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The Application of the Business Model CanvasMaREI, 18th April 2016 Derek Dalton
Joseph KellyEoin Moynihan
MARIBE is a Horizon 2020 project that aims to unlock the potential ofmulti-use of space in the offshore economy (also referred to as BlueEconomy). This forms part of the long-term Blue Growth (BG) strategyto support sustainable growth in the marine and maritime sectors as awhole; something which is at the heart of the Integrated MaritimePolicy, the EU Innovation Union, and the Europe 2020 strategy forsmart, sustainable growth.
• Within the Blue Economy, there are newand emerging sectors comprisingtechnologies that are early stage and novel.These are referred to as Blue Growth sectorsand they have developed independently forthe most part without pursuing cooperationopportunities with other sectors.
• MARIBE investigates cooperationopportunities (partnerships, joint venturesetc.) for companies within the four key BGsectors in order to develop these companiesand their sectors and to promote the multi-use of space in the offshore economy. Thesectors are Marine Renewable Energy,Aquaculture, Marine Biotechnology andSeabed Mining.
MARIBE links and cross-cuts with the Transatlantic Ocean Research Allianceand the Galway Statement by reviewing the three European basins(Atlantic, Mediterranean, and Baltic) as well as the Caribbean Basin.
J.J. Campbell & Associates
• Structural and civil engineering consultancy with public and private sector clients. Established in 1995
• Expertise combines practical construction knowledge with state of the art computer analysis and designs, in particular analysing special structures having complex geometries and requiring sophisticated structural analysis.
• Skilled staff include experienced structural and civil engineers, experienced CAD technicians, all IEI members having special expertise in steel and concrete design, FEM analysis, amongst others.
• However, to date they have not place anything ‘in the water’.
CÚNAMARA
• CÚNAMARA Wave Energy Converter (WEC) is a ‘V’ shaped floating structure.
• Constructed from concrete with steel superstructure.
• Incorporates oscillating water columns (OWC) chambers integrated into the structure.
Image: J.J. Campbell & Associates
2008 2009 2010 2011
After first becoming involved inwave energy research in 2001, theearliest iteration of the currentdevice was conceived in 2008
Wave Energy Ireland Ltd., a sistercompany was incorporated in2009 and an initial feasibilitystudy funded by EnterpriseIreland was completed
On the back of this study, thecompany secured funding fromthe Ocean Energy DevelopmentUnit (ODEU), a division of theSustainable Energy Authority ofIreland (SEAI)
As part of the first milestone, thecompany undertook to design andbuild a number of 1:50 scale OWCdevices to be test in MaREI.
The company engaged with heCentre for Renewable Energy atDundalk IT (CREDIT) to performnumerical modelling. This wasfunded though another EIVoucher.
2011 2012 2013 2014
The company worked on thesecond milestone between mid-2010 and late-2011, designingand constructing a 1:50 scalemodel. At this time the conceptenvisaged stainless steel as theprimary construction material.
In December 2011, this modelwas installed in the ocean basintest facility at the HMRC andtesting began in January 2012.
Company joined the Irish WaveEnergy Developers Association
Report on model testingdelivered.
2014 2015 2016 2017
At the start of 2014, the companywas awarded a further grant bythe ODEU to conduct a number ofdesktop studies. This allowed thecompany to investigate a numberof mooring solutions. A numberof possible construction sites andtechniques were explored. Thereport on this work was deliveredin June 2014.
Black and Veatch engaged to independently assessthe report on the model testing. This reportconfirmed the validity of the testing techniques anddata processing, and was broadly positive about thedevice.
Following delivery of these reports, the companyconsiders that is has demonstrated proof ofconcept and proceeded through TRL1/2, and intoTRL 3
A third grant was awarded by SEAIto the company in late-2015 toconduct testing to optimisedchamber geometry and analysethe structural integrity inresponse to extreme loads.
Upon completion of this phase of the project, expected mid to late 2016, the company believes it will have completed TRL 3. Efforts to develop a work package to progress the project to TRL 4 is currently ongoing.
Market Analysis and Competition• Identifying the potential market size
• Irish Market
• UK Market
Irish Market
Overview of the Irish Market
• Ireland currently offers FIT’s for wave energy generation valued at €0.26/kWh up to 30 MW.
• No current FIT in place for offshore wind but this is possible in the medium to long term.
Irish Market Overview 2050
Wave Floating Offshore Wind
Ambitious Plan Plan Unit
30 30 Irish Market Potential Installation Capacity (GW)34
1,875 3,750 Market Size in # of CÚNAMARA units
43.6 92 Total energy generated by all CÚNAMARA devices (TWh/year)
TBD TBD Market size in CÚNAMARA sales (€)
Irish Market Overview for combination devices of floating offshore wind and wave technology
3 Ocean Energy Road Map for Ireland, SEAI4 Irelands Wind Energy Road Map, SEAI
UK Market
Overview of the UK Market
• UK is in the process of switching from a FIT system to a Contracts for Difference (CFD) system.
• Supports in place for offshore wind and wave
UK Overview for combination devices of offshore wind and wave technology
UK Market Projection 2050
Wave Floating Offshore Wind
Scenario 1 Scenario 2 Scenario 3 Scenario 1 Scenario 2 Scenario 3 Unit
2 5 14 2 33 245
UK Market Potential
Installation Capacity
(GW)9
125 313 875 250 4,125 30,625Market size in # of
CUNAMARA units
2.9 7.2 20.4 6.1 101.2 751.2
Total energy generated by
all CUNAMARA devices
(TWh/year)
TBD TBD TBD TBD TBD TBDMarket size in
CUNAMARA sales (€)9 The offshore valuation: A valuation of the UK’s offshore renewable energy resource
CompetitionDirection and Indirect Competition
• Floating Power Plant – Poseidon 37
• Floating wave platform and also serves as a floating base for multiple wind turbines
• Pilot device, located in the Baltic Sea near Denmark
• Installed 33kW from wind and 50kW from wave
• Installed in co-operation with DONG energy
• Following pilot, Poseidon 80 model is to have 5MW wind and up to 2.6MW wave Image: Floating Power Plant
KNSWING
• Ship like concept which is also constructed primarily from concrete, incorporating 20 Oscillating Water Columns on each side.
• Tank tested at 1:50 scale in 2013
• Full scale is approximately 150 metres long and estimated to absorb 2,900 kW Image: MARINET
• A lightweight semi-submersible floating platform for a combination of wind and wave
• Platform will be more than 10MW total in areas with a strong wave climate
• Third corner of platform is reserved for a helipad
• Wave conversion consists of three lines of free floating wave-actuated hydraulic pumps
Pelagic Power
Image: Pelagic Power
Indirect Competition
Alternative Renewable Energy Sources (Onshore wind, fixed offshore wind)
• In the Irish market, main competitor is onshore wind which has a current operational capacity of 3,025MW
• The UK market’s fixed offshore wind is currently on course to deliver 10GW by 2020
Conventional Generation from Fossil Fuels
• Global energy continues to be dominated by oil-based generation sources and coal.
• These sources currently account for approximately two thirds of all global energy demand.
• Opportunity available as governments are becoming wary of over-reliance of importing these energy sources.
Business Model CanvasApplication to J.J. Campbell and CÚNAMARA
Customer Segments
• Who we are creating value for?
• Who are our most important customers?
Customer Segments
Potential target customers for J.J. Campbell & Associates once fully commercial.
Criteria:• Large annual revenue• Renewable energy
experience (preferably offshore)
• Interest/experience in wave energy industry
EWEA: The European offshore wind industry – key trends and statistics, 2015
• HQ in Sweden
• Currently operate over 100 wind turbines throughout Europe
• Expanding offshore operations
• Total revenue of €18.8 billion with 30,000 employees (2013)
Image: Pelamis Wave
• One of the largest electricity providers in Europe
• HQ in Germany
• Total revenue of €11.56 billion and 58,000 employees (2014)
• Former partners with Pelamis Wave Power
Image: EMEC (European Marine Energy Centre)
• HQ in Denmark
• Danish government majority shareholder
• Over half its income from offshore wind
• 3,000 MW installed capacity, revenue of €7 billion and 6,700 employees (2015)
• Dong has previously partnered with Wavestar and Floating Power Plant in combining wind and wave
Image: Wavestar Energy
• Subsidiary of the state owned ESB group
• €3.4 billion in revenue and 7,870 employees (2013)
• Deliver large scale, capital infrastructure projects for international clients
• Setting up West Wave project – 5MW capactity Image: Aquamarine Power
• HQ in Norway
• Operates oil and gas fields in 12 different countries
• Revenue of €94 billion with over 2,300 employees (2015)
• Currently developing floating wind turbine technology
• Commitment to renewablesImage: Statoil
Value Proposition
• The bundle of products and services that create value for a specific customer segment.
• What value are we offering to our customers?
Value Proposition
• Construction – concrete modular units.
• Mooring – conventional methods of
mooring.
• OWCs – one of the most proven forms of
wave energy conversion
• Combination – higher load capacity from
two forms of resource.
Value Proposition
Value Proposition Canvas
Value Proposition Canvas
Value Proposition Canvas
Gain Creators Pain Relievers Product Gains Pains Job
Markets near deep
water (Floating Tech)
Access in adverse weather
conditionsGrowth
Adverse Weather
conditionsGenerate electricity
Lower €/MW through
combinationMore favourable licencing process Reduced €/MW
Licencing and
consentingDecarbonise Electrcity
Wave Energy more
predictable
More predictable energy
resource
Reduced Support for
FITRun at profit
TRL 9 technology
New industry will give a JJ
Campbell customers a "first to
market" advantage
High technology
reliability
Competitive fixed
offshore wind market
Proven success in
construction projectsTrack record
Combination gives a
better brand imageBrand Image
Value Proposition Customer Segments
JJ Campbell Renewable Energy Developers
Renewable Energy
Channels
• How a company communicates with and reaches its customer segments to deliver value proposition.
• How do our customers want to be reached?
• How do we reach our customers?
Marketing & Sales
Distribution
Customer Relationships
• The types of relationships a company establishes with specific customer segments.
• Three main motivations: Customer Acquisition, Customer Retention and Boosting Sales (upselling).
Revenue Streams
• The income a company generates from each customer segment.
Revenue Streams
Key Resources
• The main inputs the company uses to create its value proposition, service its customer segment and deliver the product to the customer.
Key Resources
Key Activities
• Primarily dictated by its business model.
• Fulfilling its value propositionReaching its customer segments, Sustain its customer relationships,Create long-term revenue streams.
Key Activities
Key Partners
• The network of partners that make the business model effective.
• Can optimize its resource utilization, create new resource streams or mitigate risks.
Key Partners
Cost Structure
• All the costs that a business can or will incur if it opts for a particular business model.
• Three other building blocks are contributors to the cost structure block.
• Must evaluate the cost of creating and delivering the value proposition, creating revenue streams and focus on long-term customer relationships.
Cost Structure
Further Information:
J.J. Campbell & [email protected]
Gordon Dalton, MARIBE Project [email protected]
Eoin Moynihan Joseph Kelly
[email protected] [email protected]
www.maribe.eu@maribeproject
or LinkedIn and Facebook
