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Posts Tagged ‘Vineyard Wind’

Tough month for GE Vernova despite profitable 2nd quarter with net income above expectations

Posted in accidents, Offshore Energy - General, Offshore Wind, tagged , , , , , on July 26, 2024| 1 Comment »

GE Vernova’s SEC filing for the second quarter of 2024 is attached. The Vineyard Wind turbine blade incident, the main reason for the sharp decline in their stock value in mid-July, is described as follows:

VINEYARD WIND OFFSHORE WIND FARM. We are the manufacturer and supplier of turbines and blades and the installation contractor for Vineyard Wind 1 offshore wind farm in the Atlantic Ocean (Vineyard Wind), at which we have installed 24 of 62 Haliade-X 220m wind turbines to date. Subsequent to the period covered by this report, a wind turbine blade event occurred at Vineyard Wind. Debris from the blade was released into the Atlantic Ocean and some has washed ashore on nearby beaches. On July 15, 2024, the U.S. Bureau of Safety and Environmental Enforcement (BSEE) issued a suspension order to cease power production and the installation of new wind turbines at the project site, pending an investigation of the event. As of the date of the filing of this report, we are currently engaged in a root cause analysis of the incident. We do not have an indication as to when BSEE will modify or lift its suspension order. Under our contractual arrangement with the developer of Vineyard Wind, we may receive claims for damages, including liquidated damages for delayed completion, and other incremental or remedial costs. These amounts could be significant and adversely affect our cash collection timelines and contract profitability. We are currently unable to reasonably estimate what impact the event, any potential claims, or the related BSEE order would have on our financial position, results of operations and cash flows

GE is also being sued by American Electric Power (AEP) for breach of contract and breach of warranty on turbine purchases for wind projects in Oklahoma:

“Within only two to three years of commercial operation, the GE wind turbine generators have exhibited numerous material defects on major components and experienced several complete failures, at least one turbine blade liberation event, and other deficiencies,” alleged AEP.

gev_webcast_10q_07242024Download

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GE Vernova says engineering is fine, blames Canada? Any comments from the CVA? Nantucket to renegotiate “Good Neighbor Agreement.”

Posted in accidents, Canada, energy policy, Offshore Wind, tagged , , , , , on July 25, 2024| 1 Comment »

Quotes from Nantucket Current article (emphasis added):

“While we continue to work to finalize our root cause analysis, our investigation to date indicates that the affected blade experienced a manufacturing deviation,” said GE Vernova CEO Scott Strazik. “We have not identified information indicating an engineering design flaw in the blade or information of a connection with the blade event we experienced at an offshore wind project in the UK, which was caused by an installation error out at sea. We are working with urgency to scrutinize our operations across offshore wind. Pace matters here. But we are going to be thorough, instead of rushed.”

“It’s been 11 days since the event, and just to reinforce from the start, we have no indications of an engineering design flaw,” Strazik said. “We have identified a material deviation or a manufacturing deviation in one of our factories that, through the inspection or quality assurance process, we should have identified. Because of that, we’re going to use our existing data and reinspect all of the blades we’ve made for offshore wind. For context, this factory in Gaspé, Canada where the material deviation existed we’ve made about 150 blades. 

Any comments from the CVA, assuming there was one?

Meanwhile, Nantucket will renegotiate their “Good Neighbor Agreement” with Vineyard Wind. Is this a lesson for other municipalities?

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Initial environmental assessment of Vineyard Wind blade debris

Posted in accidents, Offshore Energy - General, Offshore Wind, tagged , , , on July 24, 2024| 1 Comment »

GE Vernova retained Arcadis US, Inc., to perform an initial assessment of environmental considerations associated with the presence of the blade debris in the water and along the shoreline. That report is attached. Linked is a Nantucket Current article on the assessment.

EA turbine bladeDownload

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Aquinnah (Gay Head, Martha’s Vineyard) tribe calls for moratorium on offshore wind development

Posted in accidents, energy policy, Offshore Wind, tagged , , , , , , , , on July 23, 2024| Leave a Comment »

Aquinnah Wampanoag chairwoman Cheryl Andrews-Maltais

In the aftermath of a broken turbine blade off their coast, the Wampanoag Tribe of Gay Head (Aquinnah) is calling for a moratorium on all offshore wind development in the United States until further research can be done on the impact of wind farm construction. 

In a letter to BSEE Director Kevin Sligh, Aquinnah Wampanoag chairwoman Cheryl Andrews-Maltais:

  • expressed “strong concerns and outrage” over the fractured Vineyard Wind turbine blade and the debris that washed ashore on Nantucket.
  • said the foam and fiberglass debris have “potential negative and adverse impact[s]” on the environment, marine life, and human health.
  • said fragments in the water pose a threat to shellfish, which are a crucial part of both the marine food web and also ingested by humans.
  • commented that the potential contamination of shellfish with fiberglass and other materials could have severe consequences for human consumption and public health.
  • criticized the lack of communication from federal officials to the tribe.
  • called for an “immediate stoppage” of offshore wind construction in U.S. waters until they can be evaluated for microfractures and other damages.

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Should wind leasing and development be paused until the Vineyard Wind investigation is completed?

Posted in energy policy, Gulf of Mexico, Offshore Energy - General, Offshore Wind, Regulation, tagged , , , , , on July 23, 2024| 1 Comment »

The Vineyard Wind turbine incident, which littered Nantucket beaches, has also tarnished the US offshore wind program. BSEE has prudently halted Vineyard Wind operations and construction pending an investigation into the blade failure.

Offshore wind development is structure rich, so public confidence in the design of turbines and support platforms is critical. BOEM lists 37 active wind leases on the US OCS. Most of these leases have not yet reached the construction phase. A hold on the approval of any Construction and Operations Plans would seem to be appropriate pending completion of the Vineyard Wind investigations.

Per the leasing schedule below, BOEM intends to hold 4 wind sales during the remainder of 2024, all within a 3 month period. Only 1 sale is scheduled for each of the following 2 years. Deferring the 2024 sales until the investigations are complete would assist potential lessees by ensuring that the issues of concern were fully understood.

Unfortunately, BOEM’s failure to conduct a 2024 oil and gas lease sale has boxed in the wind program. The Inflation Reduction Act prohibits BOEM from issuing wind leases unless an oil and gas sale has been held within the previous year. Lease Sale 261 was held on 12/20/23 meaning that no wind leases may be issued after 12/20/24. BOEM has compressed the wind leasing schedule, presumably to beat the legislative deadline. It would have been better for both the oil and gas and the wind programs if at least one oil and gas sale had been held in 2024 as has been customary since the 1950s.

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Vineyard Wind’s financial assurance waiver cites robust insurance policies, proven technology, and guaranteed electricity sales

Posted in accidents, decommissioning, Offshore Wind, tagged , , , , , on July 22, 2024| 2 Comments »

Nantucket Current photo: damaged Vineyard Wind turbine

Pasted below is an excerpt from the BOEM letter waiving the“pay as you build” financial assurance requirement for the Vineyard Wind project.

Comments on the 3 risk reduction factors cited in the letter:

Factor 1: Those “robust insurance policies” may soon be tested given the costs associated with the turbine blade incident and potential law suits. (The notice pasted below informs that Nantucket officials will meet on Tuesday to consider litigation. A question for attorneys is the extent to which Nantucket is compromised by their good “Good Neighbor Agreement” with Vineyard Wind. That agreement essentially calls on Nantucket to promote the Vineyard Wind projects in return for payments that seem modest relative to the economic benefits from tourism and fishing.)

Factor 2: To the extent that GE Vernova Haliade-X 13 megawatt turbines are proven technology (and that is very much in doubt), the use of proven technology doesn’t prevent premature abandonment associated with unexpected incidents.

Factor 3: Reliable power generation and predictable long-term income remain to be demonstrated.

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Vineyard Wind: regulatory observations

Posted in accidents, Offshore Wind, tagged , , , , on July 19, 2024| 1 Comment »

Nantucket Current photo: Vineyard Wind turbine AW38 with a damaged blade that has caused thousands of pieces of debris to wash ashore on Nantucket since Tuesday.

Vineyard Wind statement (7/18):

  • “This morning, a significant part of the remaining GE Vernova blade detached from the turbine. Maritime crews were onsite overnight preparing to respond to this development, though current weather conditions create a difficult working environment.”
  • “We are staying apprised of GE Vernova’s efforts to manage the situation, including the removal and recovery of the remaining blade attached to the turbine.”
  • Staying apprised? As operator, Vineyard Wind is fully responsible. This is their situation to manage.

BSEE statement:

  • BSEE has ordered Vineyard Wind to suspend power production and wind turbine generator construction.
  • Kudos to BSEE for their decisive and timely action. They need to better understand what happened before allowing operations and construction to continue.
  • Imagine the pressure on the regulator if the project was providing a significant portion of the region’s electricity.
  • BSEE’s comment that there has been “no harm to any marine resources or mammals from the incident” is premature given the extensive marine debris and the associated risks to mammals.

What about the CVA?

  • The regulations at 30 CFR § 285.707-712 assign important responsibilities to Certified Verification Agents (CVAs), independent third parties with established technical expertise. These responsibilities include detailed reviews of the design, fabrication, and installation plans.
  • Oddly, the CVA’s “Statement of Qualifications” and “Scope of Work and Verification Plan” have been redacted in their entirety from Vineyard Wind’s Construction and Operations Plan (COP) (see Appendix I-C and I-D).
  • Who was the CVA and why was that important information redacted?
  • Were any of the CVA requirements waived per 258.705?

BOEM:

  • Will BOEM, the lessor and Federal wind program manager, be making a statement? Will they be reassessing their COP review procedures?
  • BOEM should temper their over-the-top promotion of offshore wind. The complete shutdown of the first utility scale offshore wind farm heightens public concerns about the intermittency of this power source, and the need for reliable backup sources.

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Debris poses a significant risk to marine mammals

Posted in accidents, Offshore Wind, tagged , , , , on July 17, 2024| 1 Comment »

In the wake of the Vineyard Wind turbine blade incident, it’s important to note that marine debris is a significant risk factor for mammals. This is a particular concern for baleen whales, like the endangered right whale, which filter large amounts of water. Per NOAA:

Marine Mammals: Many species of marine mammals have also been confirmed to eat marine debris. A review by Kühn and van Franeker found that 69 species of marine mammals have been found to ingest debris – that’s 56% of all marine mammals! This includes 44 species of odontocetes (toothed whales), manatees, and multiple seal species. Marine mammals are highly protected, which can make it difficult to research them. Most research on marine mammals takes place after an animal dies, making it difficult to understand what marine debris live animals eat. However, we do know that because baleen whales filter extremely large amounts of water while feeding, they may get plastic debris entangled in their baleen plates. 

An Argentinian study describes the “finding of plastic litter in the digestive tract of a southern right whale (Eubalaena australis) juvenile male, which was found dead on the shores of Golfo Nuevo, Chubut, Argentina in 2014.”

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Vineyard Wind operations shut down

Posted in accidents, Offshore Wind, tagged , , , on July 17, 2024| 1 Comment »

Nantucket Current photo

Appropriate response by BSEE.

Late Tuesday afternoon, the Bureau of Safety and Environmental Enforcement said all operations are shut down until further notice.

“A team of BSEE experts is onsite to work closely with Vineyard Wind on an analysis of the cause of the incident and next steps,” the agency said in a statement.  

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Vineyard Wind turbine blade incident

Posted in accidents, Offshore Energy - General, Offshore Wind, tagged , , , , , , on July 17, 2024| 2 Comments »

Photo by Capt. Carl Bois shared with the Nantucket Current
Ack4whales photo of the damaged turbine

On Sunday (7/14), Capt. Carl Bois, of the fishing charter Topspin out of Nantucket, told the Current he noticed a significant amount of debris in the Vineyard Wind lease area.

“There was so much debris at the wind farm,” Bois said. “We covered many miles and only saw the debris at the wind farm site: big sheets of fiberglass with foam core and lots of loose foam.”

On Saturday night (7/13) the Coast Guard warned Mariners as follows: “Coast Guard received a report of 03 floating debris 10 meters by 2 meters in the vicinity of approximately 26 NM SE of Marthas Vineyard and 22 NM SW of Nantucket in position 40 59.559N 070 25.404W. All marines are requested to use extreme caution while transiting the area.“

On Monday (7/15), Vineyard Wind confirmed that a turbine blade incident occurred on 7/13: “On Saturday evening, Vineyard Wind experienced blade damage on a wind turbine in its offshore development area. No personnel or third parties were in the vicinity of the turbine at the time, and all employees of Vineyard Wind and its contractors are safe and secure.”

On 7/16, Vineyard Wind issued another statement advising that they were deploying teams to Nantucket to clean up debris from the incident.

Comments:

  • Not a good look for the first large-scale offshore wind project in the US.
  • It’s unclear what the status of operations was at the time of the incident.
  • Vineyard Wind seems to be passing the buck a bit when they note that “GE, as the project’s turbine and blade manufacturer and installation contractor, will now be conducting the analysis into the root cause of the incident.” While GE’s findings are critical, Vineyard Wind, as operator, is fully responsible and accountable for the incident and should be leading the analysis.
  • Was their a third party review of the turbine design?
  • Was the incident reported to BSEE, the safety regulator for offshore wind? State and local government?
  • BSEE and the Coast Guard should ensure that Vineyard Wind’s findings and their own independent report are made publicly available in a timely manner. Ditto for Safety Alerts.
  • What other incidents have occurred during offshore wind facility construction and operations?
  • In 2017, Vineyard Wind requested to defer providing the full amount of the required financial assurance until year 15 of actual operations. That request was denied, but was approved when resubmitted in 2021. The regulations have now been revised to allow such deferrals of financial assurance on all offshore wind projects.

Vineyard Wind is a joint venture between Avangrid, a Spanish company, and Copenhagen Infrastructure Partners. They were

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