DISRUPTING THE WIND POWER GOLD RUSH
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MARKET LEADERS IN THE EVOLVING ENERGY SPACE WRIT TEN BY
DA LE BENTON PRODUCED BY
TOM VENTURO
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PARTNERING WITH SOME OF THE BIGGEST INDUSTRY PLAYERS, TERRACON LOOKS SET TO DEFINE THE FUTURE OF WIND POWER GENERATION
T
erracon has been delivering consulting engineering services to clients for more
than 50 years. The company, based in Olathe, Kansas, is an employee-owned engineering consulting firm that provides environmental, facilities, geotechnical and materials services across a number of strategic business sectors, including power generation, oil and gas, transportation and facilities.
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It is this power generation market, particularly wind power generation, that is currently experiencing significant growth like never before. For Blair Loftis, vice president and National Director, Power Generation & Transmission at Terracon, key to this growth has been the impending expiration of the production tax credit in 2019. This means that companies constructing wind facilities from 2019 onwards will receive a lower tax incentive than in previous years.
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Vision, Innovation, Development
Wind Stone Constructions works as an ambitious company and with a great work spirit, we are specialists in civil works/engineering and P&H foundations for wind turbines. Our commitment is to develop projects promoting the transformation of our environment and fostering the economic, social and environmental development. LEARN MORE
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“ That’s what we are doing at Terracon, we are working with these large companies and we are providing innovative solutions that help reduce those costs” — Blair Loftis, VP and National Director, Power Generation & Transmission, Terracon
“The existing production tax credit
Lowering the corrugated metal pipe into the foundation excavation
cycle of a wind farm goes into the
(PTC) expires in 2019 and this is forcing
turbines themselves, with the remain-
a number of companies to find ways to
ing 50% going into ‘balance of plant’
fill the incentive gap,” says Loftis. “In
(BOP): roadways, conductor systems
losing those tax incentives, more and
and other infrastructure elements and
more companies are now seeking out
half of the BOP cost is the foundations.
ways to reduce capital costs. “That’s what we are doing at Terra-
The key then for Terracon is finding where it can add value into that con-
con, we are working with these large
struction cycle, and it has located it in
companies and we are providing
the wind turbine foundations.
innovative solutions that helps reduce those costs.”
As the wind energy market grows and the PTC expiration date draws
Loftis notes that 50%of the capital
near, these developers are looking for
expenditure within the construction
bigger returns on each wind turbine w w w.te rra c on . com
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Williams Form Engineering Corporation has been providing threaded steel bars and accessories for in the construction industry for over 95 years. Each wind tower supported by a Williams foundation anchor bolt can be relied upon to perform flawlessly throughout the life of the turbine. www.williamsform.com info@www.website.com LEARN MORE 8165 Graphic Dr. Belmont, MI 49306 Phone: (616) 866-0815 Fax: (616) 866-1890
“BUILDING STRONGER FOUNDATIONS” jbsenergysolutionsllc.com
P&H “Anchor Foundation”
P&H “Tensionless Pier Foundation”
JBS Energy Solutions is fast becoming the go to company to provide scalable design and build solutions specifically for the Patrick & Henderson wind turbine foundations and existing foundation upgrades. We provide a complete foundation package, from initial engineering through final construction.
they construct. Technological advance-
have been constructed with a gravity
ments in wind turbine generators has
spread foundation design, but with the
afforded an opportunity for larger
additional mass at the top of the tower
machines. This equates to a signifi-
from these larger machines the industry
cant increase in the turbine size, tower
was ripe for a paradigm shift.
height and blade length. In turn, the
That shift was brought about by the
foundation system grows larger and
Patrick & Henderson (P&H) Tension-
more expensive.
less Pier Foundation: a design that
The market is moving towards larger
requires less than a third of the amount
turbines for land-based applications;
of concrete and steel and 25% less
from a typical size in the 2-megawatt
excavation and backfill when construct-
family to turbines rated at 3-3.5
ing the larger wind turbines. Accord-
megawatts. Traditionally, the turbines
ing to Loftis, an experienced crew can 09
1965
Year founded
4,000+ Number of employees
140+
Offices nationwide
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“ What we are doing with our foundation systems is making the typical gravity spread foot foundation functionally redundant in the marketplace” — Blair Loftis, VP and National Director, Power Generation & Transmission, Terracon
Blount Contracting is a full service civil construction company specializing in mass excavation, shoring, renewable energy – civil grading and P & H foundation installation.
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The inner corrugated metal pipe is ready for backfill 11 complete at least five foundations per
to conventional standards of modelling
week under favourable site conditions.
so we could get that in front of the
“We work with specialty foundation
independent engineering community.
contractors like JBS Energy Solutions,
Once we started doing that, we got
Blount Contracting, and Wind Stone
the industry and market comfortable
Construction who have honed their skills
with Terracon assuming this role as the
for installing our foundation design.
engineer of record.
Some engineer, procure, construction
“It has been a team effort. We have
(EPC) contractors, such as Blattner
a tight group including Allan Henderson,
Energy have resourced so that they can
the inventor of the foundation, two
construct our foundations on multiple
preferred materials suppliers (Contech
projects simultaneously,” says Loftis.
Engineering Solutions and Williams
“Terracon has spent the last few years bringing the P&H Foundation up
Form Engineering) and a quality assurance firm (Structural Observation
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Services), and we all work together with a shared strategic platform.” One of the key ways in which Terracon has and continues to establish itself as an industry expert in foundation design is through partnering with key industry players. Through this, Terracon is able to work with and demonstrate first-hand the true value of the P&H Tensionless Pier Foundation which in turn highlights its value in terms of, at least in part, helping to fill in the tax incentive gap. Terracon has partnered with NextEra Energy Resources, one of the largest independent 12
operators of power generating assets in North America. Terracon has been able to realise as much as 40% savings in construction capital costs of NextEra’s wind turbine foundations through the P&H Tensionless Pier Foundation. “For NextEra it was an easy win,” says Loftis. “NextEra, like many companies, is faced with increased capital pressures as it deals with the expiration of the PTC. If Terracon can save one of the largest industry players 40% on 25% of their capital it is sort of a no-brainer.” Terracon’s foundation is deep and cylindrical, as opposed to the gravity foundation which is typically flat and octagonal. The standard P&H Tensionless Pier Foundation requires
only 110 cubic yards of concrete which translates to as much as 40% less concrete and 40% less steel as opposed to a gravity spread for the same size wind turbine. “It’s a significant cost saving in the industry. Especially when we’re looking down the barrel of an administration with a trigger finger on tariffs, which effects the cost of the steel and other construction materials used in the foundations. Since the pier requires substantially less steel than the spread we reduce the amplitude of this kind of market volatility,” says Loftis. Through the success of working with NextEra, Terracon was introduced to a number of engineering, procurement and construction (EPC) firms including market leaders like Blattner Energy. NextEra solicited the largest tender of wind projects in North American wind history last year. Blattner Energy won all of the projects and decided to build the majority of them using Terracon’s P&H Tensionless Pier Foundation. Terracon was retained to design more than 550 foundations for that round of projects. For Loftis, this is the clearest representation of the paradigm shift that the market was craving. “There has been a paradigm shift, moving from the gravity spread foundation
Securing the rebar hoops which maintain anchor bolt spacing w w w.te rra c on . com
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to the tensionless pier foundation
the foundation is compatible with site
because it saves cost,” he says.
conditions. As Loftis notes, it’s in both
“Blattner Energy has invested heavily
parties’ interests to ensure that the
into the foundation and to me this is a
foundation is in fact suitable for each
message of industry disruption. What
specific project. “That is how we set up
we are doing with our foundation
each engagement, making sure at the
systems is making the typical gravity
earliest stages of project planning that
spread foot foundation functionally
our foundation is the optimal design
redundant in the marketplace.”
choice for project success,” he says.
Relationships are only as strong as
To this end, Terracon does things
the effort put into them and Terracon
a little differently. They look at success
recognises this, conducting rigorous
from project conception through project
compatibility reviews to ensure that
completion. “We meet with project
Securing the anchor bolts to the upper template ring
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“ There has been a paradigm shift, moving from the gravity spread foundation to the tensionless pier foundation because it saves cost” — Blair Loftis, VP and National Director, Power Generation & Transmission, Terracon
managers, superintendents, foremen, and team leaders to conduct constructability reviews and spend a day or two discussing what portions of our design give the construction folk troubles in the field,” says Loftis. “I want to know every complaint that every craftsman, supervisor, project manager and foreman has about these foundations.” “We then take that back and see if we can implement a design solution to enhance constructability efficiency. If we can revise the design to make the w w w.te rra c on . com
construction process easier, while still preserving the integrity of the design, then we can provide even more value to the industry. “This level of constructability design review with NextEra, Blattner and Terracon involved is something that is rarely ever done across the industry.” Over the last two years, the company has experienced significant growth in one particular sector – power generation and transmission – recording a growth rate of 20% year-on-year. With the growth of the market and Terracon’s role in defining that 16
future market, Loftis has begun work on a strategic growth plan for the next 24 months. He believes that, given Terracon’s market position, it provides him with a key understanding of where the market is heading and enables him to ensure the company is “fully equipped” for it. Looking beyond the next two years, Terracon aspires to be the industry leader in wind turbine foundation design in the United States. The company has already begun to attract attention from around the world but Loftis will ensure that whatever direction the company grows in, it will be direction of growth that benefits the wind industry. “There really is an opportunity for our
CLICK TO WATCH : ‘TERRACON – GREAT PEOPLE’ 17 foundation to support the economics of wind growth globally,” he says. “We’re going to focus on North America. We’re optimistic looking at the Latin America market, especially in Mexico, with the energy reform that’s taking place. But I would say our goal is to capture the market, get the majority of the market share in the United States and Canada, and then move into foreign markets.”
Completed foundation ready for tower construction w w w.te rra c on . com
10841 Sth Ridgeview Road Olathe Kansas City 66061 USA T +001 (800) 593 7777 www.terracon.com