2012 Newsflash ed. 11

edition 11 - june/july 2012

newsflash Wind l offshore energy specia Offshore Oil & Gas | Transport & Storage | Maritime Services | Offshore Wind Offshore Supply | Offshore Contracting | Offshore Vessels

23 & 24 October 2012 amsterdam RAI | The Netherlands www.offshore-energy.biz Offshore Energy Column

Interesting challenges in the offshore wind energy sector

OFFSHORE WIND GAINING GROUND

by Sabine Lankhorst, chief editor Offshore WIND magazine At the 2012 EWEA Annual Event, held in Copenhagen this past April, the Global Wind Energy Council (GWEC) launched its annual Global Wind Report which included a market update for 2011.

According to the report, less than 2% of the global installed capacity can be credited to offshore wind. Although lagging significantly behind the onshore wind industry, this percentage is expected to grow by as much as 10% by 2020.

In 2011 a total of 965.6MW of offshore wind energy was installed worldwide. The United Kingdom (752.4MW), Germany (108.3MW) and China (99.3MW) can be credited for most of this increase, making the cumulative installed capacity just over 4GW to date.

Johan van Wijland, Managing Director Van Oord Offshore Wind Projects BV, shares his view on cost reduction, bankability and risk management challenges in the offshore wind energy sector on page 5.

Exhibitor News on page 3 Read more about: • Fugro’s new survey vessel • SMIT’s contract to carry out inspection, repair and maintenance (IRM) subsea work for Maersk Oil • Kenz Figee’s new order for 400t boom hoist crane • Jotun sponsoring the Offshore Energy Networking Event

Aiming to fulfill the 20/20 renewable energy target, Europe remains the global leader in offshore wind developments with over 90% of the global installed capacity having taken place here. The concentration of activity is mainly centered in Northern and Western European waters. The United Kingdom is clearly leading in both cumulative installed capacity (2093.7MW) and installed capacity (752.4MW) in just 2011 alone, making the United Kingdom the world leader with these impressive numbers. Denmark follows in total cumulative installed capacity with 857.28MW, and in installed capacity, Germany follows, having installed 108.3MW in its waters in 2011.

Even though Europe will not be standing still in the near future it can expect competition to grow. China is developing at full speed, taking third place when it comes to installed capacity in 2011, with its cumulative installed capacity of 258.4MW by the end of 2011. The Chinese have ambitious plans to install 30GW by 2020. Other countries that we will be hearing from include Korea, Japan, India, Canada and the USA, who are looking at, or are already working hard in, this relatively new industry.

In the future, offshore wind has to become an increasingly mature and proven technology.

However, cost reductions, efficiency and industrialization of the production process are still needed to realize the planned large-scale projects far offshore. Johan van Wijland,

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Managing Director Van Oord Offshore Wind Projects BV, shares his view on how to overcome these challenges at page 5 of this newsflash.

Already the offshore wind market is proving to be a good economic source for creating jobs while other industrial sectors may well be cutting back. Related industries throughout the supply chain are also benefitting from this growth.

Although the offshore wind industry is still relatively young everyone can learn from comparable industries and their vast experiences, such as the offshore oil and gas sector. At Offshore Energy 2012, both parties will be able to meet and share their experiences and ideas. Via the Offshore Wind Route exhibiting companies can display their involvement in the offshore wind industry, while companies involved solely in the offshore wind industry can exhibit inside the Offshore Wind Zone, introduced this year at Offshore Energy 2012.

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newsflash exhibition & Conference Offshore Wind packages include among other things: • Clear demarcation of your booth on the floor plan as a participant of either the Offshore Wind Zone or the Offshore Wind Route • A 100-word profile in the event catalogue • 1/2 page advertisement in Offshore WIND magazine • All-inclusive participation Contact us today for more information on your Offshore Wind participation!

Call +31 (0)10 209 2600.

Offshore Wind activities at Offshore Energy A considerable number of visitors at the 2011 edition had special interest in the offshore wind sector, which is in line with the growing worldwide market demand for offshore wind energy. The offshore wind industry has become a separate industry in its own right and now delivers an integral part of our global power generation. By 2030, the offshore wind capacity is expected to exceed the capacity of onshore wind operations. Based on this prediction, the industry will invest around €400 billion between now and 2050.

Offshore Zone & Route at 2012 edition Offshore Energy’s answer to this growing interest and demand is the introduction of the Offshore Wind Zone at the 2012 edition of Offshore Energy. This zone is a clearly defined walk-way that is completely devoted to offshore wind supply chain companies. Also, the well known Offshore Wind Route will be extended with various options geared toward attracting the right visitors, along with highlighting offshore wind activities of participating companies that service multiple offshore industries. Both the Offshore Wind Zone and Route will shine the spotlight on the offshore wind industry. At the moment, companies and organizations such as Strukton Hollandia Joint Venture, EWEA and Offshore WIND are exhibiting in the Offshore Wind Zone. Additionally, the conference program will feature sessions on developments in the offshore wind industry.

In cooperation with Offshore WIND Exhibitors in both the Offshore Wind Zone and Offshore Wind Route can benefit from Offshore Energy’s attractive advertising extras with its media partners: OffshoreWIND.biz and Offshore WIND magazine. Offshore WIND (magazine and online news) is the media authority on offshore wind and delivers expert knowledge on wind farms, projects, markets, vessels, equipment, turbines, research, contractors and the leading authorities dominating these markets.

Visitor registration for Offshore Energy will start June 2012!

The organization expects 6,500 offshore professionals from over 30 nationalities to visit the event. The two-day conference program is slated to attract over 600 delegates. Better still, visitor registration is free of charge.

More information about how to register for Offshore Energy 2012 can be found at www.offshore-energy.biz.

Some promising visitor statistics of 2011: • 97% of the 2011 visitors will come back in 2012, and 25% are in fact considering participating as an exhibitor • 75% of the visitors see Offshore Energy as a leading event in the offshore industry • 55% of the visitors have a decision or co-decision making authority

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offshore energy Exhibitor News New order for Kenz 400t boom hoist crane Kenz Cranes, well-known specialist in offshore cranes and lifting equipment, has secured a new contract with Seajacks to supply an ABS certified new build 400t boom hoist crane onboard the jack-up vessel ‘Leviathan’ to install wind turbines. This crane will replace a 300t Huisman main crane and 100t Liebherr auxiliary crane.

The 400t pedestal crane with a 78m outreach is custom-designed for the installation of offshore wind turbines, and originates from Kenz Cranes’ many years of experience in the design and manufacturing of heavy lifting equipment. Due to special adjustments, the crane is also suitable for shallow water subsea operations in the oil & gas industry. The new crane will be designed, manufactured, commissioned and tested at the Kenz Figee Group construction quay in Zaandam. The change-out of the cranes will take place at Shipdock in Amsterdam. Also the under deck vessel strengthening and electrical vessel modifications will be executed under the supervision of Kenz Cranes.

Fugro Pioneer, the new survey vessel for Fugro Survey In 2013 Fugro Survey B.V. in Leidschendam, The Netherlands will take delivery of a newly built vessel, M/V Fugro Pioneer; the first of Fugro’s FOSCV series of dedicated survey vessels. Designed to Fugro specifications and fitted with the latest survey equipment, these are the most advanced vessels of their type. The new vessel will be able to carry out the full range of site and route survey tasks to obtain the high resolution data necessary for safe, efficient and costeffective planning, design and engineering activities for the installation of pipelines, platforms, manifolds, wind turbines and other seabed structures. This versatile vessel will include facilities for light geotechnical investigations (Vibrocores, CPT) and will be DP capable. Accommodation on board meets the expectations of Fugro staff and clients alike. The vessel will be operated in North-West Europe. Fugro Pioneer is part of Fugro’s global vessel replacement schedule with the objective of removing older tonnage from the fleet and differentiating Fugro from other providers.

SMIT Subsea to Carry Out IRM Works at Maersk Oil Offshore Platforms (Denmark) SMIT Subsea, a member of Royal Boskalis Westminster N.V, has secured a contract to carry out inspection, repair and maintenance (IRM) subsea work around the offshore oil & gas production platforms and related infrastructure for Maersk Oil in the Danish section of the North Sea. “The award of this contract is an important milestone for SMIT Subsea,” says Bert van der Velden, Commercial Manager of SMIT Subsea Europe.

“We are proud that Maersk Oil has chosen SMIT Subsea for the majority of the work-packages, and it is in line with our philosophy to provide a total package of air diving, saturation diving, ROV services, project management & engineering to our clients on the North Sea. Our diving support vessels have the advantage of being able to work in close vicinity of the platform structures due to the layout and size of vessels.” The works follow-up various inspection and construction works that SMIT Subsea has performed during 2011 for Maersk Oil. This year, it will also involve a number of Construction works next to the extensive IRM campaign. The air diving works will be performed with the DP3 DSV EDT Protea, and the saturation diving works with the DP2 DSV Constructor, both under long term contract with SMIT Subsea. For the structural ROV inspections SMIT will use its own AHTS/ROVSV SMIT Komodo with two of SMITs ROV systems onboard. These activities will take place in the summer of 2012.

Jotun sponsors Networking Event at Offshore Energy The Jotun Group, one of the world’s leading manufacturers of paints, coatings and powder coatings, will sponsor the Offshore Energy Networking Event on the evening of the first exhibition day. Furthermore, Jotun is exhibiting at Offshore Energy. The Jotun group has 74 companies and 39 production facilities on all continents. Jotun is represented in more than 80 countries. Jotun’s operations cover development, production, marketing and sales of various paint systems and products to protect and decorate surfaces in the residential, shipping and industrial markets.

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offshore energy Offshore Energy brings you a series of columns, in which prominent industry representatives share their views on key developments in the offshore and energy markets. Coming up: Bart van de Leemput, director NAM B.V. (Nederlandse Aardolie Maatschappij).

Interesting challenges in the offshore wind energy sector Answers to cost reduction, bankability and risk management questions In times of economic hardship it is always nice to bring some good news. This is what the European Wind Energy Association (EWEA) must have thought by publishing their latest report titled ‘Green Growth’.

The report states that the wind energy industry is a driver for economic growth, contributing €32.43 billion (bn) to the EU’s GDP in 2010. €8.8 bn worth of products and services were exported by the European wind industry and the tax payments from companies in the wind energy sector amounted to €3.59 bn in 2010. In 2010 the avoided fuel costs (for coal, oil, gas, biomass, waste) from wind power production was €5.71 bn and employment in the wind energy sector amounts to 238,154 FTE. This is great news and indeed the wind energy sector is very promising.

Especially the offshore market is developing rapidly in countries like Germany and the UK. Also countries like France and Spain are developing concrete plans for building new offshore wind farms.

This is good news for many Dutch maritime companies involved in the construction of offshore wind farms. The Netherlands might have lost the race in manufacturing wind turbines, but plays a major role in the construction and installation of offshore wind farms in Europe. For Van Oord, being one of the leading Maritime EPC Contractors for offshore wind projects, this offers a valuable contribution towards Van Oord’s other activities in the field of dredging and marine contracting.

The Netherlands play a major role in the construction and installation of offshore wind farms in Europe However, looking a bit closer to the offshore wind sector, some concerns are revealed for the coming years. First of all, the offshore wind market is a subsidy-driven market. The gap between the fossil fuel based commodity price for electricity and offshore wind must be narrowed. Costs must come down in the coming years, otherwise it is definitely not a sustainable market. Improvements in technology, supply chain, installation logistics and offshore wind farm operations are crucial. This is also the focus of FLOW, the large innovation programme that has been started one year ago and in which Dutch companies, together with the Dutch government, are investing €46 mn (million) in research and development in order to bring down the costs.

A second, more important issue on the short term is the lack of capital and the cost of capital due to a changing risk perception. For this reason growth in offshore wind is a challenge. Banks offer limited project finance and new institutional investors, e.g. pension funds are still reluctant to step in. Offshore wind energy projects require large amounts of long-term financing. It is therefore important that new institutions like the European Investment Bank, Germany’s state-owned development bank KFW, the Green Investment Bank in the UK or Atradius in the Netherlands are getting more involved in offshore wind farms. Another potential source of financing may be provided by the growing number of companies, who are looking for possibilities to offset their impact on the environment within the framework of their corporate sustainability strategy.

Johan van Wijland Managing Director Van Oord Offshore Wind Projects BV There is a third concern to be addressed. Many offshore wind projects are suffering from risks in supply chain, grid connection, interfaces and weather constraints during the construction phase. Many sub-contractors are involved, each bringing in their specific expertise, leading to multicontract packages. Utilities are often taking the lead in construction of offshore wind farms without having a lot of experience in managing the different fields of expertise and interfaces in a difficult marine construction environment. This is certainly not their core-business. For investors and banks it is a real headache to estimate the risks involved and to manage the process of mitigating these risks. Therefore, Van Oord has chosen to offer offshore wind services in the form of EPC-contracts in which the client only has to manage two contracts on the supply side: one with the turbine manufacturer and one with the offshore EPC contractor. This reduces all kind of risks for the client. Van Oord, having a lot of experience in building offshore wind farms and maritime operations, is perfectly capable when it comes to managing these risks. This is also the reason for Van Oord to build their first wind farm installation vessel, the “Aeolus” which will become operational early 2013. there is a clear perspective of a much larger market in the coming years The conclusion is that offshore wind is indeed a very interesting market.

With a strong focus on cost reduction, on providing proper financial arrangements and proper risk management during construction and installation, there is a clear perspective of a much larger market in the coming years. Taking into account the strong maritime back-ground of the Netherlands, the large experience in offshore construction and installation, it is unthinkable that the Netherlands will not take a large share in this rapidly developing sector.

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newsflash exhibition & Conference

Dutch maritime technology, products and expertise will be presented at the Maritime by Holland Pavilion on Offshore Energy 2012.

Last year the Maritime by Holland Pavilion made its debut at OE 2011 and successfully hosted six companies. This year most of those companies, and more, are participating again!

Visitors of Offshore Energy 2012 can easily find the Maritime by Holland Pavilion. It’s right at the entrance and will proudly present all key characteristics of the Dutch Maritime Industry: innovation, cooperation and, most of all, top quality.

Once again, all visitors of Offshore Energy are invited in the Holland Lounge of the Maritime

by Holland Pavilion for a sizzling cocktail party.

This networking drink will take place at the end of exhibition day 1.

Maritime technology The offshore Industry is getting increasingly challenging and technically advanced.

Maritime expertise supports the oil and gas 6

Meet Maritime by Holland at Offshore Energy 2012

and renewable industry in its activities further off coast.

Because of its excellent reputation, Dutch maritime knowledge is widely used and frequently requested worldwide.

This is Maritime by Holland Maritime by Holland is a joint initiative of 11,000 companies within a 100 km radius, powering the maritime cluster in Holland. Entire industries with a global leadership position.

Together, the Dutch maritime sector generates social and economic value for clients worldwide through an unbeatable combination of expertise, imagination and collaboration.

Participation For additional information about the Maritime

by Holland Pavilion and participation contact Sandra Mollema Export Manager Europe and the Americas at HME T: +31 (0)10 444 4333 or E: sm@hme.nl. Registration deadline for participation will be September 7 2012.

Participants* of the Maritime by Holland Pavilion at OE 2012 • Bakker Sliedrecht Electro Industrie BV • Brevini Nederland BV • Cee-Bee Maritime • De Waal BV • Discom BV • Euro HÜBNER Benelux BV • ESTechnologies BV • Grundfos • Offshore Ship Designers • Roxtec • TNO Maritime & Offshore • Trustlube BV • Van der Ploeg Equipment Builders (Nieland BV) • Winteb vof *as per 16 May 2012

offshore energy Offshore Energy packages Networking Event Packages, starting at € 2,995,- including:

Offshore Wind Route Packages, starting at € 795,- including:

Career Packages, starting at € 895,- including:

•5 to 15 Entry Tickets • Company logo on all marketing material related to the Networking Event • Extensive exposure during the evening

•Y our booth location marked with Offshore Wind indication both on the floor plan and on the exhibition floor • 100 words profile of your company’s offshore wind activities in the event catalogue • 1/2 page full color ad in the Offshore WIND Magazine

• Your booth location marked with Job Route sign, both on the floor plan and on the exhibition floor • Job postings at oilgascareer.com and offshore-energy.biz • Job announcements in the Maritime & Offshore Career Paper

the Job Route is powered by

The Of f s h o re B u s i n e s s L o u n ge The meeting and n e t w o r k i n g p l a c e o rg a n i s e d for of fshore pe o p l e by o f f s h o re p e o p l e !

The Offshore Business Lounge is a new initiative in the Galgenwaard stadium in Utrecht, at the business heart of The Netherlands. A platform for people from the Offshore industry combined with football, partly initiated by entrepreneur Frans van Seumeren. An independent concept, a ‘clubhouse’ that offers pleasure and generates business. Independent, because Utrecht is not a sea port city and you can still be member and supporting your favorite football club.

As an Offshore Lounge member you can expect the following: • Networking, particularly doing business with business associates • A meeting place at the business heart of The Netherlands • For members only, the Offshore Business Lounge can be used as location for gatherings, presentations, seminars, etc • Customer relationship management at top level: Welcoming, hostesses, catering, and VIP seats • Various events • Access to all home games of FC Utrecht • Catering provided by Maison van den Boer • Supported by Navingo, the publisher of the Offshore industry

For more information: FC Utrecht, Youri Muller • youri.muller@fcutrechtbusiness.nl • Tel: +31 6 2239 2664 / +31 30 888 5580

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newsflash the following exhibitors have already exhibition & Conference

Why not invite your relations for a drink and a bite?

Make sure you visit the Offshore Energy Social Drinks & Parties! All social events are located at the exhibition venue, allowing you easy access to any one of these parties.

Kick Off Party Monday 22 October

After booth set up, all exhibitors are invited to join in a toast to a good and profitable exhibition.

Networking Event Tuesday 23 October Opened by Edward Heerema, president of Allseas The official Networking Event will be a grand evening with music, entertainment and culinary highlights. A great opportunity to invite your relations and offer them a funtastic evening out!

Social Drinks

Tuesday 23 & Wednesday 24 October Both exhibition days end with a drink and a bite! Stick around and close the deal with flair!

How about toasting the success of the Become official host of the Networking Event on 23 October | 1st Exhibition Day Contact us today for more information about this excellent opportunity to further cement your business relationships and create more brand awareness! Please send an email to am@navingo.com or phone +31 (0)10 209 2671.

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offshore energy booked their booths, call +31 10 2092600 to book yours!

exhibition with your valued relations?

Packages include:

Sponsored by

• Company logo in all marketing material, including invitations • 15 Entry Tickets • • Extensive exposure during the evening • Sparkling wine for you and your relations 9

The industry’s upstream news provider

OffshoreEnergyToday.com enables you to remain in touch with the industry, even after a successful event such as Offshore Energy

offshore energy www.offshore-energy-biz

New Website, new possibilities Offshore-energy.biz will be brand new as of June 2012. Along with a new look, the website will contain a portal exclusively for exhibitors. There, exhibitors can arrange all their practical issues such as registration of stand personnel, invitation service and orders for extra catering or booth furniture. Also, the website will publish updates about the extensive conference program and speaker faculty.

Banner positions It will be possible to advertise online on the new website. Advertising at offshore-energy.biz is an excellent way to make your presence known to other exhibitors, visitors and delegates of Offshore Energy. Contact our Sales Team for more information, +31 (0)10 209 2600.

For more information about Offshore Energy, please contact: Organization Ms. Annemieke den Otter Exhibition Manager

Organization Ms. Ashley Hofmann Event Organization Coordinator

Sales Mr. Laurens Kuiper Sales Manager

T +31 (0)10 209 2606 E ao@navingo.com

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Conference Mrs. Femke Hoogeveen Conference Manager

Conference Ms. Lisa Stegers Conference Organization Assistant

Sales Mr. Stephan van Plateringen Account Manager

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T +31 (0)10 209 2675 E ls@navingo.com

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Marketing Ms. Tessa van Hees Marketing Manager Events

Marketing Ms. Anouk Montagne Int. Marketing Coordinator

Sales Sieneke Hopmans International Sales

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newsflash offshore energy

exhibition & Conference

book your booth!

Full service and all inclusive participation starts at € 3,595 for two days. The all inclusive shell scheme includes system walls (height 2.50m), anthracite carpet tiles, frieze text and company logo, a minimum of one triple spotlight, power supply socket, power use up to 2kW, complete booth furniture, full catering service, invitation service and Wifi. Participation includes your company’s name and logo on the www.offshore-energy.biz website along with the company details in the event catalogue.

Have your own booth set-up? The Offshore Energy organization gladly offers companies the flexibility of bringing and setting up their own booths.

Tuesday 23 October & Wednesday 24 October 2012 Hall 8 I Amsterdam RAI, the Netherlands 12,000m² exhibition space | Expected number of exhibitors > 400 | Expected number of visitors > 6,500 Country pavilions | Conference program covering key topics in offshore energy | Social program Created and produced by

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www. offshore - energ y. biz Westerlaan 1, 3016 CK Rotterdam, The Netherlands, t +31 10 2092600, e ao@navingo.com, i www.offshore-energy.biz