comments on the details of implementation of the above changes. It is aiming to have the amendment bill passed by the end of this year, such that above changes will be effective from 1 January 2023.

It is also expected that the Hong Kong Inland Revenue Department will issue further guidance on the implementation of the changes, including factors for determining the compliance with the economic substance requirements, and application of the nexus approach, participation exemption and unilateral tax credit.

Our recommendations

While Hong Kong will continue to adopt the territorial source principle of taxation, the new FSIE regime will undoubtedly present some challenges to companies that have been claiming offshore profits in respect of their passive income received in Hong Kong. In light of the upcoming new FSIE regime, we would recommend that companies consult their tax advisors to see if the income received in Hong Kong will fall within the ambit of the new regime, and structure their business operations accordingly. We will provide further information and analysis when the draft bill is available.

Taxpayers are also reminded to actively track the developments on Pillar Two of the framework for international tax reform on base erosion and profit shifting (BEPS 2.0) and ratification of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) by Hong Kong. More on this in due course.

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New Economic Substance Requirements and Nexus Approach Regarding Tax Exemption for Offshore Passive Income in Hong Kong - Lexology

Arup to Perform Feasibility Study for BlueFloat’s Offshore Wind Farm in Colombia – Offshore WIND

Arup will be working on the feasibility study forVientos Alisios, an offshore wind project in Colombia developed by BlueFloat Energy, for which the company says is the most advanced offshore wind project in Colombia.

Arup says it has mobilised its industry specialists for the study and that it is supported by the international marine, offshore, and engineering consultancy Global Maritime.

Vientos Alisios was the first Colombian offshore wind project to be granted pre-feasibility status from the Colombian Maritime Authority (DIMAR). The project achieved this in January 2021 and alsosecured an offer for the 200 MW grid connection from Mining and Energy Planning Unit (UPME), for which the guarantee was presented on the 28 April of this year, the developer said in May.

Located some 32 kilometres off the coast of Barranquilla, the Vientos Alisios offshore wind farm will include 28 bottom-fixed turbines that could generate enough energy to power 100,000 homes per year.

Although offshore wind is a relatively new industry in the Americas, Colombia is at the forefront of this energy transition, and developments like Vientos Alisios can serve as a case study for future developments in the region, Arup said in a press release.

Earlier this year, the Colombian Government launched an Offshore Wind Roadmap, according to which the country has the potential of installing almost 50 GW of offshore wind capacity with around 27 GW of this said to be best suited for bottom-fixed and 21 GW for floating foundations.

In terms of economic benefits, offshore wind can bring Colombia more than USD 27 billion in investments and create 26,000 jobs by 2050, according to the roadmap.

While offshore wind is a burgeoning sector in the renewable energy industry, purpose-driven roadmaps and policies are essential in this nascent industry. The roadmap presented by the Colombian government sends a positive signal to the global supply chain community and will further attract interest from investors and suppliers alike. There are still many hurdles to overcome, but Colombia is officially the next frontier for offshore wind, said Mauricio Acevedo, Arups Colombia Energy Leader.

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Arup to Perform Feasibility Study for BlueFloat's Offshore Wind Farm in Colombia - Offshore WIND

Construction Starts on Mammoth Offshore Wind Monopile Factory in UK – Offshore WIND

Construction works on the new offshore wind foundation factory in the UK, which will produce XXL monopiles, started on 7 July.

The new facility, located at Redcars Teesworks, is being built by SeAH, a subsidiary of South Koreas pipe manufacturer SeAH Steel Holdings, and will produce between 100 and 150 monopiles per year.

The monopiles will be transported directly from the factory to Teesworks under-construction South Bank Quay before heading to the North Sea for installation.

The new GBP 400 million offshore wind facility on Teesside, for which SeAH says will be the first XXL monopile foundation fabrication facility in the UK and the biggest of its kind in the world, will create 750 direct jobs, with a further 1,500 indirect jobs in the supply chain during construction.

According to SeAH Wind, this is also the first scheme driven by private sector investment to begin construction at any UK Freeport.

SeAH Wind received planning approval for the UK XXL monopile factory last month and said the construction works would commence in July with overall completion anticipated in 2024.

The company initially planned to build the factory at Able Marine Energy Park (AMEP) on the South Bank of the Humber, but changed the location to Teesworks at the beginning of this year. The reasons were not disclosed.

The 40-metre high, over 800-metres long building, part of the Teessides Freeport, will sit on a 90-acre site and will offer 1.13 million square feet of factory space for the production of monopiles up to 120 metres in length, 15.5 metres in diameter and weighing approximately 3,000 tonnes.

The factory will have a 93,324 square metre main monopile manufacturing building, a 3,873 square metre administration office, a maintenance station, a paint facility, and site-specific power stations, as well as a range of staff welfare facilities designed by Ashton Smith Associates.

Today is a monumental day years in the making. Since 2017 weve had a challenging time to secure all of the land at Teesworks and have worked hard to get it remediated and investor-ready as quickly as possible. Now weve finally got to the good part, said Tees Valley Mayor Ben Houchen, who welcomed President & CEO of SeAH Steel Holdings Joosung Lee and Business Secretary Kwasi Kwarteng MP to the Teesworks site to mark the start of construction.

With the ground breaking at SeAHs massive new facility, right on our doorstep, its a good time to reflect upon the incredible progress we have made in Teesside. Six years ago it looked as if this site would never recover now this is at the very heart of a new industrial revolution. A cleaner revolution creating the technologies of the future in Teesside and bringing thousands of well paid, high quality jobs back to our region, said Jacob Young, MP for Redcar.

As I have said previously, the scale of this green manufacturing site matches the scale of our ambitions for the entirety of Teesworks.

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Construction Starts on Mammoth Offshore Wind Monopile Factory in UK - Offshore WIND

Total, Duke are winners of latest U.S. offshore wind auction – Reuters

May 11 (Reuters) - France-based TotalEnergies and U.S. power company Duke Energy Corp (DUK.N) each won offshore wind leases in federal waters off the coast of North and South Carolina on Wednesday, the Interior Department said in a statement.

The auction generated $315 million in winning bids, split between Duke at $155 million and TotalEnergies at $160 million. It was TotalEnergies' second U.S. offshore wind lease secured this year.

The sale is part of a broad U.S. government push to put wind turbines in federal waters along every U.S. coastline. U.S. President Joe Biden has said the nascent offshore wind industry will create good-paying jobs while creating the carbon-free electricity needed to combat climate change.

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"Today's lease sale is further proof that there is strong industry interest and that America's clean energy transition is here," Interior Secretary Deb Haaland said in a statement.

Combined, the leases cover 110,091 acres (44,552 hectares) in the Carolina Long Bay area. Once developed, they could generate 1.3 gigawatts of offshore wind energy, or enough to power half a million homes, according to the Interior Department.

The auction total was far less than the $4.37 billion in high bids generated at a February wind auction for leases off the coast of New York and New Jersey. Northeastern leases were widely seen as more attractive due to the region's high power prices and state mandates to procure offshore wind power.

TotalEnergies paid $795 million for a lease at the New York Bight auction. The company could not immediately be reached for comment.

A trade group noted that the Carolina sale's winning bids were 17 times higher than a winning bid in the same region five years ago.

"With three separate wind projects now in the area, and potentially more on the way, the Carolinas are positioned to be the next American offshore wind hub," National Ocean Industries Association President Erik Milito said in a statement.

The auction marked Duke's first foray into the U.S. offshore wind market. The company is the owner of regulated utilities in North Carolina, and is working with state regulators to achieve a state goal to reduce power sector emissions by 70% below 2005 levels by 2030.

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Reporting by Nichola Groom, additional reporting by Valerie Volcovici; Editing by Kirsten Donovan, Bernard Orr and Bill Berkrot

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Total, Duke are winners of latest U.S. offshore wind auction - Reuters

SBM Offshore’s turnkey business drives jump in quarterly revenue – Reuters

May 12 (Reuters) - Oil and gas services group SBM Offshore (SBMO.AS) on Thursday reported a 89% jump in first-quarter revenue, as the Dutch firm benefitted from the sale of stakes in two floating production storage and offloading (FPSO) vessels.

SBM's turnkey business, which builds and sells floating production and storage vessels to oil and gas firms, saw its revenue grow 269% to $565 million in the quarter, driven by a higher contribution from the divestment of a 45% interest in FPSOs Alexandre de Gusmo and Almirante Tamandar.

Chief Executive Bruno Chabas said the group continued to adapt to the impacts of the COVID-19 pandemic and the increased pressure on the global supply chain resulting from the conflict between Russia and Ukraine.

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A global rush to secure more oil and gas after Russia's invasion of Ukraine is reshaping energy markets and creating supply bottlenecks.

The company posted revenue of $970 million for the first three months of 2022, compared with $513 million a year earlier.

The group also confirmed its full-year guidance for earnings before interest, taxes, depreciation and amortisation (EBITDA) of about $900 million and a revenue of above $3.1 billion.

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Reporting by Anait Miridzhanian and Elena Vardon; editing by Milla Nissi

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SBM Offshore's turnkey business drives jump in quarterly revenue - Reuters

Norway to ramp up offshore wind in drive to go green – Reuters.com

General view of the Walney Extension offshore wind farm operated by Orsted off the coast of Blackpool, Britain September 5, 2018. REUTERS/Phil Noble

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OSLO, May 11 (Reuters) - Norway unveiled plans on Wednesday for a major expansion in offshore wind energy by 2040, aiming to turn a country that has built its wealth on oil and gas into an exporter of renewable electricity.

The centre-left government, which has come under fire from environmentalists for continuing to support the oil and gas industry, set a target to develop 30 gigawatts (GW) of offshore wind capacity by 2040.

"This would nearly double our power output," Prime Minister Jonas Gahr Stoere told a news conference.

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Norway, which says the world still needs its oil in gas during the transition to a cleaner energy future, believes developing offshore wind will allow it to build on the know-how of its existing energy industry.

A wide range of utilities, oil and gas firms and engineering companies have lined up to develop offshore power projects in Norway, including Equinor (EQNR.OL), Shell (SHEL.L), BP (BP.L), Orsted (ORSTED.CO) and Eni (ENI.MI). read more

Norway needs more power for domestic consumption, but the new plan far exceeds the expected demand from households and industry.

"A significant portion of the electricity will be exported to other countries," the government said in a statement.

To date, Norway has opened two North Sea areas for development of up to 4.5 GW of bottom-fixed and floating offshore wind, with a first tender for 1.5 GW expected later this year. read more

Licensing rounds for new acreage will be held at regular intervals from 2025 onwards, the government said.

Grid connections would be considered on a case by case basis and could feature hybrid cables, which connect to several markets at the same time, or direct cables to single destinations, so-called radial cables, to Europe and Norway.

Industry executives, labour unions and some opposition parties had also called for a longer-term target to help provide predictability for supply chain investments in Norway.

The domestic energy industry, which had criticised the government for moving too slowly, welcomed the government's ambition.

"This will lay the foundation for industrial ocean wind development," the Norwegian Oil and Gas Association said in a statement.

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Reporting by Nora BuliEditing by Terje Solsvik and Mark Potter

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Norway to ramp up offshore wind in drive to go green - Reuters.com

rsted Trials Turning Offshore Wind Turbine Foundations Into Safe Havens For Corals – Sustainable Brands

The first-of-its-kind ReCoral by rsted project aims to implement a non-invasive approach for restoring the health of coral reef ecosystems by growing healthy coral colonies on the foundations of offshore wind turbines.

Danish sustainable energy company rsted is planning a world-firstattempt to support coral reefs by growing corals on offshore wind turbinefoundations. Together with Taiwanese partners, the company will test the conceptin the tropical waters of Taiwan this summer. The goal is to determinewhether corals can be successfully grown on offshore wind turbine foundationsand to evaluate the potential positive biodiversity impact of scaling up theinitiative.

According to the UN EnvironmentProgramme,coral reefs provide habitat for an estimated 32 percent of all marine speciesand benefit 1 billion people worldwide, directly or indirectly. But increasedsea temperatures due to climate change and common chemicals in products such assunscreenare threatening the survival of tropical coral reefecosystems,adding to the global biodiversity crisis.

Climate change is becoming the biggest driver of biodiversity loss, and asubstantial expansion of offshore wind is central to tackling these interlinkedcrises. Governments are planning a significant build-out of green energyinfrastructure at sea; if done right, rsted believes the expansion of offshorewind energy needed to fight climate change can also integrate solutions thatsupport and enhance oceanbiodiversity.

The ReCoral byrstedproject aims to implement a non-invasive approach for collecting surplusindigenous coral spawn as it washes ashore and for growing healthy coralcolonies on the foundations of nearby offshore wind turbines.

Increased surface temperatures in shallow waters can lead to coral bleaching.At offshore wind farm locations further offshore, temperatures are more stabledue to vertical mixing in the water column, preventing extreme temperatureincreases.

The idea behind ReCoral is that the relatively stable water temperatures atoffshore wind farm locations will limit the risk of coral bleaching and allowhealthy corals to grow on wind turbine foundations. Corals will be grown closeto the water's surface to ensure sufficient sunlight.

In 2020, biologists and marine specialists in rsted teamed up with private andacademic coral experts to mature and test the concept. In 2021, the ReCoral teamsuccessfully grew juvenile corals on underwater steel and concrete substrates ata quayside test facility for the first time. The first trial will begin in Juneat the Greater Changhua offshore wind farms in Taiwan to test the concept inopen waters on four separate wind turbine foundations.

Governments are preparing a significant expansion of offshore wind energy;and Im confident that if done right, the offshore wind build-out can supportand enhance ocean biodiversity, says Mads Nipper, Group President and CEO ofrsted. If we succeed with ReCoral and the concept proves to be scalable,this rsted innovation could create a significant positive impact on oceanbiodiversity.

Together with the Penghu Marine Biology Research Center in Taiwan, rstedhas developed a non-invasive methodology for coral seeding, in vitrofertilization, larvae transport and larvae attachment to wind turbinefoundations. Rather than removing anything from existing coral ecosystems,ReCorals non-invasive approach relies on the collection of surplus coral-eggbundles that wash up on shorelines and would not otherwise survive.

If the trial is successful, rsted will explore opportunities for scaling up theinitiative with the ultimate aim of using additional coral larvae generated atoffshore wind farm locations to restore and enhance threatened near-shore reefsystems. Scaling the initiative could also be critical in helping rsted achieveits ambition to deliver a net-positive impact onbiodiversityacross all of its new energy projects, from 2030 at the latest.

Were excited to take part in such a great initiative and partner up with theworlds most significant player in offshore wind, says Hern-Yi Hsieh,Director of Penghu Marine Biology Research Center. Environmental protectionand marine biodiversity will continue to be one of the key topics of the worldin the coming decade. Were honored to participate in the project, and we lookforward to more such initiatives in the future.

The ReCoral concept could be applied to offshore foundations of any kind intropical waters around the world. rsted will share learnings and the techniqueswith the broader coral conservation community and with other wind farmdevelopers, expecting that the findings will be useful regardless of whether theReCoral pilot succeeds.

Published May 10, 2022 2pm EDT / 11am PDT / 7pm BST / 8pm CEST

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rsted Trials Turning Offshore Wind Turbine Foundations Into Safe Havens For Corals - Sustainable Brands

Oregon fishermen protest offshore wind farm proposal in Coos Bay – Jefferson Public Radio

Members of the fishing industry are planning a protest Tuesday night to voice their concerns over offshore wind development in Oregon, and to ensure they are involved in choosing the location of turbines.

Offshore wind energy production remains fairly untapped throughout the country. No offshore wind farms have been built off the West Coast. That could soon change with President Biden's goal of developing the equivalent of 30 gigawatts of offshore wind turbines by 2030.

Three of those gigawatts could be built off the Oregon coast, enough to power over two million homes. The Bureau of Ocean Energy Management, or BOEM, is the federal agency that leases ocean waters for oil drilling and renewable energy production.

BOEM recently began calling for commercial wind energy producers to show their interest in developing offshore wind in Oregon. The agency identified over 10,000 square miles of ocean it says are ideal for wind farms.

Those miles are split into two "call areas", one west of Brookings and the other off of Coos Bay.

While these wind farms could help the state meet its green energy goals, commercial fishermen have concerns about the effects these wind farms will have on fish stocks.

We are talking about the ocean frontier, says Mike Graybill, a marine biologist and the former manager of South Slough Reserve in Charleston. And we are talking about, in Oregon, one of the most productive ocean areas on the planet, that already is a source of very, very important economic activity and is also an important source of our global food supply.

Graybill says hes been looking into what effects wind farms may have on the wildlife in the region. He says its important to look at these effects thoroughly because the West Coast is a prime location for fishing.

The West Coast lies in an eastern boundary current, where high winds blowing parallel to the coastline creates an upwelling current, forcing nutrient-dense water up to the surface.

Just five of these eastern boundary currents around the world produce almost a quarter of the worlds marine fish catch. The other four are off the coasts of Chile, Somalia, Northwest and Southern Africa.

Everything from plankton to whales to seabirds to fish is associated with the fact that when wind blows over the oceans, it moves the water, says Graybill.

That means offshore wind farms and fishing will likely clash, as both industries are connected, in some way, to wind.

Were very concerned that its going to lead to environmental and cumulative impacts that arent even being evaluated at this point, says Lori Steele, director of the West Coast Seafood Processors Association. Steele helped to organize Tuesday's rally.

A map of the call areas identified by BOEM off the Oregon Coast for potential wind energy farm development

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Bureau of Ocean Energy Management

Steele says the fishing industry isnt opposed to alternative energy. But, she says, the push for offshore wind energy isnt being done responsibly and alternatives, such as onshore wind or solar farms, could be just as effective and cheaper than offshore wind.

While 10,000 square miles of ocean for wind farms seems like a lot, that entire area wont be used for offshore wind. BOEM says the call areas are a broader identification where the agency is interested in leasing out to wind farm developers, and the actual size of the wind farms themselves will be smaller.

That call area will also be whittled down as the agency goes through the public comment period and identifies areas where wind farms may not be feasible, or where they would conflict too much with the fishing industry.

BOEM says coordination with the National Marine Fisheries Service, the Pacific Fishery Management Council and the Oregon Department of Fish and Wildlife is already ongoing, and discussion will continue to help further reduce conflicts between wind power and fishermen.

According to Graybill, offshore wind turbines design makes fishing around them difficult and the locations must be picked carefully.

Graybill estimates up to 750 miles of cable could be needed to hold 200 wind turbines in place in deep water. The turbines float in the water and are each anchored by three cables attached to the seafloor.

You wont be able to tow a net that has 700 miles of mooring cables and 350 miles of electrical cables, he says.

In Europe, where offshore wind has been in place since the '90s, fishermen frequently clash with energy companies to share the sea. They argue the exclusion zones around wind farms means more fishermen are competing for less space.

BOEM says itll continue to work with the fishing industry throughout this call process to avoid conflicts.

The agency is accepting public comments through June 28th. Members of the public can also look at interactive maps on BOEMs website showing the specific call areas, and overlays of fish populations, existing underwater infrastructure and more.

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Oregon fishermen protest offshore wind farm proposal in Coos Bay - Jefferson Public Radio

Italy working on incentives for offshore wind projects – Reuters

A wind turbine is pictured in the southern German town of Schonach, January 6, 2008. REUTERS/Vincent Kessler

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MILAN, May 11 (Reuters) - The Italian government is working on incentives to boost the roll-out of offshore wind facilities, Italys energy transition minister said on Wednesday.

"Incentive mechanisms are in the programming phase," Roberto Cingolani said, answering questions from members of parliament.

Besides subsidies, Cingolani said offshore wind would also receive grants from Italys national Recovery Fund plan.

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Rome is keen to speed up the build-out of renewable energy plants to help achieve climate goals and cut its reliance on Russian gas.

It has introduced a series of measures aimed at simplifying the permitting process to attract investors.

Cingolani said last year more than 60 developers had expressed interest in building offshore wind farms. These include ERG (ERG.MI), Eni (ENI.MI), Saipem (SPMI.MI), EDF-owned Edison (EDF.PA) and Fincantieri (FCT.MI). read more

The overall generation capacity was well above the 2030 capacity target laid out in Italys latest energy plan.

"There has been an openness of operators to invest (in offshore wind) that is way above expectations, he said.

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Reporting by Stephen Jewkes; Editing by Lisa Shumaker

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Italy working on incentives for offshore wind projects - Reuters

Gov. Baker proposes $3.5 billion legislation to bolster offshore wind – Cape Cod Times

BUZZARDS BAY The Massachusetts Maritime Academy welcomed Gov. Charlie Baker Tuesday afternoon, along with Lt. Governor Karyn Polito, and other state energy officials to talk about a $3.5 billion bill to revitalize Massachusetts in a post-pandemic world. They specifically focused on the parts of the legislation regarding clean energy investments.

Massachusetts has a vital role to play in the offshore wind industry, Baker said in comments to a group of about 80 people, half of whom are cadets at school.

The big goal here is to make sure that we dont miss the opportunity to be a national and, in some ways, a global leader in offshore wind, he said. He highlighted the states achievements in scientific research, such as being a major player in the development of COVID-19 vaccines. He said that Massachusetts could be a hub for the transition from fossil fuel-based energy to clean energy.

After the governorasked a cadet why Tuesdays were special at the academy, (its the day chicken patties are served in the cafeteria), Bakerspoke about new legislation filedby the Baker-Polito administration.

A new industry: Competition fierce for offshore wind's a 'once in a generation opportunity'

FORWARD, or An Act Investing in Future Opportunities for Resiliency, Workforce, and Revitalized Downtowns, would be funded with $2.3 billion of ARPA money and about $1.256 billion in capital bond authorizations. Much of the bill focuses on using this money to strengthen infrastructure, revitalize downtowns, support climate resiliency and preservation efforts, and bolster workforce efforts such as unemployment funding.

Part ofthe money in the bill $750 million would be dedicated to clean energy, including money for higher education and workforce training forthe clean energy industry.

Job opportunities: What you need to know about offshore wind jobs, training and business opportunities

The offshore wind industry cannot only boost the economy by providing jobs,it could helpMassachusetts to reach its net-zero emissions goal, Baker said. Currently,there are three proposals to provide 1.6 million homesacross the state with energy from offshore wind, he added.

He spoke about the need for thousands of people to work in the offshore wind industry and highlighted the importance of educational institutionssuch as Massachusetts Maritime Academy, in training the next generation of skilled workers. In fact, part ofhis proposed legislation wouldappropriate $10 million to Massachusetts Maritime Academy for workforce training for the offshore wind industry.

'Pioneering a new era': Markey, Keating experience Mass Maritime's wind energy efforts

When offshore wind began to emerge in this space where maritime meets energy, Massachusetts Maritime stood at the forefront, Rear Admiral Francis McDonald, president of the Massachusetts Maritime Academy, said.

Massachusetts Clean Energy Center CEO Jennifer Daloiso said a well-trained, diverse workforce would be needed since the offshore wind industry is being built right off of the South Coast.

After the speeches concluded, attendees journeyed outside to view a wind liferaft crew demonstration.

Secretary of the Executive Office of Energy and Environmental Affairs Bethany Card, earlier had said that she hopes education inoffshore wind becomes a part of the traditional curriculum, just like rescue and sea training.

Contact Asad Jung at ajung@capecodonline.com. Follow him on Twitter: @asadjungcct.

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Gov. Baker proposes $3.5 billion legislation to bolster offshore wind - Cape Cod Times

Awarded Contracts Power Start of NJ’s First Offshore Wind Project – The SandPaper

Engineering, procurement and construction contracts have been awarded for New Jerseys first offshore wind farm, to be constructed south of Long Beach Island, off the coast of Atlantic City.

Ocean Wind 1, a joint venture between rsted and Public Service Enterprise Group, is expected to be operational in 2024 and will produce enough electricity to power more than 500,000 homes, deliver thousands of jobs and ramp up supply chain initiatives, like the EEW monopile manufacturing facility at the port of Paulsboro, all while helping the state meet its clean energy goals, the companies said in a joint statement announcing the contracts.

JINGOLI Power LLC, based in Lawrence Township, and Missouri-based Burns and McDonnell Engineering Co. Inc. won the contracts, which include the installation of two high-voltage substations and nearly 9 miles of underground cable that will connect the offshore wind farm to onshore electric grids at two landfall points,

The awarding of these contracts mark significant milestones in moving the states first offshore wind project forward, said Grant van Wyngaarden, head of procurement for rsted North America. We are focused on doing all we can to meet the states timeline for delivering the Ocean 1 project, hiring locally, creating job opportunities, and encouraging supply chain growth to help the offshore wind industry mature in New Jersey.

Engineering for the project began during the first quarter of this year. Construction could begin as early as September 2023.

Together, these contracts will support the creation of approximately 275 family-sustaining jobs in New Jersey, including more than 200 high-paying, union construction jobs, the companies said.

Burns and McDonnell is slated to install a substation in Upper Township, including an interconnection to a nearby Atlantic City Electric substation. It will also construct a substation at the former Oyster Creek Nuclear Generating Station in Lacey Township, once the nations oldest operating commercial nuclear power plant. An interconnection will be run to a nearby First Energy substation. The company will also install an underground export cable from the landfall to the onshore electric substation.

Under its contract, JINGOLI Power is expected to install an underground expert cable from the landfall to B.L. England, the site of the onshore electric substation in Upper Township. The company will also engineer, procure and install a duct bank/manhole system to house the export cables, officials said.

Ocean Wind 1 proves we dont have to choose between creating good jobs and fighting climate change, said Joseph R. Jingoli Jr., CEO and co-founder of JINGOLI Power. We can do both. Were extremely honored to have been selected.

In addition to awarding contracts for Ocean Wind 1, rsted recently announced a project labor agreement to construct the companys U.S. offshore wind farms with an American union workforce. The agreement is with North Americas Building Trades Unions and is the first of its kind in the country.

The National Offshore Wind Agreement sets the bar for working conditions and equity, injects hundreds of millions of dollars in middle-class wages into the American economy, according to a statement announcing the agreement, which includes all of rsteds contractors and subcontractors for its offshore wind projects from Maine to Florida.

Sean McGarvey, president of NABTU, called the agreement unprecedented and historic not just for the workers, but also for future energy needs.

This partnership will not only expand tens of thousands of career opportunities for them to flourish in the energy transition, but also lift up even more into the middle class, he added.

Industry projections expect offshore wind projects to directly create roughly 80,000 jobs with millions of union work hours and tens of thousands more in indirect careers in manufacturing, maritime work, logistics and clean energy technology.

The National Offshore Wind Agreement we signed with NABTU sets the industry standard from the beginning. Were going to build an American offshore wind energy industry with American workers, family-sustaining wages, and robust and equitable training programs to achieve this critical vision, said David Hardy, chief executive officer of rsted Offshore North America.

Gina G. Scala

ggscala@thesandpaper.net

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Awarded Contracts Power Start of NJ's First Offshore Wind Project - The SandPaper

Hexicon and Elia to Optimise Floating Offshore Wind Farm Transmission Connection – Offshore WIND

Sweden-based Hexicon and Elia Grid International (EGI) have joined forces to connect the wind energy produced by floating offshore wind farms to the onshore grid.

Under the agreement, the partners will develop concepts and projects to integrate large-scale floating offshore wind farms into the onshore power systems.

By doing so, the two companies expect to create the opportunity to harvest the full potential of floating offshore wind to provide clean energy to millions of households and accelerate the energy transition.

The five-year-long cooperation consists of two phases, covering the provision of expertise during the projects pre-development and development phases.

The ability to early plan and design an efficient and robust electrical system is key to the business case and successful projects. Hexicons and EGIs competences are fully complementary and very well matched, said Marcus Thor, CEO of Hexicon.

EGI brings unsurpassed global experience within electrical transmission and large-scale RES integration projects. While Hexicon offers profound deep sea and floating wind knowledge.

According to the partners, they will design the power transmission part of floating wind farms and optimise the connection to onshore power systems.

By solving the technical challenges related to floating offshore wind projects, EGI and Hexicon are hoping to turn floating offshore wind into an attractive market for investors.

Connecting offshore wind technology to the electrical grid system is a complex and costly endeavour. With this cooperation, EGI is committed to providing state-of-the-art expertise and proposing innovative solutions that will unleash the development of cost-efficient, large-scale renewable energy, said Didier Wiot, CEO of EGI.

Potential geographies for the cooperation include the Mediterranean as well as the Baltic and Atlantic Sea basins.

Work is expected to start in June 2022.

Hexicon has its own patented technology TwinWind which consists of a floating foundation with two turbines. The twin-turbine design is said to enable more turbines per sea area, which increases the energy yield and reduces the environmental impact.

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Offshore wind farm bill coming – Kathimerini English Edition

Greeces declared national target for the installation of offshore wind farms adding up to 2 gigawatts by 2030 has mobilized the interest of international investors as well as some of the countrys biggest energy groups that are patiently waiting for the regulatory framework to open the way for their business plans.

The bill to that effect has been delayed for at least a year, since the original announcements by the Energy Ministry, and it has been six months since the its main elements were presented to the cabinet last November.

In the last couple of months, under pressure from the Finance Ministry too (given that its introduction is among the prior actions required for the disbursement of the second tranche by the Recovery and Resilience Facility), the competent authorities of the Energy Ministry are now scrambling to make the deadlines for the bill to clear Parliament by June.

Kathimerini understands the bill will provide for a mixed model for the development of offshore wind farms, with the state selecting the broader zones for installation and proceeding up to a certain level with the licensing process. Parts of those blocks will then be conceded to interested investors through tenders.

The projects will be selected based on the financial bids regarding their revenues for the energy produced, as is also the case with onshore wind farms and photovoltaics.

According to an Energy Ministry study, the Aegean Sea could host fixed wind farms of some 10 GW, and another 30-40 GW of floating facilities. The ideal areas for the floating farms are considered to be the Cyclades, the northern Aegean (between Limnos and Agios Efstratios), the Dodecanses (between Ikaria, Patmos and Leros), and between Crete and Karpathos.

International market leaders which have partnered with Greek energy groups discern opportunities for their expansion to Greeces seas. Norways Equinor, the worlds biggest offshore wind park developer, was among the first to express an interest in Greece. Terna Energy has reached a deal with Ocean Winds (a venture of EDP Renewables with ENGIE), as has Mytilineos with Copenhagen Offshore Partners.

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Offshore wind farm bill coming - Kathimerini English Edition

Shell Sets Sights on Offshore Wind in Spain and Portugal – Offshore WIND

Shell and the Spanish energy company Capital Energy have signed an agreement to analyze the joint development of projects in the offshore wind energy sector in Spain and Portugal.

Leveraging their complementary skills and strengths, both companies will explore opportunities in line with their interest in these countries, especially in the field of floating offshore wind power, Capital Energy said.

Shell has more than two decades of experience in the development of wind infrastructure, as well as more than half a century in the field of marine engineering in the North Sea.

Capital Energy, based in Madrid, has, for its part, ambitious growth plans in this sector, with approximately 2,000 MW under development. The company has also signed several agreements with shipyards and other relevant industrial agents in the Canary archipelago.

This agreement demonstrates our firm commitment to offshore wind power and together with Shell we will not only be able to supply green and affordable energy, but also to promote the socio-economic development of those regions where we operate our wind farms, Pablo Alcn, Head of Offshore at Capital Energy, said.

Spain has recently approved a roadmap for the development of offshore wind which calls for the development of 3 GW of floating offshore wind capacity by 2030.

The country plans to carry out its first offshore wind auction, in the Canary region, in 2023.

The roadmap for offshore wind energy in Spain, proposed in December 2021, represents a great opportunity to explore the development of projects in the country that align with our strengths and strategic ambition to be an integrated energy leader. We are very excited to collaborate with Capital Energy in exploring those opportunities, Natalia Latorre, president of Shell Spain, said.

Portugal reportedly plans to hold its first offshore wind auction this summer, with between 3 GW and 4 GW of floating wind capacity expected to be auctioned off.

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Onshore Wind Farm to Be Built Using Offshore Techniques – Offshore WIND

Dutch energy company Eneco has started the construction of the Maasvlakte 2 onshore wind farm in the Rotterdam harbour area, with a portion of turbine components to be installed using offshore installation techniques.

The wind farm covers a total length of approximately 7.5 kilometres.

The 2.5-kilometre-long hard sea defences consist of a dyke body with a paved surface on top and large boulders in the surf.

The 5-kilometre soft sea defences consist of beach and sand dunes. The wind turbines on the hard sea defences will be positioned on the land side of the dyke. The wind turbines on the soft sea defences will be erected on the beach in front of the sand dunes.

The first monopiles will be transported to the beach of the Maasvlakte industrial area in May, where they will be installed using offshore techniques, Eneco said.

Preparatory construction works such as dune access points and temporary roads started in February. The first crane locations are now ready for use and the work area is ready to start the construction of the turbines, Eneco said.

This is said to be the first time ever that offshore installation techniques such as using monopiles and driving them into the ground using a hammer will be used on an onshore wind farm project.

Using this innovative construction method is necessary in order to create a sufficiently solid base for the 12 wind turbines that will be located on the beach, Eneco said.

Together with turbine manufacturer Vestas, Ballast Nedam is realising the wind farms 22 wind turbines on both hard and soft sea defences.

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Energy Security and Energy Transition: Highs and Lows in the Offshore Rig Market – IHS Markit

To paraphrase Charles Dickens: these are the best of times,these are the worst of times. The fate of the offshore rig marketis inexorably linked to oil prices. And since Russia made itsincursion into Ukraine in February 2022, Brent has consistentlypushed well above USD 100 a barrel, giving hope to a rig industrythat has been languishing since the offshore downturn in 2014, thata meaningful turnaround lies ahead.

But these are also different times. The last two years has seenthe world turned upside down by the pandemic and the climatecrisis, and this turbulent period has made it increasingly clearthat the Energy Transition is, as planet-busting movie villainThanos calls himself, inevitable. In response to these globalupheavals, pivotal shifts in the social, policy and market arenasare driving fundamental change towards a low-carbon world. The wartoo, has clarified to some countries like Germany that it might bebetter to be weaned off oil and gas.

As it affects the rig market, however, these two forces - EnergySecurity versus Energy Transition - pull in opposite directions. Onone hand, the high oil price and improved economics for oil and gasexploration beckons oil operators to go forth and drill. At thesame time, these C-suite decision makers are facing pressures fromstakeholders, activist investors and the public alike for moreclimate accountability. It is a balancing act for oil companies, tomaintain or increase profitability while decreasing emissions andre-structuring towards a more sustainable portfolio.

In the near term, the choice is clear as energy security is theimmediate concern. With Russian energy supplies uncertain and theneed to alleviate pain at the pumps urgent, governments like theUnited States' have been imploring oil and gas producers toincrease their output. Offshore projects are expected to pick up,but they will take time to put together and cost inflation - forcrew, equipment and other services - is already setting in.

The chart above shows how closely offshore rig demand tracks oilprice over the last decade. The rig market - comprising drillships,semisubmersibles and jackups - fell hard from its last height in2014, but has remained relatively resilient over the last two yearsdespite the logistical chaos caused by the pandemic and the 2020oil price crash. That year alone, there were 79 rig contractcancellations. The lone region that saw demand grow during thistrying period, while the rest shrank, was Latin America, which isrecording strong demand from Brazil, Guyana and Suriname.

The Middle East, too, is forecast to see incrementalrequirements from Saudi Arabia, Qatar and the United Arab Emiratespush rig numbers from 126 jackups to about 140 units over the nextyear. On aggregate, for the unfolding 12 months ahead, IHS MarkitPetrodata anticipates worldwide jackup demand to improve fromaround 332 units now, to 361 units; semis from 39 units currentlyto 56 units; and drillships from 63 units to around 72.

Even when the going was tough, many rig contractors took measureof the times and worked to get their rigs 'greener'. Since 2020,they have been exploring different ways to optimise drilling, aswell as utilise alternative energy systems and innovate with newcleantech to improve efficiency and reduce emissions. An example isthe Selective Catalytic Reduction (SCR) system, an emissionscontrol technology that injects ammonia to convert noxious oxidesinto harmless water and nitrogen, now installed on 16 rigs. So far,the progress is mostly limited to rigs working in Northwest Europewhere more governments offer support for such green initiatives. Todate, just 36 out of the over 700 rigs worldwide have greennotations by classification societies.

The momentum for the Energy Transition has already resulted inreduced investments in upstream oil and gas projects, prompting anumber of traditional oil and gas operators like Chevron todiversify into greener ventures like offshore wind. Even yards likethe newly merged Keppel-SembMarine are jumping on the bandwagon.Keppel is spinning off its remaining unsold drilling assets, whilethe new combined entity has pledged to focus on buildingsustainable offerings like floating carbon capture storages andhydrogen-driven vessels.

In the long run, there will no doubt only be more cutbacks ondrilling projects. But in the meantime, the road to a net-zeroworld is a long one. Green tech is still relatively nascent andwill take time to become commercially viable at scale. And withglobal oil inventories at an all-time low, the world still needs tofuel its energy requirements while the world figures out the pathto meet optimistic temperature targets.

For now, the robust oil price will definitely help invigoratethe rig market, even though any up-cycle potential for increaseddrilling will likely be tempered by the opposing push to reduce ourcarbon footprint through efficiencies and power generation.Ultimately, how things pan out will also depend on the geopoliticallandscape after the dust settles when the war in Ukraine is over.Hopefully, it is not one where partisan blocs dominate and lessco-operation takes place, for while such an unstable outcome mayprop up the oil price that supports offshore drilling, it couldwell accelerate the world towards a truly unimaginable worst oftimes.

For more data and insight on the global offshore drillingmarket, usePetrodataRigs by IHS Markit.

Posted 11 May 2022 by Yun Yun Teo, Principal Analyst, Offshore Rigs, IHS Markit

This article was published by S&P Global Commodity Insights and not by S&P Global Ratings, which is a separately managed division of S&P Global.

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