Category Archives: Offshore

08 April 2021

Holland & Knight

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As outlined in a previous Holland & Knight alert on thissubject, U.S. Customs and Border Protection (CBP) earlier this yearfor the first time expressly found that the Jones Act applies totransportation of merchandise from a U.S. port to a location on theU.S. outer continental shelf (OCS) for the purpose of thedevelopment and production of wind energy. (See "CBP Expressly Applies Jones Act to Offshore WindProjects on Outer Continental Shelf," Feb. 2, 2021,concerning HQ H309186 ruling on Jan. 27, 2021). That rulingfollowed an amendment to the Outer Continental Shelf Lands Act(OCSLA) and ended a long-standing ambiguity over whether OCSLAextended the Jones Act to installations and other devices attachedto the OCS for the purpose of exploring for, developing orproducing non-mineral energy resources, such as offshorewind.

In a second ruling, dated Feb. 4, 2021, CBP again addressed theapplication of U.S. coastwise laws on proposed offshore windconstruction activities on the OCS. See HQ H316313. That ruling provided significantguidance on permissible uses of foreign-flag vessels in connectionwith offshore wind activities, including important guidance oninstallation tools and items treated as "vesselequipment" and permissible categorization of installationpersonnel as vessel crew, not passengers.

In the third and most recent ruling, CBP significantly modifiedits first ruling. See HQ H317289, March 25, 2021. The first rulingspecifically addressed scour protection how and when U.S.coastwise qualified, and non-U.S. coastwise qualified vessels,could permissibly transport and deposit on the OCS "scourprotection material" ultimately used to protect turbinefoundations. In the first of seven scenarios presented to CBP, thescour protection material would be laden at a U.S. port anddeposited on a "pristine" location on the OCS. CBPconcluded without discussion or citation to a substantialbody of prior rulings concerning what constitutes OCS coastwisepoints, including rulings to the effect that a "pristine"seabed does not constitute a point that the"pristine" seabed where scour would be deposited would bea coastwise point.

CBP reversed that ruling in the instant modification, concludingthat "at that time of first delivery, there is no coastwisepoint, and hence, no transportation of merchandise from onecoastwise point to another. As a result, the Scour Vessel maytransport the scour protection material to the installationlocation when that location is the pristine seabed, withoutviolating 46 U.S.C. 55102."

First, the three rulings taken together indicate CBP'swillingness to reach back to a substantial body of priorinterpretative principles largely developed in connection with oiland gas activities. It has been unclear how CBP would apply some ofthose principles moving forward, as highlighted in Holland &Knight's Feb. 2 alert, and these rulings provide some guidancein that regard.

Second, CBP's Jan. 27 and March 25 rulings indicate thatdespite looking to existing analogous principles, CBP is willing toset new precedent for offshore wind activities. For example,although CBP revoked part of its initial Jan. 27 ruling findingthat a "pristine" OCS seabed was a coastwise point, indoing so in its most recent March 25 ruling CBP offered a new andrather broad interpretation of what will now constitute a"coastwise point."

Finally, the fact that CBP is actively issuing rulings in thespace is in and of itself an important, if not critical, trend. Thepolitical dynamic regarding renewable energy and offshore wind hasclearly turned the President's plan to promote 30 gigawatts ofoffshore wind by 2030 being just one recent example. Anythingclose to the level of activity needed to achieve such goals willrequire virtually every permutation of available U.S. coastwisequalified vessels and permissible foreign-flag vessels.CBP's active participation in the industry is a necessary andwelcome trend.

The content of this article is intended to provide a generalguide to the subject matter. Specialist advice should be soughtabout your specific circumstances.

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This edition of Holland & Knight's Clean Tech Quarterly Update highlights the biggest clean tech updates and government-related developments from the past few months...

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CBP's Most Recent Offshore Wind Jones Act Ruling Signals A Trend - Energy and Natural Resources - United States - Mondaq News Alerts

German engineering group Siemens Energy aims for a slice of the $2.3 trillion U.S. President Joe Biden plans to spend on infrastructure, including power grids and renewables, as the company targets higher sales in its biggest market.

Biden last week set out his plans for a transformation of the U.S. economy with massive spending on low carbon technology as well as more traditional infrastructure.

For Siemens Energy, the United States accounts for $7 billion in revenues, or about a fifth of its total, but it sees great potential for growth, especially in offshorewind.

"We see great opportunities forwindenergy, onshore but above all in the area of offshore," Tim Oliver Holt, who is in charge of Siemens Energy's U.S. business, told Reuters. He also pointed to transmission systems as a growth market.

To better capture growth in the world's top economy, Siemens Energy, which was spun off from Siemens AG last year, is considering whether to set up local production for offshorewindturbines on the U.S. East Coast, an area central to a plan announced last week to deploy 30 gigawatts by 2030.

Siemens Energy owns 67% in Siemens Gamesa, the world's largest maker of offshorewindturbines, which so far only caters for onshore clients in the United States via two production sites.

"Of course one could build a factory for the offshorewindmarket in the U.S.A. But you could also deliver and install by ship from Europe. You have to weigh up what makes more sense," the 51-year-old said.

While the company is aware of possible requirements for local production and to set up factories in every federal U.S. state, Holt said that was "not worth it", even though transporting giant turbines is difficult and costly.

Siemens Gamesa is currently producing offshorewindturbines in Europe.

TEXAS TRAUMA

Biden's infrastructure plan, which still needs to become law, includes $100 billion for upgrading and modernizing the country's strained power grids, for which Siemens Energy could provide transmission systems and other components.

Siemens Energy is already looking at Texas, whose energy grid was hit by a cold spell in February, affecting several local utilities, including Germany's RWE, and hundreds of thousands of homes.

"In Texas we are sounding out how to better utilize systems in case of a crisis, such as the cold snap," Holt said.

Many systems in Texas had been ill-prepared for the winter, causing vital components, including pumps, to freeze, problems Holts said Siemens Energy could address.

"You can start there," he said.

($1 = 0.8413 euros)

(Reporting by Christoph Steitz and Tom Kaeckenhoff; editing by Kirsti Knolle and Barbara Lewis)

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Siemens Energy Eyes Offshore Wind Opportunities in U.S. - Offshore Engineer

Offshore equipment company OEG Offshore (OEG) has this week acquired Norfolkbased Pegasus Welfare Solutions (PWS), a company that developed the world's first offshore wind turbine toilet, for an undisclosed sum.

Aberdeenbased OEG, which provides the offshore market with DNV certified containers, baskets, skips, workshops, and offshore tanks, said the acquisition strengthened its offering for the renewables sector with PWS range of offshore workforce welfare solutions. As part of the deal, PWS founder Dan Greeves has joined OEG as Head of Renewables.

"Engineer Greeves invention of the worlds first offshore wind turbine intower toilet was hailed as an industry gamechanger when it was released last year, winning a first order by Swedish energy group Vattenfall for a unit for every turbine on its Aberdeen Offshore Wind Farm, renowned for its firsts and industry innovation," OEG said.

Vattenfall in January said that every turbine on Aberdeen Offshore Wind Farm will be installed with a loo, saying that this was more than a convenience as turbine toilets deliver better safety for technicians by cutting ladder climbs to vessels and vastly increases productivity.

"Greeves, former Head of International Development for James Fisher Marine Services, will now drive PWS patented product portfolio across OEG worldwide and further develop OEGs products into the offshore wind sector, while seeking out new renewables opportunities and acquisitions in the UK and internationally," OEG said.

Elephant in the (very narrow) room

OEG Chief Executive Officer John Heiton said Norfolkbased PWS was a perfect fit as OEG reshaped its portfolio in line with the energy transition and expanded its global footprint.

Dan has developed patented products that have addressed the elephant in the room in offshore wind and deliver real results for developers by improving safety and productivity, as well as addressing the important diversity issue in the sector," Heiton said.

Its stable of patented products have massive worldwide potential. We intend to develop this business across Europe and into Asia and the Americas as offshore wind continues to develop as a sector," he said.

PWS multiunit rental systems are used in offshore wind construction but also have huge scope in offshore oil and gas decommissioning projects and other sectors, such as humanitarian crises and military uses, Heiton said.Credit: Vattenfall

Webinar: Where it all started

Back when announcing the deal to deploy PWS toilets on all of its Aberdeen Offshore Wind Farm turbines, Vattenfall shared a story on how Greeves came up with the in-turbine loo solution, after an offshore health and safety professional questioned the lack of offshore loos at an industry webinar.

"Dan said he took a webinar question: Why has no one tackled this before? asked by Jack Kiely, HSE specialist offshore for Vattenfall, as a challenge," the wind farm developer shared.

Currently, no offshore turbine has toilet facilities. Within 119 days of Jacks comment, I had secured the worldwide patent for the worlds first retro-fit in-tower toilet that not only delivering workforce welfare, but offers clients other major benefits," Greeves said, according to Vattenfall.

An in-tower toilet dramatically improves safety by eliminating the number of 11-16metre ladder climbs to use the toilet on a vessel, it improves productivity by saving technicians an average of 1.4 hours a day on vessel loo visits.

The number one cause of incidents and accidents in the G+ report this year is the transfer of people between a vessel and the asset," he said.

The in-tower unit is a permanent offshore version of patented multi-unit toilets used in the construction stages of offshore wind also created and manufactured by PWS.

How does it work?

According to information on PWS' website, each in-turbine toilet unit comes with its own rigging and certification. The cubicle can be carried and installed by two technicians within an hour, according to Vattenfall.

In-Tower units can be mobilized offshore by crew transfer vessels or an SOV. They are designed to be lifted by a turbine or vessel crane.

Once installed, the In-Tower unit operates using a cassette system. The technician takes a cassette to site, installs it into the unit, and retracts it at the end of the day to take back to base for cleaning.

"This sealed cassette system ensures technicians have no risk of contact with waste and no waste is stored on the asset," PWS says on its website. Furthermore, PWS offers a service contract to empty and recharge the cassette units at the base facility. Schedules are created based on use.

The wind farm

As previously said, the first PWS loos will be installed at Aberdeen Offshore Wind Farm - also known as the European Offshore Wind Deployment Centre, located off the coast of Aberdeen in Scotland.

According to Vattenfall, innovative next generation technology has been deployed at the wind farm, installing 11 x 8.8MW turbines, paired with suction bucket jacket foundations, an industry first. First power was generated in July 2018 and the operations and maintenance (O&M) team is based at Aberdeen Harbour in Scotland.

The EOWDC has been awarded up to 40million of funding from the European Union and is supported by Aberdeen Renewable Energy Group (AREG).

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OEG Offshore Buys Firm That Invented Offshore Wind Turbine Toilets - Offshore Engineer

New York is on track to become a centerpiece for the nations offshore wind industry after President Joe Biden announced last week that the waters off the coast of Long Island and New Jerseythe New York Bightwould be a designated wind energy area.

The presidents commitment, in which the federal Bureau of Ocean Energy Management (BOEM) sets aside more areas of the ocean to lease for offshore wind development, effectively makes it possible for New York to achieve its climate action goals, which the state codified two years ago in landmark legislation. By 2035, the state aims to produce 9 gigawatts of offshore wind energy under its Climate Leadership and Community Protection Act.

The New York State Energy Research & Development Authoritys acting president Doreen Harris said the magnitude of the opportunity gets lost in the jargon used. The 9 gigawatt (or 9,000 megawatts) requirement in New York amounts to keeping the lights on for 6 million homes, or 30% of New Yorks electricity.

What that represents is a wholesale changenot only in our energy system in the electrons that are serving you and me in our homes, but the broader opportunity that it represents from an economic development perspective, Harris said.

The president's plan cites an August 2020 study from the energy consulting firm Wood Mackenzie, which pushes the New York Bights potential to 11.5 gigawatts, 25,000 development and construction jobs between 2022 and 2030, and thousands of other jobs in operations and maintenance.

BOEM will also start reviewing the environmental impacts of New Jerseys first offshore wind project, Ocean Wind, a critical launching point. New Jersey has pledged to install 7.5 gigawatts of offshore wind by 2035.

The only operating offshore wind farms in the U.S. are a 0.03-gigawatt plant with five turbines called Block Island, off the coast of Rhode Island, and a two-turbine operation off Virginias coastline.

Before Bidens announcement, New York already had about 4.3 gigawatts of offshore wind energy in the worksspread across five different projects that havent begun construction but for which the state has awarded contracts. Among those includes a recent deal with the energy giant Equinor that would result in hundreds of jobs at ports around the state, including in Brooklyn. But Bidens announcement ensures more leasing areas would be available for offshore wind activities.

That wind energy area is the key component of it, said Joe Martens, the director of the New York Offshore Wind Alliance and former commissioner of the state environmental conservation department. We just dont get there without new lease areas available, so thats the connection.

Prior to Bidens announcement, monthly electricity bills were projected to rise just 81 cents, or 1.1%, under the states original plan for offshore wind projects for 2021 and beyond. Thats according to a cost analysis conducted by NYSERDA in June 2020. Those numbers might rise slightly given estimates from the states leadoff solicitation process for the first two offshore wind projects under NYSERDA predict a 73-cent increase, but the costs of making clean energy are also expected to fall over time. The prices related to Januarys deal with Equinor havent been published yet.

Its not clear how Bidens scale-up could impact New Yorks electricity costs, due to the many variables that go into leasing new sections of the New York Bight, a NYSERDA spokesperson said. But they added the agency is pleased with the momentum and scale of the new lease sale and is confident it will buoy this industry.

Those marginal costs will also be largely offset by the reduced health impacts created by decarbonizing the East Coasts energy system. About $700 million in health costs, specifically from hospitalization or premature deaths due to asthma and respiratory or heart disease, would be avoided from NYSERDAs first two projects. The net benefits from reduced carbon emissions due to offshore wind through 2030 amount to $4 billion under an analysis of how to achieve the states 2019 climate act, which requires New Yorks energy pool to be 70% renewable by 2030. That rises to $9.6 billion over the lifetime of the projects under the 2035 goals.

Offshore wind is a huge slice of the electricity we need to generate to meet those goals, Martens added. Biden campaigned on a pledge to reach 100% renewable electricity by 2035, but Congress has not made it law. House Democrats have introduced legislation to mandate it.

Costs in the offshore wind industry are dropping, too. New Yorks first two offshore wind projects yielded energy certificates that utility companies buy from NYSERDA to source electricity from renewable sources. Those certificates were nearly 40% less expensive in 2019 than predicted a year prior.

That was a huge game-changer for us, Harris said.

Offshore wind cost reductions in Europe are also encouraging the prospects for the industry here. The offshore wind industry is booming in Europe, and were benefitting a lot from the cost reductions that have been seen from that scale, and now were reproducing that scale here in the U.S., Harris said.

The White House also announced that $8 million would go towards 15 new research projects, funded by NYSERDA and the federal Department of Energy under the National Offshore Wind Research & Development Consortium. Those efforts will study supply chains, structures and wildlife. Three projects are in New York.

Bidens announcement represents a new commitment and a signal that governors in the Northeast have a partner in Washington D.C. to get it done, Martens said. Governor Andrew Cuomo said in a statement that Biden was removing the barriers put in place under former President Donald Trump, who had stalled offshore wind projects and, before becoming president, fought a wind farm planned for a site near his luxury golf course in Scotland, claiming it would be an eyesore.

Other critics worry about the construction along the shorelines. As The Guardian has reported, wealthy property owners in the Hamptons want to halt offshore wind development due to an underground cable that would be required to deliver electricity from windmills to the grid. The cable would run through beaches and beneath streets in a wealthy enclave of Long Island, which opponents claim will erode the beach and cause noise and fumes.

A coalition of fishing industry groups, the Responsible Offshore Development Alliance, also questions the rapid development of wind energy and its impacts on scallops, squid and other marine life. The group accused the Biden administration of ignoring the fishing industry in the process.

Offshore wind energy development poses an enormous risk to the marine environment and sustainable U.S. seafood production, a statement from the group reads. The Biden Administrations disappointing fervor over its advancement continues an ineffective approach toward addressing climate change begun by previous administrations without demonstrating any willingness to include fisheries, ecosystem science, or our coastal communities in climate solutions.

But, environmental groups like the Sierra Club and the National Audubon Society support wind energy, though they emphasize wind farms should be sited and planned to avoid harming birds and bats. Shay OReilly, a New York City-based organizer with the Sierra Club, added that offshore wind development is an opportunity to build out a new manufacturing industry.

These are very, very large turbines with a lot of parts, and you're going to need a local supply chain, OReilly said. He added that a major threat to the fishing industries is climate change itselfwhich is heating oceans and sapping their oxygen.

We also really need to address climate change if were gonna have any fish left at all in our ocean, OReilly said.

Read more:

What New Yorks Offshore Wind Expansion Could Mean For Your Electricity Bill, Curbing Emissions, And Your Health - Gothamist

A tidal wave of interest is building in farming the seas. Its part of a global rush to exploit oceanic resources thats been dubbed the "blue acceleration."

Optimistic projections say that smart mariculture fish farming at sea could increase ocean fish and shellfish production by 21 million to 44 million metric tons by 2050, a 36 to 74 percent jump from current yields. Other estimates suggest that an ocean aquaculture area the size of Lake Michigan might produce the same amount of seafood as all of the worlds wild-caught fisheries combined.

Our work as interdisciplinary researchers studying aquatic food systems shows that these claims exaggerate maricultures true potential, and that increasing mariculture in a sustainable way is fraught with challenges.

We see freshwater fish farms as a better way to help fight hunger and bolster food security. In our view, governments, funders and scientists should focus on improving aquaculture on land to help meet the United Nation Sustainable Development Goals.

Ocean aquaculture advocates often cite limited supplies of wild-caught fish and call for cultivating them to feed the world. As they see it, aquaculture on land is limited by scarce land and freshwater resources, while the oceans offer vast areas suitable for farming.

Framed this way, mariculture seems to offer boundless potential to meet future demand for seafood and feed vulnerable populations with little environmental impact. But our research paints a different picture. We see far fewer technical, economic and resource constraints for freshwater aquaculture than for ocean farming, and far greater potential for land-based fish farms to contribute to global food security.

Freshwater aquaculture has grown steadily over the past three decades. Asia is at the center of this boom, accounting for 89 percent of world aquaculture production, excluding plants.

The most important species groups carp, tilapia and catfish are herbivorous or omnivorous, so they dont need to eat animal protein to thrive. While they may be fed small amounts of fish to speed growth, their mainstay diet consists of inexpensive byproducts of crops such as rice, groundnut and soy, as well as natural plankton.

Its relatively cheap and easy to grow freshwater fish in small earthen ponds. Aquaculture has been an economic boon, especially in Asia, providing jobs and income for vast numbers of family farms, workers and small businesses. Farmed freshwater fish tend to be an affordable staple food for millions of low- and middle-income consumers and many better-off ones, too.

Raising marine fish is a different proposition. The harsh ocean environment makes production risky, and the biology of these species makes many of them difficult and costly to breed and grow.

Most marine aquaculture species are carnivores, so they need other fish as part of their diets. About 20 million metric tons of fish caught each year is used instead to feed farmed fish. Its a contentious environmental and ethical issue, as some of these fish otherwise could be food for humans.

Improvements in technology have reduced, although not eliminated, the amount of fish used in feeds, especially for farmed salmon. It takes half as much fresh fish to raise salmon as it did 20 years ago.

Farmed salmon accounts for45%of all fish farmed from the sea.

These innovations were achieved through massive investments by the Norwegian government and the industry, dating back to the 1970s. Research focused on genetic improvement, nutrition and production systems, and its paid off. Farmed salmon accounts for 45 percent of all fish farmed from the sea.

However, its unlikely that other less popular fish, such as grouper, sea bass or cobia, will be as thoroughly researched or farmed with the same efficiency. The market is too small.

For a land-based analogy, think of chickens. Like salmon, they have long been the focus of intensive research and development. As a result, they grow to market size in just 45 days. On the other hand, the guinea fowl a chickenlike bird raised for specialty markets has undergone limited selective breeding, develops slowly and yields far less meat, making it more costly to raise and more expensive to buy.

Marine fish farming is currently done in sheltered bays and sea lochs. But there is growing interest in a new high-tech method that raises fish in huge submersible cages anchored far from land in the open ocean. Its risky business, with high operating costs. Expensive infrastructure is vulnerable to intense storms.

Offshore mariculture one day might produce luxury fish that generate profits for a few large investors.

To be successful, offshore farms will need to grow high-priced fish such as bluefin tuna. And they will need to operate at industrial scale, like SalMars massive "Ocean Farm" in Norway, which has capacity for 1.5 million fish.

While open-ocean mariculture may be technically feasible, its economic viability is questionable. Pilot projects in Norway, China and the U.S. are not yet commercially successful. And although there is strong global demand for salmon, other species such as grouper have small niche markets. They are likely to remain specialized high-end products because of steep production costs.

Human population is growing fastest in Africa, and incomes are rising most rapidly in Asia. Most additional future demand for fish will come from low- and middle-income consumers in these regions. Farming tilapia and catfish is already becoming more popular in Egypt and both West and East Africa.

Meanwhile, total seafood consumption in high-income countries has plateaued since 2000. But even in these countries, demand for farmed freshwater fish is growing because its an affordable source of protein. In the U.S., tilapia, pangasius (freshwater catfish) and channel catfish are the fourth, sixthand eighthmostconsumed seafood items.

Offshore mariculture might one day produce luxury fish that generate profits for a few large investors. But we believe freshwater aquaculture will continue to feed far more people and benefit many more farmers and small businesses.

Investments in selective breeding, disease control and farm management through public-private partnerships can create a more sustainable aquaculture industry, reducing the amount of land, freshwater and feed used to grow fish while increasing productivity. For more inclusive and sustainable development, we believe governments and funders should prioritize raising fish on land.

This story is part of Oceans 21Our series on the global ocean opened with five in-depth profiles. Look out for new articles on the state of our oceans in the lead up to the United Nations next climate conference, COP26. The series is brought to you by The Conversations international network.

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The fresh alternative to offshore fish farms | Greenbiz - GreenBiz

Hydrogen seen by many as a skeleton key that will help the world unlock a carbon-neutral future flowed blue and green in the Recharge newsstream this week. Equinor and SSE Thermal launched plans for two low-carbon power stations in the UK that would be among the first in the world to utilise carbon capture and storage (CCS) and hydrogen technologies together, while Swedish utility Vattenfall, working with steel-maker SSAB and iron mining company LKAB, broke ground on a rock cavern-sited pilot project to store fossil-free hydrogen for use in green steel manufacture. And, showing how far-reaching hydrogen will be to the energy transition, French transport outfit Compagnie Fluvial de Transport announced the worlds flagship hydrogen-fuelled commercial cargo ships will soon be travelling down the Seine in Paris.

The money is lining up to support the macro-trend, evidenced this week in Europe by the founding of a 1bn ($1.2bn) fund called FiveT Hydrogen, headed up by former Air Liquide VP Pierre-Etienne Franc, that is focusing on accelerating the hydrogen economy with large-scale projects, and in India, the setting up of the India H2 Alliance, a coalition led by Reliance Industries and Chart Industries targeting commercialisation of hydrogen technologies and systems in the rapidly developing country.

Get the market insight you need into the global oil & gas industry's energy transition from the new newsletter from Upstream and Recharge. Sign up here

For those still debating whether blue (fossil-based with CCS) or green (renewables-generated) hydrogen is the hydrogen to back, BloombergNEF, in its latest report on the sector, nailed its colours to the mast, saying green hydrogen was set to rewrite the global energy map in the coming decades, and blue would make little economic sense by 2030.

Another week, another roll call of utilities and oil supermajors channelling big-scale capital into offshore wind projects. Sector pacesetters RWE and Orsted were awarded contracts for difference worth a combined 2.85GW in Polish offshore wind capacity, key to the first wave build out of bottom-fixed projects off the country bordering the Baltic Sea, and Engie-EDPR joint venture Ocean Winds plunged into Irish market waters with an application for a foreshore licence for a planned 1.6GW project in the shallows off Dublin.

Floating wind, not to be left out, hove forward too, as Blue Gem Wind, the tie-up between French energy giant Total and Irish early-stage developer Simply Blue, began detailed survey work on its flagship Erebus project site in the Celtic Sea off Wales. And to close out the week, Irish utility ESB unveiled multi-billion-euro plans to transform the countrys soon-to-be-retired Moneypoint coal-fired plant into a green energy hub powered by a 1.4GW floating array co-developed with Equinor in the Atlantic Ocean.

Concerns in the sector in Germany were expressed at the Hamburg Offshore Wind conference that the government, despite setting a new target for 40GW of capacity off its coasts by 2040, was not moving fast enough to ensure the country didnt lose its early mover advantage due to kindergarten politicking that could prompt major players to try their luck in other international markets.

No such complaints across the pond in the US, where President Joe Bidens announcement early this week of a proposed $2.3trn pro-renewables infrastructure bill tangentially further underlined his administrations ambition to achieve a national goal of having 30GW of turbines turning by the end of the decade. As Recharge wrote in our analysis, the sector will be a big beneficiary of funding coming through the bill which has to be agreed by Congress later this year via federal tax credits and $100bn for grid and port upgrades, for use as offshore wind construction yards and operations bases.

Testimony to the omnipresence of hydrogen in the current energy transition debate, Recharge will this coming week run our first Power Station podcast, talking to Shell and think-tank Agora about the many-coloured marvel look for it our front page, as well as holding our next digital roundtable on hydrogen and offshore wind, where we have assembled a panel of thought-leaders from Equinor, Iberdrola, Siemens Gamesa, Aker Solutions, Wood Mackenzie and the World Bank register here to join us.

And, finally, to see you on your way into the weekend, heartening stats from the International Renewable Energy Agency, which reported construction of renewable energy capacity around the world in 2020 shrugged off slow-downs linked to the Covid pandemic and industry pessimists worst fears to add some 260GW of new plant last year, taking the global clean-energy base to almost 2.8TW. As Irena director-general Francesco La Camera said: These numbers tell a remarkable story of resilience and hope.

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High H2 hopes rise, offshore's tradewinds on an updraft and 'a story of resilience and hope' | Recharge - Recharge

Consistent with the Biden-Harris administrations whole of government approach to climate change as announced in its Day 1 and Day 7 executive orders, on March 29 the administration announced a variety of concrete initiatives that executive agencies will be taking to accelerate the development, permitting, and construction of US offshore wind projects and boost the already-growing industry as a whole. In addition to highlighting the importance of offshore wind in lowering carbon emissions and addressing climate change, the announcement emphasized the substantial collateral benefits that the administration expects offshore wind growth will bring, including jobs, investment, and related infrastructure improvements.

The most significant element in the administrations announcement is a new goal shared by the US Departments of Interior, Commerce, and Energy to deploy 30 gigawatts of offshore wind energy generation capacity by 2030, far exceeding the administrations previous goal of doubling offshore wind generation by 2030. The administration emphasized that this goal is a stepping stone to its broader goals of net-zero US electricity production by 2035 and overall net-zero US carbon emissions by 2050, as previously announced.

The Biden-Harris administration summarized the initiatives, described more fully below, as falling within three categories: (1) advancing wind energy projects to create jobs, (2) investing in American infrastructure to strengthen the domestic supply chain and deploy offshore wind energy, and (3) supporting critical research and development and data sharing.

The announcement cited numerous benefits the administration believes will flow from a boom in offshore wind: spawn[ing] new supply chains that stretch into Americas heartland, triggering more than $12 billion per year in capital investment in projects on both U.S. coasts, creat[ing] tens of thousands of good-paying, union jobs, with more than 44,000 workers employed in offshore wind by 2030 and nearly 33,000 additional jobs in communities supported by offshore wind activity, supply chain growth such as increased demand for steel equivalent to 4 years of output for a typical U.S. steel mill, and port upgrades and construction of specialized equipment transportation and installation vessels representing potentially more than one billion dollars in investment.

The announcement also included the following initiatives designed to achieve the 30 for 30 goal for offshore wind deployment.

The Bureau of Ocean Energy Management (BOEM) will be making available a new area in the New York Bightthe area between the Long Island and New Jersey coastsfor a lease auction expected to occur in late 2021 or early 2022.

Consistent with BOEMs February announcement to expedite the permitting process for Vineyard Wind, which is slated to become the first commercial-scale offshore wind project in the United States, BOEM also announced a notice of intent to prepare the Environmental Impact Statement (EIS) for Ocean Wind, a proposed 1100 MW project offshore from New Jersey. The EIS is the critical, longest-lead-time gating item in the full permit approval process a project must pass before it can be constructed. Once constructed, Ocean Wind is expected to be the nations third commercial-scale offshore wind project (with the South Fork Wind project off the Rhode Island coast being assumed as the second), and it could power approximately 500,000 homes across New Jersey.

Construction and ongoing maintenance of offshore wind projects requires specialized vessels, transportation of massive equipment and components, storage of such equipment, and, therefore, ports within a useful distance of projects with specialized configurations and capabilities. Two separate new sources of funding will now be available for the development and construction of such ports or the retrofitting of existing ports to have such capabilities.

First, following congressional appropriation in 2020 of $230 million for port and intermodal infrastructure related projects, the US Department of Transportation released the a notice of funding opportunity to formally kick off the application process for states and municipalities to apply for such funds through the Port Infrastructure Development Program. A separate press release from the Department of Transportation noted that not only would the Department consider how proposed projects contribute to economic vitality, but also how proposed projects address climate change and environmental justice impacts and advance racial equity, reduce barriers to opportunity, and meet challenges faced by rural areas.

Second, the Department of Energys Loan Programs Office (LPO) released a fact sheet relating to up to $3 billion in loan guarantees through the LPOs Title XVII Innovative Energy Loan Guarantee Program. The White House announcement described the release of the LPOs fact sheet as signaling that the LPO is open for business and ready to partner with offshore wind and offshore transmission developers, suppliers and other financing partners to scale the U.S. Offshore industry and support well-paying jobs. Eligibility requirements for the program include the requirements that the applicable project (1) be composed of innovative technology, (2) provide greenhouse gas benefits, (3) be located in the United States, and (4) present a reasonable prospect of repayment. The LPOs fact sheet highlights projects such as foundation manufacturing facilities, dockside staging and laydown yards, blade manufacturing facilities, and vessel construction as the types of infrastructure required for boosting the offshore wind industry, signaling that such projects would likely satisfy the innovative technology requirement and be strong candidates for the LPOs guarantees.

The announcement included three new initiatives targeting the support of research and development and data sharing.

First, the National Offshore Wind Research and Development Consortium (a partnership between the Department of Energy and the New York State Energy Research and Development Authority) awarded $8 million to 15 different offshore wind research and development projects, which will each focus on support structure innovation, supply chain development, electrical systems innovation, and mitigation of use conflicts to help reduce barriers and costs for offshore wind deployment.

Second, the Department of Commerces National Oceanic and Atmospheric Administration (NOAA) will be signing a memorandum of agreement with rsted to share data relating to waters leased by the Danish developer (rsted currently is party to five leases with the US government for development-stage offshore projects in federal waters, and is the owner and operator of the only two existing US offshore wind projects, the small-scale/test Block Island Wind (which it owns) and the Coastal Virginial Offshore Wind Project (which it operates)). The announcement describes the agreement as a first of its kind between an offshore wind developer and NOAA [that] paves the way for future data-sharing agreements that NOAA expects to enter into with other developers.

Third, NOAA, in partnership with the Departments of Energy and Commerce, will be releasing a request for research proposals and will provide at least $1 million in grant funding to research the benefits offshore wind will provide for stakeholders such as fishing and costal communities and opportunities to optimize ocean co-use.

The announcement came just two days before the administration released the American Jobs Plan outlining what it plans to include in an upcoming proposed infrastructure bill. While the American Jobs Plan does not include any new proposals specific to offshore wind, it does include support for the cornerstones of the industry such as transmission, offtake, and port infrastructure. For example, it calls for investment in the electric grid and the creation of a Grid Deployment Authority under the Department of Energy to boost, improve, and modernize the transmission system (needed to effectively bring power from offshore projects onshore/where demand is located); a proposed direct pay investment tax credit and production tax credit for energy generation and storage (thereby increasing demand for and utility of variable generation sources such as wind); and investments to improve US ports and waterways (needed to efficiently transport and store turbine components and construct and service offshore projects).

While the fate of the infrastructure bill and the inclusion of possible additional provisions to benefit offshore wind remain unknown at this time, the announcement provides an early example of what the Biden-Harris administration envisions in its whole of government approach to climate initiatives.

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Biden-Harris Administration Pushes for Offshore Wind and Jobs - JD Supra

The offshore wind facility was commissioned in the fourth quarter of last year. Credit: rsted A/S.

Denmark-based power company rsted has signed an agreement to divest a 50% ownership stake in its Borssele One and Two offshore wind farm to Norges Bank Investment Management (NBIM).

Located 23km off the coast of Zeeland, Netherlands, the 752MW offshore wind facility was commissioned in the fourth quarter of last year.

The project, which features 94 Siemens Gamesa 8MW wind turbines, is said to be the largest operational facility in the Netherlands and the second-largest operational offshore wind farm in the world.

The farm is expected to generate enough clean energy to power one million households in the Netherlands a year.

rsted chief commercial officer and Deputy Group CEO Martin Neubert said: As one of the worlds largest institutional investors, NBIM is making a difference by making sustainable investments.

Were delighted to welcome NBIM as a partner on Borssele One and Two, a landmark project for the Netherlands transition to renewable energy, and were pleased to support NBIM in their strategy to invest in renewable energy infrastructure assets.

The 1.357bn($1.612bn) consideration will be paid to rsted upon completion of the transaction, which is expected to take place this yearsubject to regulatory approval.

It is the first investment made by NBIM in unlisted renewable energy infrastructure.

NBIM chief real assets officer Mie Holstad said: We are very pleased to partner on Borssele One and Two with rsted, the market leader in offshore wind.

We are excited to have made our first unlisted investment in renewable energy infrastructure, and we look forward to working alongside rsted on delivering green energy to Dutch households.

rsted will provide long-term operations and maintenance services for the project from its base at the port of Vlissingen.

It will also offer balancing services and a long-term route to NBIM to market for the renewable electricity generated by Borssele One and Two.

In December, rsted signed an agreement to divest a 50% stake in its 605MW Greater Changhua One offshore wind farm in Taiwan to Canada-based investment firm Caisse de dpt et placement du Qubec (CDPQ) and Taiwanese private equity fund Cathay PE.

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The jackup vessel Vole au vent at the Kriegers Flak wind farm offshore eastern Denmark.

(Courtesy Jan De Nul)

Offshore staff

AALST, Belgium Jan De Nul Groups jackup vessel Vole au vent has installed 36 of the 72 turbines for Vattenfalls Kriegers Flak offshore wind farm in the Danish sector of the Baltic Sea.

The first Siemens Gamesa 8.0-167 DD wind turbine was installed on Jan. 27, 2021. The last turbine is scheduled to be installed in mid-June.

For the first time since its expansion in 2018, the port of Roenne on the Danish island of Bornholm is serving as marshalling harbor for the construction of an offshore wind farm.

Bert Reynvoet, Project Manager for the Kriegers Flak offshore wind farm, said: When a large installation vessel like the Vole au vent enters a port for the first time, it is always a bit exciting. Moreover, it was new for everyone involved, but thanks to the top service of the port and our local partners, Roenne turns out to be a perfect marshalling harbor. An absolute boost in these challenging times.

In 2017 and 2018, Jan De Nul Group designed, built, and installed two gravity-based foundations for the wind farms high-voltage substations. Its crane vessel Rambiz installed the 8,000- and 10,000-metric ton concrete structures.

Located 15-40 km (9.3-25 mi) off the Danish east coast, the 600-MW Kriegers Flak offshore wind farm is expected to be fully operational by the end of the year. It is expected to provide the annual electricity needs of about 600,000 Danish households.

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Kriegers Flak wind turbine installation reaches halfway mark offshore Denmark - Offshore Oil and Gas Magazine

The United States offshore wind industry is tiny, with just seven wind turbines operating off Rhode Island and Virginia. The few attempts to build large-scale wind farms like Europes have run into long delays, but that may be about to change.

The Biden administration announced on March 29, 2021, that it would accelerate the federal review process for offshore wind projects and provide more funding. It also set a goal: Develop 30,000 megawatts of offshore wind capacity this decade enough to power 10 million homes with clean energy. To put that in perspective, the U.S. has just 42 megawatts today.

Several wind farm developers already hold leases in prime locations off the Eastern Seaboard, suggesting plenty of interest. So, will the governments new goals and promise of additional funding be enough to finally launch a thriving offshore wind industry?

As engineering professors leading the Energy Transition Initiative and Wind Energy Center at the University of Massachusetts Amherst, we have been closely watching the industrys challenges and progress. The process could move quickly once permitting and approvals are on track, but there are still obstacles.

Why offshore wind plans stalled under Trump

Vineyard Wind, which is likely to become the nations first commercial-scale offshore wind farm, had planned to begin construction in 2019 about 15 miles off Marthas Vineyard. A ruling by the federal Bureau of Ocean Energy Management under the Trump administration stalled it, and also cast a shadow over other wind farm plans.

The agency ruled that the developers needed to address what is called cumulative impacts what the East Coast will look like when there are not one or two, but 20 or 40 large-scale wind farms. That part of the U.S. coast is ideal for wind power because of its wide, shallow shelf and proximity to cities that are looking for renewable electricity to reduce their climate impact.

Many researchers studying offshore wind, including some of our colleagues, urge planners to take this perspective. But, thinking carefully about the far future does not justify a delay in the first utility-scale wind farm.

That first large wind farm should be an opportunity to learn, including about how wind turbines will interact with marine ecosystems. Right now, there is almost no data on the impacts of offshore wind on marine wildlife birds, bats, whales, fish especially on wildlife that is native to New England. The knowledge gained will be invaluable in moving forward responsibly.

Is fast-tracking federal approvals enough?

Speeding up federal approvals for offshore wind farms is an important first step, but those arent the only hurdles for offshore wind farm developers.

A large number of state environmental and coastal agencies still must approve, and the communities where cables come ashore will also have a say. Many of the Northeast states have their own offshore wind energy goals, so theyre likely to support wind farms, but some wealthy communities and the fishing industry have pushed back on wind power in the past.

The federal approval process, even fast-tracked, is also time-consuming. The government conducts reviews and requires site assessment plans, including geological, environmental and hazard surveys. From planning to construction, the entire process can take five to six years or more.

Is the U.S. ready to build offshore turbines?

Some other big questions revolve around construction.

Under a 1920 law known as the Jones Act, only U.S.-registered vessels operated by U.S. citizens or permanent residents can move cargo between U.S. ports. In December 2020, Congress made clear that this law applies to wind turbine construction, too.

When companies build offshore wind turbines today, they use special vessels for the installation of the most common offshore turbine designs. The U.S. doesnt have any of these vessels yet, and the Jones Act makes it difficult to rely on vessels from Europe to do the job. There is promise, though: The first U.S.-made version of this vessel is being built in Texas right now. Thats one the country will need several to meet the new goal.

A thriving wind power industry will also need ports for storing and deploying the long turbine blades, plus a trained workforce for construction and turbine maintenance.

A few coastal states have a head start on this. Massachusetts started laying the groundwork early and already has a port terminal in New Bedford to support the construction and deployment of future offshore wind projects. New Jersey recently announced a plan for a new offshore wind port that will start construction in 2022.

States are also investing in training. New York state announced a $20 million offshore wind training institute in January 2021 with the goal of training 2,500 workers for the industry and maintenance. The Biden administration envisions 44,000 people employed in offshore wind by 2030 and many more in communities connected to offshore wind power activity.

Will offshore wind pay off?

In Europe, where many governments have reduced regulatory risk, the cost of offshore wind energy has come down rapidly, much faster than experts expected, to around $50 per megawatt-hour. If the Biden administrations new approach allow U.S. wind farms to achieve costs like this, then offshore wind, with its proximity to large urban centers on the East Coast, will be competitive.

Its also important to recognize other benefits. Every year of delay for a large-scale wind farm costs the U.S. hundreds of millions of dollars in climate benefits. The Biden administration calculates that its new wind power goal would avoid 78 million metric tons of carbon dioxide, roughly equivalent to taking 17 million cars off the road for a year.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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The U.S. Just Set Ambitious Offshore Wind Power Targets What Will It Take to Meet Them? - GovExec.com