GLOBAL FLOATING WIND ENERGY MARKET & FORECAST

Volume 2

(2019 – 2034)

 

 

This comprehensive report dedicated to Floating Wind illustrates the growing market opportunities across the supply chain over the next 15 years including the most active developers, potential market size, pertinent project activity details and other vital metrics illustrated by region and construction timeline.  Quest projects that more than 17.5 GW of Floating Offshore Wind will be installed worldwide to 2033, a number that will grow exponentially following the addition of newly announced projects.

Major Report Findings

  • The wind industry continues to deliver value to enhance wind’s cost competitiveness and efficiency with steady improvements in the Levelized Cost of Electricity (LCoE). Since 2016, offshore wind particularly has pushed reductions in LCoE in excess of 50%.

  • Ten potential super-sized Floating offshore wind projects, each ranging between $2.2 billion and $10.8 billion in CapEx, represent a sizeable share (over 60%) of the $63 billion total addressable market presently identified.

  • As illustrated in the report’s figures,  the near-to-medium term market to 2026 is sizeable representing $44.6 billion in CapEx comprising projected wind power capacity additions of 11,397 MW to be powered by 1,400 Floating Turbine Units (FTUs).

  • Near-to-medium-term projects with statuses Under Development and Planned total $15.9 billion in CapEx led by Asia/Pacific with $6.8 billion, USA-Pacific with $6.2 billion, Northern Europe with $2.1 billion, and Southern Europe with $0.7 billion. Over this period, $6.1 billion will be allocated to turbines, $3.5 billion to substructures, $2.5 billion for cabling, $1.8 billion in moorings, and $402 million on installation.

  • Larger scale defines the project mix starting with 2020 & 2021 project sanctions (FIDs) and Q FEW forecasts a crescendo of activity from 2024-2026.  Regions leading the charge are the USA-Pacific (Castle Wind), Saudi Arabia (Plambeck) and the 4x 20-25 units each projects in South Korea (Donghae I, Donghae TwinWind, Gray Whale and White Heron). These Planned projects represent wind power capacity additions totaling 3,344 MW from 370 FTUs.

Regional highlights

  • The USA, United Kingdom, Taiwan, Japan, South Korea and Spain lead the exponential growth in cumulative total MW for Planned and Possible offshore Floating wind projects to 2033. These countries represent projected wind capacity additions totaling over 16 GW. Other notable contributors include Saudi Arabia, France and Norway.

  • The Asia/Pacific Is a Definite Bright Spot. Quest sees the near domination of Floating wind presently shining through across the Asia/Pacific with a Total Addressable Market exceeding $22.9 B CapEx represented by six projects in South Korea, six in Japan, four in Taiwan, and one in Saudi Arabia. Shell (EOLFI) looks to develop four of the six largest projects as measured in CapEx which are located in Taiwan. Acacia joined with designer Ideol is set to develop the largest project in the region to be situated off the western shore of Japan.

  • Projected CapEx in Northern Europe is led by the United Kingdom with eight projects representing $13.8 billion in spend and Norway with four presently identified projects totaling $996 million in CapEx.

  • Nearly six GW of projects comprising 622 FTUs are identified for the USA-Pacific and Atlantic waters averaging $4.2 million CapEx per MW and representing a total spend of about $20 billion. The segmentation by supply chain shows turbines at $8.3 billion (42%,) substructure at $4 billion (20%), cabling $3 billion (15%,) mooring $2.2 billon (11%) and installation $518 million (2.6%). The majority of USA-Pacific’s offshore Floating wind projects are Commercial scale with the first project stated to be Online in 2023 or 2024.