WAVE ENERGY CONVERTERS - ARPA-E Summit

13 Pages·2012·2.05 MB·English

WAVE ENERGY CONVERTERS
R38/25kW - R38/50kW - R115/75kW - R115/150Kw
Michele Grassi is a mathematician who graduated from The tests of Y25t (see main photograph) among other things
Scuola Normale Superiore in Pisa, Italy, and gained a PhD in validated the computerized models that we use to estimate
mathematics from the University of California, Los Angeles. the capacity factor in a given site, once we know the wave
statistics for it.
In 2005 he had an idea for an innovative method for extract-
ing energy from waves. After the initial preliminary studies, in
2006 he submitted a first PCT patent application which cov- 2007: 40South Energy Srl formed in Pisa
2007: first prototypes in reduced scale tested offshore
ers the extraction method. Afterwards, he submitted other
2008: 40South Energy Limited formed in London
patent applications, covering other innovative features of the
2009: offshore testing of mechanical 1:2 scale model
machines.
2010: offshore testing of first full scale 100KW machine
2011: offshore operation for 33 days of Series 25 prototype
In 2007 he created 40South Energy Srl in Pisa and in 2008
2012: first Wave Energy Park (Maldives);
40South Energy Ltd in London to commercialize the ma- 2012: finalized commercial lineup for 2012;
chines globally. 2012: preliminary agreement for sale to a major Utility, starting
with one R115/150kW.
W
In 2007 first prototypes in reduced scale are tested offshore. 2012: reached a collaboration agreement with Plymouth Univer-
We decided to proceed in ‘stealth mode’, with a small but sity.
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very focussed team, outsorcing most (but not all) fabrication
I to external firms with which we established a very tight rela-
V
tionship, so that we could monitor and intervene in all phas- We concluded an agreement for sale in a beautiful island of
R es of construction. the Maldives, Vavvaru, and we are also in advanced negotia-
tions in a grid connected site in Liguria, Italy.
E
This setup allowed us to complete a number of milestones in
V a very short period of time, without ANY public grants at all We have many other commercial leads all over the world.
(either from the UK Government, the EU or any other public
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body), while being in contact with the Wave Energy group at Currently 40South Energy employs engineers, scientists,
DNV since the summer of 2008. technicians and scuba divers, and has the capacity to build,
install, operate and maintain its wave energy converters.
In 2010 the Italian bank Monte dei Paschi di Siena provided Michele Grassi has been the Chairman and CEO of 40South
a loan to finance the construction of the first full scale pre- Energy since the start, and has overseen its evolution from
commercial prototype of a 100kW machine. In the summer pure R&D to be the first company commercializing a whole
of 2010 Zurich agreed to insure our machines (for damages family of modular wave energy converters.
against third parties), due to the intrinsic multi-layered secu-
rity measures (both active and passive) incorporated already 40South Energy Ltd signed a contract with Plymouth Univer-
in the D100t prototype. sity to establish a base of operation in its new marine facility
on campus.
We have had ‘steel in the water’ from the fall of 2007, im- The deal comes hot on the heels of plans being announced
plementing a very steep learning curve with a succession of to establish the South West as home to the country’s first
ever bigger and more sophisticated prototypes. We already Marine Energy Park.
tested offshore a second generation of full scale machines,
and we are going to deploy the third generation soon.
The radical design of our wave energy converters lets you
reap the benefits of commercial wave energy while avoiding Our Wave Energy Converters Work In All Sea Conditions.
the drawbacks of conventional installations. This ability to vary depth dynamically and automatically in
response to any changes in the state of the sea also guar-
antees that the very same machines can operate across
The 40South Energy wave energy converters are formed by the globe. Whether the installation is in Orkney, Tuscany,
three sub-systems (see diagram below): or Oregon, the machine will work within the same opera-
tional limits.
The Upper Members, kept near the water surface
Y
The Lower Member, kept deeper and below the Upper
G Members Wave Energy Converters From Community Scale To Utility
The mooring system (not shown) Scale
O
Our machines are ideal from centralized (utility scale)
L generation to distributed (community scale) generation,
so no matter the location or purpose, 40South Energy
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Using our innovative (and patented) transmission system, machines can meet your commercial wave energy re-
N the relative motion of the Lower and Upper members is con- quirements. At any scale, Wave Energy Parks collect sev-
verted directly into electricity on the machine. eral wave machines in a unified energy production site,
H and are sizable from 25kW to several Megawatts. Wave
Energy Parks are typically owned and operated by third
C
parties, which guarantee O&M of the wave machines, for
E a fee.
The wave machines from 40South Energy are based on sev-
T
eral innovative solutions, which allow them, among other

E things, to move up and down autonomously in the water col-
umn, to seek their nominal energy level.
H
T
This has some immediate benefits, such as:
Machine never exposed to excessive loads
Extremely high capacity factor
Low capital cost and reduced maintenance
INSTALLATION
OVERVIEW
• Cable, connector and the mooring prepared in advance.
Rated power: 25 kW
• Machines assembled in the harbor.
Upper Member Volume: 38 m3
A • Machines towed on site with a standard towboat.
Lower Member Lenght: 24 m
• Machine connected to the mooring and to the electrical
T
Lower Member shape ‘Rail’ type arrangement
cable.
A Sea Depth: > 40 m
• Machines instructed remotely by 40South Energy to find
Sea condition: Anyone
D autonomously its position.
Conversion System Elettro-Mechanical
• No need for scuba divers or ROVs.
Trasmission line Belts
L
Mooring Two gravity bases
A
MANTEINANCE
C
NUMBER of COMPONENTS
• The first level (on site) ordinary maintenance is carried
I
N out by the Wave Energy Park personnel.
Upper Member 1
• The personnel can be sourced locally and trained by
H Lower Member 2 40South Energy.
TEP 8
• The operations consist of removing the TEP modules
C
Mooring Weights 2
from the machine and replacing them with spares.
E • The spares are shipped in advance by 40South Energy.
T
POWER

-
25 KW max power 6 5 4 3 2 1
W
35-60% capacity factor
D D
k
5
TEP COMPONENTS
2
C C
/ Generators
8 Trasmission system 0052 00042
6000
Power electronics
3
Control electronics B B

R
24000
LIST PRICE
A A
R 38/25kW 125,000 € 6 5 4 3 2 1
INSTALLATION
OVERVIEW
• Cable, connector and the mooring prepared in advance.
Rated power: 50 kW
• Machines assembled in the harbor.
A Upper Member Volume: 38 m3 • Machines towed on site with a standard towboat.
Lower Member Lenght: 24 m
• Machine connected to the mooring and to the electrical
T
Lower Member shape ‘Rail’ type arrangement
cable.
A
Sea Depth: > 40 m
• Machines instructed remotely by 40South Energy to find
Sea condition: Anyone
D autonomously its position.
Conversion System Elettro-Mechanical
• No need for scuba divers or ROVs.
Trasmission line Belts
L
Mooring Two gravity bases
A
MANTEINANCE
C
NUMBER of COMPONENTS
• The first level (on site) ordinary maintenance is carried
I
N out by the Wave Energy Park personnel.
Upper Member 1
• The personnel can be sourced locally and trained by
H Lower Member 2
40South Energy.
TEP 8
• The operations consist of removing the TEP modules
C
Mooring Weights 2
from the machine and replacing them with spares.
E • The spares are shipped in advance by 40South Energy.
T
POWER

-
6 5 4 3 2 1
W 50 KW max power
25-45% capacity factor
D D
k
0
TEP COMPONENTS
5 C C
/ Generators
8 Trasmission system 0052 00042
6000
Power electronics
3
Control electronics B B

R
24000
LIST PRICE
A A
R 38/50kW 125,000 € 6 5 4 3 2 1
INSTALLATION
OVERVIEW
• Cable, connector and the mooring prepared in advance.
Rated power: 75 kW
• Machines assembled in the harbor.
Upper Member Volume: 115 m3
A • Machines towed on site with a standard towboat.
Lower Member Lenght: 36 m
• Machine connected to the mooring and to the electrical
T
Lower Member shape ‘Rail’ type arrangement
cable.
A Sea Depth: > 40 m
• Machines instructed remotely by 40South Energy to find
Sea condition: Anyone
D autonomously its position.
Conversion System Elettro-Mechanical
• No need for scuba divers or ROVs.
Trasmission line Belts
L
Mooring Two gravity bases
A
MANTEINANCE
C
NUMBER of COMPONENTS
• The first level (on site) ordinary maintenance is carried
I
N out by the Wave Energy Park personnel.
Upper Member 1
• The personnel can be sourced locally and trained by
H Lower Member 2
40South Energy.
TEP 8
• The operations consist of removing the TEP modules
C
Mooring Weights 2
from the machine and replacing them with spares.
E • The spares are shipped in advance by 40South Energy.
T
POWER

-
6 5 4 3 2 1
75 KW max power
W
35-60% capacity factor
D D
k
5
TEP COMPONENTS
7
C C
/ Generators
5 Trasmission system 0006 00063
Power electronics
1 7500
1 Control electronics B B

R
LIST PRICE 36000
A A
R 115/75kW 300,000 € 6 5 4 3 2 1
INSTALLATION
OVERVIEW
• Cable, connector and the mooring prepared in advance.
Rated power: 150 kW
• Machines assembled in the harbor.
A
Upper Member Volume: 115 m3
• Machines towed on site with a standard towboat.
Lower Member Lenght: 36 m
T • Machine connected to the mooring and to the electrical
Lower Member shape ‘Rail’ type arrangement
A cable.
Sea Depth: > 40 m
• Machines instructed remotely by 40South Energy to find
D Sea condition: Anyone
autonomously its position.
Conversion System Elettro-Mechanical
• No need for scuba divers or ROVs.

L Trasmission line Belts
Mooring Two gravity bases
A
MANTEINANCE
C
NUMBER of COMPONENTS
I • The first level (on site) ordinary maintenance is carried
N
out by the Wave Energy Park personnel.
Upper Member 1
• The personnel can be sourced locally and trained by
H
Lower Member 2
40South Energy.
C TEP 8 • The operations consist of removing the TEP modules
Mooring Weights 2
from the machine and replacing them with spares.
E
• The spares are shipped in advance by 40South Energy.
T
POWER
-

W 150 KW max power 6 5 4 3 2 1
25-45% capacity factor
D D
k
0
TEP COMPONENTS
5
C C
1
Generators
/ Trasmission system 0006 00063
5
Power electronics
7500
1 Control electronics B B
1

R
LIST PRICE 36000
A A
R 115/150kW 300,000 € 6 5 4 3 2 1
Wave Energy Converters are located inside Wave Energy
Absence of interference with navigation
Parks, which consist of a consented sea area, an electrical
Our Wave devices can be installed in front of major har-
cable reaching the user of the electricity and a light local sup-
bors, because they can be sunk to avoid collision with
port infrastructure.
ships. If the port control has an override to the automatic
Wave Energy Parks are the service hubs for the Wave Energy
depth control of the machines, it can sink them when it
ecosystem.
envisages possible problems with transits.
S Comparison with offshore aquaculture
The consented area for the Wave Energy Park itself is very
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similar to the one necessary for offshore aquaculture, al- Installation, operations and maintenance:
R though in the Wave Energy case the environmental impact The machines are assembled in the harbor, and towed to
of the installation is much lower. the Wave Energy Park site with a standard towboat, where
A
the electrical cable and connector and the mooring had
P been prepared in advance. The machines are then con-
nected to the mooring and to the electrical cable, and then
Y
are instructed remotely by 40South Energy to find auton-
G Comparison with offshore wind omously its position. During all these procedures there is
The concession of the area, to be used for the production no need for scuba divers or ROVs
R
of electricity, will benefit significantly from the presence in
E the jurisdiction of a documented process for the conces-
sion of marine areas for offshore wind parks.
N
Also in this case however the environmental impact of the The first level (on site) ordinary maintenance is carried out by
E Wave Energy Park is much lower than that of an offshore the Wave Energy Park personnel, who can be sourced locally
wind park, both in terms of impact on sea life and in terms and trained by 40South Energy. The operations consist of re-

E of visual impact. moving the TEP modules from the machine and replacing them
V with the spares shipped in in advance by 40South Energy.
A
W
Absence of interference with fishing TEP modules: All moving parts, the electronics and control
The presence of a Wave Energy Park has provided advan- systems are housed in removable modules called “TEP” (for
tages to the local fishing community because the Wave “Transmission Electronics and Power”). The TEP modules
Energy Park is naturally a source of increased sea life. contain the electrical generators, the transmission system
The presence of a Wave Energy Park can help the local and the power electronics and control electronics. The sys-
fishing community perform a generation jump in terms of tem is purely electrical-mechanical, and this guarantees
productivity and security of its activity. high conversion efficiencies and long maintenance cycles.
THE PROCESS IS AS FOLLOWS: required) in structuring their side of the deal from a financial
point of view.
S
Wave energy park promoter
S
The potential park owner contacts 40South Energy, with a Contracts
E general idea on the possible location for a Wave Energy Park With a complete set of preliminary documents, the WEP pro-
(WEP for short) and an expression of generic interest in the moter signs the EPC contracts, the O&M agreements for first
C
setup of this economic activity. level maintenance (with the Park operator) and second level
O maintenance (with 40South Energy), and signs the contracts
Preliminary feasibility study with the machine owners (which can be leasing agreements
R 40South Energy makes a preliminary feasibility assessment, with financial institutions) and the financing packages where
identifying more specific locations where it is technically vi- present. It also signs the power purchase agreement (PPA)
P
able to install the WEP, and performs a preliminary economic with the energy users.

E estimate of the productivity and economic productivity of the In parallel 40South Energy signs the sales contracts with the
activity. machine owners. The machine buyers do not have to deal
H
with any technical due diligence, and although the single op-
Feasibility study erations can be of small size, the product ‘wave machine’ is
T
If the numbers match with the promoter’s expectations, completely standardized even across different jurisdictions;
-
a mandate for a more in-depth feasibility study is given to this makes the leverage of Project Finance more easily ac-
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40South Energy. This more in-depth study will include a pre- cessible.
R liminary Impact Assessment, a preliminary installation and
O&M cost estimate, a preliminary consenting roadmap and a Consenting process
A
preliminary profitability estimate for the machine owners and The consenting process is started, and it can take between
P
for the Park owner. 4 months and 18 months depending on the specific jurisdic-
tion.
Y
Promoter, machine owners, park developer and epc contrac-
G tors WEP setting up
Using the documentation prepared by 40South Energy dur- Only after all of the previous phases are concluded the WEP
R
ing the feasibility study, the promoter (with the support of construction could start. The construction consists in cable
E 40South Energy if required) looks for parties interested in installation, in signals positioning and onshore electrical in-
installing their own Wave Energy Converters in the WEP, and frastructure.
N
signs with them preliminary agreements containing all the Once the WEP is completed in all of its parts 40South Energy
E economic conditions. The promoter begins looking for en- evaluates it in order to release a certificate of conformity, that
ergy users interested in buying the energy produced by the allows the WEP to receive the machines. This certification is

E machines in the park, and it also looks for a Park developer necessary to obtain second level manteinance by 40South
(which could coincide with the promoter). Energy.
V
The Park Developer looks for a Park operator (which could In the meantime, once the key development milestones for
A again coincide with the promoter), for components suppliers the WEP are reached, 40South Energy builds the Wave En-
and for EPC contractors (which could in part coincide with ergy Converter(s) which will go in the WEP.
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40South Energy) which will build all the components of the
WEP. The Park developer sets up the project, including its fi- First electricity is produced, and the WEP is ready to accept
nancial structure, and helps the potential machine owners (if further machines (in case it was built with spare capacity).
L
The illustration on the right explains the essential structure The return in investment associated with the operation (IRR)
E
of a Wave Energy Park. The structure departs slightly from is fixed at the signature of the contracts.
D the usual one for, say, offshore wind, because here the focal
point is the Wave Energy Park owner.
O
A machine buyer can even set up an operation in which the
machines are placed in different Wave Energy Parks across
M
different jurisdictions deliberately, to hedge its risks.
This allows for operations very large size, even if every single

The Wave Energy Park owner acts as a distributor for the
S Wave Energy Park may absorb only part of them.
machines, and as an interface between the machine own-
S
ers and the energy users. It is also the coordinator of the
E consenting process and of the construction and operation
In another situation (as in the case of very small installations)
of the Wave Energy Park. The Wave Energy Park signs
N the machine owner can coincide with the electricity user.
Power Purchase Agreements (PPA) with the electricity us-
I ers, to guarantee its income.
S The Wave Energy Park can request that 40South Energy
provide a ‘capacity factor certificate’. If this is in place, it is
U
possible to price the machines on average power instead of
nominal power.
B
This guarantees to the machine owners a predetermined IRR
-
The Wave Energy Park owner can also be the machine independent of the actual production of the machine while,
K
owner (as in the case of a Utility), so that the scheme in addition, shielding the Wave Energy Park from the risks
R ‘collapses’ to the standard one in which a Utility buys the associated with having a fixed cost and an income linked to
machines and commissions to an EPC contractor the setup production.
A
and operation of the Wave Energy Park.
P In this case, however, typically the IRR of the Wave En- In Wave Energy Parks with a certified capacity factor, we pro-
ergy Park can be set to zero (or near zero), so that the pose to the machine buyers a competitive price per average

Y power purchase agreement must only cover the LCOE of watt based on the expected capacity factor and size of the
the Wave Energy Park. In these situations 40South Energy order.
G
Group can take over the Wave Energy Park operations, at
R least in part, if requested.
E
N
E
The machine buyers ‘rent’ the machines bought from

40South Energy Group to the Wave Energy Park, which acts
E
as a distributor and then uses them to produce energy.
V
A In some respects the machine owners act as (and could well
be) a leasing company, but they can be also an ad-hoc com-
W
pany built to enable project finance.