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Bluewater Wind is a developer of

offshore wind energy committed


to bringing clean, reliable and affordable
electricity to New York/LIPA, Delaware,
Maryland, New Jersey, and Rhode Island
Bluewater Wind team
Designed or built 22 of 28 offshore wind projects in the world

• Ramboll • Aqua Survey


• Fluor • Tetra Tech
• Vestas • MSE Power Systems
• SEAS • Downes Associates
• Energy Initiatives Group
• A2SEA
• Alston & Bird
• ABB
• Malkin & Ross
• AWS TrueWind • Milbank Tweed
• Garrad Hassan • Young, Sommer LLC
• EMD • Wolf Block
• Ocean Surveys • Marsh Insurance
Bluewater Wind’s parent company, Babcock & Brown, is one of
the top four wind developers and operators in US and world
• Financial strength: B&B is an international investment and
specialized fund and asset management group
– Over $70 billion in assets under management

US 20 windparks 1,585 MW in
operation
worldwide 1,025 MW in
46 windparks
(not including US) operation
Offshore Maine Wind Power:
Price Stability, Energy Security,
and Reducing Climate Change;
Opportunities & Impediments
Outline
• Climate Mitigation
• Price Crisis
• Approvals
• State by state competition
• State and Federal action steps
• Development stage challenges
• Delaware lessons
• OSW benefits
• construction photos
Department of Energy and Wind
Association Agree: 20% by 2030
• 304,000 MW of US installed capacity by
2030, with offshore 60,000 MW of that
• Electric sector CO2 cumulative reductions of
7.6 billion metric tons
• Electric sector CO2 net reduced by 825
million tons annually (=20% of sector CO2 if
no new wind by 2030)
• DOE estimates NPV investment of $43 Billion
or 50 cents per month per household
• Hurdles: supply chain, transmission, NIMBYs
Carbon Explosion:
Truth Increasingly Inconvenient
• Al Gore chart that launched a thousand Op
Eds; changed debate in Delaware
• Obama and McCain both support Carbon
cap and trade
• Climate models forecast accelerated
disruptions
Wind as Major Wedge in Carbon
Reduction
• No single cure: Wind, (solar), energy
efficiency, transportation shift to hybrids
and plug-in bi-directional electric vehicles
• Wind is only planet-wide, commercially
viable, utility scale, non-proliferating
electricity technology
• Project carbon footprint eliminated after
operating 9 months
• Deep Green: wind and hydrogen replaces
hydrocarbons
Energy Supplies:
Supply Globalized; Affects Localized
• Oil, Natural Gas, even Coal now globally
priced and transported
• Appalachian mountaintops sliced off and
burned in Chinese power plants
• 77% of all oil owned by governments who act
in non-economic ways increasingly: Chavez,
Putin, OPEC
Global Energy Price Crisis
• Demand overwhelms Supply
• US energy prices inexorable rise:
– World Natural Gas $20 v. US Price $12.40
– Russian, Iranian growing Nat Gas cartel
– Coal price rise in US: Appalachian coal up
82% in last year
– Nukes: Uranium futures up. IEA shows only
stable supply with new replacing retirees
Approval Process
Federal, State & Local Reviews
• Federal Regulations and Reviews • State Regulations,
– Energy Policy Act 2005 Permits & Approvals
– Coastal Zone Management Act of 1972
– DNREC- State Environmental Review
– Rivers and Harbors Acts of 1890 and 1899
(associated with NEPA)
– Clean Water Act of 1977
– Navigation and Navigable Waters – Coastal Federal Consistency Certification
– Federal Aviation Administration – Subaqueous lands permits and leases
– National Environmental Policy Act – Wetlands permit
– Archaeological and Historic Preservation Act – Section 401 Water Certification
of 1974
– Fish and Wildlife Coordination Act of 1958 – NPDES Storm Water Permit
– Endangered Species Act of 1973 – Air Quality Permits
– Estuary Protection Act – DNREC- Div. of Fish and Wildlife
– Marine Protection, Research, and Sanctuaries – DNREC- Div of Parks and Recreation
Act
– US Coast Guard – Beach Preservation Act of 1972
– Marine Mammal Protection Act – Delaware PSC
– Magneson-Stevens Conservation and – DE River Basin Commission
Management Act
– DE Heritage Commission
– Migratory Bird Treaty Act
– Abandoned Shipwreck Act – DE Economic Development Office
– Approval for Private Aids to Navigation – DE Energy Office
• Local Authorities – DelDOT
– To be participant in NEPA/State review
– Municipalities with potential visible impacts


Local communities transited by onshore cable route
– Building permits as required

June 2006, Confidential


State-by-State
Competition for Projects

• Many states competing for few


developers
• State policy and incentives different
• Site approval and project approval
processes should be open, transparent,
predictable, and timely
State & Federal Action Steps

• MMS working diligently to promulgate rules


• States
– issue RFPs
– Robust RPS
– Pay for cables from project to shore
– Require utilities to buy long term renewables
Development Stage Challenges

• Time between bids and financial closing


• Stakeholder outreach and education
• Industry Hurdles: supply chain and
transmission
• Disruptive competition with fossil sales
• NIMBYs
Delaware project
• 25-year PPA with Delmarva Power: up to 300 MW in any
hour including all associated RECs and most capacity

• Max annual output of 1,357,402 MWhs of electricity for


113,000 Delaware households

• RFP bid to be approved by four state agencies: PSC,


DNREC, OMB, and Controller General

• 20-year PPA with DEMEC: for most of the remaining power


(and associated RECs) not sold to Delmarva Power

• Project completion: 2013 or 2014 (scheduled)


Supporters of the Bluewater
Delaware Wind park
• US Senator Tom Carper • League of Women Voters
• Lt. Governor John Carney • Natures Path of Integrated Health
• Delaware Treasurer Jack Markell • News Journal Editorial Board
• Delaware Insurance Commissioner • Delaware Chapter of Sierra Club
Matthew Denn • Society of Natural History
• Delaware Municipal Electric • St. Andrews School
Corporation • Unitarian Universalists of Southern
• Citizens for A Better Sussex Delaware
• Citizens for Clean Power • City of Dover
• Coalition for Climate Change Study • City of Lewes
and Action
• Delaware Audubon Society • City of Milford
• Delaware Building & Construction • City of New Castle
Trades Council • City of Newark
• Delaware Nature Society
• City of Seaford
• Endecon, Inc.
• Epworth United Methodist Church • Town of Clayton
• Green Delaware • Town of Middletown
Offshore wind works
• Offshore wind parks: 28 in 10 countries
• Operational since 1991
• Current installed capacity: 1,250 MW
• Offshore wind parks currently under
construction: 13 with a capacity of 1,503 MW
• Over 20,000 MW permitted for construction in
the waters around Europe
Offshore Wind Energy Works
• Offshore wind turbines in
Europe generate
electricity 70-90% of the
time
• Sites identified by
Bluewater in NE will
generate electricity 85 –
89% of the time
• Grid balances energy
produced by wind
generators, depending on
locations
Stable-priced energy
• Price of wind electricity is stable over
the life of a wind park:
– Fixed up-front costs and no fuel costs
– Low and predictable operations and
maintenance costs
• Wind energy avoids future compliance
costs re: climate change/CO2 limits,
RGGI, and other pollution regulations
Fuel diversity
• Wind is a domestic energy source and is
inexhaustible

• “Fuel” is independent of market


fluctuations and international politics

• Low risk for complete power outages


since each turbine is an independent
generator; traditional power plants rely
upon one large generator
Environmental benefits
• No carbon contribution to global warming, ocean acidification
• No air pollution (SO2, NOx, mercury)
• No water pollution or sea level rise
• No CO2
• No waste
• No fuel deliveries
• No mining or drilling
• No intake/discharge of water for cooling
• No land use for generation equipment offshore
• On land wind is compatible with farming and ranching
• No noise pollution
• Promotes recreational/ commercial fishing with artificial reefs
created by foundations
Site selection:
careful professional analysis
• Meteorologists
• Geologists and geo-technical professionals
• Electrical engineers and grid interconnection specialists
• Foundation structural engineers
• Construction, transport and logistics specialists
• Wind turbine manufacturers
• Marine and avian biologists
Environmental lessons from
Danish Offshore Wind Studies

• Results to date show:


– Minimal ecological impacts
– Plants and animals continue to thrive

• Principles of the Danish studies:


– Use multiple monitoring techniques before, during, and
after wind park construction
– Keep scientific community engaged
Extensive studies at European sites
revealed no significant bird problems
Aerial surveys

Observation platform
Infrared camera

Radar
Risk of avian collisions is low –
displacement still studied
Radar tracking of bird flights
Before wind park After wind park
Foundations create artificial reefs
Offshore wind energy can reduce
the need for electricity from
polluting sources
Pollution avoided per year from a
450 MW offshore wind park
CO2 (lbs) 1.35 billion
SOX (lbs) 14.4 million
NOX (lbs) 5.17 million
Source: Analysis based on data provided in ‘Assessment of Delaware Offshore
Wind Power’, University of Delaware. Dhanju, Whitaker, Burton, Tolman, and
Jarvis. September 2005.
Economic development: Delaware Example

•$1.6 Billion investment


•500+ local union jobs to be
created during construction
•80+ union O&M jobs for 25 years
•$200+ million direct
economic impact for the
Delaware workers
•Clean, high-tech industry
•Onshore and offshore
construction
Building a Wind Park
• Continuous public outreach
• Development, planning and design
-Grid Interconnection
-Initial Environmental Assessment
• Construction and installation
• Operation & maintenance
• Decommissioning
Offshore electrical design
35 kV submarine cables

Offshore transformer platform


e.g., 35 kV / 138 kV

Wind turbines array


Submarine cable to shore

Connection to
Shore
existing grid at
substation
Building an offshore wind park —
setting the foundations
Special installation vessel
provides stable work platform
Turbine delivery and installation
Multiple trips required to and from staging area
Installation of transition piece
between tower and foundation
Preparation for lifting a rotor
Lifting a rotor at night
Installing a transformer platform
Arklow Bank,
Ireland
25 MW project
Nysted,
Denmark
165 MW project
Activities can continue
around the turbines
• Boats are welcome in
our wind parks, can
maneuver freely inside
of them
• Clearance from water
surface to blade tip at
“six o’clock” position
is 115 feet
CONTACT INFORMATION
Peter Mandelstam
peter@bluewaterwind.com
KC Sahl
kc@bluewaterwind.com
Bluewater Wind
22 Hudson Place
Third Floor
Hoboken, NJ 07030
201.420.1195
Offices in Delaware, Maryland, New Jersey, New York, and Rhode Island
For more information on wind
energy — onshore and offshore

• American Wind Energy Assn – awea.org


• British Wind Energy Assoc. – bwea.org
• Utility Wind Integration Group – uwig.org
• University of Delaware –
www.ocean.udel.edu/windpower/