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, November 07, 2023
Video: Carnival Magic Accidentally Discharges Scrubber Wastewater in Port
Carnival Cruise Line’s ship the Carnival Magic experienced what appears to have been an accidental discharge of wastewater from its exhaust scrubber system as it was preparing to depart port yesterday. Passengers were posting videos and photos on social media of a large black stain appearing behind the ship in the harbor at Grand Turk in the Turks and Caicos Islands. The captain can be heard in some of the videos assuring passengers that everything was fine with their cruise ship.
The Carnival Magic is a 130,000 gross ton cruise ship built in 2011 with a capacity for 3,690 passengers and over 1,300 crew. She is on a 6-day cruise from Miami and was preparing to depart Grand Turk after a day-long port call when the mishap occurred.
“A momentary power outage likely contributed to the incident,” a Carnival Cruise Line spokesperson said in response to inquiries from the trade media. “The Carnival Magic team is working on the clean-up of a soot discharge from the ship’s Exhaust Gas Control Systems (EGCS) that occurred while preparing for departure today from Grand Turk.”
Passengers reported that around 5:30 p.m. as the cruise ship was preparing for a 6:00 p.m. sailing the ship briefly lost electrical power. Some reports said the lights were off for around one minute while the captain and others confirmed emergency lighting came on aboard the ship. While power was quickly restored, passengers began noticing the large black area drifting behind the ship with some fearing it was an oil discharge. The cruise line however reports it was a discharge from the exhaust scrubber system.
Passengers posted pictures and said they saw officers and crewmembers on the dock looking upset. The cruise line said the appropriate local officials were also notified of the incident. Later images showed one of the cruise ship’s lifeboats towing what appeared to be a boom.
The cruise ship departed Grand Turk approximately two and three-quarters hours behind schedule at 8:45 p.m.
Drew Marine Unveils Inaugural Environmental, Social, and Governance Report
Drew Marine presents its inaugural Environmental, Social, and Governance (ESG) report. As a prominent supplier to vessels pivotal to the global exchange of goods, Drew Marine has always recognized the significance of diminishing environmental footprints and bolstering sustainability. Drew Marine’s inaugural report represents its drive to continuously improve performance and reduce its global carbon footprint.
The report encapsulates Drew Marine's strategic alignment with the United Nations Global Compact, embracing the Ten Principles focusing on human rights, labor, the environment, and anti-corruption and commitment to The Climate Pledge. By doing so, not only reinforces the company’s commitment in daily operations but also underpins its strategy and culture.
“This ESG report embodies our mission to be a leader in the maritime sector delivering superior service and innovation while driving positive global change,” said Scot R. Benson, CEO of Drew Marine. “Our objective is to be regarded as a true resource by our customers as they work to achieve their ESG objectives. We endeavor to accomplish this while continually recognizing our employees and providing them a socially responsible environment."
Key Highlights from the report include:
Global Commitment: By partnering with 67 organizations globally and offering expertise on 17 international boards, Drew Marine drives meaningful social change.
Innovation for a Sustainable Future: Initiatives like IMO 2020, CREW CARE®, and the newly introduced H DREW O Drinking Water System Complete showcase Drew Marine's dedication to innovative solutions that further sustainability and ensure the welfare of maritime communities.
Global Reach: With an expansive network spanning over 1,100 ports, Drew Marine caters to diverse marine markets, ranging from cruise and container to military and tanker sectors, ensuring exceptional service delivery worldwide.
A People-Centric Approach: At its core, Drew Marine's strength lies in its global team. The team’s emphasis on inclusive growth, respect, and celebrating individual contributions drives innovation and progression in maritime solutions.
Pioneering Maritime Solutions: Drew Marine prides itself on its innovative solutions, which range from water treatment programs and fuel additives to biodegradable products and refrigerant reclamation initiatives. These offerings not only optimize vessel performance but also promote environmental responsibility.
Drew Marine invites maritime professionals and enthusiasts to delve into this document and understand their unwavering commitment to a sustainable maritime future. The report is accessible on Drew Marine's website and provides a comprehensive overview of the company's ESG efforts.
This article is sponsored by Drew Marine. For more information visit the company online.
Safety kit preassembled for easy use
The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.
Royal Navy Saves Smugglers From Sinking Boat
Two interceptor boats from HMS Dauntless respond to a sinking smuggling boat in order to save the crew (Royal Navy)
A Royal Navy warship has seized $75 million worth of cocaine and prompted smugglers to scuttle their own speedboat in an interdiction in the Caribbean.
The air defense destroyer HMS Dauntless was under way on a routine Caribbean patrol when she encountered the smuggling craft. Her embarked Wildcat helicopter and a Royal Marines sniper team chased it down, and when the smugglers began to throw the illicit cargo over the side, the snipers disabled the boat's engines.
With this mission accomplished, Dauntless dispatched a small boat crew with a U.S. Coast Guard boarding team, who have the training and law enforcement authority to arrest traffickers for later prosecution. They retrieved 11 large bales of cocaine weighing a total of 330 kilos.
Two smugglers were saved and brought aboard HMS Dauntless where they received medical treatment, food and water. They were transferred to a U.S. Navy vessel the following day.
“With another bust under the ship’s belt I cannot ask for more from my team. Their work ethos and attention to detail remains second to none," said HMS Dauntless’ Commanding Officer, Commander Ben Dorrington.
Images courtesy Royal Navy
The interdiction brings Dauntless' total cocaine catch for this season's patrol to $250 million.
In an earlier intercept in the same patrol, a suspected smuggling crew sabotaged their own craft, turning an interdiction into a rescue operation.
"It was vital that with their fast-sinking vessel, we suspended the boarding operation in order to rescue the two souls on the small craft to ensure their safety and lives were not put at risk," an unnamed officer from Dauntless said.
Image courtesy Royal Navy
Dauntless captured $175 million worth of cocaine in an earlier raid over the summer, seizing more than 1,200 kilos of cocaine in one seizure. The crew also used the warship's advanced radars to track a small drug-running aircraft over the Caribbean, handing off to ground forces who intercepted it on landing and captured another 550 kilos.
Royal Navy Trains AI to Detect Hostile Small Craft
A flotilla of Royal Navy small boat operators simulate a hostile force (Royal Navy)
The Royal Navy is helping to train an artificial intelligence system that can analyze small-craft movements and decide whether watercraft are just some boaters out for a ride or a hostile force preparing to attack.
The Defence Science and Technology Laboratory (Dstl), the UK's in-house military R&D institution, is working on an AI system that can look at photos and videos of watercraft and categorize the boats' behavior. The goal is to identify whether a group of small craft are moving in a random way, like civilian powerboats, or whether they are operating in a coordinated and controlled pattern - as they would if they were run by military personnel.
In order to "learn" about how military small boat teams move and behave, this AI program needs a set of reference photos and videos that it can pore over for training. Last month, the Royal Navy carried out an exercise on the Solent to create a data set for what an expert (or inexpert) small-boat military operation looks like.
The maneuver was a relatively large-scale operation involving 13 vessels, 130 personnel, drones, a small aircraft and over 50 cameras and sensors over an 18-mile course on the Solent. The boat teams spent five days demonstrating close formations, attack profiles, convoys and beach landings. In addition to crisp, professional landing operations, the personnel also simulated more "chaotic" behavioral traits of a less-trained force, which - even if disorganized - could still pose a threat along the waterfront.
Royal Navy small boat operators simulate a military landing operation on the Solent (Royal Navy)
“This was an ambitious and challenging trial which builds on the experience and expertise gained during a previous land-based exercise,” said Charlie Maslen, Dstl’s trial technical authority. “Conducting a trial with sensors spanning three domains – land, sea and air – involving 12 separate industry partners was immensely complex, added to which we were hampered on two days by 40-knot winds.”
The trial sponsors collected video footage, photos, infrared imaging, sonar and radar of the exercise. All of it will be fed into the AI algorithm for training purposes, along with contextual information like weather, sea state and sensor locations.
The Royal Navy is also experimenting with AI tools for warship command and control in a human-AI teaming (HAT) arrangement; AI-based maintenance tracking software to analyze and predict when helicopters will need repair; and has invested in an AI-powered chatbot to help out prospective recruits find detailed information about the service.
In the runup to Christmas 2022, shipowners received unwelcome but unsurprising news: they would face higher premiums the following year, owing to inflationary pressures driving up the cost of steel, spare parts and labor. The warning has since come to pass, with most P&I Clubs increasing their rates by around 10% during the latest round of renewals in February 2023.
If inflation is one factor behind the rate increase, so too is the heightened risk of hull and machinery breakdowns arising from the size of today’s vessels. Container ships have expanded by almost 1,500% in recent decades but crew numbers remain the same, creating more work and stress for seafarers. This, in turn, increases the chance of an incident occurring – leading to a potentially costly and time-consuming claims process – as bigger vessels generally come with greater risk.
Maritime companies want to be as efficient and practical as possible when moving goods around the world. However, crewmembers are struggling to deal with an ever-increasing workload on today’s huge cargo ships. This creates more risk of incidents, which in turn contributes to a growing backlog in claims reporting and even more costs for insurers. Those costs are then passed onto shipping companies through higher premiums.
Data from the Nordic Association of Marine Insurers shows that the costliest 1% of all claims account for at least 30% of the value of total claims in any given year. But shipowners’ resources are typically drained by more high volume and low-value claims such as cargo damage caused by leaking cargo hatch covers or a fire sparked by a misdeclared container.
Other common incidents include heavy weather leading to cargo losses; a fatal fall from a ladder; stowaways in the steering gear trunk; machinery failure; collision with another vessel; grounding; and piracy attack on a ship waiting for a berth, according to the Swedish Club, the maritime insurance mutual.
With premiums on the rise, the last thing shipowners need is the added cost of claiming for an incident at sea. Sharing data can support loss prevention by helping avert an incident before it happens – making shipowner and operators’ lives easier. For example, West P&I, an insurance provider to the global maritime and offshore industries, operates Neptune – a data portal for voyage planning and execution. The online system provides a global view of continental and oceanic weather data and maritime security charts. The upshot is that bridge crew and fleet managers can plot a safe passage for their vessel after being alerted to any potential weather-related or security risks when logging into Neptune.
Using technology is another loss prevention option that can mitigate the risks of incidents at sea. While there are many different options, solutions that can give fleet managers immediate visibility of onboard operations will better equip them to identify and mitigate any potential maintenance or safety risks related to piloting, cargo handling, and security.
One such example is through an AI-powered platform that plugs into a vessel’s CCTV to alert shipowners, managers and seafarers to onboard events in real-time. The technology taps into a vessel’s live camera footage, reducing the risk of incidents by highlighting unsafe events onboard, from piracy to bridge behavior. AI-powered CCTV can actually assist seafarers and shipping companies in avoiding incidents by making onboard operations safer and more efficient.
The system also enables crew and fleet managers to identify quickly the cause of an incident at sea. Establishing the reason is often difficult because many ships have limited contact with shoreside teams once they leave port. With limited visibility into ship operations, it is impossible to know what occurred on board when a vessel is involved in an incident such as a fire, piracy attack, or sinking.
AI technology addresses this issue by alerting seafarers and ship managers to events onboard, eradicating the need for them to sift through 10,000 hours of footage for every vessel each month in the hope of determining retroactively what happened following an incident.
Proactively taking action to reduce the likelihood of incidents happening is good practice for any ship owner or fleet manager. While eradicating the risks completely is unlikely, it is entirely possible for shipowners and managers to streamline the claims process following an incident. AI technology enables them to do that by establishing what happened quickly and efficiently.
The solutions to mitigate the ever-growing risk of maritime incidents are already available to shipping companies today, but increasing the uptake is now the biggest challenge. This starts by understanding how to integrate simple yet intelligent systems into current operations, identifying how to use data for improving operations, and beginning to nurture a more transparent culture between owners and insurers where both parties recognize the shared value of providing a true version of events. Achieving this will not only help prevent incidents at sea, but also ensure shipping companies realize efficiencies to manage rising incident and insurance costs.
Osher Perry is CEO and Co-Founder of ShipIn Systems.
The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.
U.S. Navy Tests Missile-Launching Drone Boat in Mideast
A small missile launched by a drone boat finds its target (USN)
The U.S. Navy's Task Force 59 has been testing unmanned systems in the waters of the Persian Gulf for two years, and it has focused on unarmed surveillance and patrol missions. The focus appears to be changing: in a statement last week, U.S. 5th Fleet said that it has been testing out an armed surface drone in live-fire scenarios at a position in the Arabian Gulf.
According to the Navy, the task force has been testing out a Martac T38 Devil Ray fitted with a "lethal miniature aerial missile system." In a manned-unmanned teaming exercise on October 23, the task force put the boat up against a simulated hostile force, represented by a red target boat. A human operator ashore at the Task Force 59 operations center made engagement decisions, and using live munitions, the Devil Ray "engaged and destroyed the targets."
Images courtesy USN
According to 5th Fleet, "Exercise Digital Talon" was the first time that lethal munitions have been launched from unmanned surface vessels in the Middle East.
It is the task force's second publicized exercise in two months. In September, Task Force 59 conducted a track-and-monitor mission in the Strait of Hormuz, using unmanned systems to follow Iranian naval vessels and attack boats in the strategic waterway.
Vice Adm. Brad Cooper, the commander of 5th Fleet, put the live fire exercise in the broader context of American priorities in the region.
“During Digital Talon, we took a significant step forward and advanced our capability to the ‘next level’ beyond just maritime domain awareness, which has been a traditional focus with Task Force 59. We have proven these unmanned platforms can enhance fleet lethality. In doing so, we are strengthening regional maritime security and enhancing deterrence against malign activity," said Cooper.
The U.S. military's current mission in the Middle East is centered on deterring Iran and its proxy forces. Iran's small-boat units in the Strait of Hormuz and Gulf of Oman have threatened tanker traffic in the past; previous incidents have included boardings, hijackings and small-scale limpet mine attacks at sea.
Offshore’s “Blowin’ in the Wind” Problems
The bloom is off the rose when it comes to offshore wind.
(Article originally published in Sept/Oct 2023 edition.)
Bob Dylan likely wasn’t thinking about how many gigawatts of offshore wind would be installed by 2030 when he wrote “Blowin’ in the Wind.” In 1962, we were worrying about another ice age, not heat waves. Few scientists were focused on global warming and the need to cut carbon emissions.
Today, we’re swimming in a wave of green energy investments and climate change mandates, but their proponents seldom understand economics or physics. And those factors are not cooperating ? derailing offshore wind goals.
U.S. East Coast waters are being industrialized with giant wind turbines in support of state clean energy mandates. Residents are not welcoming onshore wind turbines and solar panels in their backyards as clean energy activists want. The solution? Put them in someone else’s backyard, or better yet, put them offshore where residents can’t see them.
The problem with offshore windmills is they’re expensive. According to the Energy Information Administration, offshore wind is the most expensive energy source in our repertoire, based on the levelized cost of energy calculations. The 2022 estimate for offshore wind, absent any government subsidies, is above $136 per megawatt-hour of electricity.
Even after a healthy $31/MWh subsidy, offshore wind is 165 percent more expensive than a natural gas combined cycle plant and nearly 30 percent more expensive than ultra-supercritical coal and nuclear power.
30 by 30
The U.S. offshore wind industry started in earnest in state waters in 2009 but quickly moved to federal waters beyond the three-mile state limit. A few leases were awarded in subsequent years, but in 2018 offshore wind developers began clamoring for more acreage as climate change drove demand for clean energy supplies.
The clamor was answered when President Joe Biden arrived and made offshore wind the centerpiece of his Administration’s agenda for fighting climate change. Biden established a goal to install 30 gigawatts of offshore wind by 2030. The announcement kicked off a rush to lease wind acreage along every U.S. coastline and accelerated wind farm approvals.
Offshore wind euphoria may have peaked with the February 2022 lease sale. Six leases, with 488,000 acres in the New York Bight region, were acquired for $4.37 billion. Paying $9,000 per acre was a stimulus to get projects going quickly. But lease bonuses are an anchor as profits must repay them along with financing the cost to build and operate expensive offshore wind farms, even if their fuel is free.
The pressure is intense to develop projects and get them approved rapidly.
“Unfinanceable” Projects
Six months after the lease spending spree, cracks in the industry’s foundation emerged. Last September, offshore wind developer Avangrid told financial analysts it would be seeking a “small adjustment” to its contract price with Connecticut. It also asked its utility customers in Massachusetts for a similar hike but was turned down.
Suddenly, the term “unfinanceable” entered the industry’s lexicon. Contracted power prices generated insufficient revenue to finance projects in a high-interest-rate environment.
A game of regulatory chicken began, leading to Avangrid terminating its contracts and paying its customers $48 million in penalties. Terminations were only possible once Massachusetts assured Avangrid and other developers they would be able to rebid in the 2024 offshore wind solicitation. Without such assurances, developers likely would have “walked away” from projects.
Offshore wind problems were partially driven by the huge financial losses posted by wind turbine manufacturers. The major turbine suppliers confronted sharply higher prices for critical minerals needed in the manufacture of turbine nacelles and blades. Rising labor and transportation expenses, coupled with fixed-price contracts, forced manufacturers to raise prices on new contracts. Turbine manufacturers are still struggling, so component prices are heading higher, not lower.
Avangrid led the wind developer parade in seeking higher power prices. The magnitude of developer problems emerged when Danish developer Ørsted announced a second impairment to its U.S. offshore wind portfolio this year. Previously, it suffered a $350 million impairment to a New Jersey project. Management recently told the financial community that, following a review of its U.S. offshore wind portfolio, it was worth $2.3 billion less.
Management cited raw material costs, supply chain issues, higher interest rates and a lack of clarity over its ability to receive bonus clean energy tax credits under the Inflation Reduction Act for its problems. The IRA, designed to foster development of a domestic supply chain, is a problem for offshore wind because its domestic supply chain is immature.
The industry will need to import wind turbines and components from abroad for years, as well as rely on non-Jones Act-compliant vessels for construction support. Ørsted CEO Mads Nipper proposed offshore wind developers be granted a three-to-five year “grace period” during which they would be eligible for the 10 percent bonus tax credit while developing a domestic supply chain.
An analysis of the offshore wind industry shows 17.4 GW of planned and operating generating capacity, but 56 percent or 9.7 GW is seeking price adjustments. More may be coming. To ease the cash crunch, Maryland and New Jersey agreed to give Ørsted the state’s share of IRA credits destined for residents. Will this life preserver save their projects? Maybe. However, another New Jersey developer wants its cash reward.
Pleas for Help
Recently, six East Coast governors wrote to President Biden asking for more help from the federal government to save offshore wind projects. They asked the President to direct the IRS and the Treasury Department to provide additional guidance on how offshore wind developers can qualify for federal clean energy tax credits.
They also want the government to establish a sharing program to return some of the lease bonus money to the states rather than it all going to the federal treasury. Finally, they want federal regulators to speed up permitting decisions.
The governors are desperate to get more government cash for offshore wind developers and to ease residents’ electricity bills. Speeding up permitting is questionable given that NOAA, a key regulator, has complained about the pace of permitting preventing it from doing adequate reviews.
A recent report by the New York State energy regulator examined the price hikes requested by four offshore wind farms. The report addressed their claims that inflation, supply chains and interest rates had surprised developers. An economic consulting firm, advising the regulator, said inflation and supply chain issues did surprise developers. However, it concluded developers should have anticipated higher interest rates.
That is a problem because offshore wind is capital-intensive, and its power is expensive. Power gets more expensive as interest rates rise.
The four projects requested an average price increase of 48 percent, ranging from 27 to 66 percent. The top price is above the average New York monthly electricity price. If granted, electricity prices will rise. The offshore wind price is only the price of power at the wind turbine. The power still must be transmitted to shore to be delivered to the state’s power grid. That adds more cost to the bill.
New York’s economic consultants see inflation and interest rates remaining elevated for the remainder of this decade. “Higher for longer” is not good news for offshore wind developers. They will continue dealing with expensive raw materials, largely driven by the enormity of the green energy transition. Although Wall Street analysts believe inflation will fall to the Federal Reserve’s two percent target in one to two years, the economic consultants disagree. Higher for longer inflation and interest rates guarantee more expensive electricity.
Whale Deaths
Offshore wind developers are facing challenges besides costs. The surge in whale deaths is a serious issue. Research documented that the sonar used to survey the ocean floor where turbines are to be installed is louder than claimed in company permits.
Loud underwater noise is likely responsible for disorienting whales, causing them to try to avoid the noise or go deaf. Both conditions contribute to them swimming into shipping lanes and being struck and killed by vessels.
Dead whales washing up on East Coast beaches are beginning to sway popular opinion about offshore wind. The entire legislature in New Jersey is standing for election this fall, and opinion in the state about offshore wind is sharply divided. When residents find out what will happen to their electricity bills, opinions about offshore wind may become more negative and influence voting.
Offshore wind permitting favoritism, radar interference issues, minimal climate change benefits, expensive power along with whale deaths are being investigated by the General Accounting Office. Next month a congressional hearing will be conducted. The offshore wind industry will increasingly be in the news with less positive press.
Global Issue
The U.S.’s problems are spreading worldwide. Energy technology consultancy Thunder Said Energy recently revised downward by 25 percent its 2050 forecast for global offshore wind capacity growth. Its new forecast factors in higher raw material costs and elevated interest rates.
In their view, the industry will fail to meet its installed capacity targets by about 50 percent. That will disappoint offshore wind supporters but reflects market reality.
These are not good times for offshore wind. – MarEx
Energy Analyst and commentator Allen Brooks is the author of the newsletter "Energy Musings," one of the most widely read sources in the industry.
This article appears in the September/October issue of The Maritime Executive. Since Brooks wrote this piece, the issues he outlines have continued to develop. This week Ørsted walked away from two large projects in New Jersey. It was reported that Shell has also joined with its partners is paying a fine to cancel its power purchase agreement for an offshore Massachusetts wind farm while both BP and Eversource took impairment charges against projects in New York after the state's regulators refused to reprice their power purchase agreement. The U.S. government however indicated its continuing support for the developing industry and approved Dominion Energy's offshore wind farm which will be one of the largest yet developed in the United States.
The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.
Danish wind farm company Ørsted is reportedly seeking to get out of the guarantees it entered into with the state of New Jersey just weeks ago for the development of the two large wind farms that had been planned to provide 2.5 GW of power. According to a report from the Associated Press, the day after the company told investors it was canceling the projects, the company wrote New Jersey’s regulators saying it wanted the $200 million, which amounts to two-thirds of the guaranty, back.
Three weeks ago, New Jersey’s Board of Public Utilities approved a deal with Ørsted related to the development of Ocean Wind 1 and Ocean Wind 2. The company already had the federal approvals for the first proposed wind farm and while the second one was still under review had approvals from New Jersey for the project, both of which were central to the governor’s plan for the transition to clean energy. As part of the development of the industry, New Jersey was also working with the company to provide incentives for the development of the infrastructure including a wind port.
New Jersey Governor Phil Murphy passed a law to permit Ørsted to keep federal tax credits that it otherwise would have had to return to New Jersey ratepayers. The governor said the law was necessary due in part to the financial pressures companies were facing in developing the industry and the projects. As part of the agreement, however, Ørsted committed to completing the first phase of the project, Ocean Wind 1 by no later than December 2025 as well as other commitments to New Jersey for the projects.
The company confirmed it was committed to the projects and on October 4 began transferring the guarantee bonds to the state with the understanding they would be placed in escrow. If the projects did not proceed due to not obtaining all the necessary permitting, Ørsted was to get back the $100 million guarantee for Ocean Wind 1 and the $200 million additional guarantee for the additional projects. If Ørsted failed to meet the deadlines the monies were to be surrendered to New Jersey ratepayers.
According to the Associated Press, Ørsted has transferred $200 million of the $300 million total guarantee but wrote the state saying it wants the money back. According to the report, the company is saying the agreement was not in effect because the board had not yet ratified it.
In a Halloween surprise, Ørsted on October 31 told the state and its investors that the company had decided to cancel both of the New Jersey offshore wind farms. Earlier in the summer they had warned its U.S. wind portfolio was under review due to inflation pressures, rising costs, supply chain challenges, and an inability to realize tax credits. The company is taking a $2.8 billion charge for not proceeding with Ocean Wind 1 and a total charge of approximately $4 billion. However, they warned investors that there could be as much as $1.5 billion in additional charges due to potential contract cancelation fees and other costs.
It is unclear what will happen next as Associated Press says the agreement called for the company and the state to negotiate any disputes. Governor Murphy last week called the company’s withdrawal “outrageous.” He said the state would move to ensure that Ørsted fulfilled all its obligations.
Counting Bats and Uncertain Permits Puts Danish Wind Farm on Hold
Plans for the wind farm were put on hold due to permitting uncertainty (Leonard G. photo of wind farm off Denmark - CC SA 1.0)
While much of the focus in the offshore wind sector is on the growing financial challenges and uncertainties, a project in Denmark is being put on hold over objections from environmentalists on how and when the number of bats in the region are counted. The project's developers are saying it is creating uncertainty about the ability of the project to receive its permits to proceed.
The project known as Aflandshage Vindmøllepark is proposed for the southern Øresund region near Copenhagen and was to be operated for HOFOR, a utility company that provides energy, water, gas, sewage, and other services to the capital region in Denmark. The project is advanced in the planning process with the company highlighting that it is one of the few projects that was on track to be operational by 2030, a critical target date in decarbonization and the next phase of renewable energy.
The company is citing the uncertainties raised by complaints and the lack of clarity over the permitting process. They had been moving forward, including selecting Siemens Gamesa to supply the turbines before protests derailed the project. The company announced it is taking a write-down of nearly $72 million because the costs for developing the project will have to be recognized in the accounts for 2023.
"We are now putting the investment in the Aflandshage project on hold," says Susanne Juhl, chairman of the board of HOFOR. “The project will be abandoned completely unless it proves possible to continue the project in another form in the near future.”
They note the location of the project was selected with consideration for migration patterns and wildlife as well as the Swedish territorial border, the nearby airport, and busy sailing routes. The plan which was approved in the fall of 2022 calls for 26 offshore wind turbines with a total height of up to 721 feet to the top of the blade. With a total output of 300 MW, it would be able to supply green electricity that corresponds to the consumption of approximately 300,000 households.
The permit included conditions regarding the monitoring of bird and bat migration. HOFOR reports it had agreed to a counting of the bats during the construction phase for the wind farm to develop a preservation plan for when it was in operation. Potentially, the wind farm would have to stop operations at certain times to prevent bird or bat strikes.
The company’s permitting for the wind farm however was canceled in July 2023 due to complaints. The requirement for the bat count was moved to before the construction begins with the company reporting it must update the project's environmental impact report. They are saying as a result it is uncertain based on the current stipulations if they would ever receive permits. They determined that it entails an enormous financial risk for both HOFOR and the Municipality of Copenhagen to initiate the project without the necessary permits.
"The experiences from the Aflandshage project confirm the need to look at the overall authority processes in wind turbine projects,” says Juhl. “We have experienced stumbling blocks in our project that cause us to put an otherwise ready-and-ready project on hold.”
HOFOR is proceeding with the bat count because it is the minimum requirement to regain the permits. They are pointing out that as this proceeds however it raises the prospects of further uncertainties or delays as the process has been reopened for more complaints. They are working to remap the project and looking for a path forward while also warning the write-down will reduce HOFOR's ability to develop other green energy projects. Juhl concluded by saying they were confident the wind turbines and bats would have been able to live side-by-side and meet the renewable energy goals.
In 2015, the government of Colombia announced that it had found the wreck on its own at a different site, without divulging the secret location. Glocca Morra (now known as Sea Search Armada) claims that the Colombian find is part of the same previously-identified debris field, and it has filed an arbitration suit against the Colombian government in an attempt to win a half share of the treasure.
Images courtesy Armada de Colombia
In an interview with Bloomberg last week, Colombia's minister of culture said that the government wants to recover the galleon by 2026, before the end of President Gustavo Petro's current term. Minister Juan David Correa said that the mission is a "priority" and that the president has called for the ministry to "pick up the pace."
The plan is to recover the wreck's treasures, study them thoroughly, and transfer them to a national museum, Correa said. He added that he believes that the Sea Search Armada case has no merit.
The government of Spain (the beneficial cargo owner and flag state) and the indigenous Qhara Qhara tribe of Bolivia (whose ancestors mined the treasure) also believe that they have a claim to a share.
Images courtesy Royal Navy
Image courtesy Royal Navy
Royal Navy small boat operators simulate a military landing operation on the Solent (Royal Navy)
