AWEA 2014 Conference • DOE Project: U.S. Wind Energy Manufacturing and Supply Chain: A Competitiveness Analysis • Offshore Supply Chain Opportunities Patrick Fullenkamp GLWN, Global Wind Network pfullenkamp@glwn.org 216.920.1956 © Copyright 2013 GLWN™ A WIRE-Net Initiative Manufacturing Competitiveness: US vs. Europe vs. Asia Limited Snap Shot Study - 2013 © Copyright 2013 GLWN™ A WIRE-Net Initiative Key Components © Copyright 2013 GLWN™ A WIRE-Net Initiative Unique GLWN process Standardized component specifications & drawings Onsite reviews: Validated cost and process data from 22 suppliers Unit of Measure Item Description Analytics: Cost Breakdown Analysis, Value Stream Mapping Steel Plate 27 mm (1A, 1B, 1C, 1D) Steel Plate 26 mm (2A, 2B, 2C) Steel Plate 25 mm (2D, 2E, 2F) Steel Plate 24 mm (3A, 3B, 3C) Steel Plate 23 mm (3D, 3E, 3F) Steel Plate 22 mm (4A, 4B, 4C) Steel Plate 21 mm (4D, 4E, 4F) Steel Plate 20 mm (5A, 5B) Steel Plate 19 mm (5C, 5D) Steel Plate 80 mm Door Frame (1E) Manufactured Flange A-A (Sheet 2 of 7) (1F) Manufactured Flanges B-B (Sheet 3 of 7) (1G, 2G) Manufactured Flanges C-C (Sheet 4 of 7) (2H, 3G) Manufactured Flanges D-D (Sheet 5 of 7) (3H, 4G) Manufactured Flanges E-E (Sheet 6 of 7) (4H, 5E) Manufactured Flange F-F (Sheet 7 of 7) ( 5F) HV bolts M80x400 (6A) HV Washer 80 Dia (6B) HV Hexagon Nut M80 (6C) HV Bolts M64x400 (7A) HV Washer 66 Dia (7B) HV Hexagon Nut M64 (7C) HV Bolt M56x300 (8A) HV Washer 58 Dia. (8B) HV Hexagon Nut M56 (8C) HV Bolts M42x300 (9A, 10A) HV Washer 43 Dia (9B, 10B) HV Hexagon Nut M42 (9C, 10C) Weld wire mt mt mt mt mt mt mt mt mt mt mt mt mt mt mt mt piece piece piece piece piece piece piece piece piece piece piece piece kg kg liter liter Raw Material Detail A709 Gr50 A709 Gr 50 A709 Gr 50 A709 Gr 50 A709 Gr 50 A709 Gr 50 A709 Gr 50 A709 Gr 50 A709 Gr 50 A572 Gr50 S355NL-Z25 S355NL-Z25 S355NL-Z25 S355NL-Z25 S355NL-Z25 S355NL-Z25 Total Weight 39.6 35.3 34.7 29.5 28.2 24.3 23 19.3 11.7 1.57 7.23 14.18 7.739 6.78 6.43 4.46 HDG HDG HDG HDG HDG HDG HDG HDG HDG HDG HDG HDG Quantity 4 3 4 3 4 3 4 3 3 1 1 2 2 2 2 1 92 184 92 100 200 100 120 240 120 200 400 200 1 1 985 1046 Unit Cost 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 960.00 3942.00 1400.00 1400.00 1400.00 1400.00 1400.00 1400.00 92.07 8.18 18.73 75.01 7.25 14.63 55.21 6.27 26.19 35.35 1.25 4.86 4.90 9.60 13.75 13.75 Material Total 38016.00 33888.00 33312.00 28320.00 27072.00 23328.00 22080.00 18528.00 11232.00 3942.00 10122.00 19852.00 10834.60 9492.00 9002.00 6244.00 8470.44 1505.12 1723.16 7501.00 1450.00 1463.00 6625.20 1504.80 3142.80 7070.00 500.00 972.00 4841.20 292.80 13543.75 14382.50 © Copyright 2013 GLWN™ A WIRE-Net Initiative Epoxy Zinc Carboline 656 Coating - (equivalent utilized) Epoxy HB Carboline 890 Coating - (equivalent utilized) Polyurethane Carboline 134 Coating - (equivalent utilized) material cert material cert material cert material cert 988 30.5 Supplier Name Country of Mfg Nucor Nucor Nucor Nucor Nucor Nucor Nucor Nucor Nucor Millerbernd TBD TBD TBD TBD TBD TBD TBD TBD TBD Dokka Dokka Dokka Dokka Dokka Dokka Dokka Dokka Dokka Lincoln International International International USA USA USA USA USA USA USA USA USA USA Asia Asia Asia Asia Asia Asia USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA Handling 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5615.00 11230.00 11230.00 11230.00 11230.00 5615.00 225.00 225.00 225.00 24.50 24.50 24.50 24.50 24.50 24.50 24.50 24.50 24.50 0.00 0.00 0.00 0.00 Global Competitiveness Scoring, based on limited snap shot data in 2013 Process Technology Overall Competitiveness 3 3 1 1 0 0 US: Towers, Blades, Generators China: Towers, Generators, Foundations Germany: Foundations US: Blades © Copyright 2013 GLWN™ A WIRE-Net Initiative U.S. Manufacturers: Towers, Blades, Foundations, PM Generators © Copyright 2013 GLWN™ A WIRE-Net Initiative Observation U.S. has a good foundation – more to improve Lessons learned from auto, 30-50% process savings potential observed If you don’t make it, you can’t innovate it (Castings & Forgings – 23%) Policy & Investment support Educate Manufacturers and Regional, State, National Leaders on risk of manufacturing sector loss © Copyright 2013 GLWN™ A WIRE-Net Initiative U.S. Manufacturing Scorecard Scorecard Legend © Copyright 2013 GLWN™ A WIRE-Net Initiative Germany Offshore Wind Total Value Add - 5.9B as of 2011 Grid Connection, 0.64 Operations / Maintenance, 0.25 Project Planning / Development, 0.9 Financing / Insurance, 0.05 Transport / Assembly, 0.47 Manufacturing 3.61 In Billion Euro's Source: wab, windenergie agentur © Copyright 2013 GLWN™ A WIRE-Net Initiative Offshore Supply Chain Opportunities Large Parts in Coastal Regions: Foundations, Towers, Blades, Nacelles, Export Cable Vessels, Substations, Transformers Fabrications, Castings & Forgings Machined, Electrical, Composites Service Providers, Equipment Providers, Material Providers © Copyright 2013 GLWN™ A WIRE-Net Initiative How can you add value to this new offshore industry? . © Copyright 2013 GLWN™ A WIRE-Net Initiative