LSP RENEWABLES Q2 DIRECTORS REPORT
Industry InsightsWelcome to the second edition of the LSP Renewables Quarterly Directors Report, an opportunity to reflect on Q2 and share our findings and market insights.
In this quarter's instalment, we are excited to showcase the perspectives of our Director, Lewis Duffy, providing an in-depth overview of the Renewable Energy Landscape in the second quarter of 2024.
In addition to industry updates, Lewis’ insights illuminate the latest developments, challenges, and successes within the sector
Welcome to the Offshore Wind Supply Chain Adventure!
As lead of our recruitment team specialising in supporting into the Tier 1 / Supply Chain within Offshore Wind, I thought it prudent to take a deep dive into the supply chain that powers those majestic wind turbines you see spinning out at sea. Think of it as a thrilling treasure hunt, where every step is crucial to harnessing the power of the wind.
It all begins with Planning and Development.
Picture a team of intrepid explorers, engineers, environmentalists, and surveyors mapping out the perfect spot on the ocean. They study the wind patterns, seabed conditions, and marine life, making sure everything is just right. It's like choosing the ideal plot for a new, high-tech neighbourhood!
Next, we have Manufacturing and Assembly.
Here, the magic happens in massive factories where wind turbines are born. Picture enormous turbine blades being moulded in separate halves before being glued together and finished off by hand by highly skilled specialists, tower sections starting as sheet steel before being rolled and cut and welded ahead of final assembly offshore, and nacelles, the heart of the turbine being manufactured in huge assembly facilities overseeing the nacelle casing, drive chain, electrical and Yaw assembly. These components are then transported to ports, ready for their ocean voyage. It’s like assembling the ultimate Lego set, but on a grand scale!
Enter Transportation and Logistics.
Our turbine components embark on an epic sea journey, carried by specialised vessels designed to handle their massive size. Imagine a fleet of superheroes, each with a unique power to transport, lift, and install these gigantic pieces with precision.
Now comes the exciting part: Installation and Commissioning.
Skilled crews work around the clock, battling the elements to install monopiles, jackets and turbines on the seabed. It’s an underwater ballet of cranes, divers, and advanced robotics, ensuring each turbine stands tall and proud, ready to catch the wind. Think of it as planting an enormous, mechanical forest in the ocean.
Finally, we reach Operation and Maintenance.
The turbines are up and running, generating clean, renewable energy. But the adventure doesn’t end there! Dedicated teams monitor and maintain these giants, ensuring they operate efficiently for years to come. It's a 24/7 commitment, like having a team of pit crews ready to keep the race cars zooming.
The offshore wind supply chain is a marvel of modern ingenuity, and engineering collaboration. Each stage is a crucial piece of the puzzle, working together to harness the power of the wind and bring sustainable energy to the world. So, as we explore this fascinating journey, remember: every turbine-tells a story of innovation, teamwork, and the quest for a greener future.
Let’s set sail on this adventure and discover the wonders of the offshore wind supply chain!
Q2 was an exciting and dynamic period for us at LSP Renewables, particularly within the Offshore Wind sector. Let's delve into the highlights and achievements that marked this quarter.
Offshore Wind: Catching the Breeze!
The second quarter of the year saw the offshore wind industry sailing full speed ahead! New projects sprouted up like wildflowers in spring. Europe led the charge, with the North Sea looking like a forest of wind turbines. The UK and Germany announced ambitious expansions, while the U.S. East Coast wasn't far behind, with states like New York and Massachusetts lighting up their maritime horizons.
Cable Installation: Connect the Dots!
Cable installation was a game of connect-the-dots but on a grander scale. Underwater cable-laying ships buzzed around like busy bees, ensuring that all those wind turbines had their electrical lifelines in place. The buzzword? HVDC (High Voltage Direct Current). Companies showcased new, super-efficient cables, promising less energy loss and more bang for the buck.
Subsea and Survey: Mapping the Future
Q2 was a dive into exciting developments for subsea and survey work in offshore wind. The industry saw advanced underwater robots and drones taking center stage, mapping the seabed with pinpoint accuracy. These high-tech tools are crucial for laying the groundwork (or seabed!) for new wind farms, ensuring optimal placement and stability.
Cutting-edge sonar technology and 3D imaging became the new norm, helping teams to navigate complex underwater terrains and spot potential obstacles. Environmental assessments also got a boost, with new methods for monitoring marine life and ensuring eco-friendly project execution.
In essence, Q2 was a tech-fuelled adventure beneath the waves, with subsea and survey innovations paving the way for the future of offshore wind energy.
Vessels: The Sea Giants
The vessel industry had a blockbuster quarter. Giants of the sea, custom-built for wind farm construction and maintenance, launched with much fanfare. Innovations in vessel design promised greater stability, efficiency, and eco-friendliness. Think of it as the maritime version of a car show, but with ships that can carry entire wind turbine components across oceans!
Norwegian ship designer and shipbuilder VARD has launched Prysmian’s new cable laying vessel (CLV) Monna Lisa, sister ship to Leonardo da Vinci, coming a step closer to delivery in 2025. Monna Lisa, in which Prysmian decided to invest in 2022, will match Leonardo da Vinci for capacity and performance and will boast two carousels of 7,000 and 10,000 tons, the highest capacity in the current market.
NorthStar has secured a contract with Siemens Gamesa to build a hybrid service operations vessel (SOV) bound for long-term charter at the East Anglia THREE offshore wind farm development. This adds an eighth hybrid offshore wind ship to the organisation’s renewables fleet since it expanded into the market two-and-a-half years ago, and another notable benchmark on its strategic journey to add 40 SOVs to the business by 2040.
Maersk Wind Installation Vessel (WIV) is currently under construction in Singapore at Seatrium with a crane capacity of 1,900t and a lifting height of 180m this vessel is set to meet the demands of the new class of offshore turbines.
Cadelar have confirmed an order for a third A-Class Jack Up Vessel the Wind Apex due to join their fleet. Cadeler already has two P-class, two M-class and two A-class vessels under construction. This third A-class vessel is set to be delivered in H1 2027.
NKT is currently expanding its fleet by adding a second cable-laying vessel, NKT Eleonora, to meet the growing demand for offshore power cable solutions. NKT Eleonora is scheduled to become operational in 2027.
WTG Manufacturers: Spinning Success Globally
Q2 saw WTG manufacturers around the world turning heads and turbines! The big names: Siemens Gamesa, GE Vernova, Vestas & Ming Yang continued to lead the pack, rolling out larger and more powerful turbines that promise to capture even the faintest breeze.
The SG 14-222 DD turbine takes its first commercial outing on Moray West Offshore Wind Farm (OWF). Vestas are rallying behind the scenes with their V236-15.0 MW turbine being readied for He Dreiht OWF. These two turbines alone increase the capacity of the previous generation platforms by 3MW and 5MW respectively!!!
Exciting recent news of Ming Yang being confirmed supplier for the Waterkant OWF with their flagship turbine offering a capacity of 18.5MW, set to be installed in 2028! The highest capacity set for commercial installation in the EU…..so far!
Tech Upgrades: Bigger, Better, Greener Innovation was the name of the game, with new models boasting taller towers, longer blades, and smart tech integrations. Imagine wind turbines as skyscrapers with helicopter-length blades, all while being greener and more efficient than ever.
Global Reach: Winds of Change From the North Sea to the coasts of Asia, manufacturers expanded their global footprint. China and the U.S. ramped up their offshore wind efforts, with new partnerships and mega-projects on the horizon.
Atlantic Shores 1&2 Record of Decision approving the JV between Shell & EDF to build up to 195 Turbines. The Australian Government awarded Ocean Winds, EDP Renewables and Engie’s joint venture dedicated to offshore wind energy, a license to potentially develop up to 1.3 GW off the coast of Gippsland.
The European Commission has approved, under the EU Merger Regulation, the creation of a JV between Mitsui & Co, Osaka Gas Co, and RWE Offshore Wind Japan. The consortium has been formed to construct and operate an 684MW offshore windfarm in Japan
Future Forward: Wind Wonders Manufacturers teased future designs, hinting at floating turbines and even larger offshore giants. The race is on to harness wind power like never before, making Q2 full of progress and promise.
Q2 Summary
In short, Q2 was a whirlwind (pun intended) of activity in the offshore wind sector, with impressive strides in cable installation and some show-stopping vessels joining the fleet. Q2 was a dynamic period for WTG manufacturers globally, with ground breaking innovations and expansions setting the stage for a wind-powered future.
Exciting times are ahead as the world harnesses the power of the wind!
Thank you for reading! If you have any questions regarding this report, would like to discuss any recruitment needs or would like to discuss more specific industry insights within renewables, please feel free to contact Lewis as per below or visit our website at www.lsprenewables.com.