Assessment of capital expenditure for floating offshore wind projects

Abstract

This thesis investigates capital expenditure in floating offshore wind projects by analysing the main capital expenditure drivers, their potential for reduction, estimate and event uncertainty, and requirements for commercially viable floating offshore wind projects. A literature study and an analysis of capital expenditure estimations have been performed.

The main capital expenditure drivers for floating offshore wind farms are the turbine, substructure, electrical infrastructure, and mooring. The substructure has the highest variability in capital expenditure per MW, while the turbine has the lowest. Important measures for reduction of capital expenditure are improved infrastructure, economies of scale and standardization. Potential capital expenditure reducing measures for each subcategory have been identified.

Estimate uncertainty is partly caused by a lack of historical data and a rapid developing technology together with long project duration. Much of the event uncertainty is caused by the uncertainty about the market for floating offshore wind and the development of supply chain. A need for regulations to accelerate development was expressed by the industry.

To achieve commercially viable floating offshore wind projects, investments in projects and innovations that reduce capital expenditure are needed. These investments are not likely to happen if the technology is not expected to become profitable in the foreseeable future. Therefore, subsidies can be a key measure to stimulate the development needed.