Feeds:
Posts
Comments

Archive for the ‘Offshore Wind’ Category

Annual mean differences in precipitation between simulations with Wind Farm 2050 projection and control NOWF simulation for all wind directions (0—360°) over the period of 2008–2017 a for Germany, Denmark and the Netherlands and b for UK. This figure was created with Matplotlib (Hunter, J. D., Matplotlib: a 2D graphics environment. Computing in Science and Engineering 9, 2007) and Cartopy (Met office, Cartopy: a cartographic python library with a matplotlib interface. Exeter, Devon, https://scitools.org.uk/cartopy, 2015).

Abstract from a German study published in Nature – “Projected impacts of future offshore wind farms on coastal precipitation over the Northwest European shelf”:

“Offshore wind energy plays a central role in reaching the European Green Deal target of a climate-neutral Europe by 2050. In this study, we simulate offshore wind development for 2023, 2030, and beyond 2050 across the Northwest-European Shelf, using various turbine sizes over a 10-year period, an approach not previously undertaken. For the post-2050 scenario, we assess the maximum potential deployment within all currently identified development zones in North Sea countries. Results indicate that large-scale offshore wind farm expansion can reduce surface wind speeds by up to 2–3 m s⁝š. Notably for post-2050 scenario, precipitation decreases by 10–12% in coastal regions of Germany, the Netherlands, and the United Kingdom, and by more than 15% in parts of Jutland, Denmark, particularly under south-westerly winds. Conversely, precipitation increases over the wind farm areas. These findings suggest that extensive offshore wind deployment may significantly alter regional climate patterns, highlighting the need for further multi-model investigations to reduce uncertainty.”

The study found that existing wind farms under the 2023 and 2030 scenarios indicate small effects on precipitation, with effects primarily confined to marine areas. However, the large-scale deployment of offshore wind farms in the Northwest-European shelf, as projected for 2050, has a significant and spatially distinct impact on regional precipitation patterns, specifically in the regions over northern Germany and Denmark, highlighting the critical role of scale and turbine density in driving these changes.

Read Full Post »

RWE has agreed to relinquish their Atlantic, Pacific, and Gulf of America wind leases.

“After careful consideration, it was determined there is no path forward to permit these projects in the U.S. for the foreseeable future.”

Comment: The poor prospects for these leases had more to do with bad investment decisions than permitting challenges. The company is fortunate to be able to rollover their lease bonuses into LNG infrastructure and gas turbine purchases.

The relinquished leases:

OCS-A 0539: RWE paid the highest bonus ever, $1.1 billion, for this lease at the irrational exuberance Atlantic wind sale in Feb. 2022. The amount was $305 million higher than the next highest bonus for any offshore lease.

OCS-G 37334: RWE was the only bidder at the 2023 Gulf wind lease sale. A second Gulf wind sale received no bids.

OCS-P 0561: RWE underestimated the technical and economic challenges associated with deepwater floating wind development offshore California and elsewhere. Only one wind lease remains in the Northern California wind lease area. Two of the three wind leases in the Central California area have also been relinquished.

The wind adverse U.S. Administration offered RWE a lifeline that allows them to reinvest in more prospective projects:

  • LNG infrastructure: a financial investment of $900 million to acquire an indirect 16% stake in the Louisiana LNG Project. RWE proceeds will be used to fund the construction of the terminal.
  • Natural gas turbine reservations: To support the expansion of its growing flexible power generation work in the U.S., RWE Americas has signed a $300 million turbine reservation agreement securing future generating capacity to meet growing U.S. electricity demand. The company is developing a pipeline of 15 natural gas peaking projects across target markets in the U.S.

Apparently, the attached letter from 50 U.S. environmental groups asking RWE not to keep their wind leases was not persuasive (and perhaps RWE didn’t appreciate the implied threat of litigation against a deal that was in the company’s best interest).

Read Full Post »

GWEC, the voice of the wind industry, continues to scale down estimates for floating turbines. In 2024, the GWEC expected 835MW of floating wind to be installed in 2027. Last year, this was lowered to 278MW, and expectations dropped further in the 2026 report to just 42MW. A similar trend applies to GWEC’s forecasts for the following years.

Despite strong support from the State, California’s offshore wind sector faces major challenges:

  • Deepwater technology: California offshore wind development is totally dependent on expensive and still unproven floating turbine technology. Norway, once a world leader in floating wind, has lost enthusiasm and is now requiring floating projects to be ‘quality-assured.’
  • Infrastructure: Major port upgrades, new transmission lines to bring power ashore, and specialized vessels are required. The supply chain is immature.
  • Costs: High capital costs plus storage costs (e.g. batteries) for reliability.
  • Environmental and stakeholder issues: Opposition to industrializing the coast.
  • Worldwide struggles for the wind industry.

Two of the three Central Coast wind lessees (diagram below) have agreed to lease buyback deals. A lease cancellation letter is attached. The State is challenging the buyback agreements, and is thus in the difficult position of opposing deals that the wind developers voluntarily agreed to and believe are in their best interest. Does the State lose regardless of the outcome of their challenge?

The third Central Coast lessee, Equinor, is curtailing wind investments and has no plans to pursue new offshore wind projects in the US. A buyback deal with Equinor would be complicated by the company’s Empire Wind commitments, and is probably unnecessary given that Equinor has taken itself out of the game.

The two Northern California leases are still active, but the focus has been on regional planning. Funding for necessary infrastructure projects is uncertain and any wind lease development is far in the future.

Read Full Post »

On July 13, 2024, a Vineyard Wind (VW) turbine blade shattered and spread debris on Nantucket beaches and throughout the region.

In VW’s own words:

“As was widely reported in national and local news, in July 2024, one of the GER offshore blades collapsed and fell into the waters off Nantucket, necessitating a massive environmental cleanup, and a six-month construction hiatus during which GER performed a “root cause” analysis. That analysis concluded that 68 of the 72 GER blades installed at the Project (nearly all manufactured by GER in GaspĂŠ, Canada) were also defective because they were inadequately bonded together, and were so poorly made that they were beyond repair. GER’s remediation plan required it to remove all of the blades and to replace all GaspĂŠ blades with others manufactured at a different facility in Cherbourg, France.

Unsurprisingly, VW has found their contractor GE Renewables to be solely responsible for this troubling incident. However, as lessee and operator VW bears ultimate responsibility for all lease activities including the work of contractors, project design and management, fabrication and installation oversight, selection of the certified verification agent, and incident response.

Meanwhile, the Federal ( BSEE) investigation report has still not been issued. That report should provide an independent assessment of concerns discussed on this blog including quality control, regulatory departuresdebris recovery, and environmental impacts. The investigation is significant, not only for VW, but for other offshore wind projects planned or under construction, in the US and worldwide.

Keep in mind that the lengthy and complex National Commission, BOEMRE, Chief Counsel, and NAE reports on the 2010 Macondo blowout were published 6 to 17 months after the well was shut-in.

Read Full Post »

Duke Energy will voluntarily terminate its offshore wind lease located in Carolina Long Bay.

“This settlement allows Duke Energy to refocus $129 million in ways that directly benefit our customers and communities in the Carolinas,” said Kodwo Ghartey-Tagoe, Executive Vice President and Chief Executive Officer of Duke Energy Carolinas. “Under the agreement, Duke Energy will reinvest nearly $129 million in additional generating capacity, which may include advancing new nuclear and natural gas generation, and grid enhancements to strengthen reliability, support continued growth in the Carolinas and keep costs as low as possible.”

Both Carolina Long Bay leases have now been terminated. In March, Total had agreed to relinquish its Long Bay lease.

Read Full Post »

John Hancock Tower (pictured) is now named for its address, 200 Clarendon St

In the attached complaint, BP Hancock LLC alleges Vineyard Offshore, a Vineyard Wind parent company, is delinquent in paying rent for its space in the famous John Hancock Tower (now known as 200 Clarendon Street) in Boston.

Vineyard Wind had leased 28,370 square feet of space, constituting the entire eighteenth floor of the tower.

Per the complaint:

  1. As of the date of this Complaint, Tenant owes Landlord $824,338.99 in Rent, Additional Rent, and late fees.
  2. Furthermore, Tenant remains obligated to replenish the Security Deposit in the full amount of $386,810.00 as provided under Section 16.26 of the Lease.

As many of you know, Vineyard Wind is engaged in an ugly dispute with its primary contractor, GE Vernova, which was ordered to continue work on the project even though Vineyard Wind stopped making payments.

Particularly troubling from an OCS policy perspective, BOEM waived the “pay as you build” decommissioning financial assurance requirement for Vineyard Wind and subsequently relaxed financial assurance requirements for all offshore wind projects.

Read Full Post »

WASHINGTON – Today, the Department of the Interior announced a settlement agreement with affiliates of Invenergy, North America’s largest privately held developer, owner, and operator of independent power infrastructure, aimed at strengthening American security and lowering costs, advancing goals central to President Donald Trump’s Energy Dominance Agenda.

As part of the settlement agreement, Invenergy will voluntarily terminate its affiliates’ four offshore wind leases located in the New York Bight, Central Coast of California and the Gulf of Maine totaling $765 million, and redirect that amount towards other domestic energy sources with the demonstrated capability to deliver reliable, affordable power, including the development of natural gas-fired power plants in Indiana, Wisconsin, Iowa, Kansas, and Missouri and geothermal power generation projects in the Western U.S.

Read Full Post »

Jennette Barnes/CAI

Pointing to the potential financial implications for GE Vernova, Recharge News cites this serious fraud accusation by Vineyard Wind (VW):

“This exceptional misconduct includes [GE Vernova’s] intentional scheme to falsify critical quality assurance data… and to intentionally misrepresent the quality of those blades to [Vineyard Wind] in a brazen fraudulent, and willful breach of the TSA, ultimately resulting in the catastrophic blade failure…”

Recharge also discusses the findings of the Project Engineer appointed by VW to resolve claims between parties. Under the terms of the contract, the engineer’s determinations are binding unless overturned in arbitration.

  • The engineer determined that GE Vernova was liable for project delays, blade defects, vessel costs, and a $185m rescission of previously certified payments.
  • The damage claims issued by the project engineer total $853m.
  • On the basis of those determinations, VW withheld 100% of the outstanding invoices issued by GE Vernova. Even netted against sums allegedly owed to GE Vernova, VW says the turbine maker owes around $545m.
  • Per the contract, there are no limitations on liability in cases of “fraud, gross negligence, deliberate default or willful misconduct.”

My take: VW’s charges against GE Vernova will be resolved in the courts. However, VW is the lessee and operator, and is thus the party responsible to the Federal govt for project safety and environmental protection.

  • Operator responsibility is a fundamental tenet of the OCS regulatory program. As lessee/operator, VW bears ultimate responsibility for project safety and environmental protection.
  • VW is responsible for contractor selection, management, and oversight.
  • If a contractor violates a regulation, the violation notice is given to the operator. If a contractor causes pollution, the operator is responsible for the cleanup.
  • DNV, the Certified Verification Agent (CVA) hired by VW, was required to verify the design, fabrication, and installation procedures. Did they raise any issues to VW and the regulators?
  • At VW’s request, BOEM waived a Fabrication and Installation Report (FIR) requirement so the project could stay on schedule. The FIR addresses quality assurance measures, so the waiver is highly relevant and concerning.
  • Did the division of responsibilities between BOEM and BSEE weaken regulatory oversight? BOEM, ostensibly just the leasing bureau, should not have been authorized to grant departures that could affect structural integrity and operational safety.
  • It’s surprising that VW has not been cited for civil penalties resulting from the blade failure and the resulting environmental damage.
  • How can a judge prevent a contractor from stopping work for an operator that has filed serious fraud allegations against the contractor, has stopped making payments, and has, along with the Governor, declared the project to be complete?

Lastly, nearly two years after the blade failure, we are still awaiting BSEE’s investigation report.

Read Full Post »

damaged Vineyard Wind turbine – Cape Cod Times photo

Massachusetts Judge Peter Krupp confirms that GE Rewables (GER) can’t quit now, but must continue working on the Vineyard Wind (VW) project! As we approach the 2 year anniversary of the blade failure, this ugly legal dispute among the responsible parties is another black eye for the troubled project.

Judge Krupp: In discussing irreparable harm in the April Memorandum, I found that the project “is at a critical phase,” that GER’s termination “would set the project back immeasurably and threaten VW’s financing,” that the requirements “to bring the project into commercial viability is highly dependent on GER’s capabilities, personnel and technology,” and that “[t]o pretend that VW could go out and hire one or more contractors to finish the installation and troubleshoot and modify GER’s proprietary design without GER’s specialized knowledge is fanciful.” Nothing has been brought to my attention that would alter any of these conclusions.

Project completion declarations by VW and Gov. Healey did not reflect the reality of the project (expected grandstanding, nothing to see there 😉):

Moreover, the fact that VW declared the COD (Commercial Operation Date) – or that Gov. Healey and VW’s parent commented on it – does not change the reality on the ground. It does not change the fact that the Project requires GER’s expertise and proprietary know-how to bring the turbines up to operational capacity.

The judge’s order is attached.

    Read Full Post »

    Steve Milloy, National Center for Public Policy Research: GE Vernova is losing money on wind turbines and will continue to lose money for the foreseeable future. Wind losses are real and guided to persist at ~$400 million in 2026.

    On the other hand, GE Vernova’s gas turbine business is booming. The gas turbine backlog and slot reservations surged from 83 GW to 100 GW in Q1, with a target of at least 110 GW by year-end. There is strong demand for reliable, dispatchable power to support data centers and grid stability. This segment is a major profit driver.

    Milloy is asking GE Vernova shareholders to support the following resolution:

    RESOLVED: Shareholders request that the Board of Directors of GE Vernova Inc. publish a report within the next year—prepared at reasonable cost and omitting proprietary or competitively sensitive information—assessing the extent to which the Corporation’s sustainability goals have been authorized and maintained on the basis of net-present-value and return-on-investment calculations.

    The company’s Board of Directors has unanimously recommended that shareholders vote “AGAINST” this proposal, arguing that the Company already provides comprehensive, transparent disclosures on sustainability‑related risks, opportunities, goals, and progress.

    Meanwhile, GE Vernova remains locked up in an ugly dispute with Vineyard Wind and is still prevented by court order from exiting that project.

    We are approaching the 2 year anniversary of the GEV blade failure that rocked the offshore world.

    Read Full Post »

    Older Posts »