The Cost-Efficient Floating Wind Conundrum
By Mark Goalen, Chief Operating Officer
Mark Goalen, Chief Operating Officer at Houlder, highlights how solving the cost-efficiency challenge in floating offshore wind is crucial for achieving the scale of renewable energy needed to decarbonise and combat climate change.
Offshore floating wind technology has proven its feasibility through demonstrator projects. However, scaling this technology to utility levels within developers’ budgets presents a significant challenge. The key is to find a cost-efficient and practical solution that aligns with developers’ needs while considering all stakeholders’ perspectives.
The industry faces internal conflicts that hinder progress, resembling a Cold War-like atmosphere of secrecy and self-interest. Key players include developers, wind turbine generator (WTG) designers, floating foundation designers, and the supply chain. While they share a common goal of decarbonisation, their competitive isolation complicates collaboration.
WTG designers fiercely guard their designs, each striving for differentiation through innovations like advanced control systems. However, their research and development budgets for larger generators often exceed profits from current sales.
Floating foundation designers face financial constraints and incomplete information, leading to generic designs not tailored to specific sites or WTG combinations. The increasing size and weight of WTG components, along with uncertainties about viable mooring solutions, further complicate their work.
The supply chain, including ports, sees a golden opportunity in a sustainable industry extending into the next century. However, the lack of immediate revenue generation, heavy reliance on subsidies, and growing fatigue among stakeholders create scepticism about the viability of offshore floating wind.
Challenges in cost efficiency
Cost efficiency varies depending on design requirements. For instance, economising on materials results in different designs than those prioritising rapid assembly or minimal infrastructure. No single structure type or mooring configuration suits every site. Developers must consider operability, reliability, readiness, CAPEX, OPEX, and longevity when choosing foundations, which will vary across global portfolios.
As industry knowledge accumulates, designs will likely evolve into a shortlist of optimal options, balancing conservative early-stage designs with unproven, disruptive technologies.
Practical considerations also impact final designs, including access to floaters, mooring connections, inspection points, and WTG positioning. Manufacturing speed and location, especially in regions with limited infrastructure and skills, present significant barriers.
Finding solutions
Given the numerous interdependent variables, solving the cost-efficiency conundrum is complex. The industry needs economy of scale, factory line production, and optimised, fit-for-purpose designs moving towards standardisation. Despite being at the beginning of this evolution, several steps can accelerate commercialisation.
Developers should boldly select floating foundations that meet their criteria and have the necessary technology readiness level (TRL). Collaborating with WTG designers ensures compatibility, and if the development site is known, other details can follow.
Additional hardware and marine operations might be necessary beyond the project’s initial scope. If innovation fails to improve efficiency, costs may need to be absorbed, or projects abandoned. Independent consultancy can help developers minimise costs and risks, ensure realistic timeframes, and maximise efficiency.
Government financial stimulus is crucial but currently lacking, as governments believe developers should bear the responsibility. Successful projects will yield lessons that refine future approaches.
Bold decisions from developers can break the industry’s “chicken and egg” scenario, providing the supply chain with confidence to invest and generate revenue. Floating offshore wind holds significant potential as a renewable energy source. Overcoming the cost conundrum requires genuine collaboration among industry experts, but it is a solvable challenge.