Virginia’s Offshore Wind Supply Chain and Service Industry ... · 7/25/2018 · • The offshore wind energy market is just emerging in North America. • With a potential build-out

Virginia’sOffshoreWindSupplyChainandServiceIndustryOpportunityJuly25,2018

CommonwealthofVirginia--DepartmentofMines,Minerals&Energy Virginia'sOffshoreWindSupplyChainandServiceIndustryOpportunity|July25,2018 2

Agenda

• Virginia’sOpportunity• Virginia’sAdvantages• Virginia’sOffshoreWindHistory• Collaboration•  SupplyChainandServiceIndustry• VirginiaOffshoreWindTeam• GetInvolved

Virginia’sOffshoreWindSupplyChainandServiceIndustryOpportunity

Virginia’sOpportunityOffshoreWindSupplyChainandServiceIndustry


OpportunityBackground

•  TheoffshorewindenergymarketisjustemerginginNorthAmerica.

•  Withapotentialbuild-outofatleast20,000MWofinstalledcapacity(or2,000-3,000windturbines)alongtheEastCoastoverthenexttwodecades,Virginiaiswell-positionedasaprimelocationfortheoffshorewindsupplychainandserviceindustry.

•  Asthedemandforwindenergyincreases,expertspredictthatover14,000jobswillbecreatedintheVirginiaintheconstruction,maintenance,manufacturingandotherservice-relatedindustries.

•  Offshorewindcomponentsinclude:blades,generators,nacelles,towers,foundations,cablesandconstructionstaging.

Virginia'sOffshoreWindSupplyChainandServiceIndustryOpportunity|July25,2018 4CommonwealthofVirginia--DepartmentofMines,Minerals&Energy

OffshoreWindSupplyChainandServiceIndustry

TheOpportunityinVirginiaTheVirginiaOffshoreWindTeam,ledbytheDepartmentofMines,MineralsandEnergy,recognizesthelong-termeconomicdevelopmentopportunitytocapitalizeontheCommonwealth’slogisticalandworkforceadvantage.

Infact,theVirginiaOffshoreWindTeamregularlyhostssitetourswithgloballyrecognizedoffshorewinddevelopers,procurementandlogisticsexperts,Europeanfoundationfabricatorsandotherpotentialsupplychainbusinesses.

Opportunity

“HamptonRoads’unmatchedportinfrastructureandhigh--qualitymaritimeworkforcemaketheregionanideallocationforoffshorewindenergydevelopment.Virginiashouldbetheprimelocationfortheoffshorewindindustry,fromthesupplychaintothefullbuild-outofouroffshorewindassetsoffthecoast.”—GovernorRalphNortham


Opportunity

“Virginiaispoisedtocapitalizeonthestartofa50--yearindustrythatwillstretchupanddowntheEastCoast.Fromalogisticsstandpoint,locatingtheoffshorewindsupply-chaininVirginiajustmakessense.”—SecretaryofCommerceandTradeBrianBall


Virginia’sAdvantages


Advantages


Virginia’sHamptonRoadsregionoffersanumberofuniquecompetitiveadvantagesoverotheroffshorewindbusinesslocationsalongtheEastCoast.

#1Pro-BusinessClimate

#2Strategic

GeographicLocation

#3UnmatchedPortInfrastructure

#4Congestion-FreeNavigation

#5ProgressiveEnergy

PolicyStance

#6America’sLargest

ShipbuildingIndustry

#7ZeroAirDraftRestrictions

#8High-Quality

MaritimeWorkforce

#9AbundantQuayside

RealEstate

Advantages


#1:Pro-BusinessClimate

CNBCranksVirginiaasthefourthtopstateinthenationandthekirstontheEastCoastforbusiness.Virginialeadsthewayineducationandworkforcedevelopmenttosupportitsthrivingeconomy.

Advantages


#2:StrategicGeographicLocation

WithcommercialoffshorewindleaseslocatedoffthecoastsofNJ,DE,MD,VA,andNCatatraveltimeoflessthan20hoursbyinstallationvesselstravelingat10knots,Virginia’sportassetsarestrategicallylocatedintheMid-Atlanticwithdirectopenaccess.

Advantages


#3:UnmatchedPortInfrastructure

AsthesecondlargestontheEastCoastintonnageandthethirdlargestincontainervolume,Virginia’sportshavetheabilitytohandleanytypeofcargo.Virginiaisoneofthefewportfacilitiesthatcanoffer“pluginandplay”facilitiestothesupplychain.

Advantages


#4:Congestion-FreeNavigation

HamptonRoadsenjoysopenshippingchannelsandnavigationalklexibilityeliminatingmaritimecongestionasaconcern.ThePortofVirginiaisthedeepestportontheEastCoastandrecentlygainedapprovalforadredgingprojectwilltakethechannelsto55feetdeepandwidentheminselectareastoallowfortwo-waytrafkicofultra-largecontainerships.

Advantages


#5:ProgressiveEnergyPolicyStance

Inabipartisanfashion,Virginia’slegislaturepassedtheGridTransformationandSecurityActin2018,whichdeems5,000MWofsolarandwindenergygenerationtobeinthepublicinterest.

Advantages


#6:America’sLargestShipbuildingIndustry

HamptonRoadsishometothelargestshipbuildingmarketintheUnitedStates.Thisprovidesnumerousadvantagesinexistingphysicalandworkforceassets.

Advantages


#7:ZeroAirDraftRestrictions

Virginiaportfacilitieshavedirectaccesstoseawithnooverheadobstaclestoimpedetheshippingoflargeanduprightinfrastructureandcomponents,anadvantagethatdifferentiatesitfromeveryotherEastCoaststate.

Advantages


#8:High-QualityMaritimeWorkforce

HamptonRoadsboastsacivilianandmilitarymaritimelaborforceunmatchedbyanyotherEastCoaststate.Itsproximitytothelargestnavalbaseintheworldpresentstheopportunitytohireretiringmilitarypersonnelforhigh-skilledoffshorewindjobs.

Advantages


#9:AbundantQuaysideRealEstate

Virginia’sportsofferexistingdockcapacityandampleon-watermarshalingareas.TheVirginiacoastlineisgeographicallyrichwithwaterfrontpropertiesanddevelopmentorredevelopmentopportunities.

Virginia’sOffshoreWindHistoryActivitiesinVirginia–Past&Present


Virginia’sOffshoreWindHistory


VirginiaOffshoreWindResearch&Development

•  VirginiahastheonlyresearchleaseforoffshorerenewableenergyawardedbytheBureauofOceanEnergyManagement(BOEM).

•  CoastalVirginiaOffshoreWind(CVOW),atwo-turbine,12MWdemonstrationprojectisslatedfordevelopmentinthis2,135-acreresearchlease(currentlyinthekinalstagesofBOEMapprovalwitha2020targetcompletiondate).

•  Thisdemonstrationprojectistheprecursortothefull-scalebuildoutofthe112,800-acreWindEnergyArea(WEA)locatedapproximately23.5milesoffshorefromtheVirginiaBeachcoastline.

•  ThefederalleaseforthisWEAwasexecutedinNovember2013withDominionVirginiaPower,whichisaninvestor-ownedutility.

•  Thefullbuild-outofthisWEAhasthepotentialtoproduceupto2,000MWofwindgeneration.



Phase 1 CVOW Lease Area

(2,135 acres) Virginia Commercial Lease Area

(112,800 acres)

ResearchandCommercialLeaseAreas



VirginiaCoastalEnergyResearchConsortium(VCERC)•  VirginiaGeneralAssemblycreatedVCERCin2007toserveasaninterdisciplinarystudy,researchandinformationresourcefortheCommonwealthoncoastalenergyissues.

•  Itprovidestheresearchanddevelopmentrequiredforthecommercializationandimplementationofrenewableenergy,specikicallyoffshorewindandwaveresourcesinVirginia.

VirginiaOffshoreWindDevelopmentAuthority(VOWDA•  VirginiaGeneralAssemblycreatedVOWDAforthepurposesoffacilitating,coordinatingandsupportingthedevelopmentoftheoffshorewindenergyindustry,OSWenergyprojectsandassociatedsupplychainbusinesses.

Collaboration


Collaboration


VirginiaOffshoreWindPortReadinessEvaluation•  DepartmentofMines,MineralsandEnergycontractedwithBVGAssociates(BVGA)in2015toevaluate10Virginiaportsfortheirreadinesstoaccommodatesevenoffshorewindmanufacturingandconstructionactivities(blades,generators,nacelles,towers,foundations,cables,constructionstaging).

•  BVGAalsoevaluatedkiveVirginiacommercialshipyardsfortheirreadinesstomanufactureoffshoresubstations.

•  ThestudyconcludedthatVirginiaiswell-positionedfortheoffshorewindindustrywithsomeneededphysicalimprovements

CollaborativeFisheriesPlanningforVirginia’sOffshoreWindEnergyArea•  Throughacollaborativeeffortwithkishermen,wedevelopedaccurate,kine-scalemapsofimportantkishingareasinandaroundtheVirginiaWEA

•  Animportantoutcomewasestablishingopencommunicationamongthecommercialkishingcommunityandallrelevantgovernmentalagencies.

Collaboration


VirginiaOceanGeophysicalSurveyAnalysis:VirginiaOffshoreWindEnergyArea•  In2013,FugroundercontracttoDMMEandBOEMconductedaregionalgeophysicalsurveyacrosstheoffshoreVirginiaWindEnergyArea(WEA).

•  Thatsurveyandtheresultinggeologicevaluationprovideskey,fundamentalseakloorandsubsurfacedataandgeologicalinterpretationthatwillhelptopromote,planandfurtherthegoalsofsafe,economicandresponsiblefuturecommercialdevelopmentoftheWEA.

IntergovernmentalRenewableEnergyTaskForce•  The134-memberTaskForceincludedrepresentativesfromVirginiastateagencies,HamptonRoadslocalgovernments,DepartmentofDefense,Navy,AirForce,Army,CoastGuard,HomelandSecurity,ArmyCorpsofEngineers,VirginiaPortAuthority,NASAWallopsFlightFacility,etc.

•  ConcludedthattherenoconklictswiththeVirginiaWEA

AttractingtheSupplyChainandServiceIndustrySupplyChain|Goals|Timeline


AttractingtheSupplyChainandServiceIndustry


SupplyChain

TurbinesFounda.onsInter-ArrayCables

ExportCables

OffshoreSubsta.ons

OnshoreElectrical

Installa.onVessels

Opera.on&Maintenance

OffshorewindwillcreateeconomicdevelopmentopportunitiesforVirginia’sportsandcommercialshipyards



ü  Geophysicalsurveysü  Geotechnicalsurveysü  Fisheriesinspec3ons&studiesü  MarineArchaeologyImpact

Assessments

ü  CableBurialAssessmentStudies

ü  StudieswithinUXO,MetOcean,

ü  Vesselinspec3onsü  Permits

ü  Offshoresafetytrainingü  Harbors

ü  Site&Landrights

ü  Environmentalconsultanciesandtechnicalexperts

ü  AdvisorswithinEnvironment,Permits,HSE,Safetyetc.

ü  Vesselbuilders/owners

ü  Mari3meIns3tutes

ü  Archaeologyins3tutesü  Onshoreandoffshore

construc3on

ü  Engineerswithindesign/construc3on

ü  OffshoreLogis3csü  Harborfacili3es

INDUSTRIESO&MCONSTRUCTIONDEVELOPMENT

ü  HeavystructuresFounda3ons,Exportcables,Substa3on,Arraycables,WindTurbineGenerators

ü  Electricalcomponents,SCADA

ü  CableProtec3onSystems

ü  Consulta3veengineering

ü  Installa3onvessels

ü  Logis3cservicesforsuppliesandcrew

ü  MarineWarrantySurveyors

ü  Harbors

ü  O&Mfacili3es/buildings(design&construc3on)

ü  Furniture,officeequipment/supplies

ü  Temporaryworkersandlongtermworkers

ü  Service&maintenancewithinmajorcomponents

ü  Spareparts

ü  Transportofcrew–crewvessels

ü  Maintenancevessels

ü  Helicopters

ü  Harbors


•  InMay,theDepartmentofMines,MineralsandEnergy(DMME)issuedaRequestforProposals(RFP)seekingextensiveoffshorewindindustryexpertiseparticularlyasitrelatestoportinfrastructurerequirements,build-outofthevariousoffshorewindsupplychainsectorsandlong-termmaritimeserviceneeds.

•  DMMEselectedBVGAssociatesinJulytoadviseontheproject.•  TheVirginiaOffshoreWindTeamwillconductanopportunityanalysistoillustrateVirginia’sexistingadvantages,whichwillassistsupplychaincompaniesandotherdecisionmakersintheirduediligenceprocess.

•  TheTeamwillalsodekinefactorsimportanttoindustryanddecisionmakersandaddresshowVirginiacandemonstratethatitisthelocationofchoicefortheoffshorewindsupplychain.


Goals


•  ThekinalreportduelateOctober2018will:•  ServeasapartnershiptooltoconnectindustryprospectswithVirginia’srobustmaritimeindustrylocatedinHamptonRoads

•  ProvideasummaryofVirginia’suniqueadvantages•  Communicateoffshorewind-relatedworkforcedevelopmentandbusinessincentiveeffortsunderway

•  Identifycompetitivegapsandmakerecommendations•  Educatestateandlocaleconomicdevelopmentandenergypolicyleaders


Timeline

VirginiaOffshoreWindTeamLeadership|BVGAssociates|PartnershipsTeam|WorkforceTeamBusinessIncentives/BusinessClimateTeam


VirginiaOffshoreWindTeams

• TheDepartmentofMines,MineralsandEnergyleadstheVirginiaOffshoreWindTeam,whichalsoincludesrepresentativesfromtheGovernor’sOfkice,VirginiaEconomicDevelopmentPartnership(VEDP),VirginiaPortAuthority(VPA)andtheVirginiamaritimeindustry.

• ThisTeamregularlyhostssitetourswithgloballyrecognizedoffshorewinddevelopers,procurementandlogisticsexperts,Europeanfoundationfabricatorsandotherpotentialsupplychainbusinesses.

• BVGAssociateswillassistVirginiainitsaggressivepursuitofoffshorewindsupplychainandserviceindustrybusinessinterestsalongtheEastCoast.


Leadership


•  BVGAssociates(BVGA)isleveragingitsNorthAmericanandglobalpartnerswithextensiveOSWindustryexperience,includingRambollGroupA/S(Ramboll),TimmonsGroup(Timmons),GreentreeConsulting,LLC(Greentree)andtheBusinessNetworkforOffshoreWind(THENETWORK).

•  Eachisdeeplyembeddedinadifferent,complementaryareaoftheoffshorewindmarket,bothdomestically(e.g.VA,MA,MD,NJ,NYandRI)andinternationally(e.g.Denmark,France,Germany,NorwayandtheUnitedKingdom).

•  BVGApreviouslyadvisedonDMME’s2015VirginiaOffshoreWindPortReadinessEvaluation,inwhichthekirmevaluatedVirginiaportfacilitiesandcommercialshipyardsfortheirreadinesstoaccommodateoffshorewindmanufacturingandconstructionactivities.


BVGAssociates


• Offshorewindindustryprospectshavedescribedtheabilitytobuildpartnershipsandutilizelocalassetsasaprimarydriverintheirdecision-makingprocess.

• ThePartnershipsTeamisworkingwiththeVirginiaOffshoreWindTeamtoeducateHamptonRoadsmaritimeassetholdersandindustryprospectsaboutexistingandpotentialsupplychaincandidatebusinesses,assetsandworkforce.

• WehaveengagedtheVirginiaMaritimeAssociation(VMA)andtheVirginiaShipRepairAssociation(VSRA),membersofwhicharecomprisedoflocalassetownersandmanagers.


PartnershipsTeam


• WithamaritimelaborforceunmatchedbyanyotherEastCoaststate,workforcerepresentsasignikicantadvantageforVirginia.

•  Understandingthatlabormetricsalonedonotalleviaterisk,VirginiaisworkingwithlocallaborandworkforcedevelopmentintereststoaddressworkforceissuesassociatedwiththeOSWindustry.Theseeffortsarestructuredtoprovidepathwaysforindustryprospectsandtoeaseworkforceconcernsthroughthecreationofatalentpipeline.

•  TheWorkforceTeamprovidesavitallinktoanexistingnetworkofrecruitingandtrainingresourcesandisbestpositionedtoaddressanddeploystrategiesthatfurtherenhancetheexistingmaritimelaborpool.ThisTeamisalsolookingbeyondthetraditionallabormarkettoayoungergenerationattractedtotheOSWcleanenergymessage.


WorkforceTeam


•  Virginia’sbusinessclimateadvantagesmakeitanattractiveplacetolocatenewindustry.However,earlyadopterstatesintheNortheastaredrivingtheconversationaroundoffshorewinddevelopmentthroughapprovedincentivesandprojectbids.

• Whilethiscurrentactivityisattractingearly-adopterbusinesstotheNortheast,VirginiaseestheU.SEastCoastdevelopmentasalong-termplay.Witha20-yearschedulefordevelopmentthatspansfromMainetoSouthCarolinaandaprojectedserviceindustrylifetimeofover50years,Virginiaisaprimelocationforthesitingofoffshorewindbusinesses.

•  ThoselocatinginVirginiawillhaveacompetitiveedgewhenitmeansthemostastheindustrymaturesanddevelopmentmovesdowntheU.Scoastline.

•  DevelopmentofVirginia’sdemonstrationprojectandthefuturebuild-outofVirginia’sWindEnergyAreafurtherstrengthentheCommonwealth'spositionasanaturalhosttomanyofthekeyoffshorewindsupplychainsectors.


BusinessIncentives/BusinessClimateTeam


•  Virginiaseekstobuildabusinessincentivepackagethatcomplimentsitsbusinessclimateinordertoprovideclarityinavailableincentivesandtocloseincentivegapsneededforlong-termdecision-making.

•  Tothatend,theVirginiaOffshoreWindTeamhasengagedwithlocalandregionaleconomicdevelopmentofkicesandwillconsolidateexistingstateandlocalincentivesasaresourceformarketingoffshorewindbusinessinterests.

•  TheBusinessIncentives/BusinessClimateTeamisworkingonanobjectiveanalysisdetailingareasinwhichVirginiamayimproveitsattractivenesstotheoffshorewindsupplychainintheformofpolicyandbusinessincentives.

•  Theanalysisalsoincludesareviewofincentivesthatstate,regionalandlocaleconomicdevelopmentofkicesofferandrecommendationstoimproveincentivesforpotentialsupplychaincompanies.


BusinessIncentives/BusinessClimateTeam

GetInvolved


GetInvolvedVisitwww.vaoffshorewind.orgtolearnmoreandgetinvolved


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Documents

Virginia’s Offshore Wind Supply Chain and Service Industry ... · 7/25/2018 · • The offshore wind energy market is just emerging in North America. • With a potential build-out