Aker Solutions Asa · OSL:AKSO
Aker Solutions Asa — Aker Offshore Wind — Investor Presentation (August 2020)
36 slides from Aker Solutions Asa's investor presentation, Aug 6, 2020
Slide 1: Company presentation August 2020
Company presentation August 2020 2020 © Aker Offshore Wind
Slide 2: Important information
Important information IMPORTANT INFORMATION. THIS DOCUMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, ITS TERRITORIES OR POSSESSIONS, AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA OR TO ANY RESIDENT THEREO
Slide 3: Glossary list
Glossary list Term Description Term Description LCOE Levelized cost of electricity BoP Balance of plant IPP Independent power producer O&M Operation and maintenance FID Final investment decision MoU Memorandum of understanding COD Commercial operation date PPA Power purchase agreement RES Renewable
Slide 4: Table of contents
TABLE OF CONTENTS 1 Introduction 2 Market backdrop 3 Aker Offshore Wind 4 Current portfolio and strategy 2020 © Aker Offshore Wind Slide 4
Slide 5: Aker Offshore Wind – A pure play deep-water wind IPP
Aker Offshore Wind – A pure play deep-water1 wind IPP Proven Deep-Water World-Class Attractive Project Strong Backing From Foundation Deep-Water Expertise Pipeline The Aker Sphere Technologies Building on Aker’s deep-water Access to proven floater and deep- Early entrant position in attractive Suppo
Slide 6: Driving the 4th revolution in renewable energy through LCOE reductions
Driving the 4th revolution in renewable energy through LCOE reductions Revolution 1 Revolution 2 Revolution 3 Revolution 4 (1990s) (2000s) (2010s) (2020s) Onshore wind1 Solar PV1 Offshore shallow-water wind1 Deep-water wind1 LCOE, USD/MWh Generation, ‘000 TWh LCOE, USD/MWh Generation, ‘000 TWh LCOE,
Slide 7: Deep-water wind is expected to become the most effective renewable energy source
Deep-water wind is expected to become the most effective renewable energy source Virtually unlimited potential Less intrusive and smaller Superior wind conditions ~7,000 – 8,000 GW (>60m1) footprint Total offshore wind potential Wind capacity factors3 Benefits of deep-water wind in percent (100% = 1
Slide 8: Targeting markets with strong fiscal regimes for initial development
Targeting markets with strong fiscal regimes for initial development Early-mover strategy Securing a position in the most attractive markets 1 Early entrant position critical to succeed at current stage of industry California, US South Korea • 60% renewable • Renewables to account electricity genera
Slide 9: Attractive and sizeable >1.5 GW development portfolio
Attractive and sizeable >1.5 GW development portfolio… Projects Prospects South Korea USA Norway Scotland Project KF Wind Redwood Coast Offshore Wind Vestavindar and Sønnavindar TBD Region Ulsan California Utsira North, Sørlige Nordsjø II TBA Estimated gross ~1,500 MW ~150 MW ~1,700 MW >500 MW capac
Slide 10: …with significant value creation potential
…with significant value creation potential Illustrative deep-water wind development timeline and value profile Project value COD Aker Offshore Wind development portfolio 3.5 to 8 years FID Site licenses Project development Construction Operation 2-8 years 1-3 years 30+ years 2020 © Aker Offshore Win
Slide 11: Aker’s DNA – Building businesses by advancing frontiers in complex environments
Aker’s DNA – Building businesses by advancing frontiers in complex environments 2020 © Aker Offshore Wind Slide 11
Slide 12: Table of contents
TABLE OF CONTENTS 1 Introduction 2 Market backdrop 3 Aker Offshore Wind 4 Current portfolio and strategy 2020 © Aker Offshore Wind Slide 12
Slide 13: Growing renewable energy is the pillar of global CO2 reductions
Growing renewable energy is the pillar of global CO2 reductions Renewables expected to constitute ~60% by 2050 CO2 emission reduction by measure1 Global electricity generation mix, Global CO2 emission, % billion tons 100% 40 90% Wind ~25% wind 35 80% Solar 70% 62% 30 renewables Hydro 60% Oil 25 50%
Slide 14: Offshore wind power set to become a major part of the energy mix
Offshore wind power set to become a major part of the energy mix First-class renewable energy Industrialization to drive decline in Rapidly growing part of electricity generation mix resource base generation costs The highest capacity factor Industrialized solutions Rapid growth in installed capacit
Slide 15: Attractive deep-water wind markets currently in the making
Attractive deep-water wind markets currently in the making Scotland / Ireland Norway 40 GW Wind speed: 11.0 m/s Wind speed: 10.2 m/s 3.5 GW 2030 target ELECTRICITY MIX ELECTRICITY MIX2 2030 target1 (UK) Japan Wind speed: 9.2 m/s 10 GW ELECTRICITY MIX 2030 target1 US West Coast Wind speed: 9.0 m/s EL
Slide 16: Strong push to electrify the Norwegian Continental Shelf (NCS)
Strong push to electrify the Norwegian Continental Shelf (NCS) Electrification of oil and gas production to reduce Norway’s CO2 emissions by ~20% Norwegian CO2 emissions, NCS oil and gas emission targets, Million tons Million tons CO2 equivalents • Ambition to electrify ~50% of the NCS by mid-20s 14
Slide 17: Deep-water wind part of an emerging sustainable ocean economy
Deep-water wind part of an emerging sustainable ocean economy HYDROGEN GREEN FUELING LARGE SCALE, PRODUCTION FOR SHIPPING OFFSHORE AQUACULTURE 2020 © Aker Offshore Wind Slide 17
Slide 18: Table of contents
TABLE OF CONTENTS 1 Introduction 2 Market backdrop 3 Aker Offshore Wind 4 Current portfolio and strategy 2020 © Aker Offshore Wind Slide 18
Slide 19: De-risking industrial development through Aker’s capabilities and experience
De-risking industrial development through Aker’s capabilities and experience World-class Proven deep-water Digitalization to Leveraging Aker BP’s deep-water capabilities foundation technologies drive down costs position on the NCS 2020 © Aker Offshore Wind Slide 19
Slide 20: Leveraging capabilities across the Aker sphere
Leveraging capabilities across the Aker sphere Business development Project development and execution Operations Aker Offshore Strategy, origination, government affairs Project development and execution management Management of operations Wind Aker Horizons Support on corporate strategy and M&A Fina
Slide 21: Strategic cooperation with Aker Solutions
Strategic cooperation with Aker Solutions Strategic co-operation agreement ✓ Access to five decades of deep-water/floater experience ✓ World-class offshore project execution ✓ Advanced subsea technologies ✓ Leading maintenance and operations ✓ Global execution platform 2020 © Aker Offshore Wind Slid
Slide 22: Access to proven and bankable floating technology through Principle Power
Access to proven and bankable floating technology through Principle Power Field-proven Bankable Strong Strong technology floating design floating design technology brand brand in the floating (one (suitable two out of for in the floating wind industry globally) wind industry project financing) 20.5%
Slide 23: Unlocking deep-water bottom-fixed offshore wind
Unlocking deep-water bottom-fixed offshore wind ✓ Using Aker group’s world-class deep-water jacket technologies to drive down costs and unlock acreage also on intermediate depths (50-70m) where monopiles and floaters often are less optimal ✓ Proprietary software ensures optimization for metocean and
Slide 24: Digital platforms to support significant lifetime reductions in LCOE
Digital platforms to support significant lifetime reductions in LCOE Digitalization to be a significant contributor to LCOE reduction Digital twin technology • Industrialized AI at a scale delivering contextualized data as Project development System optimization and time compression a service • Adva
Slide 25: Target to drive down cost (LCOE) to ~50 EUR / MWh by 2030
Target to drive down cost (LCOE) to ~50 EUR / MWh by 2030 LCOE for deep-water / floating offshore wind (EUR / MWh) 2020 LCOE ~150 • LCOE for pilot-scale projects commissioned in 2020 ~15 • Increased turbine size, larger swept-area, higher hub-height and increased capacity factor Turbine ~15 • Econom
Slide 26: Solid management team backed by experienced Board of Directors
Solid management team backed by experienced Board of Directors Management team and Board of Directors Astrid S. Onsum – CEO Caroline Kielland Hov – SVP Project Execution • Previous Head of Wind Energy at Aker Solutions ASA • More than 20 years experience in offshore project execution, risk managemen
Slide 27: Close collaboration with dedicated Aker Horizons team
Close collaboration with dedicated Aker Horizons team Building a leading deep-water wind developer in collaboration with Aker Horizons Key collaboration areas Aker Horizons ✓ Aker Horizons recently established (and 100% owned) by Aker ASA to drive decarbonization and invest in renewable energy Øyvin
Slide 28: Table of contents
TABLE OF CONTENTS 1 Introduction 2 Market backdrop 3 Aker Offshore Wind 4 Current portfolio and strategy 2020 © Aker Offshore Wind Slide 28
Slide 29: KF Wind projects (South Korea)
KF Wind projects (South Korea) – High renewable energy ambitions and strong fiscal regime South Korea, Ulsan • South Korea relies heavily on fossil fuels which today account for approx. 66% of electricity production (fourth largest coal importer in the world) • The South Korean Government’s IES 2030
Slide 30: Redwood Coast Offshore Wind project (California, United States)
Redwood Coast Offshore Wind project (California, United States) – Ambitious renewable energy goals and deep-water coastline United States, California, Humboldt County • California has set ambitious renewables goals – targeting renewable electricity of 60% California Offshore Wind Call Areas by 2030
Slide 31: Vestavindar and Sønnavindar prospects (Norway)
Vestavindar and Sønnavindar prospects (Norway) – Unique position in home market with ambition to electrify NCS Norway, Utsira North and Sørlige-Nordsjø II Gross capacity • In June 2020, the Norwegian government announced the opening of two areas for NOAKA Aker BP with ambitions to offshore wind deve
Slide 32: Prospect in the ScotWind lease round (Scotland)
Prospect in the ScotWind lease round (Scotland) – UK targets 40 GW offshore wind by 2030 Scotland (UK) Gross capacity • Mature and well-developed leasing, consenting and application system managed by the Crown Estate Scotland • The UK plans to reach zero emission of greenhouse gases by 2045 and 40 G
Slide 33: Several near term milestones to increase portfolio value
Several near term milestones to increase portfolio value Key upcoming milestones Deployment of Expected Electricity Site license LiDARs submission for Business award expected license round License H2-2020 0c H1-2021 H2-2021 Bid submission, Site license Bid submission site license award expected awar
Slide 34: New project opportunities identified in new and existing markets
New project opportunities identified in new and existing markets Investment compass Prospective markets – closely monitored Environment Business Japan • 10 GW offshore ambition 2030 (4 GW floating) • Water depth > 60m • Regulatory and fiscal • 80% resources deep-water • Power System CO2 mix regimes
Slide 35: Driving the industrialization of deep-water wind
1 2 3 4 VAST POTENTIAL FOR WORLD-CLASS ATTRACTIVE GLOBAL STRONG BACKING DEEP-WATER WIND DEEP-WATER EXPERTISE PORTFOLIO FROM AKER HORIZONS • “Unlimited acreage” • Leverage the Aker sphere’s • Attractive early entrant position • Well-reputed majority world-class deep-water with access to prime acreage
Slide 36: 2020 © Aker Offshore Wind
2020 © Aker Offshore Wind
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