DanTysk Case Study Improving offshore logistics and methodologies

1 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

Our markets and our position in Europe

Offshore wind power no. 2

955 MW on land 836 MW offshore

Hydro power no. 3

34.6 TWh

Biomass no. 5
1 TWh

Electricity production no. 6

159 TWh inc. 41.5 TWh nuclear

Heating production no. 1

37.9 TWh

Electricity distribution no. 6

7.5 million private customers 5.6 million network customers

Technological development
Wave energy & CCS

Trading no. 5
Presence in the most important trading markets

Core markets
2 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

BD Renewables: Business context

Establishment of an industry industry pioneers Competitiveness top industry performance

Offshore Wind Projects

Onshore Wind Projects

BD Renewables

Biomass

Wind generation

Business Division Sustainable Energy Projects continues development of Vattenfalls project portfolio.
3 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

Vattenfalls current offshore wind portfolio

Total 836 MW in operation
Denmark Horns Rev I (160 MW) operational since 2002 Sweden Utgrunden (10 MW) operational since 2000 Yttre Stengrund (10 MW) operational since 2001 Lillgrund (110 MW) operational since 2007 Kriegers Flak (640 MW) in development Taggen (300 MW) in development Trolleboda (110-150 MW) in development

Netherlands Egmond aan Zee (108 MW) operational since 2007 Beaufort (340 MW) in development

United Kingdom Kentish Flats (90 MW) operational since 2005 Thanet (300 MW) operational since 2010 Ormonde (150 MW) start of operations 2011 East Anglia (7.200 MW) in development

Germany alpha ventus (60 MW) fully operational since 2010 DanTysk (288 MW) major construction period 2013 Nordpassage (400 MW) in development

4 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

DanTysk Offshore Wind

Project permit granted in 2005
80 WTGs Located ~70 km west of Sylt 90 km (~ 50 nm) to Esbjerg Water depth 21 - 33 m Area 71 km Grid access granted

5 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

Joint venture with Stadtwerke Mnchen GmbH

Structure and contractual set-up of JV

Key facts of JV
SWM is a financially very stable and therefore attractive partner

JV Agreement SWM Vattenfall

DanTysk is completely equity-financed by the two partners

Jointly controlled but with right of veto from Vattenfall

Operational and business management contracts

49 %

51 %

Vattenfall is in the lead of: All operational work (development and construction) Business and operational management contracts for construction and operation The JV management is controlled by Vattenfall

DanTysk Offshore Wind GmbH

6 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

Vattenfall Project Team

DanTysk staff
Key people in the DanTysk project team were responsible and / or involved in planning and building up in previous VF projects - Project management and administration - Foundation structure - Construction surveillance - Project communication - R&D - Installation logistics Leading role in developing and defining industrywide standards Diverse team with sound know-how in technology, management and marine operations.

7 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

Foundations
What 80 monopiles and transition pieces incl. installation Special focus on grouting issue Proven installation technology Load-out in Vlissingen Transport and installation by Seafox 5 When Contract signed in March 2011 Pre-installation works starts in autumn 2012 Installation starts end of 2012 Why Very experienced contractor

8 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

Fabrication of Transition Pieces

9 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

Fabrication of Monopiles

10 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

Black Marlin carrying Seafox 5 - Passing Cape Town

11 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

Seafox 5 arrived in Rotterdam for unloading

12 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

Inner Array Cabling

What 120 km inner array cable incl. laying, pull-in and burial Ring connection of inner array grid Van Oord Marine Contractors When Contract signed July 1st, 2011 Installation to start in spring 2013 Why Experience with other projects underlined crucial role of successful cabling

13 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

Offshore Substation
What Offshore sub-station with jacket-structure 33/155 kV Strukton/Hollandia to design, manufacture and install Installation planned with Oleg Strashnov from SHL When Contract signed December, 2010 Installation start spring 2013 Commissioning finished June 2013 Why Experienced consortium (Nordzee Wind) Proven concept Low risk installation process

14 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

Fabrication Offshore Substation - Topside

15 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

Fabrication Offshore Substation - Jacket

16 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

Wind Turbine Generator

What 80 x 3,6 SWT 120 turbines with total capacity of 288 MW Energy yield more than 1,3 TWh per year 5 years full service with increasing number of VF employees When Contracts signed on September 2010 Pre-commissioning and loading in Esbjerg Installation start July 2013 Take-Over in Spring 2014 Why Experienced contractor Reliable technology High energy yield

17 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

Installation of WTGs
What Purpose build Jack-up DP2 vessel Pacific Osprey Operator Swire Blue Ocean subsidiary of Swire Pacific Offshore (Singapore) 6 legs, load capacity of up to 12 complete sets of WTG When Contract signed in Feb 2011 Delivery from ship yard SHI in Dec 2012 Installation starts July 2013 Why Well known contractor Reliable offshore organization Reduced risk profile through high weather limits Very fast loading, transport and installation

18 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

Sister Vessel Pacific Orca already delivered

19 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

Offshore Accommodation Plattform

What Provide permanent accommodation for up to 40 service technicians Basis for daily routine job in the wind farm Contractor Nobiskrug When Contract signed in October 2012 Fabrication will commence in spring 2013 Installation autumn 2014

Why Decision on location, specification and equipment of offshore accommodation Comparison between accommodation platform and accommodation vessel (Focus: HSE relevant aspects)

20 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

Various challenges for planning and execution of Offshore Wind Logistics and Marine Operations during Construction and Operations

Evaluation and deployment of new vessels, technologies and methods Contract right partner and resources Availability of suitable base and service port facilities

National rules and regulations

Manage the interfaces properly

and a lot more

21 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

DanTysk timeline not changed since early 2011

Jan. 10 Tendering Substation Negotiation Design/Manufacturing Jul. 10 Jan. 11 Jul. 11 Jan. 12 Jul. 12 Jan. 13 Jul. 13 Jan. 14

Foundation structure

Tendering

Negotiation

Design/Manufacturing

Installation

Inter Array Cabling

Tendering

Negotiation

Design/Manufacturing

Installation

WTG Installation Vessel

Tendering

Negotiation

Construction of vessel

Installation of WTG

Tendering WTG Negotiation Design/Manufacturing Installation

Grid Access

Grid installation (by TenneT)

Current State: 2012-08-20

22 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

www.dantysk.de

23 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

The Vattenfall Cluster in Germany and Denmark

Horns Rev 1, 80 turbines
in operation since 2002

DanTysk, 80 turbines
under construction

Sandbank, 96 turbines in
development

Sandbank Extension, 40
turbines in development

Nordpassage, 80 turbines
in development
376 turbines in total

Same service harbour in

Esbjerg High synergies, especially in O&M

24 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

Industrialize and grow while mitigate uncertainties

Know how transfer

Cost of Energy

- 30%

Projects

2012

2015

2020

Year

Control and master the business Control and master the costs
25 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

Bring down the costs

Turbine Installation

Reducing loading, transport and installation times: development of new methods, tools and equipment for seafastening and lifting
Ports to be more receptive to offshore wind: - Large laydown areas - Easy quay access from shore and sea - Jack up next to quay side Installation methodology to allow higher operational limits

26 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

Bring down the costs

Foundation Installation

Industrialised use of foundations requires development of: - Specialized Vessels, Barges and Equipment - Improvement of Load-out methods and accessibility - Efficient onshore and offshore logistics
Novel installation methodologies: - Holistic design of lifting tools, and noise mitigation

27 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

Bring down the costs

Cable Installation

Novel installation methodologies required - Integrated laying and burial without damaging the cable - Improved pull in procedures and tools
Installation methodologies to allow higher operational limits and faster installation and commissioning times

Purpose build installation vessels

28 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

Professional partnerships are making the difference

External Partners EWE & E.ON

Thanet

Ken tish Flat s

Alpha Ventus

Ormonde

Vattenfall Offshore
External Partner Shell

Lillgrund

Egmond

External Partner Stadtwerke Mnchen

East Anglia Offshore Wind DanTysk

External Partner Scottish Power

29 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

Solid basis our core values

Safety

Performance

Cooperation

30 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21

Vattenfall makes ...

Offshore Wind affordable.

31 | Vattenfall Wind Power | Lars Engelmann | 2011-11-21