A 220GW global opportunity is being eyed up throughout the 海角视频 offshore wind supply chain as a remarkable rise from 鈥榮pecial case鈥 to energy backbone is celebrated.
Duncan Clark, project director for the two world-leading wind farms in construction off the Humber, said the hard yards put in on a phenomenal coast-to-coast journey in Britain provides a platform and springboard as countries鈥 heads are turned by the sector鈥檚 cost reduction and green credentials.
Scores of 海角视频 companies have contributed to Orsted鈥檚 world-leading position, with Mr Clark paying tribute to the efforts.
Addressing day two of Energy and Clean Growth in the Northern Powerhouse, the keynote speaker said: 鈥淣ew markets are starting from a really big scale, presenting big opportunities and also a really big challenge. Over 25 years we have built a healthy and competitive supply chain that can come with us on this growth journey.
鈥淲e have built a broad base of expertise and specialists. A talent proposition in development, construction and operations, all in the 海角视频, running from brain power, in consultancy, to steel fabrication and manufacturing. Companies have been able to see opportunity in this market place to get good business coming with us.鈥
With a minimum of 30GW anticipated by 2030 in the 海角视频, and onwards to 75GW, globally it is three times that.
鈥淭hat world opportunity is much bigger, we have a fantastic opportunity, with the platform and springboard of the 海角视频 growth. The opportunity globally is even more exciting.鈥
He referenced buying into Pict Offshore, developer of the Get Up Safe system for crew transfer to turbines, and underlined how investment and confidence in the supply chain was helping bring the cost down.
鈥淚t is a remarkable transformation, remarkable cost reduction in the price of energy from offshore wind,鈥 highlighting the drop from 拢120 in 2015 to 拢57.50 in 2017 then 拢39.65 in 2019.
鈥淚t was very striking in the auction this summer the winning prices were below the wholesale electricity price for the years these wind farms are due to come online,鈥 he said - with Orsted an interested observer this time round having led the 2017 halving.
鈥淲e have had a massive transformation from almost a niche, coming at a cost premium and being a special case, to being very cost efficient, available in very high volume and with strong policy commitment, Mr Clark said. 鈥淥ffshore wind will be the backbone of our electricity system by 2030 onwards.
"We have moved from small sites, relatively easy conditions offshore to challenging sites in much more challenging water, and all the time cost savings are being delivered.
鈥淪ome is economy of scale, some is maturing industry. The companies doing it all have matured enormously. We have seen major investments and developments in the supply chain, from the product itself to everything that goes around it. Handling systems for big components, the vessels we use to drive installation, and pushing the boundaries of how we bring to shore and connect to the National Grid the power we are producing.鈥
He outlined how it has been the launch developer for 6MW and 8MW turbines, and how leading on innovation hadn鈥檛 deterred backers
鈥淭he most important has been risk reduction,鈥 Mr Clark said. 鈥淥ffshore wind is capital intensive. One of the biggest levers we can pull is to reduce investors鈥 perception of risk. That鈥檚 a massive journey we have been on. Now investment community is not only comfortable with the risk, but very eager to get in to it.聽 And it works through the supply chain. We need to have confidence in the supply chain, that it can deliver for us.聽
"At the point when we get comfortable in that reliability we can assess our own project risk profile and that allows us to be more ambitious with our construction timelines. That drives efficiency and allows us to reduce the cost to the consumer.鈥
Reports from the Energy and Clean Growth in the Northern Powerhouse Conference:
Louise Kingham OBE, chief executive of the Energy Institute, said the Humber - home to the largest asset base for Orsted, had the opportunity to be a powerhouse for the world, not just the North and the 海角视频, as she folllowed Mr Clark.
She said: "The Energy Estuary is far from a PR headline or a news story, it is a real world gem in the Northern Powerhouse.
"The Humber has been so crucial to the British economy and it really, really does take some beating."
Reflecting on the coal imports, electricity generation, gas imports and refining capacity of the 'traditional' sector, and the enormous strides now being taken in offshore wind, biomass and hydrogen, Mrs Kingham said: 鈥淗eritage, accomplishment and ingenuity undoubtedly serve the Humber as we build a response to the greatest challenge this sector and society has, the climate challenge.
"I don鈥檛 just see it as a powerhouse for the 海角视频, but a powerhouse for the world.鈥
