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Presentations – Day 2

Offshore Renewable
Energy Forum
8-9 March 2023 | Devon Hotel, New Plymouth
Stacey Hitchcock
Deputy CEO and GM Investment, Te Puna Umanga/Venture Taranaki
Panel session: Regulatory Settings
▪ Angela Ogier – Energy Transition Director, EY (Facilitator)
▪ Peter Bartlett – Director, Sector Engagement, MBIE
▪ Craig Stevens – Principal Scientist – Marine Physics, NIWA
▪ Lauren Wallace – Partner, GQ
▪ Tom Young – Chairperson, Offshore Wind Working Group
Tamara Al-Hashimi
Senior Principal Marine Scientist, RPS Group
EMPOWERING OFFSHORE
WIND IN NEW ZEALAND:
Getting Green Lights on
Environmental Approvals –
Insights from the UK and Australia

Tamara Al-Hashimi
Technical Director
Offshore Renewable Energy Forum - March 2023
rpsgroup.com
AGENDA
1. WHO WE ARE
2. DEVELOPING AN APPROVABLE
PROJECT WHILST MAINTAINING
FLEXIBILITY
3. SETTING UP THE EIA FOR SUCCESS
– DATA REQUIREMENTS AND
ROBUST BASELINE SURVEY
PLANNING
4. CONCLUDING THOUGHTS

Offshore Renewable Energy Forum 2023 6


Who is RPS
• Global leaders in offshore wind consultancy services
• Over 20 years’ experience leading delivering UK offshore wind approvals
• Successfully consented 35 GW of offshore wind projects
• Technical consultancy and operational support across the project lifecycle

Offshore Renewable Energy Forum 2023 7


BALANCING
PROJECT
APPROVALS AND
FLEXIBILITY

LESSONS LEARNT AND THE


NEW ZEALAND CONTEXT

Offshore Renewable Energy Forum 2023 8


Early and Robust Planning
during Project Development

• Site and route selection


• Develop an Approvals Strategy
• Project Design Envelope –
maintaining flexibility in design
• Road map – engagement with
regulators

Offshore Renewable Energy Forum 2023 9


Project Design Envelope:
Maintaining Flexibility in Design

The Issue

• No approved or constructed project yet in


New Zealand
• Approvals processes can be long e.g. 3 to
5 years (or longer in a new market)
• Sufficient detail is required to allow a full
assessment of environmental and
stakeholder impacts
• In some instances, exact project details are
not known when the application is
submitted

Offshore Renewable Energy Forum 2023 10


Project Design Envelope

PINS (England and Wales) Advice


Note Nine:

“The ‘Rochdale Envelope’ approach is


employed where the nature of the
Proposed Development means that
some details of the whole project have
not been confirmed (for instance the
precise dimensions of structures) when
the application is submitted, and
flexibility is sought to address
uncertainty.”

Offshore Renewable Energy Forum 2023 11


Project Design Envelope (‘PDE’)

• Describes an ‘envelope’ or range of design parameters


• Maximum Design Scenario: assessment describes the
maximum potential impact based on the envelope
• Risk of PDE vs narrow envelope
• PDE workshops
• Any design parameter values that are equal to or less than
those assessed in the EIA, will not have a greater impact
• Need acceptance of envelope approach by stakeholders

Offshore Renewable Energy Forum 2023 12


PDE: Maximum Design Scenario - UK Example: London Array
PDE Parameter Options Included
Project area Up to 245 km2
Water depth 1.5 m – 23 m
Turbine capacity 3 MW – 7 MW
Number of turbines Up to 258
Rotor diameter 90 m – 150 m
Hub height 67 m – 100 m
Turbine foundations Concrete gravity foundation / steel monopile / steel tripod, piled concrete
tripod
Installation – turbines Jack-up vessels / barges / work boats / anchor handling vessels / tugs
Installation – export cable Plowing / trenching /jetting
Installation – inter-array cable Plowing / trenching / jetting

Offshore Renewable Energy Forum 2023 13


Developing an Approvable Project and Design Flexibility in New
Zealand
• Early consultation with stakeholders including regulators is essential
• Addressing uncertainty in design e.g. supply chain
• Understand the complexity of your impact assessment
• Project description must be sufficient to understand,
assess and fully describe potential impacts
• Develop a realistic envelope only where design
flexibility is truly required
• Other offshore projects have been approved in New
Zealand using the maximum or worst-case assessment

Offshore Renewable Energy Forum 2023 14


SETTING UP THE IMPACT
ASSESSMENT FOR SUCCESS
– DATA REQUIREMENTS AND
BASELINE SURVEY
PLANNING

LESSONS LEARNT AND THE


NEW ZEALAND CONTEXT

Offshore Renewable Energy Forum 2023 15


Planning for Data Needs in the
Impact Assessment

• New Zealand large and complex marine


environment, less well studied than UK
• Very high marine fauna diversity
• High proportion of threatened seabirds
• No strategic baseline environmental surveys by
government – all project driven by proponents
• High uncertainty and high risk means more
comprehensive and/or targeted baseline data
required
• Surveys must feed baseline and modelling
• Find linkages between studies where possible

Offshore Renewable Energy Forum 2023 16


Planning for Data Needs

In the UK
• First commercial windfarm in the UK
commissioned in 2003
• Increasingly abundant baseline information
• Strategic Environmental Assessments and
government-led research in the UK’s
offshore environment
• Development process becoming more Offshore wind in the UK 2003

streamlined
• Survey techniques and project design
constantly improving

Offshore wind in the UK 2021

Offshore Renewable Energy Forum 2023 17


Planning a Robust Baseline Survey
Program
UK Example – Seabirds
• Lots of existing seabird and shorebird data
• UK industry standard for baseline seabird surveys
is 24 months digital aerial survey
• Hornsea Projects each built on data from earlier
developments
• Developer and/or industry led research:
– RPS & DHI: 2-year study of seabird flight
behaviour at the Aberdeen OWF
– Integrated radar-camera technology to track bird
flight movement through the wind farm
– AIM: to reduce uncertainty of impacts of OWFs
on breeding birds

Offshore Renewable Energy Forum 2023 18


Planning for Data Needs

Insights Shared

• Determine data needs early in the project


development process
• Proportionate environmental assessments – to
the receptor/s and to the level of risk/impact
• Early consultation with regulators, stakeholders
(agree data requirements) – this can be achieved
using the Road Map approach
• Collaboration may be beneficial as the industry
develops – some impacts may require industry led
research to inform key issues and to reduce
uncertainty in impact assessments

Offshore Renewable Energy Forum 2023 19


Planning a Robust Baseline Survey Program
• Don’t underestimate the risk of inadequate baselines
• Many lessons from UK, but not all relevant
– Different / more complex environment
(species/communities)
– Paucity of relevant baseline information
– Developers will be collecting the first complete
dataset for the area in most cases
– Build from offshore oil and gas survey experience
United Kingdom New Zealand
Lower diversity of seabirds identified to be at risk Large diversity/abundance of seabird species
EXAMPLE

• Large amounts of flight height data for accurate • More complex environment and species behaviours – limited
collision risk modelling data in understanding this in potential wind farm areas
• Long-term and State-wide data available VS • Different species characteristics (size/ movement) – careful
consideration if using UK examples to understand likely
• Established offshore wind farm industry provides
an understanding of species presence / response of many species to offshore wind
behaviours • Long-term datasets / baselines don’t exist

Offshore Renewable Energy Forum 2023 20


Concluding Thoughts

• Lessons can be learned from


established offshore wind markets
• In New Zealand we will face unique
challenges
• Local knowledge and expertise will be
required to find solutions
• Key is to combine knowledge transfer
from established markets with local
expertise
• Follow emerging issues in established
markets, such as cumulative effects and
climate change

Offshore Renewable Energy Forum 2023 21


“LEARNING AND INNOVATION GO
HAND IN HAND. THE ARROGANCE
OF SUCCESS IS TO THINK THAT
WHAT YOU DID YESTERDAY WILL
BE SUFFICIENT FOR TOMORROW.”

~ WILLIAM POLLARD

Offshore Renewable Energy Forum 2023 22


Chris Rendall
RMA Senior National Adviser, DoC
Offshore Renewable
Energy Forum
Environmental Considerations

9 March 2023
The cornerstones:

1.Engage early

2.Factor in adequate research

3.Consider alternatives

Moors, Philip J
Te Mana o Te Taiao (ANZBS)

› Current state of Aotearoa New Zealand’s unique


NZ Biodiversity biodiversity
Context
› Marine birds: 28 (31%) are ‘Threatened’ and 53
(60%) are ‘At Risk’

› Around 5000 of the assessed 14 000 terrestrial,


freshwater, and marine species are ‘Data Deficient’

› fragile ecosystem including sponge gardens, deep


sea corals and seagrass but only 0.5% of the NZ
seas are marine protected areas

› ANZBS Implementation Plan

Simon Childerhouse 2004


New Zealand is a signatory to a number of
NZ international conventions and agreements that are relevant to
commitments these activities, specifically:

1. Convention on Conservation of Migratory


Species (CMS)
2. Agreement on the Conservation of
Albatrosses and Petrels (ACAP)
3. East Asian - Australasian Flyway Partnership
(EAAFP)
4. Sharks MOU
5. Convention on Biological Diversity (CBD)
› One of DOC’s functions is to advocate for the
conservation of natural and historic resources.
DOC roles

› Conservation, Marine Reserve and Wildlife Acts

› New Zealand Coastal Policy Statement


DOC key › Pre-construction.
concerns with
› Construction.
Offshore Wind
› Operation.
› Cumulative effects and long term effects.
› Monitoring and adaptive management.
› Decommissioning.
For Renewable Energy projects DOC staff with the
relevant skill set are assigned early.
How DOC
engages in REG A standard consideration for DOC advocacy is:
proposals
> How to support renewable energy proposals while
protecting priority conservation values.

DOC will engage early on renewable electricity


generation proposals where possible (and where
approached).

> If early engagement does not occur DOC will focus


efforts on priority conservation values.
› Working with other government agencies on the
DOC current establishment of the regulatory regime,
engagement including learning about regimes in other
includes jurisdictions

› Engaging with the NZWEA and the Offshore


Wind Working Group to identify opportunities for
industry wide approaches

› Engaging with individual developers to provide


context to support them develop their data
collection programmes

› Continuing to monitor for relevant new scientific


publications and share that information
> Novel activity in New Zealand. Some international
NZ context for experience to learn from but substantial gaps due to
Offshore Wind different context.

> Rapidly evolving technology including increasing


turbine size and farm scale.

> Opportunity to work towards agreed methodology


and/or national guidance to support ecological
assessments.

> Risk of first application being lodged prematurely


and leading to complex and contentious consent
process.
Silvia Scali
› Adequate baseline data collection
What DOC
› Development of ‘agreed’ methodologies
wants to see in
REG proposals › Consideration of alternatives
› Avoidance of adverse effects on priority
conservation values

› Avoidance of other adverse effects on other on


conservation values as far as practicable

› Offsetting and compensation of significant residual


effects

› Monitoring and adapting


Current
knowledge of › Contains highly threatened species and migratory
offshore corridors.
environment
› There is a lack of current data on species and
habitats; data deficient and data poor.

› Time needed to gather knowledge and baseline


data.

› Limited ability to mitigate or offset.


› Published scientific studies and databases
› Evidence and reports associated with previous
Existing Data
regulatory processes and subsequent required
monitoring

› Reports and publications generated by Councils


and others

› Unpublished scientific data


› Research stages include
• Desktop
• Field Research
• Monitoring during construction
Collecting Data
• Monitoring and evaluation after turbines are
operational

› Overseas initiatives (for example the Dutch


programme ‘WOZEP’) invest in understanding
and address environmental issues associated
with offshore wind development. The research
has also lead to understanding how to reduce
impact.
› To be accurate risk calculation relies on
Risk adequate data and understanding of the species
calculation that will potentially be impacted.

› Working towards ‘accepted’ risk calculations


should be an aim of the industry and NZ.

Robertson, C. J. R
› A lack of adequate data and the associated
uncertainty of impact has led to previous
Risk reduction proposals being declined or extensively
litigated.

› The risk of complex and contentious processes


can be reduced through:

• Coordinated research programmes.


• Strategic / feasibility approaches.
• Allocation of space for development and protection.
• Agreed methodology and/or national guidance to support
ecological assessments.
• Agreed consent condition starting points
Tyree, P.
› At this stage it is likely premature to be
Impact considering impact assessment for any large
assessment REG development

› The scale of proposals is likely to have non-


linear impacts.

› There are existing pressures on NZ’s


biodiversity. The capacity of the environment to
absorb additional impact will need to be
understood.
› Alternatives need to be thought about broadly
Alternatives and for all stages – pre-construction through to
consideration decommissioning

› Methods associated with collecting data through


to how high off the water the blade tips will be
influence impact

› Factoring in the potential for the use of


measures to reduce impact at the outset will
improve accuracy of economic modelling
Identified in previous slides, but specifically:

› Ensure biodiversity is considered at front end


Opportunities › Sharing data - separating out site specific and
broader data collection

› Explore opportunities to undertake research to


understand risk and minimise impact
The cornerstones:
1.Engage early

2.Factor in adequate research

3.Consider alternatives
› Desktop
Identifying species presence, abundance and colony locations. Identify risk
based on behaviour (eg diurnal or nocturnal) and flight height. Collate
known tracking data (forage and migration). Map this information for an
initial heat map of high overlap areas for species activity.
Case study
› Field Research
Birds
Targeted species likely to visit area, including GPS tracking a reasonable
sample of birds (at least 30 per species and also from several colonies).
Aerial surveys and photography; boat based surveys with skilled observers.

› Monitoring during construction


Monitoring of bird interactions during construction

› Impact assessments after turbines are operational


Quantify using fixed cameras, radar tracing, GPS tracking studies.
Monitoring of seabird colonies.
Dr Leigh Bull
Ecologist and Partner, Boffa Miskell
Offshore Renewable Energy Forum
8-9 March 2023, New Plymouth

Avifauna and Offshore


Wind Development

Dr Leigh Bull and Stephen Fuller


Boffa Miskell
Talk Overview
• NZ onshore wind today
• Northern hemisphere
• New Zealand context
• Taranaki context
• Where do we start in NZ?
• Some conundrums…
Our focus is on biodiversity, we do not explore
the challenges pertaining to the current
legislative and statutory framework
New Zealand Onshore Wind
Today
• Nearly 20 years of research in NZ, including five
sites with post-construction mortality
monitoring. Key findings are:
• Species presence does not equal risk
• Variability between sites in terms of mortalities.
• Overall a good understanding of risk for onshore
species.
• However… Continue to be areas of disagreement
played out at the consenting phase.
Northern Hemisphere
Offshore Wind

• Offshore developments for approximately 30


years.
• Many did not undertake seabird baseline studies.
• Now retrospectively studying operational effects
on seabirds.
Northern Hemisphere
Effects

• Initial concerns around mortalities from collisions,


but now a strong focus on displacement and
barrier effects.
• Evidence now exists for such effects for some 33
different seabird species
• Impact of displacement is dependent on the
presence and vulnerability of each species.
Bird Groups of concern 2002 Northern Hemisphere
(BWEA)
Mergini (seaducks)
Groups of Concern
Gaviidae, (divers, loons)

Alcidae (alcids, auks, puffins) For example:


Otididae (bustards) • Divers and northern gannets show consistent and strong
Tetraonidae (black grouse) avoidance behaviour leading to displacement.
Sternidae (terns) • Long-tailed duck, common scoter, Manx shearwater,
Sulidae (gannets) razorbill, common guillemot, little gull and sandwich tern
Ciconiiformes (herons) showed less consistent displacement from OWFs.
Charadriiformes (waders & gulls) • Several gull species and red-breasted merganser showed
Phalacrocoracidae (shags) weak attraction.

• Great cormorant and European shag showed strong


attraction to OWFs with collision concerns.
Bird Groups of concern 2002
(BWEA)
Mergini (seaducks)
What about NZ?
Gaviidae, (divers, loons)

Alcidae (alcids, auks, puffins)

Otididae (bustards) • The risk to New Zealand seabirds and native


Tetraonidae (black grouse) migrants is unknown.
Sternidae (terns) • Cannot completely rely on northern hemisphere
Sulidae (gannets) studies (as shown on the table), for example:
Ciconiiformes (herons)
• No penguins in the northern hemisphere.
• No puffins in the southern hemisphere.
Charadriiformes (waders & gulls)

Phalacrocoracidae (shags) • Looking at results for onshore wind, we can


Diomedeidae (albatross & mollymawk)
assume there will be differences between
Procelleridae (fulmars petrels,
species and sites.
shearwaters, prions)
Spheniscidae (penguins)
New Zealand Seabirds

• ‘Seabird capital’ of the world.


• Unique and high levels of endemism.
• 86 species of seabirds breed in NZ.
• 82 are nationally “At Risk” or “Threatened”.
• Huge variation in abundances – 100’s for the
most Threatened, to millions for the most
abundant.
Areas of Interest
• Very few breeding colonies on NZ mainland,
most on offshore and sub-Antarctic islands.
• Overlap with area of interest for offshore wind.

From “Enabling investment in Offshore Renewable Energy. Discussion Document.” (MBIE Dec 2022)
Biologically & Physically
Diverse
• Size - Antipodean albatrosses 8.5kg vs NZ storm
petrel 35g.
• Flight behaviours (e.g. shearwaters, storm petrel,
gannets).
• Foraging behaviours (e.g. pursuit plungers,
fluttering on surface, dipping, surface seizing,
surface plunging, scavenging).
• Sedentary and migratory species.
Incredibly Mobile

Figure 1: Interpolated geolocation tracks of 19 sooty shearwaters during breeding (light blue) and subsequent migration pathways (yellow – the
start of migration and northward transit, and orange – wintering grounds and southward transit) From Shaffer et al. 2006
Migrant Shorebirds

• National migrants move between South


Island breeding grounds and winter in the
northern NZ estuaries.
• International migrants move between
Northern Hemisphere breeding grounds and
summer in NZ estuaries
• Large number of birds congregate at major
estuaries around NZ (hundreds of thousands)
Migratory Movements

• Migratory flight paths not completely


known.
• Several radar studies have been
undertaken for onshore wind farms, but
data not widely shared.

Image source: Southey (2009). Migration in New


Zealand. Southern Bird 40: 9-10.
Taranaki Context
• Desktop data sources are available
• ~70 coastal and oceanic birds (including birds
that breed on the sub-Antarctic islands) in the
wider Southern Taranaki Bight.

6%
19%
16%
Threatened
At Risk
3% Not Threatened
7% Coloniser
Migrant
Vagrant

49%
Cumulative Effects
• Species with large ranges (migratory and
foraging) occur in the waters of other
countries.
• At sea - Exposed to other impacts (e.g.
fisheries, food availability) as well as other
wind farms (onshore and offshore).
• Shy albatross identified in Australia as a key
species at risk of offshore wind development,
also present in NZ.
NZ offshore wind –
Where do we start?
• Risks to NZ seabirds currently undefined,
international research not relevant for key spp.
• Available data on NZ seabirds, but has not
collected for the purpose of affects
assessments, so key metrics unknown.
• Land-based data methods unlikely to be useful
offshore. Need new methods, requiring
investment and trialling in NZ to assess risk for
both collision and avoidance.
Step 1: NZ Seabird
Sensitivity Analysis
• Like onshore, not all species are at equal risk of
effects.
• Need to undertake a sensitivity analysis to
identify taxa of most concern / at risk.
• Species ‘Vulnerability’ and ‘Conservation
Status’.
• Northern Hemisphere and Australia for
examples.
• Living document – update as we gather more
information.
Step 2: Data Collection

• Existing seabird data sets insufficient to inform


an assessment of effects.
• Natural England (2022) ‘ Offshore Wind Marine
Environmental Assessments: Best Practice
Advice for Evidence and Data Standards’.
(Phase 1 – Baseline data)
• Digital Aerial Surveys (DAS).
• Don’t just consider project site, but a 2-4 km
buffer to detect displacement.
Step 3: Modelling

• Natural England (2022) ‘ Offshore Wind Marine


Environmental Assessments: Best Practice
Advice for Evidence and Data Standards’
(Phase 3 – Data analysis)
• Agreement on the tools to model collision risk
and population effects (e.g. Band 2012).
• Agreement on assumptions put into the
models (e.g. 10% of birds may die due to
displacement).
Collaboration is Key!
• Without collaboration between
industry, government agencies and key
stakeholders, we will struggle to get the data we
need to do this work.
• We need agreement on species of concern,
method of data collection and tools to analyse
the data is needed in order to avoid debates in
court.
• Need to agree on the outcomes – achieve
renewable energy targets without significant
biodiversity effects.
Conundrum #1
Build to Test
• Despite best modelling, we must build in
order to test assumptions.
• Post-construction monitoring will be critical!
• Government agencies may only support if
there is an iterative process of refinement
and data sharing.
• If we can’t build windfarms we can’t increase
our knowledge of risk, or improve tools to
minimise effects.
Conundrum #2
Unavoidable Effects

• Despite overall uncertainty, it is likely that effects


on some seabirds cannot be avoided.
• Need guidance from Government on acceptable
levels of effects on biodiversity.
Conundrum #3
Climate Change

• Climate change is having an effect on seabirds,


with changing ocean temperatures impacting
prey abundance and distribution.
• DOC’s most recent list of conservation status of
NZ birds identified 69 as known, or predicted,
to be adversely affected by long-term climate
trends and / or extreme climatic events.
Take Home Messages…
• We are starting from scratch for offshore in NZ.
• We need to conduct a seabird sensitivity
analysis to identify taxa potentially at risk of
offshore wind.
• We need new tools.
• We need robust data sets.
• We need guidance from Government on
acceptable levels of effects on biodiversity.
• We need collaboration within industry and with
Government agencies and key stakeholders on all
the above.
Thank you
Nicolas Vessoit
Senior Strategy Manager, Transpower
Offshore wind and Long-Term Planning

9 March 2023
Nicolas Vessiot
Transpower is committed to enabling the efficient and cost-effective
connection of renewables to the grid
Whakamana i Te Mauri Hiko Capacity Projections

• Whakamana i Te Mauri Hiko


projects 22 GW of generation
capacity will be needed in 2050
• Transpower’s aim is to facilitate
renewable investments in
Aotearoa New Zealand that will
deliver a low cost, low carbon
energy future
• We need to work closely with
developers, regulators, and policy-
makers
The time it takes to build new interconnection transmission line is similar to
building offshore wind

Source: World Energy Outlook 2022


We are developing the grid of the future for NZ Inc. by taking a whole of
system approach and building partnerships

Net Zero Grid Pathways


• Integrated grid planning is essential to Phase 1 – 2021-2035 Phase 2 – 2035-2050
ensure an optimised and equitable
transition
• Net Zero Grid Pathways (NZGP) is
already underway to strengthen the
grid backbone
• In the absence of a national policy
direction Transpower’s plans must
remain technology agonistic
The scale and location of known offshore wind presents challenges for the
New Zealand grid
Example configuration Taranaki – for illustrative purposes only

• Transmission constraints around the relevant MNI ~Huntly-


NPL Stratford circuit
areas mean upgrades are likely to be north constraint
JRD
necessary McKee
Junction
• Transmission has a very long lead time to Road

develop, and is already under supply chain Potential load


increase from
and labour pressures hydrogen
4 GW+ of current SFD
• The size of offshore wind would make it the early stage offshore OPK KPA
Stratford
single largest generation source on the wind interest off Kapuni
system Taranaki Green hydrogen
development at Brunswick-
Kapuni Stratford
HWA
circuit south
constraint
Whareroa

Patea
WVY

Area of Waipipi
interest –
offshore wind
220kV
110kV
Open discussion points
• How can we ensure these developments are best integrated into the wider system
plan for NZ Inc.? Is Taranaki the best location?
• How should Transmission Offshore Transmission infrastructure be dealt with? What
model would ensure competition, efficiency, and innovation?
• How can offshore wind development be supported by load?
Ross Copland
CEO, Te Waihanga | New Zealand Infrastructure Commission
Aotearoa New Zealand’s
Future Infrastructure Needs
Offshore Renewable Energy Forum - 9 Mar 2023

Ross Copland Disclaimer - This presentation contains general information and is not formal advice. It is recommended
that you seek independent advice on any matter relating to the use of the information. We will not be
Chief Executive liable for any loss or damage whatsoever arising from the use of the information.​
Te Waihanga’s role
• Government’s lead adviser on
infrastructure matters.
• Autonomous Crown Entity established in
2019.
Recommendations

• Improving infrastructure policy, planning


and delivery.
• Lifting the economic, environmental, and
social wellbeing of New Zealanders.
Renewable Energy
Recommendations
Recommendations

Rec 5 - Achieve net-zero carbon emissions


at minimum cost.
Rec 6 – Speed the build of low-emissions
energy infrastructure to leverage
our abundant resources.
Rec 25 - Increase the resilience of critical
infrastructure.
Rec 64 - Provide certainty to invest in skills,
develop workforce pipeline.
World Energy Council New Zealand scores 10th
Energy Trilemma
Energy Sector Needs
Over 5GW of new
generation will be
needed 1

• To meet the government’s target of 100%


RE by 2030.
Energy Sector Needs

• Driven by growth in EVs and electrification


of process heat.
• Represents more than a 50% increase
over our existing national generating
capacity.
• We need roughly 1 Clyde dam annually
(494MW) to 2050 to meet our net-zero
carbon goal.2
• An ‘over-build’ of generating capacity is
required.

1 “Accelerated Electrification.” Interim Climate Change Committee, p48 & p51,


30 April 2019
2 C. Hansen, “Leveraging our energy resources to reduce global emissions and
increase our living standards, 2022.
A more efficient
resource
management system
Resource Management

• The consenting timeframe has increased by


150% since 2014/15.2
• 29-34% of our emissions targets are in
jeopardy should prolonged consenting
times cause investors to abandon projects.3
• As a result of consenting delays, New
Zealand is on track to incur an emissions
liability of between $5 billion and $7 billion
by 2050.3
Reform

• Meeting the net-zero 2050 target requires


RM reforms to be fully operational by 2028
and achieve a 50 % reduction in projected
consent processing times.3
2 Moore et al., ‘The cost of consenting infrastructure projects in New Zealand’ (Sapere, July
2021)

3 Moore et al., ‘Infrastructure Consenting for Climate Targets - Estimating the Ability of New
Zealand’s Consenting System to Deliver on Climate-Critical Infrastructure Needs’ (Sapere, 2
December 2022).
Regulatory design considerations

• Potential for a one-stop-shop for offshore permits


and consents
• Offshore development investment pipeline to
smooth demand
Offshore Regulation

• The role of spatial planning and corridor


protection to enable offshore energy
• How best to incentivise competition and limit
opportunities for speculators
• Leverage local resources and supply chains
• Stakeholder engagement and influence
• Community ownership opportunities
• The role, if any, for incentives and underwriting
mechanisms like ‘Contracts for Difference’ or
Feed-in-Tariffs.
Progressing regulation isn’t
enough

Related workstreams to be advanced include:


Related Workstreams

• Grid and network connections


• Port Development
• Offtake agreements (H2, AL, FE etc)
• Supply chains and workforce
Government can’t deliver alone
Roles and Responsibilities

All parties are required to work to their


strengths including:
• Central government
• Local government
• Transpower and the EDBs
• Developers
• Ecology experts
• Local businesses
• Communities
• Iwi and mana moana
Thank-you
Hon Megan Woods
Minister of Energy and Resources
Professor Evan Gray
Programme Leader for Offshore Renewable Energy Systems,
Blue Economy Cooperative Research Centre
The Blue Economy
Cooperative Research Centre:
Collaborating across Australia
and New Zealand

Evan Gray & Irene Penesis

Offshore Renewable Energy Forum New Zealand


Presenter: Evan Gray
Griffith University
Program Leader
Offshore Renewable Energy Systems
Blue Economy CRC
e.gray@griffith.edu.au
www.blueeconomycrc.com.au
Hydrogen microgrid at Griffith University
• 6000 m2 6 green star building capturing its
energy within footprint for off-grid operation

• Teaching and research (up to several hundred


occupants)

• $21 Million (Federal govt) + $29 Million (GU


and partners, incl. Qld govt)

• 380 kW (nominal) PV array

Hydrogen microgrid
• (battery bank undergoing upgrade, ~ 0.7 MWh)

• 160 kW (200 kW peak) alkaline electrolyser

• 115 kg hydrogen storage (1.8 MWh electric


equivalent) at 10 bar H2 pressure

• 60 kW PEM fuel cell


The Blue Economy

“The sustainable use of ocean resources for


economic growth, improved livelihoods and
jobs and ocean ecosystem health” (World Bank)

Over 80% of international


goods are moved via
Marine Fisheries contribute Maritime transport
more than US$270 billion
annually to global GDP

Sustainable Renewable
Coastal and ocean Tourism brings jobs and Energy can play a vital role
economic growth. Coastal, Least Developed in social and economic
Countries and Small Island Developing States development
receive more than 41 million visitors per year 80% of litter in the ocean is
from land-based sources.
Better Waste Management
Climate change impacts on the oceans are is needed
www.blueeconomycrc.com.au pg 92
staggering. Oceans are an important carbon
sink and help mitigate climate change
Source: Modified from World Bank Group
The Blue Economy CRC

Perform world class, collaborative, industry


focused research and training that
underpins the growth of the Blue Economy
through increased offshore sustainable
aquaculture and renewable energy
production.
43 Partners – 10 countries – 10 years – 5 programs

www.blueeconomycrc.com.au pg 94
Research Program 3: Offshore Renewable Energy Systems

Objective: Identify, develop and demonstrate offshore renewable energy systems capturing generation,
storage and control aspects optimised for co-located offshore operations.

CONVERSION END-USE
DIRECT UTILISATION

FARM OPERATIONS

+
ENVIRONMENT / RESOURCE

SHORT TERM
STORAGE
-
MONITORING

CONTROL FRESH WATER


RO
MANAGEMENT
SYSTEM DESAL
O2
TRANSPORT *
*
FUEL CELL
ELECTROLYSER * H2 LONG TERM
STORAGE *
SEA WATER

96
Hydrogen-related research objectives and training
• Provision of electricity and hydrogen to relevant industries, including aquaculture
• Analysis of demand for hydrogen and oxygen for aquaculture operations and consequences
for power capability of a supporting hydrogen microgrid
• Economic analysis for aquaculture operations, diesel displacement and hydrogen export
• Training in advanced microgrid and hydrogen related skills
• Engagement with CRC partners and third parties through hydrogen supply for offtake and use
in mobility
• Social licence and community acceptance
• Markets and supply chain
• Safety and risk
• Regulatory aspects of hydrogen
• Hydrogen Guarantee of Origin – ‘Green Hydrogen’

97
Research Program 3: Offshore Renewable Energy Systems

98
Opportunities for the Blue Economy

Aquaculture
• Power systems
• Diesel displacement
• Oxygen benefits for fish
farming
• Sustainable systems

99
Opportunities for the Blue Economy

Island communities, remote


areas (e.g. Antarctica)
• Energy Security
• Diesel displacement
• Water desalination
• Sustainable generation

100
Opportunities for the Blue Economy

Vessels
• Australian aquaculture fleet 2nd most
numerous after the Navy!

• Large ships will probably be powered by


ammonia or green methanol

• Up to ≈20 MW, liquid hydrogen is feasible

• Small vessels (ferries) already in operation


around the world and several Australian
vessels in planning

• BE CRC has a project to assess feasibility in Incat Crowther (an Australian company) launches its 22-m
Australia & New Zealand 84-passenger fuel-cell ferry in San Francisco, April 2021

101
The BE CRC Hydrogen Microgrid Demonstration Project

The BECRC demonstration project will build a DC hydrogen microgrid


to:
• Support research into the provision of electricity and hydrogen to relevant
industries, particularly aquaculture
• Support training in advanced microgrid- and hydrogen-related skills
• Build social licence and community acceptance
• Support engagement with BE CRC partners and third parties through the
supply of hydrogen for offtake

Two phases:
• Phase I: Onshore (underway)
• Phase II: Offshore (project beginning late-2025)

102
Associated Research Projects

Bench-scale DC microgrid (RP 3)


Aims

• Review the challenges posed by DC microgrids


as to architecture, control and availability of DC
components including generators, electrolysers
and DC/DC converters
• Set up a bench-scale pure-DC microgrid at the
few-kW scale using configurable electronic
components to emulate any desired energy
converter.
• Explore the problems of transient behaviour
with rapidly changing inputs and loads.
Bench-scale pure-DC microgrid. Physical batteries and DC/DC
converters. Renewables, electrolyser and fuel cell/turbine are
emulated. Hydrogen storage is simulated in software.

103
Associated Research Projects

System level modelling to improve the


performance of offshore sustainable
power (RP 3)
(Lead institution: AUT)

Aims

• Conduct a critical review of offshore energy and


resource forecasting
• Develop and optimise a model of control and
protection for DC microgrids
• Optimise the management of loads and energy
flows in a DC microgrid

104
Associated Research Projects

Modelling and operation of a hydrogen microgrid


with 700 kW electrolyser (RP 3)
Optimal Group Ltd
Aims

• Test the onshore hydrogen microgrid


• Create software models the components and the entire
microgrid
• With the aid of the microgrid model, operate the
microgrid to emulate real-world scenarios relevant to the
goals of the BE CRC and its partners, including in
aquaculture and mobility
• ITM HGAS1SP
• Provide a scaffold for research projects across the scope
of the CRC addressing social licence and community • 712 kW input
acceptance, markets and supply chain, safety and risk, and
certification of origin of hydrogen • 20’ Container + PSU
• 20 bar output
• Transfer learnings from this project into the parallel
planning process for the offshore microgrid • 11 kg H2 / hr (max)
• ~ 265kg H2 / day

105
Associated Research Projects

Hydrogen powering of vessels (RP 1)


Aims
• Undertake a feasibility study into the maturity of
hydrogen- and ammonia-powered vessel technology
• Consider the near-term market for such vessels operating
in Australian waters and for overseas vessel exports
• Understand the relationship between the logistic supply
chain for hydrogen fuels and the likely uptake of hydrogen
vessel propulsion in Australia and New Zealand IDTechEx predicts that green hydrogen PEMFC and
LNG/green ammonia SOFC markets will grow at 35%
CAGR over a ten-year period.
Largest orders are a 3.2MW PEMFC (PowerCell, a 2MW
SOFC system(Alma Clean Power for the Viking Energy
OSV), and individual 2MW PEMFC orders for the H-Tug
and Ulstein OSV (Nedstack).
Source: IDTechEx in "Fuel Cell Boats & Ships 2023-2033: PEMFC, SOFC,
Hydrogen, Ammonia, LNG"

106
BE CRC Hydrogen Microgrid: Phase I

• ≈ 6 kg H2 @ 20 bar
buffer volume
between the
electrolyser and 200
Island, bar compressor
vessel… • Distribution to Metro
Tasmania by ≈ 400 kg
@ 165 bar tube
trailer
• H2 turbine requires 6
bar @ max. 6.25 kg/h
for 65 kW output

www.blueeconomycrc.com.au pg 107
Phase II: Offshore Hydrogen Production from 2026

Independent power
• Full offshore demonstration of hydrogen
microgrid
• Hydrogen production offshore

• Hydrogen/oxygen utilised in integrated


offshore system

• Energy Storage

• Energy generation

• Excess hydrogen (and oxygen?) exported

108
Thank you
The Blue Economy Cooperative Research Centre (CRC) is
established and supported under the Australian Government’s CRC
Program, grant number CRC-20180101.

The CRC Program supports industry-led collaborations between


industry, researchers and the community.

Further information about the CRC Program


Contact for more information:
is available at www.business.gov.au. Professor Irene Penesis
irene.penesis@blueeconomycrc.com.au
Professor Evan Gray
e.gray@griffith.edu.au

enquiries@blueeconomycrc.com.au | www.blueeconomycrc.com.au
David Hunt
Director, Concept Consulting
INDUSTRY CAPABILITY MAPPING Presentation to Offshore
Renewable Energy Forum
STUDY March 2023

111
What we will cover today…

Purpose

Approach

Progress

Next steps

11
2
Organisations

Co-sponsors Engagement support Research and delivery

11
3
Reference Group
▪ Organisations
▪ Iwi from Taranaki region
▪ Energy Skills Aotearoa
▪ E tū
▪ Taranaki Chamber of Commerce
▪ Taranaki Regional Skills Leadership Group
▪ Te Pūkenga (WITT)
▪ Venture Taranaki
▪ Worley

▪ Role
▪ Links to local knowledge
▪ Sounding board

11
4
Purpose
Goals
▪ Identify needed capabilities
▪ Identify current/potential capabilities
▪ Compare needs and capabilities
▪ Identify opportunities

Deliverables
▪ Report
▪ Database of potential partners

11
5
Approach to study

▪Bottom-up

▪Based around OWF stages

▪Taranaki Reference scenario

▪Information sources

11
6
Considering OWF needs/capabilities by project stages

Development Construction Operation and


Maintenance

11
7
Reference scenario - South Taranaki project
▪ General assumptions
▪ 1GW Offshore Wind Farm, 60-70 Wind Turbines
▪ Commissioning Year: 2030
▪ 30–35-year lifespan
▪ Location in South Taranaki Bight (see map)

▪ Shore-based maintenance and service strategy


▪ Using crew transfer vessels (CTV) and helicopters

▪ Ports
▪ Patea as the Operations and Maintenance (O&M) port for day-
to-day work, using Crew transport vessels
▪ New Plymouth for large maintenance vessels for ~5 year
maintenance cycles and construction phase

▪ Other sensitivity cases Offshore Wind Farm region and possible port locations

11
8
Information sources

▪ For needed capabilities ▪ For current/potential capabilities


▪ International contacts ▪ Hui/meetings
▪ Comparator projects ▪ Reference Group
▪ Desktop research ▪ Business databases/Amotai
▪ Workshops

11
9
Information sources – example
Jobs guide
Star of the South

2.2 GW in Victoria, Australia


Targeting operations from 2028

50+ job types

12
0
Information sources – example Grimsby

▪ Grimsby now O&M base for 8 offshore wind projects with a 5-7GW
(more being developed)
▪ Spoken with CEO of port company
▪ Described OWF as “game changer” for port

12
1
Preview results – O&M for reference scenario

Tier 1 Tier 2
Core O&M services Tier 2 Supporting O&M services
~60 FTE ~50 FTE

Tier 1 For example, helicopter,


security, certification,
~2,000 person accommodation, training
years of work services

~1,500 person years


of work

12
2
Training/development opportunities

▪ OWF industry offers significant opportunities Occupational match between O&G and offshore wind

▪ Would require skilled workforce

▪ Lead time allows exploration of options including


▪ Training and skills development
▪ Scholarships
▪ Retraining / cross-over training

▪ Te Pukenga (WITT) part of reference group

Source: Offshore Wind Energy Australia, July 2021, : Blue Economy Cooperative
Research Centre. (Friends of the Earth; Global Witness and Greener Jobs Alliance, 2019).

12
3
Status of analysis

Development Construction Operation and


Maintenance

Status: Status: Status:

12
4
Upcoming work

▪ Immediate focus on collecting more information to assess existing/potential


capabilities

▪ Needs input from potential partners and suppliers

▪ Planning hui/workshops to extend knowledge base

▪ Results will be combined with needs assessment to identify alignments and


opportunities

12
5
Feel free to get in touch

▪ We welcome feedback or input on the study

▪ And if you are interested in attending a workshop please get in touch:

David@concept.co.nz

Rachel@concept.co.nz

12
6
About Concept

Concept has advised on energy, utility and carbon issues for over 20 years. Most
projects have been in New Zealand, but we also work in wider Asia Pacific region.
Clients have included a wide range of public and private organisations.

Add logos – mixture of green and O/G and public agencies

More information can be found at www.concept.co.nz


© Copyright 2023 Concept Consulting Group Limited. All rights reserved.

12
7
Kerry Williamson
Head of Department Development Projects, OMV
OMV New Zealand
Existing Offshore Energy Perspective

“Similar but very different”

Kerry Williamson
Head of Development, OMV NZ
Offshore Renewable Energy Forum
8-9 March, 2022
OMV New Zealand
History of NZ Offshore Development
1960’s 1970’s 1990’s 2000’s
• 1965: First offshore • First 'oil crisis' • 1993: Māui B installed • 2003: Rising oil
exploration permit • 1979: Māui A • 1996: Māui BD Oil prices and need to
• 1969: Māui field onstream FPSO Whakaaropai develop reserves
discovery • 1998: Maari discovery • 2003: Tui discovery
• 2006: Pohokura
• 2007: Tui
• 2007: Whakaaropai
Decommissioned
• 2009: Kupe and
Maari
• 2018: Offshore
exploration ban in NZ
• 2021: Maui Infill
Drilling…

130 Event, Max Mustermann, Month xx, 2022 Timeline?


OMV New Zealand
Current Operating Map
Operating:
• Maui:
• OMV - Operator (100%)
• Pohokura:
• OMV – Operator (74%), Todd Energy (76%)
• Maari:
• OMV - Operator (69%), Horizon (26%), Cue (5%)
• Kupe:
• Beach Energy - Operator (50%), Genesis (46%),
NZOG (4%)

● Kupe Production Station

Decommissioning:
• Tui:
• MBIE Operator
KUPE

131| NZ Offshore Renewable Energy Forum, March 2023 © OMV Energy


Internal
OMV New Zealand
Offshore Operating Capabilities – What’s different about
Upstream?

Health and Safety Specialised Supply Chain and Compliance and


Focus Expertise and Logistics Regulatory
Knowledge Requirements
132| NZ Offshore Renewable Energy Forum, March 2023 © OMV Energy
Internal
OMV in New Zealand
Local vs International Skill Pool
& Resources
Exploration Design & Drilling & Operations &
Decommissioning
& Appraisal Development Construction Maintenance

● Exploration & Development


● Specialised local and international skills
● Major design/development works, drilling, construction (marine
architecture (subsea, jacket), topsides, drilling)
● Local PM, design office, and logistics capabilities

● Operations and maintenance: local workforce drawing in


international expertise as needed
● Infill Drilling Developments & Expansion typically requires
mobilization of International Assets
● Specialist skills (e.g. inspection & certification)

● Decommissioning: mix of local and international resources

133| NZ Offshore Renewable Energy Forum, March 2023


OMV New Zealand
Offshore Disciplines
● Eliminate!
● Remote operations and surveillance; Pohokura,
Kupe
● Run & Maintain!
● Offshore Leadership
● Plant/Process Operators
● Maintenance trades (mechanical, electrical,
instrumentation etc.)
● Wells/Drilling/Workover specialists
● Offshore Support and Logistics (catering, medical,
janitorial)
● It takes a village!
● Engineering & Technical Integrity Management
● Turnaround/Inspection/Certification Services
● All Corporate functions

134| NZ Offshore Renewable Energy Forum, March 2023


OMV New Zealand
Contracting and Supply Chain
● Supply Chain (critical operating equipment)
● Reliability modelling determines maintenance
strategies. Critical spares held locally
● Reliant on international equipment supply chains,
particularly for major parts & services
● Major developments reliant on asset
mobilization/demobilisation

● Long term contractors providing specialist services


● Helicopter Transport
● Supply Boats & Port/Logistics Facilities
● Maintenance Services
● Well Services
● Personnel Providers

135| NZ Offshore Renewable Energy Forum, March 2023 © OMV Energy


OMV New Zealand
Opportunities for Collaboration
“Similar, but very different”
● Similar maturation lifecycle
● International asset mobilization at installation
● Existing communities
● Social license to operate; relationship building
● Regulatory knowledge
● No requirement for “permanent” offshore workers
● Utilise existing infrastructure
● Lower costs
● Reduced environmental impacts
● Leverage existing offshore capabilities, expertise and
knowledge
● HSSE
● Contracting & Supply Chain Management
● Skill pool attraction and development

136| NZ Offshore Renewable Energy Forum, March 2023


Legal Disclaimer
This presentation is prepared in order to outline our expression of interest. Nothing in this presentation shall
be construed to create any legally binding obligations on any of the parties. Neither party shall be obligated to
execute any agreement or otherwise enter into, complete or affect any transaction in relation to this
presentation.

All figures and information in this presentation are strictly confidential, they are by no means binding and thus
indicative only.

© 2023 OMV Exploration & Production GmbH, all rights reserved, no reproduction without our explicit consent.

137| NZ Offshore Renewable Energy Forum, March 2023 © OMV Energy


Internal
Panel session: Next steps
▪ Justine Gilliland – Offshore Wind Partnerships Director, Elemental Group
▪ Sheree Long – Workforce Development Director, Energy Resources Aotearoa
▪ Blair Walter – Chairperson NZWEA and Renewable Team Lead, Aurecon
▪ Jonathan Young – Head of Policy, Research and Insights, Ara Ake
Offshore Renewable
Energy Forum
8-9 March 2023 | Devon Hotel, New Plymouth

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