Friday, December 9, 2011

Plans for Maine’s first offshore wind turbine moving quickly

Dec. 09, 2011 - SOUTH PORTLAND, Maine — A deep water wind farm off Maine’s coast moved closer to reality Thursday as state and federal officials got a more detailed look at a Norwegian energy company’s proposal.

Statoil North America Inc., a division of the Norwegian company Statoil ASA, submitted an application in October for a commercial lease to the federal Bureau of Ocean Energy Management for an area of ocean that’s about 22 square miles for full assessment of environmental impacts, sea bed conditions and wind speeds. The lease area is about 12 nautical miles offshore of the Boothbay area.

The eventual size of the “Hywind Maine” project would be narrowed down to an area of between 2.32 and 3.86 square miles.Ned Farquhar, deputy assistant secretary at the Department of the Interior, talked Thursday about the Obama administration’s goals to reduce dependence on foreign energy sources.

“Opportunities like Atlantic wind, where there is significant potential, don’t come along every generation,” said Farquhar. “This is a huge opportunity to develop clean energy sources responsibly.”

The official interest by a major industry player in offshore wind immediately accelerates the potential development of the sector in Maine. The state, largely through the efforts of private industry and the University of Maine, has been developing prototypes, studying environmental and commercial issues off the coast and setting up the process for approving such projects.

“The proposal galvanizes the commercial deep-water development in Maine and the United States,” said Habib Dagher, the UMaine professor who has been at the forefront of offshore wind research in the state. “It’s currently an international race to deep water, and Maine is in the middle of that race.”

Farquhar confirmed Dagher’s assessment: “Deep water has not been implemented very much around the world. It’s got tremendous potential and Maine is at the vanguard.”

Sen. Susan Collins, R-Maine, has been involved with the offshore wind effort in Maine for years, sending members of her staff with former Gov. John Baldacci to Norway in 2009. She noted in a statement Thursday that Interior Secretary Ken Salazar toured the new deep-water offshore wind laboratory at UMaine during the summer at her invitation to learn more about the work being done in the state.

“I am very pleased to see the department take this next step in convening the BOEM Maine Renewable Energy Task Force today, and I thank Secretary Salazar for his commitment to work with other federal agencies in pursuing the most efficient path forward to establish deep-water, offshore wind as a viable energy source,” Collins said.

The federal agency has reviewed and approved the legal aspects of the application. It still has to review the technical and financial merits of the program.

The project would be in water from 460 to 520 feet deep. Because of the depth, the wind turbines would be floating, tethered to anchors on the sea floor — not embedded in the ocean bed.

Aditi Mirani, the bureau’s project manager for Maine, said the initial project Statoil has proposed is a pilot plan. It would include four 3-megawatt turbines, she said. The company is proposing a similar deep-sea pilot program off the coast of Scotland.

“What they’re proposing here is a test facility, a small-scale project. They just want to demonstrate the commercial potential of that floating turbine technology,” said Marini.

Ken Fletcher, head of Gov. Paul LePage’s Office of Energy Independence, noted the development of offshore wind in Maine was still in the very early stages.

The administration is keeping an open mind regarding the different energy opportunities that exist, he said, and ocean energy is “one of those great potentials.”

“The real test will be how well we can implement and achieve that potential with minimal impact,” said Fletcher.

Marini said Statoil plans to submit construction plans and operations plans by the end of next year, with the bureau making a decision on the lease request and approval of those plans by 2014. The plan is to start installation of the turbines in summer 2016, she said.

Statoil has responded to a request for proposals from the Maine Public Utilities Commission for companies that wanted to produce offshore energy, and the company also has applied to the New England electric grid to connect at the Boothbay substation.

Sen. Christopher Rector, R-Thomaston, head of the Legislature’s Labor, Commerce, Research and Economic Development Committee, said he saw great potential for Maine companies like Bath Iron Works, Cianbro Corp., Reed & Reed Construction and others.

“We’ve been focused on jobs for as long as I’ve been in the Legislature. What’s exciting about this is the opportunity for jobs in areas where we have some levels of native skill,” Rector said. “Saltwater runs in our veins.”

Rector said he was thinking of not only jobs making the turbine towers and parts, but also the installation and continuing maintenance of the wind farm.

Paul Williamson, director of the Maine Wind Energy Initiative, said his group has been working with Statoil to determine what parts of the supply chain exist here in Maine and where there are gaps.

The company’s interest in Maine waters takes his group’s efforts to a different level, he noted.

“This is beyond tire-kicking,” he said.

Statoil developed the first deep-water floating turbine off the coast of Norway in 2009. Former Gov. John Baldacci, University of Maine researchers and others visited the site that year, signing an agreement to cooperate in exploring the technology’s potential.

The company has operations in 34 countries and is valued at $85 billion. Company officials visited Maine after the gubernatorial mission to Norway and said at the time they were exploring numerous deep-water sites around the globe for their first commercial wind farm.

About 100 state and federal officials, as well as members of the public and interested parties, gathered Thursday for the meeting in South Portland.

Expected to last for much of the day, the session included numerous comments from agencies including the Coast Guard, Department of Defense and National Marine Fisheries Service on how they plan to study the proposal and what problems may exist.

Several officials gave initial assessments while describing the additional studies and tests they would undertake concerning the feasibility of the Maine Hywind project.

“Statoil picked a fairly decent location as far as traffic goes,” said George Detweiller, a marine transportation specialist with the Coast Guard.

Coast Guard data show relatively light traffic in that area, he said, though they don’t necessarily track smaller fishing vessels or recreation craft.

Representatives from the DOD said they would need more studies to determine possible impact on radar, and noted the area was in the general vicinity of pathways used by BIW and the Navy to test new destroyers, as well as submarine routes for vessels being serviced by Portsmouth Naval Shipyard.

A fisheries officials said they would study impacts on habitat, marine mammals, fish stocks and others.

Linda Welch, a U.S. Fish and Wildlife biologist who works with the Maine Coastal Islands National Wildlife Refuge, raised a number of concerns regarding offshore turbines and their potential impact on birds and bats.

Both the roseate tern and the piping plover are endangered species and migrate from Nova Scotia to Maine using unknown routes. They could be affected by a wind farm, she noted.

Maine has about 4,600 coastal islands and 382 are nationally significant seabird nesting islands, she said.

For example, 96 percent of the Arctic terns in the lower 48 states breed on four islands in the Gulf of Maine. Ninety percent of Atlantic puffins breed on three of Maine’s islands, she said.

Bald eagles congregate on the coast in the winter, feasting on seabirds, traveling to islands up to 20 miles off the coast, Welch said.

She suggested that in-depth studies would be needed to address potential impacts.

Rep. Bruce MacDonald, D-Boothbay, a member of the task force, said he was a proponent of wind energy, but added that a lot more study and information was needed.

“We have to look at a complete picture — can you do it without hurting the fishermen?” he said.

After the presentations, the task force took comments and questions from members of the audience. Some, including Dagher and Beth Nagusky of Environment Northeast, urged an expedited process for approving the pilot project lease.

A number of others with questions represented Maine’s fishing community, including Chris Weiner, a senior fishery analyst with the American Bluefin Tuna Association.

Weiner said the area eyed by Statoil is a “hot spot” for tuna, as well as for groundfish, lobsters and whale watchers.

“There are much better places to put something like this,” said Weiner. “You’re never going to please everybody, but don’t pick a hot spot.”source: /bangordailynews.com

Retail jobs to fall sharply: Gerry Harvey

9 Dec 2011 - Consumer goods king Gerry Harvey says 20 per cent of retail jobs could be lost if tough trading conditions continue.

The Harvey Norman co-founder and chairman predicts that the sector, which employs 1.2 million people, could shrink to one million workers next year due to the parlous state of retailing.

"We employ 1.2 million people and next year we'll be employing one million - it's getting bad every day and just gets worse," Mr Harvey told AAP on Friday.Mr Harvey said traditional store-front retailers were increasingly losing out to online sales, with shopper dollars flying offshore.

"Now it's starting to bite because so many retailers are going out of business.

"And then you've got so many Harvey Norman shops that are in serious trouble.

"We're losing money in more shops than we've ever lost money and that's (the same for) every retailer right across the country."

Australians are keeping purse strings tight and hoarding savings as global economic woes weigh on sentiment, and retailers are feeling the pinch.

Losing sales to online stores is a double whammy.

PayPal Australia this week said online commerce in the nation had grown at 11 per cent over the past year and sales were expected to be $30 billion by the end of calendar 2011.

Harvey Norman last month launched an online shop, following its Harvey Norman Big Buys website that started in April, after feeling the effect of internet shopping on its traditional stores.

Harvey Norman reported a 3.8 per cent fall in global sales in the September quarter, compared to the prior period.

The franchise was doing it tough in the lead-up to the all-important Christmas season, and it was not alone, Mr Harvey said.

The retailer expected "a reasonable Christmas, but not great".

Mr Harvey also renewed his call for the introduction of the GST and duties on foreign goods bought online for less than $1,000.

Currently, imported goods must be valued at more than $1,000 to attract such levies.

Mr Harvey said the existing system didn't appear to be enforced because the retailer had tested it by buying a $1,500 item online and was not charged GST and duties.

"They put $1,500 on your credit card and send you an invoice for $990 so it goes through customs, and the credit card company doesn't say anything because it's good for them, too.

"This has been going on for ages."

A Productivity Commission report on Friday recognised that competition from overseas online sellers was a challenge to the retail sector.

However, the commission said the low value threshold for exemption from GST and duty on imports was only a "minor part" of the competitive disadvantage traditional retailers faced and it would cost more to lower it than retain it.

According to the commission, the retail sector is worth around $60 billion a year to the economy.source: www.businessspectator.com.au

Vestas warns of ‘catch 22’ offshore

08 December 2011 - Vestas Offshore president Anders Soe Jensen advised of a “catch 22” for offshore wind at yesterday’s Countdown to 2020 conference in London.

He said that in order to maintain support for the sector costs must continue to fall, yet the industry requires a greater level of certainty before it can commit to further investment.

Soe Jensen said Vestas has dedicated itself to bringing more offshore wind to the UK in order to help the sector grow and to help the country’s economy expand.

He said the company has three priorities: it aims to reduce the cost of offshore wind, it wants create more jobs in the sector and it wants to keep the public on board as the industry grows.In order to maintain momentum the industry must demonstrate that the long term cost of energy for offshore can fall to £100 per megawatt-hour.

Soe Jensen said the industry needed a sufficient pipeline of projects going forward to justify investment saying that no one in their right mind would build a factory to employ 2000 people without it.

He added that operation and maintenance jobs require highly skilled workers for long periods of time but a lack of growth in the sector is limiting how many people can be employed.

“We cannot bring down costs alone,” said Soe Jensen, adding that it will require cooperation between the industries and banks to fully recognise the potential of offshore wind in the UK.source: renews.biz

Noble, Shell Debut New Offshore Rig Design in the Gulf of Mexico

They first thing you’ll notice looking at the Noble Bully I is what it’s missing. Unlike a conventional drilling rig, it has no derrick. Instead, it sports a compact, box-type drilling tower.

Shell spokesperson Kelly op de Weegh says it’s the tower that gives the Bully rig its edge.

“That multi-purpose tower allows you to be drilling as well as moving some pipe around and preparing for the next phase of the well simultaneously. And it also improves safety, in that dropped objects are always considered a safety hazard in the offshore industry. This Bully rig, because it really removes that threat, there’s just a much cleaner layout of the drill floor with clearer visibility.”The Noble Bully I has just arrived in the Gulf from Singapore. Following acceptance tests, it’ll start drilling in Shell’s Mars B field, about 150 miles south of New Orleans. Its sister ship, the Noble Bully II, is scheduled to begin operations off the Brazilian coast early next year.
source: app1.kuhf.org

Drilling Down

In June 2010, in the wake of the Deepwater Horizon disaster, President Obama put Michael Bromwich in charge of reforming the Interior Department’s offshore oil and gas programs. Yet, the two men have met only once, in September 2010, shortly before the department lifted the moratorium it had placed on issuing deepwater drilling permits. “I’ve been given a remarkably free hand in running this agency,” says Bromwich, who is leaving as director of the Bureau of Ocean Energy Management at year’s end. (He says he doesn’t know what he’s doing next.) In an interview with National Journal at the Interior Department, Bromwich reflects on the last 18 months. Edited excerpts follow.

NJ Your expertise is not in energy and environmental issues. How was this job different from past positions you’ve held, including inspector general of the Justice Department?

BROMWICH [With] the bulk of what I’ve had to do, you have not needed to have a wealth of specific technical information about offshore drilling. The important challenges that I faced in coming in here at the end of June of 2010 were ones of leadership and direction—of being able to take the reins of a troubled organization, being able to help lift it up, move it forward, and take care of the many significant tasks that were assigned to the agency.

There were plenty of technically smart people in the agency who could provide me technical information when I needed it. That’s not what the director of an agency like this needs to have, first and foremost. Does it hurt? No. Does it help? Marginal amount. But you can get that from people lower down in the agency.

NJ You had some difficult relationships with a few oil-state Republicans, especially Rep. Jeffrey Landry and Sen. David Vitter, both from Louisiana.

BROMWICH I understand that they feel the need to represent their constituents in an aggressive and sometimes highly rhetorical way. There are fantasies some people in the industry and some politicians have about who exercises control over what—everything ranging from the White House telling me what to do, which has never happened, to me telling the permitting people what to do and not to do, which has never happened. Some of the Gulf State representatives would be shocked about how little communication there has been, for example, between the White House and me. I have not talked to anyone in the White House for six months.

NJ What was the hardest part about this job?

BROMWICH The hardest part was dealing with the external pressures and the external focus on the agency from Day One. That continued for a longer period of time than I expected it. I thought once the well was capped, once the deepwater-drilling moratorium was over, once deepwater wells began to be permitted again—which was in February—that we wouldn’t be as much of an interest to you and your colleagues and the Congress and the outside world. That just turned out not to be true. We were not able to dig into some of the internal issues as we would have if we didn’t have the incredible array and continuing stream of external things to respond to: 15 congressional hearings, 19 external speeches.

NJ Why so much external pressure?

BROMWICH The companies—which were being harmed by the moratorium and the fact that we were processing plans and permits at a slower pace than we had historically—have a loud public voice. People pay attention to them. They make contributions to congressmen. They have very vocal trade associations. That’s why there continued to be a steady drumbeat of information coming out, much of it critical about what we were doing. And that explains the sustained attention that our operations got.

NJ What advice would you give to your successor, Rear Adm. James Watson?

BROMWICH Don’t worry about the pressures you’re getting from the external world, whether they be from trade associations or politicians or operators. Just do what you think is the right thing to do. Make decisions that you can justify to yourself and that you can justify to the outside world.

NJ What would you do differently?

BROMWICH What I wish I had had time to do was spend more time bringing in a couple of additional senior staff people, because the crushing burdens of this office fell on an incredibly small number of people.

NJ While your focus has been on offshore oil and gas production, your agency also regulates offshore renewable energy, such as wind.

BROMWICH I would say a generous estimate of how much time I spent on offshore-renewable issues is 2 percent. I regret that. I think there are some interesting and some promising things that can be done in terms of offshore renewables, but I did not have the luxury of time to get as involved in those issues as I would have liked.

This article appeared in the Saturday, December 10, 2011 edition of National Journal. source: www.nationaljournal.com

Offshore drilling watchdog stepping down

December 08, 2011 - When Michael Bromwich took over the helm of the agency overseeing offshore drilling 17 months ago, oil was still gushing into the Gulf of Mexico, and a handful of ethical lapses had shattered public confidence in the ability of federal regulators to police the industry.

Now, Bromwich is leaving the Interior Department after leading a major overhaul of the government's offshore drilling oversight programs and imposing a swath of new regulations designed to improve the safety of coastal oil and gas exploration.

But he is not confident that all of the changes imposed since last year's Deepwater Horizon disaster will stick."People have short memories," Bromwich said. "We have done everything we possibly can to institutionalize these reforms (and) to create new substantive rules. But there are a lot of people who have amnesia, who make believe that Deepwater Horizon never happened or (think) it was a total anomaly."

Bromwich warns that major challenges remain for the offshore drilling industry and the regulators who monitor it, especially as federal agencies struggle to compete with oil companies to recruit top-notch petroleum engineers. Some industry leaders and their allies in Congress also are pushing to roll back new regulations imposed since last year's oil spill.

Bromwich also is campaigning for extra dollars for the two federal bureaus that were created to replace the former Minerals Management Service.

"This agency for 28 years fought a losing battle for resources," he said. "We have now started to make up for lost ground over the last year and a half," but possible across-the-board budget cuts and planned congressional spending "make me quite concerned about whether the agency will have the resources and tools it needs to do the job that the public expects it to do."

Bromwich formally stepped down as head of the Bureau of Safety and Environmental Enforcement on Thursday, but he will serve as a special adviser to Interior Secretary Ken Salazar through the end of the year.

His successor is retired Coast Guard Rear Adm. James Watson, who led the government's response to the Deepwater Horizon disaster after June last year.

Bromwich became a lightning rod for criticism from industry leaders and some lawmakers, who said the government's approval rate of offshore drilling projects slowed unnecessarily under his watch.

source: articles.sfgate.com