WP2 Development of value chain
Last updated: 17 July 2017
Lead: General Manager, FPP Ltd, Chris McConville
The main objectives for this work package were:
- Identify value chain for fast following deployment.
- Obtain design requirements for the select site(s) and value chain.
Summary of work performed in WP2
During period 1 the establishment of a site demands/requirement matrix was completed and during the first two periods, FPP had a significant focus on identifying potential deployment sites in the UK by subcontracting IT Power to deliver a site assessment study. The report from the study provided two main findings, firstly it showed the massive potential around the UK for FPP’s technology based on the minimum technical requirements and secondly it added further, desirable requirements for a first deployment (such as suitable grid infrastructure) which highlighted three sites as being particularly suitable for the first UK project.
During period 3 a report on the suggested deployment sites was submitted. The final report outlined the required and desired characteristics for the initial sites and the process used to identify them. A number of suitable sites around the UK were outlined with details provided for the selected two sites in Katanes in Scotland and Dyfed in Wales, respectively. Special Purpose Vehicles (SPVs) were registered to develop these sites together with DP Renewable Energy Ltd with DP and FPP having an equal shareholding in each SPV. During period 4 together with DP Energy, FPP defined the Dyfed site boundary, which was larger than Katanes due to the lack of precedent.
An EIA Screening Reports for each site was submitted during period 4. The submission of these screening reports is the first step in formally seeking the licenses and consents required to deploy and install the technology and infrastructure.
Manufacturing and potential value chain
During the entire project FPP Ltd worked on investigating the supply chain available in the UK and created a category management procurement system and a database of potential quality suppliers which continues to be expanded. FPP Ltd and FPP A/S met with several potential manufacturers and continues to build and expand these relationships. After identification of the deployment sites the work on identifying the supply chain focused geographically on the suppliers closer to the sites, as local economic impact is a very important factor in the UK project success. FPP are very consciously working on ensuring that there is a geographical coverage while avoiding highly specialist or rare equipment and facilities which would limit competition in contracting for the manufacturing of the system.
In order to support the development of the value chain FPP A/S produced a report which provided a breakdown of the P80 system in terms of its main modules, sub modules, systems and component parts to enable discussion with potential suppliers of facilities for each module and identify particular skills required for each module. The report was submitted during period 3 and initial meetings were held with the most relvant candidates.
During period 4 the concept design of the commercial scale system was finalised allowing discussions to progress regarding potential fabrication methodologies and options and FPP issued RFQ (Request for Quotation) to a number of potential fabricators. The purpose of this RFQ was to obtain more detailed feedback on potential fabrication methodologies within a variety of facilities and the costs associated with full construction of the system and the responses have allowed FPP to further define the delivery strategy for both the UK projects and more generally.
Assembly, deployment, operation and maintenance
From period 1 FPP has held discussions with companies to support the project development, assembly, deployment and O&M at a high level. After the selection of the sites and as more requirements were identified, the focus shifted towards specialist facilities and marine contractors. FPP particularly made advances in identifying and engaging companies which have the necessary skills and strengths to support the O&M of FPP’s system, both offshore and in port and the engagement with these companies informed the more detailed O&M philosophy development. The RFQ (Request for Quotation) described previously, included a specific work package for the assembly of the complete system.
During period 2 and 3 FPP progressed the concept design of the commercial scale device including an adaption which allowed the system to be manufactured in modules capable of being built in standard dry docks and then assembled afloat. Given the fairly remote nature of both of the selected sites, it is likely that some level of facility upgrade must be allowed for and FPP therefore gathered relevant information regarding each of the options and made contact with port owners/operators.
FPP also developed initial options and mechanisms for establishing contract structures and providing the warranties and guarantees that will be required by end-users.
During period 4 FPP reached an agreement with an existing partner to develop the O&M strategy and planning mechanisms, including software recommendations. This partnership will allow FPP to engineer the O&M strategy as the design and projects mature further.
During the entire project continuously engaged a growing number of key industry stakeholders to raise the general awareness of FPP and FPP's technology. From period 2 FPP also engaged with a number of key stakeholders both related to the site and more generally.
Additional project stakeholders, such as heritage bodies, fishery associations and wildlife agencies, were engaged as part of the site screening and scoping work conducted by the project SPVs.
FPP continue to participate with relevant industry bodies and have joined Ocean Energy Europe (FPP A/S), Scottish Renewables (FPP Ltd) and Renewable UK (FPP Ltd). FPP Ltd is also a founding member of a new industry group “Friends of Floating Offshore Wind” which was formed in period 2. This group aims to promote the ambition, achievements and support needs of the floating offshore wind industry, focussing initially on the UK as the most developed market.
The establishment of the project companies with DP Energy provided increased attention to FPP’s projects and resulted in FPP Ltd increasing engagement with the relevant local and national government agencies. The Welsh and Scottish governments in particular were engaged, at both operational and ministerial level, including meetings with The Scottish Energy minister and Welsh Cabinet Secretary for Economy and Infrastructure. The local governments can provide significant support in ensuring that the projects can be efficiently licenced and consented, as well as providing assistance with establishing a suitable supply chain.
FPP A/S and FPP Ltd were alsp able to increase engagement with the EU Commission in the last period of the project to raise awareness of the technology and projects, particularly through involvement in the MARIBE project which focused on the benefits of offshore hybrid technologies.
During period 3 FPP A/S, supported by FPP Ltd, initiated a capital raise in order to raise the funds required to reach a revenue generating position. This has necessitated a significant increase in engagement with potential investors into the company and will be concluded during Q3 2017.
Deliverables in WP2
D2.1 Report on selected and contracted site - read the report.
D2.2 Report on potential value chain - read the report.
D2.3 Report on physical design requirements for the selected sites and value chain - confidential report and therefore not accessible here.