 At Brezo, our goal is clear: help achieve a competitive Levelized Cost of Energy (LCOE) in the Floating Wind. In our LCOE calculation, besides production costs, we include:
So we have been working on optimizing this LCOE, which ultimately shall drive the success of any project. In this framework, the risk profile is also crucial, being a constraint function of the optimization process. For example, while jackets may offer a more favourable risk profile than monopiles, we still see monopiles being widely adopted because their risk profile is "good enough," and they generally provide a better cost solution. In the case of our technology, CROWN FW®, a way to further optimize this LCOE is by building the floaters in floating docks, which are in essence manufacturing facilities that can be shared between projects and ports. This can help reduce the investment requirements in port infrastructure, allow for a more sustainable industry, improve project economics and foster industry scalability. We consider this could be of special interest to the major players, whose larger portfolio could benefit more naturally from this. A post last week by Sven Utermöhlen, CEO of RWE Offshore Wind, is in our view linked with the above. We are sure Sven did not have us in mind when writing the post, which targets the entire industry (and perhaps more the bottom-fixed one than the floating one), so the following shows our interpretation of his recommendations to the industry for our particular case. The post outlined three critical actions to overcome the offshore wind industry’s challenges: improving supply chain efficiency, establishing a competitive regulatory framework, and delivering projects at scale. In the end, the post emphasized the need for developers to have “investable business cases with acceptable risk profiles”. Our interpretation of this follows what we mentioned in the first paragraphs: we must compete in price, optimizing it, and ensure the risk profile is good enough. Furthermore, we find Sven’s suggestion of shifting from single-project optimization to portfolio optimization also worth noting. Optimizing the total LCOE across a portfolio of projects introduces a new level of complexity, especially since joint ventures typically focus on optimizing individual projects. However, there’s potential for larger developers to create win-win scenarios by making strategic decisions that benefit their entire portfolio. At Brezo, we believe mobile floating docks can play a role in helping developers achieve that level of optimization across multiple projects. In sum, we’re working hard to contribute to a future where Floating Wind is both cost-competitive and sustainable, and we see our innovations as part of the solution to the broader challenges facing the industry today.
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🌟 Our Chair, Henrik O. Madsen, will be presenting on Friday, September 20th, in the seminar honouring professors Faltinsen and Moan in Trondheim. Henrik will talk about his experience in the Floating Wind and the lessons learned through numerical and experimental tests during the development of our technology. For those of us who have not studied at NTNU but have learned from and rely daily on Professors Faltinsen and Moan textbooks 📚 , this is an event we feel attached to. Their work continues to influence and shape our understanding of maritime and offshore technology. 🌊 #CrownFW #IndustrializingFloatingWind   Floating wind technology is often hailed as a game-changer in renewable energy, with its potential seemingly as vast as the oceans it harnesses. The scale of offshore wind resources far exceeds global electricity demand, making floating wind a crucial player in the future energy mix. With such inherent capacity, the question becomes: can it compete on cost?
The benefits of floating wind are clear. Offshore winds are stronger and more consistent, leading to higher capacity factors and a more stable power supply to the grid. This stability adds much-needed flexibility to our energy systems. But the power distribution of floating wind is comparable to that of bottom-fixed offshore wind, which currently holds a cost advantage and a significant track record. As a result, today bottom-fixed offshore wind remains the dominant force. It is the go-to solution wherever the seabed allows. The typical cost of bottom-fixed offshore wind foundations (including offshore installation) ranges from €0.8 million (bottom threshold) to €2.0 million per MW (top threshold), depending on factors like project size, depth, and soil conditions. Meanwhile, floating wind is today more expensive, with costs typically considered slightly above €2 million per MW for “the Marine Side” (floater, mooring system and marine operations). This results in a CAPEX increase of about 30% to project costs compared to a similar bottom-fixed farm. Industry reports typically use this figure to assess the expected cost of installations, and with it the total capacity to be deployed. For instance, DNV’s Energy Transition Outlook (2023 version) mentions an average LCOE in 2050 of $51/MWh for bottom-fixed, and approximately $67/MWh for floating, a 31% higher cost. With this cost reference, DNV’s Energy Transition Outlook predicts that by 2050 bottom-fixed installations will outnumber floating wind by a factor of 9:2 (from today’s ~300:1). The message is clear: without competitive costs, floating wind will be confined to regions where bottom-fixed solutions aren’t feasible. At Brezo, we work to drive the costs of floating wind down. Our innovative foundation approach is based on CROWN FW®, a simple structure that follows a design-for-manufacturing and design-for-logistics philosophy. We believe that large floating wind projects can get close to the lower cost thresholds of bottom-fixed solutions. Our calculations suggest that the additional cost associated with floating wind will be significantly reduced, and in some markets be gone altogether. Imagine the impact of this cost parity. If floating wind can match the costs of bottom-fixed offshore wind, it’s time to rethink how we integrate these technologies into our global energy mix. The 9:2 ratio can be greatly shrunk. The future of energy isn’t just about the resources we have—it's about how smartly we can harness them. It is not about whether we will see floating or bottom-fix foundations installed in 60-80 m deep areas, a depth where neither will be in the low-cost threshold, but about finding sites that make the best of each. And floating wind has a lot to offer in that future. As we approach #BookLoversDay, we want to celebrate it with a reference to the most famous bias¹ of the wind industry in literature, that of Don Quixote. In this image, Don Quixote and Sancho have arrived in Scotland² (how this happened could be the subject of another post) and wonder about these giants at sea. This very nice illustration has been done by our colleague Silvia Nicole Paredes Mendoza. PS1: those wind turbines are resting on our floating platform, the CROWN FW® tech PS2: that tug, which is super silent thanks to its diesel-electric propulsion, is already in operation. It has been designed by Seaplace for Spanish Maritime Safety and Rescue Agency and Zamakona Yards. It has a BP of 215 t. ¹ Horn effect? ² You may appreciate they are in Scotland because of the heath in the illustration #IndustrializingFloatingWind #DonQuixote #CrownFW #BookLoversDay  At Brezo Energy, we work to help industrialize the floating wind, transforming it into a sustainable, scalable, and low-risk energy solution. The image below aims to summarize our proposal to the industry. The CROWN FW® technology fosters: 🛡️ Reliability: CROWN FW® is a robust and low-risk floating wind platform. It relies on well-established manufacturing methods to ensure reliability, efficiency and safety. ⚙️ Industrialization: The technology is designed to streamline the manufacturing and deployment processes, making floating wind a viable and competitive alternative to traditional energy sources. 🤝 Collaboration and Partnerships: We believe in the power of collaboration. By partnering with industry leaders and research institutions we are driving forward the adoption and integration of our technology. 🌐 Global Reach: With CROWN FW®, we aim to make a significant difference worldwide. Our projects are set to provide reliable and sustainable energy to communities across the globe. Join us as we work towards a more sustainable and energy-efficient future. #RenewableEnergy #Sustainability #FloatingWind #CROWNFW #GreenTech #Industrialization #LowRisk  |
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