Terracon — Brochure 2018

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

HEADQUARTERS: Avenida Las Cumbres 171 Colonia Colinas del Vergel, 98085.

Zacatecas, Zacatecas Mexico.

MEXICO CITY: Avenida Paseo de la Reforma 296 Colonia Juarez, 06600.

Mexico City, Mexico.

www.wsc.mx/en | wsconstructionsmex@gmail.com |

“ 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.

blountco.com 1353 S Vista Rd Apache Junction AZ 85119 • 480-985-2112 • info@blountco.com

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