Floating wind is growing and there’s no time to waste

Aaron Smith, Chief Commercial Officer for Principle Power, considers the current landscape for floating offshore wind in the UK and around the world.

The concept for floating offshore wind was conceived back in the 1970s, with the first demonstrations in the 2000s and 2010s. At that time, innovators took ideas from the oil and gas industry, applied and refined them to suit the realities of the renewable energy market – where there are smaller margins and therefore greater needs for efficiency and largescale productivity.

Since 2011, wind turbines have grown from 2MW to 9.5MW which have been installed in our project in Aberdeen. Looking to future growth there are plans for 14-16MW turbines already in progress. Even more exciting are the early drawings for 20MW wind turbines – we do not yet know where the ceiling is. This quadrupling of capacity from first to second generation and doubling to the third has a huge impact on the costcompetitiveness of floating wind. It is a testament to the technology we have already been able to produce.

The next phase

The physics behind floating offshore wind farms and individual technologies is incredibly complex. A collaborative approach with everyone from foundation designers to project developers, turbine manufacturers, transport suppliers and supply chain, is essential to deliver a workable, reliable, and safe model.

Now the challenge is how to build at scale, making structures more modular and suited to different types of local fabrication and requirements. Many of the technical aspects have been grasped and challenges have been overcome. We can be confident that we have systems that work, along with viable business models and low impact to the environment. Identifying and removing inefficiencies during the development and operation of smaller projects is integral to successfully upscaling.

As an industry, we need to consider how to help policy makers meet supply chain targets while maintaining project affordability. Precommercial projects of below 50MW have more than adequately demonstrated the full suite of technology required, but they don't offer the most competitive economics due to their size. Farms of over 100MW, or even towards 1GW, need to be built to deliver economies of scale, requiring policies for site control. We are currently awaiting the results of the Crown Estate Scotland leasing round, which is aiming to award up to 10GW of capacity in the second half of this year – a step in the right direction.

Gaining speed

Offshore wind has characteristically developed over very long timeframes. This is confounded by the lack of opportunity for bilateral negotiations with private land owners, which facilitates more rapid development when compared to onshore wind projects. In the past 5 years, we’ve seen a transformation of the sector from one that was focused on technology and demonstration, to one more broadly interested in how floating offshore wind can competitively contribute to the energy mix. As in the fixed-bottom offshore wind space, we have seen rapid cost reduction in floating offshore wind that can be leveraged at scale, highlighting the potentially significant contribution the industry could make to wider decarbonisation strategies. This International Energy Agency (IEA) has already postulated that offshore wind has the potential to meet worldwide electricity consumption 18-times over. Floating offshore wind could cover about 80% of that.

Among our innovative R&D projects at Principle Power, we are looking to make renewable fuels a reality in this area. The ERM Dolphyn project is intended for deployment in Scotland and aims to use 10MW wind turbines with a hydrogen electrolysis system on board to further boost capacity, expand potential and optimise cost-competitiveness.

The home advantage

The UK is the undisputed market leader in offshore wind energy, with the most installed capacity in deep water offshore wind. Aside from projects in Scotland, we are currently working on the 100MW Erebus project developed in conjunction with Blue Gem in the Celtic Sea, once again showing the diversification potential that offshore wind offers in England and Wales. The UK is benefiting from first mover advantages, having bult upon a successful oil and gas sector to deliver technology, skills and training to both the domestic and expert market.

Looking ahead, there will be more mechanisms to award projects in deep waters. Offtake is probably the biggest gap in the sector right now, so we hope the Government fast tracks policy to bring projects to market sooner. The current goal is 1GW by 2030, but a more ambitious target would inspire and incentivise development within the UK far more effectively.

Also of note is the focus on ports in the UK. We are starting to see essential development of local supply chains originally built for the fixed offshore wind sector, with significant private investment. Further funding from both private and public domains will be required to prepare UK ports and their infrastructure to support the future of floating wind.

A global perspective

There is a lot of movement in other areas around the globe as various markets look to capitalise on the opportunities of floating wind. A lot of East Asian nations are driving developments in deep water locations as the conditions are ideal – steep continental shelves, good wind, great industrial bases and coastal cities with massive demand. This is beneficial both in terms of space optimisation and in minimising impact on other ocean users. As such, offshore wind offers a strong alternative to nuclear power, counteracting the disadvantages of poor air quality from thermal plants and lack of physical space. As such, there has been significant policy development in these locations, particularly in Korea where the Government is calling for 12GW by 2030, much of which will come from deep water floating wind. In Japan, we have just seen the first auctions for fixed-bottom offshore wind installations and there is already appetite to move into floating offshore to increase capacity with limited space available close to shore. Similarly, in Taiwan, though leading fixed-bottom offshore wind after China, their shallow water capacity is almost exhausted. To achieve their 15GW target by 2035, they too will be moving into floating offshore wind.

Things are changing quickly on the West Coast of America as well, where the impact of climate change is really being felt. It is difficult to build on the land there, so offshore space offers a viable solution to build a renewable energy industry. Bills are starting to go through to build the policy framework needed thanks to collaboration between states and the administration – the first auctions are currently due for Autumn 2022. This will be a huge milestone for the region and is enormous potential.

The big migration

Wherever in the world you are, growth of offshore wind will be accelerated by the transition of organisations from other industries – especially oil and gas. This is an exciting space given that these companies and individuals bring extensive technological expertise and experience that can be applied to floating structures.

For those making the transition, maximising output without compromising safety or quality will be key. There is also a need to optimise the delivery chain – offshore oil and gas sites tend to have 1 or 2 units to service, while floating wind farms might have 10-50 units and solutions need to be designed accordingly. Project execution and management is very different between the industries, so careful planning is essential for efficiency. This, as well as several other factors, will benefit from testing in smaller projects before scaling up to avoid impact on schedule and value.

The starting piston has gone

The race has already begun for floating offshore wind and global markets are turning to the sector as they look to expand offshore wind capacity and opportunities. The technology is ready, we just need to strengthen and grow the existing infrastructure so we can build at scale. There’s no time to waste to take the industry forwards, support widespread decarbonisation and fight the climate change crisis.

About Principle Power

Principle Power is a leading global technology and services provider for the floating offshore wind energy market. The WindFloat®, the company’s globally and proven floating platform technology, enables offshore wind turbines to be sited in any water depth or seabed condition, unlocking offshore wind potential worldwide and allowing projects to harvest the best wind resources. Principle Power acts as a trusted partner to developers, independent power producers, utilities, and EPCs, supporting its customers throughout the entire lifecycle of their projects. With 105 MW of cumulative capacity in operation or under advanced development and a multi-GW commercial pipeline globally, Principle Power is the market leader in floating offshore wind technology.