Weather Guard Lightning Tech

PelaStar: Revolutionizing Floating Offshore Wind with Tension Leg Platforms
We talk with Ben Ackers, CEO of PelaStar, a company revolutionizing the industry with their tension leg platform design. PelaStar’s innovative technology provides stability for large wind turbines in deep water conditions, paving the way for cost-effective and efficient floating wind farms at scale. Visit https://pelastar.com/ for more info!
Sign up now for Uptime Tech News, our weekly email update on all things wind technology. This episode is sponsored by Weather Guard Lightning Tech. Learn more about Weather Guard’s StrikeTape Wind Turbine LPS retrofit. Follow the show on Facebook, YouTube, Twitter, Linkedin and visit Weather Guard on the web. And subscribe to Rosemary Barnes’ YouTube channel here. Have a question we can answer on the show? Email us!
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Allen Hall: Welcome to the special edition of the Uptime Wind Energy Podcast. I’m your host, Allen Hall, along with my co host, Joel Saxum. With the increasing demand for clean energy, offshore wind has become a crucial component in the global energy mix. However, many of the world’s best wind resources are located in deep waters where traditional fixed bottom foundations are not feasible.
And this is where PelaStar comes in. PelaStar is changing the floating offshore wind industry with their 10 leg platform design, which provides stability for large wind turbines in deep water conditions. Our guest today is Ben Ackers Chief Executive Officer at PelaStar. Ben brings a wealth of experience in the maritime industry to lead PelaStar’s efforts in making floating offshore wind a reality on a large scale.
Ben, welcome to the show. Thanks for having me. There’s a lot to talk about because with the recent auctions or the outlines of some offshore wind sites off the coast of Maine, and then obviously off the coast of California, floating wind is going to be huge in the United States, and it’s already becoming something of an item over in Europe.
You at PelaStar have been trying to answer some of the problems that we have with floating offshore wind and maybe you can just give us a little bit of background on PelaStar and what you’re working on right now.
Ben Ackers: Absolutely. First of all, PelaStar is, as you said, a tension leg platform which sets it apart from a lot of the platform technologies that you’ll see that have been deployed in demonstration and pilot projects. We’re really the next generation of technology that the industry needs to bring down the cost of energy for utility scale floating wind farms. We started developing PelaStar around 2009. The idea comes out of our parent company, Glosten, which is a naval architecture, marine engineering consulting firm headquartered in Seattle.
We’ve been around for over 65 years. And as our engineers were looking at the challenge of how do we put turbines offshore? We evaluated the different archetypes of the time. Semi submersible spars. And ultimately landed on tension leg platform is what we thought would be the best way to bring down the price of energy in the long run by developing platforms that have the lowest mass and the least amount of motion to drive down capex and operating costs.
Joel Saxum: So a quick question then there, we’ll dive right into it is you highlighted what you believe the Or what in, it’s physics, right? But what the tension leg platform has advantages over some of the other technologies that are out there, because like we, we talked about a little bit off air there’s a lot of options and ideas and demonstrators and stuff, but nobody has really taken that the front runner, the pole position in the race for what’s going to be built at scale in offshore floating.
So that’s The tension leg platform idea. What are the advantages of it over some of the others?
Ben Ackers: Principally, the classic advantages of a tension leg platform are that you can design a platform, a hull with the lowest mass of any of the systems because we’re not using the platform itself to provide stability to the turbine.
We simply need less mass. steel or as others might use concrete to provide that stability. And then we’re stabilizing the platform with tendons that are vertically stiff so that we have very little vertical motion and very little rotation of the system because it’s basically a rid, effectively a rigid structure in the vertical direction.
Now it does, it is soft in the horizontal direction, so there is some movement back and forth. But ultimately. By restraining that motion, we provide the turbine with an ideal environment for operation. So we keep motions down low enough so that turbine is producing power and with an efficiency equivalent to if you’d put that turbine on a monopile.
Joel Saxum: That that’s hugely important, right? Because we’re, you mentioned CapEx in, a couple of minutes ago, but OpEx, because Allen and I, we were always talking, we’re all engineers at heart and thinking, you got this turbine up there and now you’ve introduced a few more degrees of freedom with some of the floaters, right?
We’re talking Highwind Scotland and stuff like that, where now you used to have the monopile and you have a little bit of movement in it, but now you have this and all kinds of rotation and all those things. So you’re actually it’s possible in my mind that you guys are taking out some of the future O& M costs by possibly saving on bearings or rotating equipment by lowering some of that movement.
Ben Ackers: That’s absolutely what we’ll leave, but it goes beyond just reducing wear and tear on the turbine, which is obviously really important, but it’s also about accessibility and workability, right? Because in the conditions in which we’re maintaining offshore wind turbines today even in shallow water, where we’re using SOVs with walk to work gangways, CTVs, daughter craft to board the platforms, our platform is not moving.
And with our central column design, we present as a monopile. So you just translate all of those things that have already been matured in offshore wind today. And we can use those same systems, same procedures, same equipment to get people on and off the platform. Whereas other platforms that have more motion, that becomes a greater challenge.
So we’re either those platforms are, you’re either going to have to limit. The times that you can actually access the platform because of that motion, or you need to build more robust equipment to deal with the relative motions between the platform itself and the vessels you’re using to access it.
And that’s all going to cost money. And then once you get people on the platform if the platform’s moving, they can simply just get less done. They’re less efficient versus being on a stable platform to get their work done.
Allen Hall: So the basic PelaStar design I’ve seen on your website, and your website is fantastic by the way, people should go there, check it out, just go to PelaStar, I think, PelaStar. com, and you can see all the details there’s basically a monopile type tower, and there’s five steel legs coming off to the side, like spider, and then there’s tension lines going all the way down to the bottom of the ocean. It’s that simple. And the one of the unique features I thought was the ability to transfer the components to the assembly site, like everything can be barged up.
So you don’t have, you can make the system pretty much anywhere, put it on a ship, haul it to the site and assemble it right at the coast line, I assume at a dock and then just tug it out to where you need to be. So you’ve thought about this from a lot of different aspects. It’s really simple. But it does a very difficult task at the same time.
There’s always that fine line. Where’s all the magic in all this? Is, there’s always that real, that piece that makes it all tie together. Is it the tension lines? Is it the anchors that make all this possible?
Ben Ackers: First of all, simplicity is The the cornerstone of our design philosophy that in order to take advantage of the TLP, this low mass structure, our goal is to leave as little complexity in the water as possible.
And a lot of times people will say, it looks too simple. There’s gotta be, there’s gotta be something more to it. And there is a lot to it. So first of all, there, there are so many factors to consider in design that you already know how hard it is to design for turbines, either even on land or Fixed offshore turbines the interaction with the environment and the complexity of the turbine, its loads, the wind loads, the control system, all of that requires a lot of work and a lot of fine tuning.
And you can’t just go to a clean sheet of paper, draw a platform and see if that works. It, it takes a lot of iteration, a lot of optimization to bring this all together. Now there’s certainly complexities to address a platform like PelaStar that’s designed for excellent operation and low construction cost is one that is also harder to install.
And so our some of where that secret sauce is, how do we get that platform that when the, those arms go underwater. It loses stability. How do we get it installed? So we’ve developed an installation system called crawl down installation where we float the platform out to the site. And then we deploy tendons with the platform and those tendons are extra long, longer than they have to be.
So that we can grab onto those with tools we call jacking tools and actually pull the platform down to its installed draft. And then we can remove those excess lengths of the tendon, remove all the special tooling that is that, that is complex, get that off the platform so it doesn’t stay at sea.
So we don’t have to buy 500 copies of that equipment, take it to the next platform. reuse it for installation. But I, you asked what about the tendons? The tendons are also incredibly important. If you were to have just carbon copied oil and gas technology into offshore wind, we’d all be using tendons that were either steel bar or steel pipe.
And while that works great in oil and gas when you’re deploying one platform and you can wait a long time pipe is hard to deploy. And so we looked very early on, we decided that we wanted to pursue synthetic fiber tendons. The reason being that they’re far easier to deploy. Literally you have them on a spool and you unspool them into the water.
And they have Excellent performance properties. We actually get damping out of the synthetic fibers that you don’t get in a steel tendon and that improves system performance, reduces fatigue loads, makes the controller easier to design and they’re very cost effective. It’s required a lot of new technology development.
And that’s something we’ve been working on with our partners, FiberMax and Dyneema for over a decade now to get the performance that we’re targeting and the technology qualified so we can deploy on real platforms.
Joel Saxum: So this is where I want to make sure that we don’t miss this because I made a mistake a few episodes ago, talking about the depths.
So I’m not going to make this mistake again. So we want to, I want you to be clear, Ben, on where you guys can install. And if you do have some limitations if there’s certain soil subsurface you can’t anchor into or basically if you can do anything and what, Depths and what this looks like, right?
Ben Ackers: We actually have a great range of site conditions that we can install. And I would say in terms of bottom conditions really the only difficult substrate would be a mud. And you can use a suction pile anchors in those conditions. It’s a, it’s already been done by oil and gas, but it is pretty expensive.
So we’d like to see our preferred seabed would be a sand gravel clay mixture. We have excellent cost effective anchor options there, but also if you start to introduce hard rock seabeds with either some overburden or just clear rock, there are good anchor solutions for that too. So that covers most of the seabed conditions that we’re going to find.
Now as far as depth goes we actually can deliver cost effective solutions for modern turbines in the 15 range down to about 70 meter water depth. And that is, that’s it. On the shallow end of a lot of people’s expectations. We’ve worked hard to optimize the design to make that happen.
But actually we’re finding that that’s a pretty compelling case to developers who actually, who have a hard time getting some of these immersibles even to work in those depths, because it’s actually very challenging to design catenary and top mooring systems that work in that depth range as well.
Yeah. That’s shallow. Yeah. Yeah. Then on the deep end as you get deeper we do get into arguably a soft sweet spot in the a hundred to 300 meter range. In terms of overall cost performance, but we can keep going from there. It’s just a matter of lengthening tendons in our system.
So we’re working closely right now, focused on the water depths that we’re going to find in the California lease areas between 750 and 1300 meters. That 1300 meter is going to be a pretty much a hard cutoff in the U S for some time now based on what Boehm is going to cite for lease areas And so we’re working on solutions there.
There are a lot of technical challenge going that deep. However, oil and gas has conquered the, this depth territory. It’s not a technical feasibility issue. It’s a techno economic issue. How do we produce the most cost effective mooring solutions when you have to simply buy more tendon? And that’s an area of That’s our primary area of research and development focus right now is how best to do that cost effectively and what kind of design trade offs are we going to make to make what we call ultra deep water more economically feasible.
Allen Hall: Does the tendons. Are there tendon changes based on the water depth? I know Dyneema is a magical material. We use it. I’m an electrical engineer and we use it for electrical things. It has great electrical properties, by the way, but also has wonderful mechanical properties. You see it in sailing all the time.
Are there any design, changes that are relative to where the wind turbine is going to be installed?
Ben Ackers: I would say that’s really only a function of depth. We we’ve Dyneema as our core load bearing fiber works great from that 70 meters out through a few hundred meters. As we get into ultra deep water, it’s not I know we have to ask ourselves, this is a a very high performance fiber and you do pay for that performance and you need to ask yourself if you need to pay for that performance over the length of the entire tendon.
We always find value of having that those properties somewhere in what I’ll call the tendon stack, but it’s not clear that we need that for the whole length. So we might be looking at other materials through the tendon stack for a more efficient tendon design.
Joel Saxum: Yeah, so I’m thinking I’m on the construction side again, because now we’re talking about differences in length and differences in materials in the tendon stacks and going back to what you said, where we can, this thing can be built case side and then basically brought to site rolled over or rolled over, but install the onsite.
So if you were to say, I know that the water depth thing is a little bit different there, but if you were to say, giving equal, A monopile installation versus this installation with the PelaStar system. Time wise, is it half the time to install PelaStar? Is it double the time to install PelaStar if you were to put them on site?
Ben Ackers: That’s interesting because we don’t do a lot of direct comparisons with the timeframe of fixed fixed pile installation. But I can tell you that we can typically get anchors installed in it, it does depend on the anchor type in the seabed conditions, but that, that operation we’re focusing on anchors that are being specifically developed for floating offshore wind. So we’re not using a lot of the traditional anchor types that are technically feasible, but are quite expensive. Some of the innovative anchor developers are using their own proprietary subsea installation. methods that decouple installation from vessels that drives down the vessel size we need for installation.
And then they’re using Subsea Robotics to automate the installation process. So we can get a, an anchor spread of our five anchors installed in 24 hours. And then When we bring the platform out, it takes a couple of days to get the tendons deployed, hooked up to the platform with the platform crawled down and the cable connected.
So that’s about a three day evolution offshore.
Joel Saxum: That’s cruising. So immediately comes to mind. This is from my oil and gas background. The company subsea micropiles. And the cellular robotics team that’s just up the street from you in Burnaby B. C. that builds that robot. It’s, if you haven’t ever seen this thing before, I have an offshore world, it’s really cool.
It’s it started life as a geotechnical, drilling, seafloor geotechnical drilling rig. So instead of having to do geotechnical from a boat, you put this thing over, it’s an ROV, it goes to the bottom and it auto, it will, can do CPT coring and in all kinds of things. But now they’ve adopted it. Subsea micropiles has adopted it to actually do in not even in situ tests, but actually geotechnical drilling tests.
And then at the same time, they can install the subsea micropiles in the subsurface, drill them down, and then they hook them up as anchors, leave a buoy on them, move on to the next one. And then you guys can come right behind them and just hook up to the anchors. That’s fricking slick, man.
Ben Ackers: Exactly. And their anchor is good for a lot of rocky seabed conditions.
There are for the softer sediments we’re we work closely with a company called Triton Anchor in Massachusetts, and they’re developing a helical group pile system that is excellent actually. And then Schottel Maritime Technologies also has a groutless mechanical toggle rock anchor system, very similar to subsea micropiles, but they don’t need to grout, but then they need a harder rock material for their system.
Yeah, mostly we’re looking at grouped anchor solutions to get away from the heavy drilling that you would expect for a more classical rock anchor.
Joel Saxum: Another question for installation and O and M the in, in farm collection, power cables, and the main export lines and stuff like that. So now the main export lines, you’re going to have.
A little bit of a navigation to do to make sure that of course the anchors and stuff are not in the same pathways. But what is the hookup for comms and power, import, export, all that stuff look like with the PelaStar platform?
Ben Ackers: It looks like a lot of other platforms. The fact is that with our lower motion.
It’s actually a little bit easier to design the dynamic cable that connects the platform to the inner array cables just because we’re not moving that much, it’s straightforward. One cable with all the export power and data that cable is generally prelaid on the seabed a couple of days before we come out with the platform.
And then we send once the platform is installed and locked off on the tendons, we send down a messenger line through an I tube that goes up the center column of the platform. An ROV makes the connection to that dynamic cable. And then we pull that cable up through. Our eye tube a bend stiffener will lock itself off at the base of the platform and then the the cable will come up and we’re looking at some kind of cool, innovative new systems that they will auto latch in place And we can do that entire operation without putting anybody on the platform.
And then but with it held in place temporarily, then we can get all of our temporary installation equipment off the vessel and wait then for an SOV to come out with a crew that actually secures the final hang off joint and terminates the cable into the switchboard.
Allen Hall: PelaStar was invited to participate with the Department of Energy in the Floating Offshore Wind Readiness prize and it, there was a, that’s been going on for about a year, I think, or so. What, where is that at right now? And what’s the next phase of that?
Ben Ackers: FLOWin is a three phase competition. The first phase was completed a little bit over a year ago. And in phase one, there were 43 teams all led by platform technology that competed to Demonstrate to the Department of Energy that we had technologies that were mature enough to justify moving on to the next step of industrialization and planning for cereal production.
So we completed our submissions for phase one in January of 2023. And of those 43 teams nine were awarded phase one prizes and we were among one of those 19 among those nine teams. So that came with a cash prize and a voucher to get some work out of National Labs as well. And then, but what it really brought with it was an invitation to participate in the phase two round.
We completed our submission for phase two. And on March 1st, so just very recently. And now we’re all waiting patiently to hear the results. What I’m expecting to hear those in mid May, I think, and we’re, we expect five teams to be awarded phase two prizes. And what we had to do in phase two was to show that we have a, that we are developing real plans with real suppliers to manufacture these platforms at scale, at the pace of one a week to deploy gigawatt scale farms in one to two years on a regular pace, one a week.
That’s a lot to ask. It’s actually one of the, I think our biggest takeaways from really digging into this in phase one and looking at our production throughput from the steel showing up at a fabrication facility to locking off the platform on its tendons, looking at that entire chain we actually found that it was pretty achievable to get to that level as long as you have a fabrication facility that is built around hitting that production target. And we were able to do that working with a partner here Pacific Northwest Everett Floating Structures that has ambitions to be one of those fabricators. And with some help from some European industrial engineering companies to design a manufacturing facility to with. with two assembly lines essentially to fabricate all of the modules we need to assemble a full platform and do that at a rate of one a week. And then we, and then as you were commenting earlier the general plan is that we develop those facilities in our target regions, whether they be U. S.
West Coast, U. S. East Coast, Scotland, Eastern Australia, and then then we ship those modules to an assembly and integration facility that would be local to the wind farm itself. And there we can complete final hull assembly and integrate the platform with the tower and the turbine. And we had to also end up with two assembly lines at that facility to hit that one a week target.
Allen Hall: Okay. That’s impressive. So what, when can we expect to see a Palastar project? platform in the water probably off California first. I’d assume that’d be the first place to go.
Ben Ackers: We’d like that to happen. We’d like to see something like a pilot project, maybe proceed to these utility scale deployments and see that maybe something like 2028 with any luck, and then then we would start seeing the real deployments probably in the 2032 to 2034 timeline.
But hopefully we’ll see PelaStars popping up before then in other parts of the world.
Allen Hall: See, that’s a realistic timeline, Joel. That’s one thing that we don’t get a lot of at Offshore Wind is a reasonable amount of time because there isn’t a lot of infrastructure that needs to be built up before you can do one a week.
It takes a little time, yeah.
Ben Ackers: And a lot of money, right? And workforce training. training the men and women that we’re going to need to build and operate these platforms is a huge heavy lift in addition to the investment in these facilities.
Joel Saxum: What I’m hearing here is that you guys cause we’ve been talking with We talk with everybody in the industry, right?
And floating offshore wind, it’s at such a early stage in most places. I’m over here in Bilbao, right? We’re right on the coast and there’s a couple of demonstrators out in the water here, some people taking tours to them on the show floor this week I saw a couple of different types of platforms, but it just doesn’t seem like.
Anybody’s as far along with as much support and as much proper planning and engineering complete as you guys are from this conversation we’re having right here.
Ben Ackers: Indeed. There are a lot, there’s a lot of competition out there. We often joke every year, I feel like we had another 20 concepts that people are developing with.
Let’s say there’s about 120 out there and we’ll say, there’s probably 30 real competitors and there are definitely, obviously platforms that are already out in the water that are competitors. have successfully deployed. So I don’t want to take away from the, from their engineering accomplishments they’re great.
And they’re and a few of them are doing the same thing, planning through this whole production throughput and serial production plan. They know that’s, what’s important to, because the reality is as good as our technology is, if we can’t do, if we can’t deliver it. developers can’t buy it.
So certainly there is an upper echelon of technologies that are carrying things through this far because if They don’t have a product to sell. But I appreciate the head nod. It’s been a lot of hard work and we see the importance of all of this.
Allen Hall: Obviously, PelaStar is doing a lot of wonderful things.
How do people connect with PelaStar? How do they see this Tension Lake platform? How do they connect with you?
Ben Ackers: They can give me a call, send me an email. I’ll be in Sacramento in the middle of May and that’s actually around when we expect DOE to announce that phase two prize winners.
And yeah, so send me an email. Happy to talk.
Allen Hall: And this has been fantastic. We have to stay in touch as this effort grows and it would be great to see In California and close to me in Maine at some point and yeah, Palastar is going to be helping lead that way. So I really appreciate you being on the program.
I’ve learned a ton. Thanks so much.
Ben Ackers: You bet. Thanks for having me.
https://weatherguardwind.com/pelastar-floating-tension-leg-platform/
Renewable Energy
Brian Cox, PhD
It’s always encouraging to see the emergence of another brilliant astrophysicist into our culture — not that his message here is particularly encouraging.
Renewable Energy
GE Vernova Backs LM Wind Power, KKR Buys EDF Assets
Weather Guard Lightning Tech

GE Vernova Backs LM Wind Power, KKR Buys EDF Assets
GE Vernova pumps $1 billion into LM Wind Power, and KKR buys EDF’s US and Canada renewables arm. Plus CIP sweeps South Korea’s offshore auction and the CME plans wind derivatives across three continents.
Sign up now for Uptime Tech News, our weekly newsletter on all things wind technology. This episode is sponsored by Weather Guard Lightning Tech. Learn more about Weather Guard’s StrikeTape Wind Turbine LPS retrofit. Follow the show on YouTube, Linkedin and visit Weather Guard on the web. And subscribe to Rosemary’s “Engineering with Rosie” YouTube channel here. Have a question we can answer on the show? Email us!
The Uptime Wind Energy podcast, brought to you by StrikeTape. Protecting thousands of wind turbines from lightning damage worldwide. Visit striketape.com. And now, your hosts.
Allen Hall: Welcome to the Uptime Wind Energy podcast. I’m your host, Allen Hall, and I’m here with Matthew Stead and Yolanda Padron. Rosemary is at GWO training this week. And we have an announcement about Wind Energy O&M Australia 2027. Matthew, you wanna give all the details?
Matthew Stead: Drum roll Um, very pleased to announce that WOMA 2027 will be at the East Pullman Hotel in Melbourne’s east, uh, not the other one, and, uh, 3rd to 5th of March.
Um, the first two days will be two days of wind O&M, uh, conferences, [00:01:00] uh, and then the Friday will be a half-day, uh, training session. More information to come.
Allen Hall: Well, she’s not here, so we can probably just announce it, that Rosemary will be giving a terrific four-hour-long seminar on blades and blade repair, so you sign up now.
Matthew, where do you go if you wanna just check out what’s happening at WOMA
Matthew Stead: 2027? Uh, well, actually, it’s woma2027.com.
Allen Hall: Uh, over at GE Vernova and LM Wind Power, there’s been a whole bunch of turmoil over the last couple of years if you haven’t been paying attention. Well, GE Vernova just injected about a billion dollars into that company.
So although LM recently has shown very little in terms of revenue, it definitely had needed some capital injection in, uh, at least according to the Danish press, the number of employees at the Danish site is about 20 to 30. So it’s really a fraction of what it once was. But [00:02:00] it does seem like GE is paying off all its existing debt and then giving it a little bit of a cash infusion to keep it rolling.
The question really is, is what is GE Vernova gonna do with that business now? Are they planning on keeping it? Are they trying to get s- to get it back to health where they can service the other, uh, OEMs that they manufacture blades for? Or is there a larger action that will happen in the near future?
What do we think?
Matthew Stead: Yeah, I’m really confused by this one. I mean, a cash injection just so that you’re not bankrupt on paper is, um, that’s just playing with money as far as I’m concerned. Or I’m not sure if it’s a US term, but, you know, shuffling deckchairs on the Titanic. It doesn’t– Does it change anything?
Allen Hall: Well, uh, th- they made no announcements about closing facilities. The LM blade facility in North Dakota still appears to be making blades. There’s the TPI factories, which are going through a transition r- right now, appear to be making GE [00:03:00] blades. I, I assume Gaspé up in Canada is still making blades, at least that’s the story.
If GE’s gonna rely upon LM to make blades, they’re gonna need to keep them open. Is, is this more of just keeping the factories open with a skeleton engineering crew and possibly moving the blade design group into the States? Is that– Or India or, or somewhere?
Yolanda Padron: And they’re still selling, right? They’re still selling blades.
It seems like they’re still planning on manufacturing blades. Do we think that maybe- They’re just trying to avoid that whole TPI bankruptcy deal to not have to kind of scrap for parts?
Allen Hall: Yeah, it’s a great question. I think TPI has been producing parts at high quantity, and some of the Things I’ve heard from the industry folk is that TPI is really busy in producing quality blades, and it’s like the bankruptcy transaction is not happening, which is great to hear because the [00:04:00]industry needs blades, and there’s a lot of repowering going on in the United States and a lot of activity in general, so they need blades.
But does LM continue to be a part of that?
Matthew Stead: Yeah, I mean, presumably the TPI, um, whole story only makes LM more important, you know, more important to have, uh, an additional manufacturer and, you know, providing, you know, options for the OEMs.
Allen Hall: It does seem like, though, the GE offshore, GE Vernova offshore is not a thing.
Although I’ve heard a couple of rumors that, yeah, GE Vernova is offering some products for offshore, it doesn’t seem like their heart is in it. I can see that happening. So are they just trying to focus on onshore business, and that’s it for the time being? Just let it play out and, uh, wait until the elections in 2028?
I know that’s gonna get me blocked on YouTube, but that, that does feel like what’s happening at the moment.
Matthew Stead: Yeah, I reckon it looks completely like that.
Yolanda Padron: I mean, it also looks like they’re [00:05:00] just kind of trying to play everything a little bit more safe, right? So they are scaling up, but not as fast as they used to, so scaling the blade sizes.
And then they’re– it seems like they’re, they’re having their FSAs cut quite a bit shorter than they used to, right? So are they maybe just trying to focus on, like, cash up front and just trying to play it safe until they can get their, their footing right again?
Allen Hall: Or is it focus on key customers? I could see GE Vernova actually doing that, that they have a history with certain operators worldwide, and they’re just gonna focus on producing and delivering for those customers.
Because you don’t see a lot of announced orders for GE turbines. Vestas is announcing things practically every week. Nordex is doing something similar. Siemens once in a while. But what you really don’t hear anything from in any quantity at [00:06:00] all at the moment is from GE Vernova. When a company needs cash badly enough, even the crown jewels go on the block.
And EDF, the French state-owned utility, has to fund the upkeep of 57 aging nuclear reactors and build six new ones, so it is selling. EDF has agreed to hand its US and Canada renewables business, EDF Power Solutions, to the private equity firm KKR. The business runs 5.6 gigawatts of renewable assets across the two countries.
Late last year, EDF’s chief executive floated selling anywhere from half to all of the unit in a deal that could be, well, it’s reported to be about $4.2 billion. That’s the latest news I’ve heard. This is a big transaction. KKR is Canadian, right? And is a massive investment firm Uh, which I, I don’t think have a lot of wind at the moment.
Uh, what is the [00:07:00] KKR play here?
Matthew Stead: I, I love this because this is, uh… So obviously I’m Australian, and Macquarie is a big Australian. So, um, Macquarie own a whole lot of wind farm, a whole lot of wind infrastructure. So I just see this as a wonderful g- you know, fight between KKR and Macquarie. And so KKR has a whole lot of, um, they o- they’ve got some, you know, stake in Australian wind farms.
They’ve got some work, you know, through Europe with wind farms. So I, I, I think this is a good thing, just a bit more global competition and a bit more global growth. And I think it’s all coming from the data centers and, you know, the future increase in growth of, um, demand.
Allen Hall: Yolanda, EDF’s wind fleet is a variety of turbines, right?
They have some GE, some Siemens. Anything else in their portfolio?
Yolanda Padron: I think they have a bit of Vestas there too, right? Is it something that we were saying? It’s– I think this is really interesting. Um, I know that there’s not– I mean, of course EDF is the latest, but there’s some [00:08:00] operators that seem to be, um, consolidating into a bit more of those just higher private equity firms, and it’s– Do we think that maybe this is the way that the US is going to lean towards?
I know we talked a lot about leaning towards funding the data centers and maybe a bit more the behind the meter things. Uh, but do we think that maybe that’s the future of the US? There’s a couple of companies that kind of just own all the major infrastructures and then- A
Allen Hall: couple Canadian companies.
Yolanda Padron: And what does it mean for, like, asset management and stuff, like, that’s really, really different from what they’re seeing in their desks in New York and stuff, and just the larger financial models versus what’s happening on the ground, and how will they connect everything?
Allen Hall: It’s a great question.
Matthew Stead: NextEra and Dominion, you know, things are only getting bigger. Scale’s, scale’s coming.
Allen Hall: Yeah. I wonder how much, uh, this transaction will have to go through regulators in the US, uh, because it scares me when you have a, a– such a [00:09:00] large foreign national company. There’s actually two involved in here, right?
So you, you have a, a French company and a Canadian company trying to transact on, in the United States on a lot of assets. Uh, it probably won’t be that quick if there’s any oversight at all. I, I’m guessing that we’ll hear noise about it. So we’re, we’ll have to keep listening to all the news sources about it and, and telling our valued listeners what’s going on.
Because there’s, uh, we know a whole bunch of people that work at EDF and like, love those people and are really concerned about what the future holds for them. I, at least it sounds like upfront that KKR is just gonna continue with operations, but I know, uh, uh, it’s a turbulent time, and if you work there, you, you hopefully things continue the way they’re, they’re supposed to because One of the things about EDF historically has been is that they’re really talented people, that they have hired well over time and that they know what they’re doing.
And every time we, Weather Guard and [00:10:00] Yolanda and I’m sure Matthew have dealt with EDF quite a bit They are on top of what they’re operating. They know how their assets work, and they know how to manage them, and so you’d hate to lose those people in a transaction like this. It would decrease the value of the assets, I would say.
Very interesting transaction.
Matthew Stead: Yeah. But, I mean, what if the counter, what if, um, this is all part of a, a growth strategy? You know, a growth strategy with wind, solar, and battery, you know, providing more power. So it might actually be an opportunity. So, you know, opportunity to do more and some more exciting work across all three disciplines.
Allen Hall: Definitely so. Uh, but it’s a little early. The ink hasn’t dried yet on the contract. So while offshore market pulls back in general, in a lot of places like the United States, another one is racing ahead. In, in South Korea’s latest offshore wind auction, one name walked away with the lion’s share, Copenhagen Infrastructure Partners, CIP.
The Danish fund [00:11:00] secured more than one gigawatt of the 1.8 gigawatts on offer, including the single largest project and the only floating wind winner. And the appetite was record-breaking. They had a whole bunch of developers trying to bid on this. You had about 3.7 gigawatts being bid in, more than twice of the capacity available.
So for a country that only began competitive offshore bidding in 2022, that’s a few short years ago, that market is coming of age. This is a huge announcement by CIP, right? That, uh, they have bid into the system. They’re, they’re winning, and they’re bringing Siemens Gamesa to the table, which we haven’t heard a lot of Siemens Gamesa’s turbines being selected, but this is a massive order and really gonna help secure at least some portion of, of the Siemens Gamesa business.
Matthew, you’re closer to it. In, in South Korea, are you seeing the South Korean industry being built within [00:12:00] the country, or are you seeing, uh, partnerships with surrounding countries like Japan? ‘Cause it doesn’t seem like when– and I’ve looked at some of the South Korea, uh, efforts. It does seem like they’re trying to stand up their own offshore built-in country plan.
Is, is that the goal? You think Siemens is gonna end up building a, a factory in, in South Korea for some of these projects?
Matthew Stead: Maybe a couple of things. First of all, I have to apologize. I think, uh, we were talking the other week, and I, I, I sort of implied that floating offshore wind was dead, and I think we copped a bit of flack from that.
But, uh, anyway, wrong, wrong on, uh,
Allen Hall: floating offshore is dead.
Matthew Stead: Um, but um, you know, I’ve had a fair bit of interaction with, uh, South Korean, um, you know, Philippines, Japan, obviously. I think they’re all trying to get their industries up, but I, I don’t think they’ve got the scale So, you know, I think they, they really need like the Siemens Gamesas, the Vestas’s, um, to come in and, and partner with them.
I just don’t think they’ve got the scale, you know, the, the [00:13:00] installed fleet, the industry to really promote it. And, you know, to get the economies of scale, they’re gonna have to pull in the big existing incumbents. So, you know, good on CIP for, for pulling this off.
Allen Hall: In terms of South Korea industry, I think steel is one of their strongest, uh, industries at the moment, and obviously shipbuilding.
Those are the, that go hand in hand, so to speak. There’s a lot of steel in wind turbines, and particularly in floating offshore wind turbines. It would seem ripe for South Korea to get into that marketplace.
Matthew Stead: I’m not sure the intellectual property is in steel tubes. Um, I, I guess what I’m trying to say is the intellectual property is in the turbine nacelle and the blades and, um, you know, I, you know, correct what I said that, you know, obviously the steel and the steel manufacturing in South Korea is, is pretty amazing.
Um, but yeah, they’re clarifying what I said before.
Allen Hall: So is this gonna turn into the leading floating project in the world? You know, Greenvolt’s gonna happen in the [00:14:00] UK. There’s some talk of things up in Scandinavia. But in terms of speed, will this be one of the leading candidates in t- in getting things in the water just because of the capability of South Korea to, to build at scale?
I
Matthew Stead: think it’s really exciting. Yeah, I, I’m, I’m gonna watch very closely.
Allen Hall: I think this is gonna be amazing. I really do.
Yolanda Padron: I was gonna say, could you imagine, like, a, a turbine and a blade where everything is just perfectly manufactured or close to perfectly manufactured? I g- I went to one farm last week, and there were…
I mean, it was in the States, and there were so many patches on new blades. I was just talking to the people in operations like, “What’s, what’s going on here?” You know? Uh, so it’s just really… I don’t know. This is exciting.
Matthew Stead: Do you think, um, they’ll build a blade factory, Yolanda? Do you think they’ll actually take on the blades?
Yolanda Padron: I don’t know. Uh, I, I mean, it’d, it’d be great for them, I think, right? It’s a new area of business that they’re diving [00:15:00] into.
Allen Hall: If they don’t have to build the building at the port, I think Siemens would be willing to erect something near the shoreline. And in Korea, there’s a lot of major industry right on the shoreline.
It would be relatively easy, I think. You know, ev- it sounds easy now because you’re not actually doing it. But in terms of, you know, building a blade factory on the coastline of United States versus doing it in South Korea, South Korea’s gonna be way easier to do that and at scale quickly. That, that one seems like a win-win.
I d- if there’s any place on the planet that could do it quick besides the UK or, you know, Denmark, someone like Netherlands, someplace like that, Germany, it’s gonna be South Korea.
Matthew Stead: Maybe that’s a bet, you know. So prove me wrong again. My money at the moment is that Nacelles blades won’t be coming from South Korea.
Allen Hall: Well, if they don’t come from South Korea, they’re gonna be on a South Korea-built ship. We’ll be bringing th- those [00:16:00] blades in country. That’s what will happen. So wind is getting its own set of financial instruments, which sounds weird, right? Wind is wind. It’s in a very legacy style industry. The Chicago Mercantile Exchange is planning to launch wind derivatives across three continents, which are contracts that are tied to the grid in Texas, the markets in the UK and Germany, and just the Victoria state in Australia.
So today, most weather hedging happens through one-off over-the-counter deals that are sort of hard to trade and thin on liquidity, so it’s not a commodity you can pass around. A standardized exchange-listed contract changes all that. A utility or a wind farm owner could lock in a hedge in about 15 minutes.
The contracts would settle against independent data that models how much power the wind should have produced in a given place, likely supplied by [00:17:00] the Finnish firm, drum roll, Vaisala. Plans are not final, but they could go live within months. So they’re hedging on the wind. Does this sound like a smart move, or w- what are some of the consequences of this?
Matthew Stead: I think it goes back to that volatility. W- when there’s volatility, people can make money. Um, you know, and a side note, that’s where, that’s where offshore wind comes in because it’s much more predictable. Um, you don’t get the same lulls with offshore wind. Yeah. So I, I, I love all these, these creative ways of, um, generating, generating demand, financial demand.
Allen Hall: It can be played though, right? I mean, that’s one of the things about wind, ’cause each turbine is its own separate little power plant that all connect to a substation, so if you have bought a hedge and the substation goes kaput for 24 hours, you could lose your shirt. It does seem kind of risky, depending on what the scale is here.
If you’re doing all of Texas or all of [00:18:00] Victoria, maybe that makes a little more sense, but yikes. That’s gonna be a rough market.
Yolanda Padron: Yeah, the market’s already open, right? Like, you can bid day ahead, um, instead of just real-time prices. But so this, this would be really interesting for owners, right? To be able to track that a lot better than just that gut feeling, which obviously I know people working in trading aren’t just going off of their gut feeling.
I know it’s a very, very intense thing. Nobody go against me, please. This is very intense, and it’s better– They do a better job than I could ever do. They do great, 10 out of 10. But this– I think this is really interesting for those of us especially who maybe aren’t super in tune with what, uh, all goes into it.
So being able to have something that helps you plan it a bit more for, you know, people like you mentioned earlier, the people that have their home batteries in Australia and are just working on the market itself and maybe [00:19:00] not– don’t have those 10, 20 years of experience of, of actually working on the market.
So this is, this is exciting.
Allen Hall: Does that explain all the weather sources and the weather companies when we go to a wind, a larger wind or solar event that there does seem to be a lot of people offering weather insights? Is that what that’s about, is they can hedge? If you have a slightly better weather model, that would give you an advantage in this kind, kind– really kind of market?
Is that the, the goal of all those weather firms?
Matthew Stead: Uh, absolutely. And, you know, we’re, we’re part of that because, um, ice, ice, um, you know, reduces power output, and ice forecasting and weather forecasting is, uh, really important in, you know, the Nordics, where you don’t want to be promising certain power and find you can’t deliver ’cause everything’s iced up.
So, you know, we, we do work with forecasting companies to improve the, [00:20:00] uh, the quality, and it does have a mer-material difference on, on the financial markets.
Allen Hall: So is that something that we can all get paid for? by these weather companies and these, uh, forecast companies if we provide insights on lightning, so to speak, and icing, uh, is that a revenue chain for at least one of us?
Matthew Stead: Absolutely.
Allen Hall: Maybe I like this more and more. I was, I was very hesitant of this exchange, thinking like, “Oh man, not a, not another highly leveraged situation with energy. That doesn’t sound smart.” But, yeah, if we can make a small fortune, Matthew, I think we should do it.
Matthew Stead: Fun fact, there was a flight from, um, yeah, from London to Australia the other week, um, and it’s a direct flight, you know, so 17 hours, and, uh, there was a change in the weather.
So there was a change in the weather, and that aircraft didn’t have enough fuel to fly to Perth anymore, so it had to land in the outback of Australia.
Allen Hall: No. Did that happen?
Matthew Stead: Yep, because there was a [00:21:00] change in the weather.
Allen Hall: Are there just, like, kangaroos lined up in a runway shape to get the airplane on the ground?
Or how do they– Is there a runway out in the outback that would accommodate a large… That’s a large airplane that’s making a London to Australia trip. Triple 7380? It
Matthew Stead: was a Dreamliner. Um, but, um, it, yeah, it landed in Kalgoorlie. So Kalgoorlie’s a mining town. Yeah, they’ve got, they’ve got big stuff in Kalgoorlie.
Allen Hall: In this quarter’s PES Wind magazine, in which there is a whole bunch of great articles, a interesting article about grease. Grease not the country, although I would love to go visit Greece. Grease the lubricant that’s in all our bearings and keeps the world moving at any one particular time. Uh, Sh-Shell was talking about doing a lot of research on grease, and when poor lubrication, uh, happens, it’s one of the leading causes of bearing failure.
And so when you see a bearing all tore up, usually the first indication is, is there’s something wrong with the grease. Uh, [00:22:00] so Sh-Shell and bearing maker SKF and the University of, uh, Twente joined forces to answer a deceptively simple question: How do you predict when grease inside a bearing will let go?
Well, their answer comes down to film thickness. The microscopic layers of grease that keeps the steel from grinding on each other is the magic variable. The work won a major tribology award and is already feeding into, uh, some of the tools that operators use to schedule relubrication before a bearing fails.
And It all comes down to lubrication. That’s the lifetime of a wind turbine. There’s so many pieces that are rotating and are heavily loaded with really complicated bearing surfaces. If you don’t have the grease right, it’s just not gonna work. And what’s happening at Shell is one of those pieces, and we’re [00:23:00] learning so much more.
And as we, uh, evolve in the technology and become smarter about the molecules we use and how we use them, uh, this is gonna have a big impact. And I know, Yolanda, you’ve been up to– Well, you’ve been to a couple of wind farms recently. Do you s- see– still see huge grease problems that I usually see when I’m on site?
Matthew Stead: Mm-hmm.
Yolanda Padron: I didn’t think that was an issue that was gonna go away anytime soon. But it’s good to know that, that there’s something being done about it that’s more revolutionary than just paying someone to clean the turbine every once in a while.
Allen Hall: And the contaminants that get into the greases are a huge problem, particularly where there’s any sort of sand, dust that climbs in.
So keeping those joints clear and those rolling surfaces clear is a major effort. And knowing when to relubricate. And, and Matthew, you guys see pitch bearings and all kinds of problems up on blades that are lubricated that have run out of their lifetime early. It does seem like the first thing you see on particularly pitch bearings [00:24:00] is grease on the side of the turbine from them.
Matthew Stead: Yeah. I think that’s– uh, there’s even a special code that the, the visual drone inspection companies have. They’ve got codes for, um, grease and so, yeah, exactly, that’s an early flag. But also dust. You know, sometimes dust from the inserts and from the bolts. Yeah. So it’s, yeah, interesting topic.
Allen Hall: Well, I, I think it’s one of the key pieces to keeping the turbines running.
And I know if you travel a lot around wind turbines, the, the grease is the thing that the technicians always talk about, and there’s so many different tools to go out and look at these things. But lubrication, we gotta get to it. And, and Shell, and SKF, and a number of others are, are working at it to make, hopefully, our lives a little bit easier.
So if you wanna go check out this article by Shell, go visit peswind.com and download a copy today. That wraps up another episode of the Uptime Wind Energy podcast. If today’s discussion sparked any questions or ideas, we’d love to hear from you. Reach out to us on [00:25:00] LinkedIn, and don’t forget to subscribe so you never miss an episode.
So for Yolanda, and Matthew, and an absent Rosie, I’m Allen Hall, and we’ll see you here next week on the Uptime Wind Energy podcast.
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