DG MARE study to support Impact Assessment on the
Marine Knowledge 2020
Interim progress presentation
February 2013
› COWI and Ernst&Young
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COWI POWERPOINT PRESENTATION
Agenda
› Introduction
› Marine licensing
› MSFD
› Offshore wind
› Governance issues
› Innovation and reduction in uncertainty
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Introduction
› The objective is to provide background knowledge and analysis to
contribute to the impact assessment that will follow the Green Paper
on Marine Knowledge 2020.
› The study built on the 2010 Impact Assessment of the European
Marine Observation and Data Network (EMODnet).
› The study cover seven key areas
› Marine data in licensing process
› Cost of data for Marine Strategy Framework Directive (MSFD)
› Cost of data for offshore wind farms
› Legal basis for Regulation or Directive
› Innovation from marine data
› Reduction in uncertainty
› Options for Governance of EMODnet
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Timetable and deliverables
Deliverables
Title
Date
1
Inception report
06-sep-2012
2
First progress report
03-okt-2012
3
Second progress report
03-nov-2012
4
Interim report and access database
03-dec-2012
5
Final report (8 month)
03-apr-2013
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STUDY TO SUPPORT IA OF MARINE KNOWLEDGE
2020
Marine Licensing
Objective: To gain an understanding of current practices for marine
licensing and data access/sharing
› Status: Licensing authorities in all marine Member States and private
operators from 5 marine sectors have been contacted and we are still
collecting data
› Licensing: private sector operators
› Marine operators have to pay for data for licence applications in a number of Member
States, namely Germany, Norway, Denmark, Bulgaria, Sweden. In the UK, Romania,
France, Greece and Belgium operators access data for free
› The benefit of cheaper or more accessible data is however limited
› Several operators reported that they collect site-specific and high-quality data
themselves even if there is marine data publicly available
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Marine licensing
› Licensing: public authorities
› 10 of the 12 countries that responded demand operators to hand over marine data
from licensed activities
› Data hand-over requirement usually does not concern commercially sensitive data
› Estonia and Germany collect data in the INSPIRE format
› Data is often made available for re-use upon request
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MSFD
› Objective: To collect information on the costs to Member States in
meeting the data collection requirements of the Marine Strategy
Framework Directive
› 12 countries responded to MSFD questionnaire
› Questionnaire was revised according to comments from DG ENV, only Poland has
replied to updated questionnaire
› Poland reported that 75% of costs were spent on data collection, 8% on processing
and 12% on data assessment
› Most countries have only used existing data for initial reporting
› Estimate of total data cost for initial reporting in 22 coastal MS and Croatia: 19
Million €
› Estimate of cost for existing and new monitoring programmes for the period 20132020: 64 Million €/year
› Most data gaps were reported on: Underwater Noise, Habitats, Marine litter
› Highest future costs expected from data on: Physical Features, Habitats, Functional
Groups
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Offshore wind
› Objective: To collect information on the data costs for offshore wind
farms until 2020
› Replies from 6 operators were complemented by own researc
› Projected growth in offshore wind capacity until 2020: 38-54 GW
› Estimated data cost for 200 MW offshore wind farm: 5-6 Million €
› The highest cost occurs in the planning phase, around 3 Million €
› Average costs for the construction phase are 1 Million €
› Average costs for operation phase are 2 Million €
› There is high variation across Europe in these costs due to different legal
requirements
› This corresponds to total estimated costs for 38-54 GW offshore wind capacity of 11.6 Billion €
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Governance
› Aim The options for governance of the European marine Observation
and Data Network is based on "Marine Knowledge 2020
Communication". A secretariat would:
› Deliver an annual work programme to achieve a set of objectives
› Negotiate approval of the work programme with a "governing board"
› Implement the work programme in line with the Financial Regulation
› Status: in the intermediate report the first assessment of the
secretariat options were presented.
› The work of the proposed secretariat was outlined.
› The alternative governance options of the secretariat were identified.
› Strength and weaknesses including monetary cost considerations are presented in the
final report for each of the option and for the governance in general.
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Governance – summary of findings
The management options addressed are:
› Executive agency option/in-house option
› Regulatory agencies
› Joint initiatives
› PPP's
› Alternative fund disbursement options
› General:
› Financial regulation
› Size of structure - 3 full-time staff would not justify own agency on Marine Knowledge
› Management chain
› Marginal costs - PPP governance solution would be limited by wish to make data
available at marginal cost
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Innovation & Reduced Uncertainty
Objectives
› Improved Marine Knowledge* has the potential to result in services
that can:
› reduce risks to aquaculture production
› enable better assessment of risk for insurance companies
› extend the coastal tourism season
› progress the discover of new bio-economy products
› reduce cost of offshore energy
› Economic benefits of reduced uncertainty in the behaviour of the sea
or the state of the seabed and marine life have been demonstrated in
the following areas:
› Optimisation of operations and maintenance for offshore structures
› Protection of cables for offshore wind structures
› Optimisation of ship route navigation through hydrographic data
* Such as historic / real-time data on parameters such as chemical pollution, non-native species, coastal erosion, storm intensity
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Innovation & Reduced Uncertainty
Methodology and limitations
› Methodology:
› Initial brainstorming of ideas
› Desktop research on EC publications, research projects, academic articles
› Drafting of case study examples
› Interviews with specialists identified through desktop research
› Incorporation of comments and finalisation
› Limitations:
› Largely based on existing documentation and studies
› Extrapolations of specific quantitative examples based on assumptions
› Specific examples that may not reflect the entire opportunities for sector
› Specialists, whilst providing a sanity check of desktop research, do not necessarily
represent the views of the entire sector
› Challenge in isolating the particular impact of “improved marine knowledge” in the
development of an innovation or sector
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Innovation
Reduced risk to aquaculture production
Title
Hypothesis
Data needs
Economic benefits
Early
warning
device for
jellyfish
blooms
Limited knowledge regarding
the reasons for blooms, their
impacts and potential
mitigation strategies.
Widespread monitoring to
obtain site-specific data
on jellyfish populations,
including their seasonal
occurrence and
abundance. Need to
coordinate research at a
regional level, and share
results of studies.
Mitigating impact of blooms and
major fish kills could assist in
avoiding annual losses of €84
million to production (if 1/2
mortality rate attributed to
jellyfish, affected species of €1.4
billion (2009), covering
Mediterranean mussels, northern
rainbow trout and salmon).
Offshore
aquaculture:
new seacage design
Expansion of offshore
aquaculture requires cages
designed to withstand extreme
conditions, protect against
invasive species, and
production losses (escapes)
and keep maintenance costs
low.
Hydrographical data to
optimise cage location,
data on the structure and
quality of the seabed,
meteorological data to
predict waves, currents,
and information on past
extreme weather events
and real time monitoring.
New cage design could lower
production costs through fewer
visits, and minimising risk of
escape of fish.
Ocean acidity has an impact on
the ecosystem, but it is not
well understood. Understanding
ocean acidification, and the
impact it has on shellfish will
assist in predicting and
minimising further negative
impact on the ecosystem
(global observation network).
Data on behaviour of flora
and fauna to changes in
acidity, comparable paleodata (past events and
impacts), time-series
data, real time monitoring
data.
Economic costs of reduced mollusc
production due to ocean
acidification in the EU 15 (at the
time of study) are at least USD
100 million (€75 million) (capture
molluscs, assuming no income
rise). Therefore, this figure could
be much greater if other species
are incorporated into the equation.
Understand
and address
ocean
acidification
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An early warning system to
anticipate blooms and better
understand behaviour and
impacts, and minimise damage
to aquaculture production.
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COWI POWERPOINT PRESENTATION
Stronger links between
research and industry.
EU offshore market has potential
to create annual economic output
of €670 million and 26,200 jobs
(annual regional economic output
of 1 farm at least US$9 million, 10
of 46 potential Irish sites in EU).
Innovation
Better assessment of risk for insurance companies
Title
Hypothesis
Data needs
Economic benefits
Insurance
discounts
through
improved
marine safety
information
Through more reliable nautical
charts and maritime safety
information, insurance
providers may be willing to
offer products with reduced
premium’s resulting in lower
insurance costs, which is a
major operating cost factor for
shipping companies.
Improved quality nautical
charts – including topographic
data, seabed features, and
navigational hazards – as well
as better coverage of open
seas through hydrographical
surveys. Meteorological data in
order to anticipate natural
events and protect both hull
and cargo.
Economic benefits in terms
of reduced insurance costs:
agreement between US
marine system software
company and insurance
provider resulted in 20%
discount in customers whose
vessels are equipped with
the marine system.
Managing
climate change
and natural
disaster risk in
Europe’s
coastal regions
Costs of weather-related
natural disasters have been
rising and in large part due to
climate change. Data is highly
fragmented and of little use
for climatologists and
actuaries seeking to better
understand and plan for the
effects of climate change.
Need for metocean data that is
already widely collected by
industry and public authorities,
as well as coastal monitoring
data on phenomena such as
coastal erosion and flooding.
Economic benefits are
dispersed, but potentially
significant. They include,
sustainable industry
strategies to manage
adverse impacts of climate
change and proper
investment in risk coastal
adaptation.
Improving the
certification
process for
offshore wind
projects
In a sector evolving at such a
fast pace, underwriters can be
hesitant about extending
certain types of coverage to
innovative designs.
Independent certification
provides outside assurance.
While there will always be the
need for private collection of
site specific data, increased
access to metocean data can
help improve the certification
process, being particularly
useful at the conceptual design
stage.
Certifying bodies help
owners ensure the integrity
of designs and manage their
assets over the long run.
This helps ensure
underwriters faced with
rapid technological
evolutions.
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Innovation
Extend the coastal tourism season
Title
Hypothesis
Data needs
Economic benefits
Development
of eco-tourism
in protected
areas
Mitigate the negative
impact of increased
tourism flow, by raising
public awareness.
Meteorological data, data
on water quality, coastal
erosion.
Data on phenomena can assist in raising
public awareness on need for ecotourism. For example, managing water
quality to avoid tourism revenue losses
and extend season (Blackpool: facing
losses of £1billion, 15 years).
Minimise the impact on
marine life and habitats
through sustainable
solutions that extend
the tourism season.
Artificial reefs:
surf and diving
opportunities
Protection
against coast
erosion
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Observation of movement
of species, and their
habitats.
Promoting eco-tourism activities, such as
birdwatching can create new growth. For
example, US study estimated between
USD 2.4 million and USD 40 million in
economic impact for 5 sites.
Artificial reefs have the
potential to increase
sustainable coastal
tourism through surf
and diving revenues,
but also protect marine
species and therefore
create potential dive
and game fishing sites.
Bathymetry and
topography, marine
currents and
meteorology, quality of
water and salinity: to
optimise location,
material used and reduce
impacts on environment
Popular surfing spots have been valued
as multi-million dollar assets. Artificial
reefs can double the number of ‘good
surfing days’ and increase tourism
revenues.
Better coastal protection
will save on structural
damage and insurance
costs, as well as enable
sustainable
management of tourism
growth, minimising
impact.
Data on past observations
of meteo events, current
water flows, winds, water
temperature, topography,
bathymetry and human
activity impacts to
prepare an appropriate
response to erosion.
Coastal protection is essential to protect
both the beach and coastal
infrastructure. Landslides in Isle of Wight
have cost on average GBP 1.4 million
from 1980 to 2000 in terms of structural
damage, insurance costs, etc.
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COWI POWERPOINT PRESENTATION
In the US, 3.3 million people surf 108
times a year, drive an average of 10
miles per session and contribute USD 2
billion to the economy annually.
Innovation
Discover of new bio-economy products
Title
Hypothesis
Data needs
Economic benefits
Development
of seaweed
based
products
Localising natural
resources and a more
stable cultivation process
of algae will maximise the
benefits for potential
growth markets.
The potential economic return
of cultivated algae is
unknown, as there is a lack of
long term trial data.
Irish seaweed production and
processing sector will be worth
€30 million per annum by 2020
(the sector is currently worth €18
million per annum). In order to
reach this target, there is a need
to capitalise on the existing wild
resources and augment supplies of
higher value seaweeds.
Biotechnology companies
looking for pharmaceuticals
/ enzymes to catalyse
industrial processes need
to know where to look.
Data to locate these
organisms has the
potential to unlock the
economic potential
associated with new
discoveries.
Bioprospecting, greater
knowledge of sediments,
habitats and sea-floor
topography to better target
scientific exploration.
Extensive taxonomy of marine
organism in order to create
biobanks: type, focus and
taxonomy of organisms,
amount available, format
The case of Trabectedin, ET-743
(Yondelis®) reflects both the
challenges and the potential
economic benefits involved. The
drug has been approved for use in
57 countries worldwide, of which
26 are outside Europe.
Subsequent to approval for
ovarian cancer, sales have
increased to €17 million in the first
quarter of 2010.
Biodiversity is crucial for
the health of ecosystems.
Furthermore the genetic
diversity of undiscovered
marine resources offers an
inestimable stream of
future innovation for the
blue biotechnology sector.
Biodiversity data comes from
a wide spectrum of sources
and goes beyond populations
of specific species. It also
requires data to feed
indicators on phenomena such
as pollution, non-native
species, eutrophication, etc…
Protecting Europe’s marine
biodiversity helps ensure the
functioning of ecosystem services
essential to the marine economy,
as well as a future stream of
biotechnology discoveries in
domains such as phamaceuticals
and cosmetics.
Innovation
aquatic
pharmacy
products
Ensuring a
future stream
of innovation
in
biotechnology
sector
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Data on the location and
availability of natural stocks
based on prediction models
and observations.
Innovation
Other cases
Title
Hypothesis
Data needs
Economic benefits
Sea-bed
mining,
mineral
resources
By improving our
understanding of the
seafloor ecosystem , this
can reduce the risks of
seabed mining and
potentially lead to
development of
commercial deep sea
mining sector.
Data on seabed substrata,
deep sea life, currents, etc
to plan extraction, design
instruments and
understand behaviour of
lifeforms
Without better marine knowledge, the
risks and costs of deep sea mining far
outweigh the potential economic benefits.
Optimisation
of turbine
foundation
design for
offshore
wind
Foundation costs can
represent up to 40% of
wind capital expenditure
on offshore wind. The
sharing of data from
experimental offshore
installations can help
researchers validate new
types of more costeffective foundations.
Measured data from
experimental offshore
installations (different
structures and
technologies) to validate
existing models.
Cost effective design optimisation of
turbine foundation installed more
economically. An example in the UK
showed minor design changes could lead
to significant savings in construction
schedule and costs.
Current knowledge gaps
lead to underestimation
of energy yield. Better
predicting energy yield
can assist in improving
site selection and
therefore potential
productivity of industry.
Information required
includes wind data, air
intensity, turbulence
intensity, topography, in
order to provide accurate
wind energy estimations.
Better
assessment
of energy
yield
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Research on marine biodiversity on the
ocean seabed has a strong economic
benefit potential. The most basic
requirement for studying on aspects of
biodiversity is the availability of species
identification guides.
Quality time series on seastate parameters,
currents, sea surface
elevation, also soil
characteristics.
A better assessment of energy yield will
have a positive impact on the investment
case, resulting in more confidence in
project financing, reduction in cost
through optimisation of site selection, and
increase in potential production.
Reduced Uncertainty
Title
Hypothesis
Data needs
Economic benefits
Protection of
cables for
offshore wind
Optimisation of
cable protection
will reduce risk of
damage in long
term, reduce costs
in installation
phase, as well as
costs for ongoing
maintenance.
Uncertainties would be reduced
through better sea-bed data:
seabed mapping systems that
accurately chart depth,
topography, slope angles and
seabed type.
In April 2012 the NorNed 700MW
direct-current cable connecting the
Netherlands and Norwegian electricity
systems failed, halting production for
10 weeks, and resulting in lost earnings
of around €145 million. The benefits of
protective systems are obvious given
that while cables make up 8% of
investment, 80% of insurance enquiries
refer to these systems.
Site
accessibility to
optimise
operations
and
maintenance
for offshore
wind
Better accessibility
results in reduced
downtime losses,
avoidance of
energy production
losses, and
potentially
prevention of
costly repairs.
Actual weather conditions,
forecasts of wind and sea state
to optimise operations and
maintenance.
An uplift in the wave height at
which maintenance is possible could
improve turbine availability from 80%
to 90%, translating to a potential
saving of £245,000 per 5MW turbine
per year.
Hydrographic
data to assist
optimising
ship
navigation
routes
Improved
hydrographic data
coverage will
positively benefit
navigation safety
and protection of
the marine
environment,
among many other
benefits.
Lack of up-to-date charting and
hydrographic survey data. In
Europe, the most significant
gaps are in the Mediterranean
and Black Seas
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Data on wind turbine failure
rate, data from access systems,
supply boats, and crane barges,
as inputs into models to
optimize O&M.
High resolution access to
seafloor morphology and
texture, covering topography,
bathymetry, geology
ROI of a national hydrographic program
in Canada was estimated as 1:10.
Improved charts enable cost reductions
through faster transit for ships, more
direct routes, reduced insurance costs,
avoidance of maritime accidents. As an
example, the Erika spill cost a total of
€350 million in cleanup.