WIND EXPO 2024 – UK PAVILION
Renewables Advisory Services
Sustainability is our business © Copyright 2024 by The ERM International Group Limited and/or its affiliates (‘ERM’). All rights reserved. No part of this work may be reproduced or transmitted in any form or by any means, without prior written permission of ERM.
Company Overview Renewables Advisory Services
Sustainability is our business
We are the world’s largest pure play sustainability consultancy
ERM OVERVIEW
ESG & Sustainability Consulting Leader Verdantix Green Quadrant 2024
8000+
40
Professionals
Countries & territories
150+
50+
#1
Offices
Years of experience
Sustainability service provider – HFS 2022
We partner with…
70%
55%
of Fortune 100
of Fortune 500
Founded in 1971, we are the largest advisory firm in the world focusing solely on sustainability, offering unparalleled depth and breadth of expertise. We shape a sustainable future with the world’s leading organizations Our purpose guides everything we do. We create a better future by helping the world’s biggest brands address today’s sustainability imperatives. We are the recognized market leader in sustainability services Numerous industry benchmarks attest to our market leadership and the majority of our work is sole-sourced, reflecting trusted partnerships we build with our clients. Renewables Advisory Services
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ERM named as a Leader in ESG and Sustainability Consulting by independent analyst firm ERM was the highest scoring consulting provider in the Capabilities assessment
ERM, the world’s largest specialist sustainability consultancy, has been named as an ESG and Sustainability Consulting Leader in new research from independent analyst firm Verdantix. The Green Quadrant: ESG and Sustainability Consulting 2024 report from Verdantix provides a benchmark of the most prominent ESG and sustainability consulting providers in the market. ERM features in the Leaders’ Quadrant and achieves the highest score among all firms on the capabilities dimension of the assessment. ERM were particularly commended for its operational transformation capabilities, ESG financial advisory services, and breadth and depths of its ESG and sustainability offer, scoring the highest or joint highest of all assessed consulting providers in these areas. Tom Reichert, Group CEO at ERM said: “ERM is proud to feature in the Leaders’ Quadrant and achieve the highest scores on the capabilities assessment. It’s fantastic recognition of the impact we have helping our clients to integrate sustainability into their business strategies and enhance sustainability performance in critical areas such as products and supply chain.”
Full press release: Link
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We offer a fully integrated suite of services that help clients address today’s sustainability imperatives SUSTAINABILITY IMPERATIVES
Strategy to win in a sustainable world
Financing the transition to a sustainable economy
Creating sustainable products and supply chains
Developing physical assets in a sustainable way
Integrating sustainability & compliance into daily operations
ERM CAPABILITIES
• Accelerating decarbonization
• Advising transactions with a focus on ESG
• Ensuring global product stewardship
• Transforming for sustainability
• Implementing ESG • Driving product playbooks for financial sustainability & institutions circular economy
• Building the renewable energy future
• Embedding nature & water in decision making
• Delivering ESGaligned capital projects
• Improving EHS risk management & performance
• Maximizing asset value – limiting liabilities & unlocking regeneration
• Securing social license & building social capital
• Leveraging carbon markets & natural climate solutions
ENABLERS
• Managing ESG risks & disclosures
• Creating sustainable supply chains
• Creating a safe & healthy workplace
People: Stakeholder management, capacity building, change management, business transformation Process: Compliance assurance, performance management, disclosure & reporting Technology: Digitalization of workflows, artificial intelligence, proprietary tools Renewables Advisory Services
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Renewables advisory support at every level of the organization and at every decision gateway Integrated services to drive value and help our clients succeed.
Strategy & Markets Strategy Consulting
Technical Advisory
Project Feasibility
Project Development
Project Delivery
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Data services, analytics, market intelligence, policy analysis
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Market entry support, bid evaluation and support
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Competitor analysis, supply chain assessment
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Site identification and selection, alternatives assessment
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Site evaluation; levelized cost of energy (LCOE), environmental and social constraints mapping and analysis
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Project maturation
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Environmental & Social Impact Assessment (ESIA)
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Permitting and consenting - meeting both local and international standards
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Stakeholder engagement, climate change resilience, labour and human rights advisory, decommissioning and repowering
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Transaction advisory (Technical and ESG), M&A support
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Project management, project engineering, technical support
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Quality, compliance, Health Safety Environment (HSE), risk management
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Leading clients ERM works closely with the world’s leading companies and public entities operating in the renewable energy sector
Contractors and manufactures
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Financial Services and Corporate Buyers
Public and Social Sector
Developer and IPPs
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Digital Solutions Renewables Advisory Services
Digital systems & solutions ERM’s digital backbone supports clients along their decarbonization journey
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At the heart of our forecasting, modelling and research is the Global Renewable Infrastructure Project (GRIP ) digital data hub. The authoritative source for essential offshore wind industry information. Renewables Advisory Services
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REALISE is our proven workflow for renewable energy project value realisation. From pre-feasibility market assessment to optimised site selection.
LEnS is our tool to assess project competitiveness for clients, in the context of an increasingly competitive market - at its heart is proprietary levelized cost of energy modelling. 8
We provide a range of data, forecasting, modelling and research tools. At the heart of its service is our Global Renewable Infrastructure Project (GRIP ) digital data hub.
GRIP : The authoritative source for essential offshore wind industry information.
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We successfully produced data extracts, analysis, and forecasts for a wide range of clients, from project developers, investors, manufacturers, supply chain players, and NGOs. GRIP 2.0 is our latest iteration of the product, with improved functionality, speed, and ease-of-use.
Highly usable
Scalable functionality
Fast and frequent
Built by experts
Simple design, searchable data, mobile friendly
Dashboards, charts, advanced analytics
Instant access to verified data, updated daily
Proprietary models – with expert support and analysis
GRIP stores publicly available information relating to 1000+ existing and planned offshore wind projects, with worldwide coverage. The global market intelligence system is available via personal computer, tablet and smartphone and can be accessed through any internet connection via our online data portal, at the following URL: grip.thinkrcg.com
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REALISE is our proven workflow for renewable energy project value realisation.
REALISE method •
: Full value-driven
From feasibility, through permitting and site development, to procurement management, our experts have the spectrum of experience to bringing energy infrastructure projects to fruition.
Renewables Advisory Services
Resource
Environment
Authorizations
Land
Ensuring adequate, useable energy resource for a commercially viable project. Real and modelled data. Interconnection
The means of supplying energy to the customer via transmission networks, including system balance.
Sales
Means of securing project income, via sale of energy with or without support mechanisms.
Engineering
Site conditions, procurement, fabrication, operation, maintenance and decommissioning.
Complete understanding of the physical, and human environment, as well as project benefits. Consents, permits, and licenses as required for survey, temporary, and permanent activities. Agreements for leases, wayleaves, concessions, options for land and seabed access rights.
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REALISE is our proven workflow for renewable energy project value realisation. Pre-feasibility market assessment
Data Collect & present data • Factual, objective, no interpretation; EIA and LCoE inputs
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Inspection
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Identify potential projects • Subjective, options, part-area, full area, by inspection (of maps)
Analysis
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Analyse, rate, rank • LCoE mapping and risk assessment – plotted on a matrix
Decision
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Identify optimal search areas • Value based constraint vs opportunity vs mitigation assessment
Optimised site selection Renewables Advisory Services
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REALISE Approach and Methodology
1. Collect & GIS Map data
2. Identify potential projects
3. Analyse and rank opportunities
4. Strategic Recommendation
Full value framework assessment. This process begins with assembly of available data and a “macro-scale” review of the entire coastline.
Discipline experts brainstorm to identify potential development areas based on REALISE data analysis & GIS.
Short-list sites based on risk/return and rank the overall attractiveness of the sites relative to each other.
Resource
Client interests are a key input at this step. Can identify traditional ‘consentable’ projects, likely high return projects and opportunistic projects.
In-depth assessment of the development potential within these areas, with the objectives being to: Gain a more detailed understanding of the technical potential, permitting issues, interconnection, and other high-level engineering considerations. Understand the development risks and attractiveness of the potential zone(s) including a high-level review of relative LCoE values with in-house model (LENS ).
Authorisations
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Sales Engineering
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Interconnection
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Risk
Environmental
Client to determine what risk / return profile suits them, based on corporate strategy, and decide which sites to pursue accordingly for a potential greenfield development as route-tomarket.
Return
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LEnS is our tool to assess project competitiveness for clients - at its heart is proprietary levelised cost of energy modelling.
Data inputs:
LEnS : Levelised Cost of Energy Sensitivity Model and Workflow •
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Provides robust, traceable and consistent approach for estimating LCoE for offshore wind projects during pre-construction phases. Enables cross-project comparison. Compares project scenarios to identify project cost drivers and opportunities.
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Site conditions and technology selection. CapEx, OpEx, energy yield and schedule are modelled.
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ERM inputs, leveraging GRIP data platform and in-house technical knowledge. Markets trends are captured.
Data sources and validation:
LEnS Analysis
Tune model:
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Financial, CapEx, Yield, and OpEx modules feed into the model “engine”. Clients can validate scenarios.
Levelized cost of energy:
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The model outputs a robust, traceable and consistent approach for estimating LCoE for offshore wind projects during pre-construction phases. Value-added analysis:
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ERM can compare project scenarios to identify project cost drivers and opportunities, carry out merit order analysis, and formulate bid support strategies
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Company Experience Renewables Advisory Services
Japan Offshore Wind Experience ERM have supported Japanese clients across a wide range of technical and environmental scope in the offshore wind sector. Below is a small selection of our key engagements.
Round 2 Auction Technical Advisor Client: Confidential
Parkwind Acquisition Technical Advisor
Overseas Offshore Wind Market Assessment
Client: JERA
Client: Confidential
• Served as sole technical advisor for JERA Co., Inc. in its 100% interest stake in Parkwind NV.
• Evaluation of overseas offshore wind market for Japanese Client to support market entry
• Identified and opined on key risks, omissions and opportunities in Client’s project plan.
• Technical analysis of portfolio projects to advise any risksfrom an investment perspective, review of Parkwind as an established OSW developer.
• Research of policies, technical potential and existing project information leveraging ERM’s proprietary GRIP tool.
Floating OSW Platform Technology Evaluation Study
Environment and Social Impact Assessment
HSE Legal Registry and Gap Analysis
• Assessment of EPC, O&M and financial documentation provided by Client to support Round 2 Auction bid submission.
Client: Confidential
Client: Confidential
• Evaluation of existing floating offshore wind foundation and multi-contract interface risk study for a Japanese floating offshore wind project.
• Conducted preliminary E&S impact assessment for proposed OSW project in Japan.
• Comprehensive HSE review for offshore wind developer in Japan.
• Collected baseline information, conducted constraint mapping assessment and provided regulatory review
• Identified legal requirements in Japan to develop a HSE register, performed gap analysis to compare with Client’s HSE manual.
Renewables Advisory Services
Client: Confidential
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Round 2 Auction Technical Advisor ERM provided TA services to support a developer’s bid into the Round 2 offshore wind auction. As the independent third-party advisor, ERM performed a technical assessment of the Project’s EPC and O&M contracts, CapEx, OpEx and DevEx to opine on the project strategy, identified key risks, omissions and opportunities. Subject Area
Issue Detail
Risk Category
WTG Capex
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Capex Contingency
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Project Management
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ERM Commentary
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Parkwind Acquisition Technical Advisor
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ERM served as technical advisor to JERA in acquisition of 100% of the shares of Parkwind NV The deal included full ownership of Parkwind, Virya Energy NV’s offshore wind energy platform, including its stakes in four operational offshore wind projects in Belgium (771MW), the advanced construction stage Arcardis Ost 1 offshore wind project in Germany (257MW) and its global offshore wind development pipeline totalling approximately 4.5GW (net). The full-scope technical due diligence support provided by ERM included a thorough and detailed analysis of the technical aspects of the projects within Parkwind’s portfolio to identify and advise on any technical risks from an investment perspective, along with a review of Parkwind itself as an established European offshore wind developer, owner and operator with a global outlook.
Renewables Advisory Services
Nick Morgan Associate Partner & Global Delivery Lead, Renewables Transaction Advisory “ERM is immensely proud to have served as the sole technical advisor to JERA on its successful acquisition of Parkwind. Our team worked closely with JERA and its other advisors, providing a highly experienced, comprehensive and cohesive advisory service throughout the process. JERA’s success here builds upon ERM’s extensive track record in renewable energy projects development, market intelligence and technical advisory”
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Overseas Offshore Wind Market Assessment Evaluation of overseas offshore wind markets for Japanese offshore wind developers to support market entry ERM have leveraged our proprietary offshore wind project database GRIP to screen and evaluate multiple overseas offshore wind markets attractiveness, potential risk and areas of opportunity for the Client. The study focused on the key areas such as policies, offtake process, leasing and permitting, local content requirements, technical potential and existing project data.
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2022
2023 Cumulative
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5.0
Cumulative Capacity (GW)
EXAMPLE
Capacity per annum (GW)
2.0
2024
2025
2026
Operational
2027
2028
2029
Route to market secured
2030
2031
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Development*
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Floating OSW Platform Technology Evaluation Study ERM performed a floating offshore wind technology evaluation survey and interface risk management study for a Japanese offshore wind project currently under development. The proprietary floating technology assessment framework Advantage-FLOW was used to evaluate, compare and contrast existing floating offshore wind platform technologies. The objective of the study was to highlight which platform concepts were suited for the Client’s defined site criteria. Radar Risk and Opportunity Diagram
Advantage-FLOW: Holistic technology and innovation assessment
Readiness
Technical and Site Assessment
Health, Safety, Environment
Environmental
Organisation
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Supply Chain
Outlook
Commercial
Codes
ERM uses radar risk and opportunity diagrams for each technology evaluation to show the balance of risk/reward and for cross comparison – scores can be weighted according to key priorities.
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Environmental and Social Impact Assessment ERM has provided EIA consultancy services for several offshore wind projects off the Japanese coast. ERM has over 20 years of experience in supporting developers navigate Japanese environmental regulations and policies which we have leveraged in recent years to support the development of offshore wind projects. Throughout the EIA process, ERM combines a deep understanding of local context with strong knowledge of international standards. Partnering with a local firm specializing in environmental survey activities, ERM works to ensure smooth progress through the key permitting milestones. Services provided by ERM in support of the EIA process include: •
Support with preliminary meetings with prefectural and local municipality officials
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Preparation of Primary Environmental Impact Consideration Report, including review of existing secondary data, consultation with key subject matter experts, evaluation of potentially significant impacts and initial strategies for mitigation.
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Support with disclosure of EIA reports, including sessions with review committee.
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Preparing responses to public comments for the disclosed EIA reports
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HSE Legal Registry and Gap Analysis ERM performed a comprehensive HSE review for offshore wind developer in Japan. Using our global experience in the field of offshore wind health and safety, and our in-depth knowledge of Japanese regulations, ERM advised on the various HSE standards which must be followed to develop, build and operate offshore windfarm in Japan. Key tasks covered in the scope of work included: •
Development of a Health and Safety Legal Register which collated all HSE requirements and legislations in Japan. The register also flagged where provisions differed substantially from requirements and industry standards in European markets.
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Preparation of report to outline best practices for contractor management and selection in relation to Health and Safety.
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Collecting information on recording and reporting requirements within the Japanese offshore wind sector.
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ERM Dolphyn Dolphyn is an example of ERM turning a vision into a reality: creating a first-of-a-kind transformative solution for our society. ERM has been proudly developing Dolphyn since 2018, focusing on the production of ultra-low-carbon hydrogen at scale. Our approach combines electrolysis, desalination and hydrogen production on a floating wind platform, bring hydrogen to shore via pipeline to the sectors that need it most It needs no electrical grid connection, and the hydrogen produced generates zero carbon emissions at the point of use. With over $15 million of support from governments in the United Kingdom, Scotland and Wales, ERM has taken Dolphyn’s development from early concept feasibility through detailed engineering and evaluating site selection options. The deployment of a commercial-scale demonstrator (10 MW) at a site southeast of Aberdeen, Scotland, by 2026. Plans are also accelerating for the first commercial scale development (100 MW-300 MW) in the Celtic Sea, off the coast of Wales in 2028. To follow the journey of Dolphyn, please visit www.dolphynhydrogen.com. Renewables Advisory Services
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Photos: Dolphyn Hydrogen
Thank you
Takayuki Shibata
Sean Peedle
Ayana Adachi
Consulting Partner, Tokyo
Consultant, Tokyo
Consulting Associate, Tokyo
E: takayuki.shibata@erm.com
E: sean.peedle@erm.com
E: ayana.adachi@erm.com
T: +81-90-3513-6229
T: +81-90-5430-0659
T: +81-80-5081-9428
Renewables Advisory Services