It’s possible that I shall make an ass of myself. But in that case one can always get out of it with a little dialectic. I have, of course, so worded my proposition as to be right either way (K.Marx, Letter to F.Engels on the Indian Mutiny)
Tuesday, August 17, 2021
Incidents Against Ships Declined Significantly in Asia in 2021
Singapore Strait is one area of concern reporting the only increase in crime in 2021 (file photo)
The number of incidents against ships in Asia declined significantly in the first half of 2021 falling to the second-lowest level in the past fourteen years. The six-month report on piracy and armed robbery against ships in Asia released by the Regional Cooperation Agreement on Combating Piracy and Armed Robbery against Ships in Asia (ReCAAP) highlights the decline in serious crime while reporting five incidents, including one where a crew member was threatened with “an improvised gun,” in July.
“The total number of incidents of armed robbery against ships in Asia reported during January-July 2021 has deceased compared to 2020,” ReCAAP reports. “However, of concern is the persistent occurrence of incidents in the Singapore Strait and the continued threat of abduction of crew in the Sulu-Celebes Seas and the waters off Eastern Sabah (Indonesia).”
On the five incidents reported to ReCAAP last month, one however included a higher level of violence. It happened on July 17 in the anchorage in Manila. The duty watcher aboard the Maersk Nussfjord containership encountered an unidentified person at the forecastle of the vessel who pointed “an improvised gun at the back of the duty watcher’s head.” During the incident, the perpetrator took the watchman’s two-way radio and tied him to the railing of the ship. Seven other unidentified persons then boarded the ship, broke the padlock of the boatswain mate locker, and took away one roll of new spare rope mooring line. After they left, the watchman untied himself from the railings and reported the incident.
The other reports in July included two further boardings both in the eastbound lane of the Singapore Strait, which is a continuing area of concern for ReCAAP with a total of 22 reports in the first six months of the year. In one case, five people armed with knives were seen aboard a bulk carrier but left without stealing anything, and another sighting was of a single individual also armed with a knife who was discovered and left without taking anything. There were also two other incidents where equipment was stolen ranging from fire hose couplings to power tools and a welding machine in anchorages in Manila and Indonesia.
Despite these reports, overall incidents in Asia were down by a third in the first half of 2021 versus 2020. According to ReCAAP, it is the second-lowest level between January to July from 2007 to 2021. They further reported that there were no incidents of piracy and no crew were abducted in 2021. Currently, ReCAAP is not aware of any cases where crew members are being held in captivity in Asia.
Beyond the increase in incidents in the Singapore Strait, ReCAAP says the majority of reports were from the Philippines and Indonesia. There were only three reports in Indian and two in Vietnam, while there were none in Bangladesh, the South China Sea, or the Sulu-Celebes Seas in the first half of 2021.
Of the 41 total incidents reported this year, in nearly two-thirds the perpetrators were not armed, often fled when they were discovered, and no crew was harmed.
ReCAAP credits the ongoing patrols and law enforcement efforts as well as reporting. They however cautioned that until the perpetrators are arrested incidents are likely to continue and that heightened vigilance must be maintained.
Robbery and Piracy Declines in 2021 Except in the Singapore Strait
Robberies are down in Asa except in the Singapore Strait (file photo)
The regional organization that coordinates efforts to combat piracy and armed robbery against ships in Asia, ReCAAP, has once again issued a warning about the level of activity in the Singapore Strait and in particular in one zone near Bintan Island, Indonesia. ReCAAP reported two additional incidents on July 17, while the organization reported a decline in overall activity during the first half of 2021.
The latest incident alert reports that there were two unauthorized boardings both on July 17 while each ship was underway off Tanjung Pergam, Bintan Island, Indonesia. The two incidents occurred approximately 30 minutes apart and in the same area of the Singapore Strait in the eastbound traffic lane. In both cases, the boarders were spotted by the crew members that reported that the boarders were armed with knives. In one incident they were seen in the engine room and the other in the steering gear room. In both cases, they fled once they were discovered and both ships reported that their crew was unharmed and nothing had been stolen.
“The ReCAAP ISC is concerned with the persistent occurrence of incidents in the Singapore Strait, particularly a cluster of incidents off Tanjung Pergam, Bintan Island, Indonesia,” the alert said. “Since January 2021, a total of 22 incidents occurred in the Singapore Strait, with 18 incidents occurred off Tanjung Pergam.”
ReCAAP is again warning ships to increase their safety efforts and lookouts, especially at night when most of the boardings have occurred. In half of the incidents, the boarders were armed with knives and in six cases engine spare parts were stolen. In two of the incidents, the crew was also assaulted.
News of the latest boardings came just after ReCAAP issued its six-month report during which time it says armed robbery against ships in the region declined by more than a third versus 2020. While there were 35 incidents and two attempts, there were no reports of piracy, only pretty crimes, and 20 of the incidents detailed in the six-month report were in the area of the Singapore Strait. That represented a 25 percent increase in reported incidents over 2020 in the Strait.
Overall, the severity of the incidents also declined during 2021. In more than two-thirds of the reports, the perpetrators were not armed, and no crew was harmed. In addition, there were no abductions of crew in the Sulu-Celebes Seas and the waters off Eastern Saba, with the last incident in January 2020. Further, the four crew members abducted in January 2020 were rescued in March 2021 by the Philippine authorities.
While incidents are down overall in the region, ReCAAP highlights that there have also not been arrests to disrupt the gangs that have carried out some recent boardings of ships. As such, they repeated the call for cooperation and reporting warning ships to remain on guard at all times.
IMB: Piracy and Armed Robbery at 27 Year Low in 2021
The ICC International Maritime Bureau (IMB) reported that the incidents of piracy and armed robbery are at their lowest levels in 27 years. The organization, which was founded in 1991, said that during the first half of 2021, it received the lowest number of reported incidents for the first half of any year since 1994. They, however, cautioned, that the risks remain for seafarers and especially in certain regions of the world.
IMB’s latest global piracy report details 68 incidents of piracy and armed robbery against ships during the first six months of 2021 compared to 98 incidents during the same period last year. The IMB’s Piracy Reporting Centre (PRC) highlighted that in 91 percent of the incidents, 61 vessels, the ships were boarded. In addition, four attacks were attempted, two vessels were fired upon, and one vessel was hijacked since January 2021. Despite the overall decline in reported incidents, violence against crews continued with 50 crew kidnapped, incidents where crew were threatened, taken hostage, or assaulted, and one crew member was killed and another injured.
The Gulf of Guinea continues to be particularly dangerous for seafarers, with 32 percent of all reported incidents taking place in the region, according to IMB. The region accounted for all 50 kidnapped crew and the single crew fatality during the first half of 2021.
The number of kidnappings recorded in the Gulf of Guinea, however, during the most recent quarter was the lowest since the second quarter of 2019. IMB warns that the pirates continue to target all types of vessels operating in the region and that fishing vessels have been hijacked in the Gulf of Guinea and later used as mother ships to target other merchant vessels.
“Whilst IMB welcomes reduced piracy and armed robbery activity in the Gulf of Guinea, the risk to seafarers still remains,” said IMB Director Michael Howlett. “By reporting all incidents to the Regional Authorities and IMB PRC, seafarers can maintain pressure against pirates. Bringing together maritime response authorities through initiatives – like Nigeria’s Deep Blue Project and Gulf of Guinea Maritime Collaboration Forum – will continue and strengthen knowledge sharing channels and reduce risk to seafarers in the region.”
As with other security organizations, the IMB is also warning that the pirates in the Gulf of Guinea are carrying out attacks further from the coast. For example, in early June, a bulk carrier was approached by a skiff with six pirates while approximately 210 nautical miles off the coast of Lagos, Nigeria. In that instance, the vessel was able to prevent the armed pirates from coming onboard, but it illustrates the distances at which the pirates are threatening vessels.
IMB also highlights the dangers of operating in the Singapore Strait, similar to the numerous reports of boardings and thefts from ReCAAP. Sixteen incidents were reported to the IMB center in the first six months of 2021. This was up from 11 reported incidents during the same period in 2020 in the Singapore Strait. According to IMB, these attacks are considered opportunistic, but in seven of the incidents, the perpetrators were armed with knives. In three separate incidents, seafarers were reported to have been either threatened, assaulted, or injured.
The report also highlights an increase in incidents in Peru’s Callao Anchorage. There were four reports in the second quarter of 2021 with knives reported in three of these attacks. In comparison to the first half of 2019 and 2020, IMB reports that this represents a two-fold increase in the number of incidents, with nine incidents reported in total for 2021. Perpetrators in the region possess the capacity to carry out violent attacks, with two separate incidents of crew being taken hostage and assaulted occurring in the first six months of 2021.
Vessels are also advised to take precautionary measures while anchored in Manila Bay, Philippines. IMB recorded four incidents during the second quarter of 2021.
IMPERIALISM
Myanmar Port Project Highlighted in China’s BRI Human Rights Abuses
As China seeks to increase its influence over Myanmar including its ports and key infrastructure projects, a new report highlights China's Belt and Road Initiative (BRI) projects impact in developing countries while citing the extensive lists of alleged human rights abuses lined to Chinese business operations. The report comes days after Myanmar's military junta decided to expedite China’s funded Kyaukphyu Special Economic Zone (KPSEZ) and the deep-Sea Port project.
The report launched by the Business and Human Rights Resource Centre (BHRRC) highlights what the watchdog organization says are the increase in social, environmental and human rights violations, especially “in countries with weaker governance and where Chinese investments are dominant.” Between 2013 and 2020, there were allegedly 679 human rights abuse allegations linked to Chinese business operations abroad.
The London-based group, which monitors human rights violations in more than 10,000 companies worldwide, highlighted in the report that Myanmar had the highest number of recorded allegations, leading with 97 cases. South East Asia, Africa and Latin America also featured prominently in the alleged abuses. The Chinese businesses that had high risks for human rights abuse are in construction, fossil fuel energy and mining.
“The Junta has recently invited bids to provide legal services to the KPSEZ and deep-sea port project in Myanmar’s western Rakhine State, a key strategic component of China’s Belt and Road Initiative,” reported The Economic Times, India.
This project is vital to BRI, as it will give China a direct access to the Indian Ocean, significantly enabling the China trade to bypass the congested Strait of Malacca near Singapore. The BHRRC report also notes, “Many projects in Myanmar had human rights concerns prior to the February 2021 military coup.”
In 2017, a report from the Myanmar-China Pipeline Watch Committee (MCPWC), responding to operations of China National Petroleum Corporation (CNPC), indicated that gaps remain in building clear communication and accountability mechanisms, to facilitate dialogue with the affected communities and address public concerns effectively.
CNPC operates Myanmar- China pipelines that transport crude oil and natural gas from some offshore blocks in Myanmar.
In May 2019, Adani Ports announced plans to set up a container terminal at Yangon, Myanmar investing as much as $290 million in the project as part of the overall development in Myanmar. Adani recently said it believed it could proceed with the project without being in violation of U.S. sanctions. The Chinese government has been pushing for the broader development, with an initial estimated that the projects would cost between US$9-10 billion. Myanmar raised concerns over the amount of debt it would incur leading to an agreement for the first phase of the port development cost around $1.5 billion, according to the NLD government.
Canada's Transport Minister Announces Ports Investments
Vancouver Centerm Ballantyne port area (Vancouver Fraser Port Authority)
As part of its economic recovery and to lay the foundation for future growth, the government of Canada announced two projects designed to enhance its industrial ports. Canada’s Transport Minister, Omar Alghabra, announced the projects saying that Canada is investing in its economy by making improvements to its trade and transportation corridors.
The investments in the ports will include Vancouver, Canada’s busiest port and a key gateway for Asian trade and on the east coast the Saguenay Port, which serves the industrial region of Saguenay-Lac-St-Jean at the head of the Saguenay fjord. Other investments are planned in airports and the Canadian rail system.
As Canada’s largest port, the port of Vancouver provides a strategic gateway for the country’s imports and exports, handling a third of Canada’s trade in goods transiting outside North America. Last year, overall cargo throughput at the port remained largely flat due to COVID-19 disruptions, which resulted in just a one percent increase to 145.5 million metric tons and two percent growth of 3.5 million TEUs in the container trade. The port however annual accounts for almost C$240 billion in goods and more than 2,700 foreign vessel calls.
The Minister announced plans to improve marine vessel traffic flow at the Port of Vancouver and in Southern British Columbia. With the support of Transport Canada, the Vancouver Fraser Port Authority will work with partners to design a new collaborative system to manage marine vessel traffic and optimize the supply chain flow for this strategic gateway. To be completed by March 31, 2022, the new plan includes approaches to policies, procedures, practices, incentives, technologies, information, and data sharing needed to deliver a traffic management system that creates benefits for all partners.
Earlier this summer the port experienced an unprecedented container backlog after devastating wildfires disrupted rail transport. Investment in the new system comes at a time when the Port of Vancouver is investing more than C$1 billion in infrastructure projects, including two container terminal projects and several road and rail projects to enhance its long-term competitive position and prepare it to handle growth as well as manage future issues such as those experienced this summer.
Once implemented, the system is expected to strengthen maritime safety by reducing congestion and actively managing traffic to improve the efficiency and reliability of the flow of goods for importers and exporters.
Minister Alghabra also announced an investment of over C$33 million for the Saguenay Port. A regional port, it is an import business for the local industry. The deep-water port is capable of handling vessels up to 100,000 dwt and is ice-free remaining open year-round.
The project targets the installation of an electric mechanized transport system to transport materials at the Saguenay Port site. The conveyor system will be used to move materials back and forth between the industrial port zone and ships docked at the Grande- Anse Marine Terminal. Additionally, the system will also be accessible for loading and unloading of materials for port users who may build processing plants on the Saguenay Port property.
The funding will be done through the National Trade Corridors Fund, a merit-based program providing funding for investment in critical infrastructure assets in Quebec and across Canada. This project funding aims to enhance the performance and functions of facilities at the port, helping increase handling capacity and reduce bottlenecks in daily operations.
In announcing the two projects, the minister noted that the quality of Canada’s transportation infrastructure and the efficiency of its trade corridors are key to the success of companies in the global marketplace. As such, the Government of Canada continues to invest in infrastructure projects that create quality middle-class jobs and support economic growth.
Plan to Decarbonize Norway’s Ammonia Production to Build Leadership
Ammonia plant at Herøya (Dag Frode Heiland photo courtesy of Statkraft)
To enable large-scale green ammonia production, a new Norwegian company is launching to decarbonize an existing production plant as part of an effort to support building Norway’s position in the emerging clean energy field. HEGRA, which is co-owned by Yara, Aker Clean Hydrogen and Statkraft aims to electrify and decarbonize the ammonia plant at Heroya in southern Norway on the North Sea.
According to the companies, the timing for establishing HEGRA is important because it will be key to building a well-functioning domestic and regional market before the global demand for ammonia increases. The plant currently produces approximately 500,000 tons of ammonia. Provided that power is available at site and the required public co-funding is in place, the companies said the project to convert Heroya into green production project could be realized in five to seven years.
“HEGRA is more than a new industrial company, it is Norway’s largest climate initiative,” said Auke Lont, Chair of HEGRA’s Board. “The decarbonization project will reduce CO2-emissions by 800,000 tons annually, equivalent to 300,000 fossil-fueled cars. It marks the beginning of developing a Norwegian value chain for green ammonia and hydrogen.”
Green ammonia, produced using renewable energy, would enable the production of carbon-free fertilizer, and is a promising zero-emission fuel for the maritime sector. HEGRA will contribute to creating a new industry based on a regional hydrogen and ammonia market, while contributing to maintaining the competitiveness of the Norwegian maritime and processing industries.
The companies noted that access to emission-free fuel will be key to the future of the maritime industry. They believe that the existing global infrastructure for ammonia will facilitate Norwegian green ammonia becoming a global commodity. With renewable energy in abundance, Norway is in a good position to capture a large share of the emerging global green hydrogen and ammonia value chain.
A report published in 2020 by The Confederation of Norwegian Enterprise found that the hydrogen industry can become a significant Norwegian export industry. They estimated it could reach more than $1 billion by 2030 and $8 billion in 2050.
China Makes a Hard Turn Towards Clean Hydrogen
Chinese solar power company GCL is pivoting to hydrogen (GCL)
China is on track to become a powerhouse for the production of green hydrogen, one of the most promising alternative fuels for shipping, according to recent reports from BloombergNEF and Fitch. As the world's largest shipbuilder, largest exporter, largest port operator and third-largest shipowner, China's fuel policy choices will have a significant impact on the composition of the world fleet.
Hydrogen power is prominently included in the Chinese Communist Party's 14th Five-Year Plan. At present, most of China's hydrogen comes from coal gasification or steam reformation of methane, but green hydrogen (from renewable electricity) is a high priority as China takes aim at carbon neutrality by 2060. According to IEA data, China has 20 green hydrogen projects under development today.
As the cost of the electrolyzer units used to split water into hydrogen and oxygen comes down, the share of green hydrogen in China's economy is expected to rise. The Hydrogen Council predicts that electrolyzer prices are going to fall by 70-80 percent within ten years' time, dramatically lowering total cost of production.
The prospect of a hydrogen value chain is attracting large Chinese companies, including solar manufacturer GCL, which is jettisoning its solar power station assets and investing in new hydrogen projects. It plans to build out about 400,000 tonnes of green hydrogen capacity in China, predominantly from solar power sources, and it is investing in a much larger conventional natural gas-to-hydrogen project in Ethiopia. "We are re-locating ourselves and focusing on a new racing track," GCL Chairman Zhu Gongshan told Reuters.
However, there may be a timeframe mismatch between when Chinese production of electrolyzers ramps up and when demand for electrolyzers materializes. BloombergNEF expects that next year, demand for electrolyzers will be in the range of 2 GW - an unprecedented number driven up by growth in China. The same year, electrolyzer manufacturing capacity will hit 10 GW, rising to 16 GW by 2024 - creating an oversupply that could drive down electrolyzer prices and prompt further uptake.
“What's happening in China right now is revolutionary for clean hydrogen,” said Martin Tengler, lead hydrogen analyst at BNEF. "Chinese companies are racing to show their compliance with the country's carbon neutrality target, pushing the market for electrolyzers . . . to be at least nine times bigger in 2022 than in 2020."
REVIVING OLD WELLS
Design Begins for Malaysian Carbon Capture and Storage Project
Xodus will design the CCS project for the platform (Xodus)
The development of the first complete Carbon Capture and Storage (CCS) project, offshore Malaysia, is getting underway for the oil and gas company Petronas. The conceptual engineering design contract for the project was awarded to the global energy consultancy Xodus.
The Kasawari CCS project, off the coast of Sarawak, will comprise the capture and processing of carbon dioxide (CO2) from the sour gas field development, which will then be injected in a depleted gas field. This project is a key element of PETRONAS’ aspiration of achieving net-zero carbon emissions by 2050.
“CCS will be a key part of a global transition to net-zero carbon emissions and our international experience and expertise will support PETRONAS in delivering sustainability across future projects,” said Simon Allison, Xodus’ Regional Director for Asia Pacific. “This is a significant step for PETRONAS and Malaysia and aligns with our ethos of delivering a responsible energy future. The award of this contract is a demonstration of the success of our expansion and recognition of our growing footprint across the APAC region.”
Xodus provides engineering services for the operator’s Malaysian and international developments and under the agreement is developing the feasibility studies and conceptual design for the CCS project. In delivering for Kasawari, Xodus will also enable knowledge and expertise exchange with its Malaysian client and contractor communities. Xodus has extensive experience across all aspects of CCS including designing and operating systems to capture, process, transport, inject and store CO2.
Environmentalists Urge US Navy Involvement in Final Golden Ray Salvage
Two sections of the Golden Ray remain with the team preparing for the final cut (St. Simons Sound Incident Response photo)
As the salvage team working on the Golden Ray approaches the final cut and the removal of the last sections of the wrecked car carrier, a local environmental group is calling for experts from the U.S. Navy’s Salvage Division to become involved. After the recent oil spill, which was the largest since the cutting and removal began, the Georgia group One Hundred Miles fears that the last sections could lead to another significant spill, which they warn could be catastrophic to the sensitive marshes along St. Simon’s Sound.
“As we enter the last stage of salvage operations, significant concerns remain,” the environmental group writes on its website. “As much as 44,000 gallons of heavy fuel oil, along with other hazardous chemicals and debris, remained onboard when initial cutting began.”
The group is urging the U.S. Coast Guard Commander for the region, Admiral Brendan McPherson, the Commander of the 7th District of the U.S. Coast Guard, to ask the U.S. Navy Salvage Division for their expertise and assistance with the remaining clean-up process. “The Navy's expertise, equipment, and additional manpower can improve the outcome of the salvage operation, and their involvement is necessary to prevent further injury to human and environmental health.”
Over the weekend, the Unified Command announced that it had finally been able to remove section six of the wreck after a delay while they had addressed the recent oil leak. On August 13, they lifted section six onto the barge after completing the removal of debris and sediment, and the following day tugs towed the barge to a response facility south of Mayor’s Point Terminal.
Welders prepare to attach cradles to the hull-side of section six (St. Simons Sound Incident response photo)
The environmental group’s concerns about the remaining hazardous materials aboard were highlighted by a small oil discharge this weekend with the Unified Command reporting that approximately 25 pollution response vessels quickly mitigated an oil discharge using oil skimmers, Current Busters, and a sorbent boom. In total, on-water pollution response teams recovered approximately 2,300 gallons of oil during the controlled lifting operations that began on July 31 for section six, according to the Unified Command.
One Hundred Miles also wrote to the Coast Guard commander alleging inadequacy of the booms surrounding the ship’s environmental protection barriers contending that the boom was only built to withstand currents less than one knot even though Georgia’s coast has currents of four knots.
A spokesman for the salvage operation speaking to the local Brunswick News said that the team had been challenged by the “rapidly changing currents within the sound,” but that they were constantly monitoring the wreck site and surrounding areas and had scaled up their response teams within 48 hours of the most recent oil spill, with the teams continuing to work across the area.
Response vessels recover an oil discharge using a Current Buster (St. Simons Sound Incident response photo)
A shoreline clean-up team removes oiled sand on a beach near Gould’s Inlet (St. Simons Sound Incident response photo)
The environmental group says that it is unclear how much oil remains aboard in the last two sections of the vessel and worries that another large spill could happen based on the leak experienced when the team started raising section six from the water preparing it to be loaded on the recycling barge. The Unified Command originally reported that the vessel had approximately 380,000 gallons of fuel when it heeled over in the sound in September 2019. After some initial oil leaks, the salvage team removed 327,000 gallons of fuel at the end of 2019 according to the newspaper, leading to the contention of the environmentalists that more than 40,000 gallons could have been trapped aboard the vessel.
The Unified Command’s spokesperson told the Brunswick News that they had not expected the scale of the last leak this late in the salvage operation. However, they said that the command has already been and continues to consult both with the salvage experts at the U.S. Navy and U.S. Coast Guard.
With section six having been removed from the site, the VB-10,000 being used for the cutting and lifting operations began a refitting period on August 15 to prepare for the final cutting operation to separate the two remaining sections of the wreck. The VB 10,000 rig will be repositioned over the remaining 153-foot section of the wreck and the final cut will begin. After the last two sections are removed for recycling, the operation will move into its final phase which includes a review of the site and remediation.
Construction Proceeding on World’s Largest Offshore Wind Farm
Completed substations were loaded onto a heavy lift vessel (Sembcorp Marine)
Construction is proceeding with additional components completed for what is projected to become the world’s largest offshore wind farm. Located approximately 50 miles off England’s Yorkshire Coast in the North Sea, Orsted’s Hornsea Two Offshore Wind Farm will have a capacity of 1.4 GW when it goes into service in 2022.
Recently, Semborp Marine in Singapore completed the assembly of the topside units for the wind field consisting of the offshore substation and reactive compensation station. The construction is the largest AC offshore substation and combined with the other unit they together weigh over 10,200 tons. The two units were recently placed aboard a heavy lift vessel and departed Singapore on August 15. The substations are expected to reach the UK by late September. Once there they will be integrated with their jackets, which were installed in October 2020.
“With plans to have the wind farm operational in 2022, this is a very exciting milestone for Hornsea Two,” said Patrick Harnett, Senior Programme Director for Orsted. “Hornsea Two will be the world’s largest offshore wind farm and is already paving the way for future renewable energy projects which will have a significant impact on our mission to reach net-zero.”
The construction work at the installation site began in summer 2019 and continues to make strong progress. Recently, Rostock-based EEW Special Pipe Constructions announced that it had completed the last of the monopiles for the site. They were shipped to Eemshaven and from there are then being transported to the installation. A total of 165 monopiles were built in Rostock for the wind farm.
The site marked a key milestone at the end of May 2021, when the first turbine was raised into position. The first load out of turbines left the port of Hull in May on the installation vessel Sea Challenger, owned by DEME Offshore. The turbines include the new 265-foot-long blades which have been manufactured at Siemens Gamesa Renewable Energy’s blade factory in Hull.
In a recent update, they reported that as of mid-August 50 of the turbines were now in position. The completed array will have 165 8MW Siemens turbines installed, each standing 656 feet above sea level, with a rotor diameter of 578 feet.
South Korea Awards First Offshore Wind Farm License
South Korea awarded the first license for a floating offshore wind farm to be developed in a partnership between Macquarie’s Green Investment Group (GIG) and TotalEnergies. With a maximum installed capacity of 1.5 GW developed across three phases, the project is projected to be one of the largest floating offshore wind developments in the world.
The Ministry of Trade, Industry and Energy’s Electricity Regulatory Commission granted the partners an Electricity Business License (EBL) for their offshore wind project to be located near Ulsan, Korea. The EBL grants the partners exclusive development rights to progress the project’s first phase, which will consist of 504 MW. Detailed environmental impact assessments will now commence on phase one, and construction is expected to start in 2024.
“The award of an EBL is a significant milestone in the development of GIG and TotalEnergies’ Ulsan floating offshore wind farm,” said Shin Jungwon. TotalEnergies’ Country Chair for Korea. “We recently completed our wind resource measurement campaign, and having now been awarded exclusive development rights, we’re looking forward to starting detailed environmental impact and engineering assessments.”
The wind farm is part of South Korea’s Green New Deal that calls for the construction of 8 GW of wind-generated power as part of its plan to achieve carbon neutrality by 2050. Through the project, GIG and TotalEnergies said they aim to help deliver the Korean government’s Green New Deal, revitalize local economies, and support high-skilled employment opportunities. The partners are committed to utilizing the local supply chain whenever possible and are actively collaborating with shipbuilders and heavy industry companies in Ulsan to help revive Korea’s offshore industries.
“With its fantastic infrastructure and offshore experience, Ulsan is the perfect location for floating offshore wind development. That’s why GIG and TotalEnergies are joining hands with Korea’s world-class shipbuilding and offshore industries to deliver this market-leading project. By bringing together specialist local know-how with GIG and TotalEnergie’s global expertise, the Ulsan project will place Korea at the forefront of the global floating offshore wind market,” said Woojin Choi, Managing Director, GIG Korea.
Once operational, the full 1.5 GW project is expected to produce enough electricity to power the equivalent of over 1.5 million households and reduce emissions by approximately 2.3 million tCO2e per annum.
It is also the first of several projects the partnership is seeking to develop. GIG and TotalEnergies also recently submitted a bid into Scotland’s latest offshore wind leasing round, ScotWind, and secured rights to develop the 1.5 GW Outer Dowsing Offshore Wind project off the east coast of England.
Senators Propose Bill to Spur Offshore Wind Manufacturing and Vessels
Massachusetts is pushing forward with the Vineland project (file photo)
U.S. Senators representing Massachusetts and New Jersey are proposing legislation that they say will help to spur the domestic manufacturing and deployment of offshore wind projects. Saying that to date the offshore wind supply chain is concentrated in Europe, China, and South Korea, the senators from two of the states expected to be the first to launch large scale offshore wind farms are calling for investment tax credits and a production tax credit for qualified offshore wind components and dedicated offshore wind vessels.
Calling their proposed legislation the Offshore Wind American Manufacturing Act, they said it would prioritize American workers and require prevailing wages for laborers involved in the construction and expansion of qualified manufacturing facilities or the manufacture of qualified offshore wind products. Many states have already proposed massive programs to create wind ports and manufacturing sites as part of a means of rehabilitating ports and supporting the birth of the offshore wind industry. In addition, the U.S. has already said that vessels involved in the wind sector would be subject to the Jones Act in a similar fashion to how the cabotage laws were applied to the offshore oil and gas industry.
“Offshore wind is a booming market, but without effective manufacturing policy, American workers will be left behind,” said Senator Edward Markey of Massachusetts. “The Offshore Wind American Manufacturing Act helps ensure that each offshore wind turbine deployed in the United States over the next 10 years is made in America.”
The proposal calls for the creation of a 30 percent investment tax credit for qualified facilities that manufacture offshore wind components and subcomponents that would reduce the high capital costs required to build, upgrade, or retool a facility. The investment tax credit would be complemented by a new production tax credit that ranges from two to five cents per watt multiplied by the total rated capacity of the turbine. The production tax credit varies by components including blades, towers, nacelles, generators, gearboxes, foundations, and related vessels.
“Federal investment in offshore wind manufacturing is good for the environment, good for the economy, and good for the American people,” said co-sponsor of the proposal Senator Robert Menendez of New Jersey. “It will create good-paying jobs, expand the nation’s manufacturing base, and keep the U.S. on the cutting edge of new, green technologies, ensuring our nation’s economic competitiveness in the face of emerging environmental challenges.”
The full investment tax credit would be available until December 31, 2028, and phase out annually afterward. The production tax credit would be available until December 31, 2030.
In introducing the proposal, the senators said that the offshore wind industry is a critical part of the U.S. efforts to combat climate change and create energy independence. They are confident that their proposal would help create thousands of manufacturing jobs and ensure that the United States meets President Joe Biden’s offshore wind goal of 30 GW by 2030.
