Suryaprakash Venkatasubramanian | MEL Candidate | Dec 3, 2024
Mentors : Patrick Burke | AUSENCO
Special Thanks to : Neal Coffin, Regional Director Marine, AUSENCO
ABSTRACT
This project explores AUSENCO’s potential entry into the Canadian offshore wind energy sector, leveraging its expertise in environmental regulatory assessments and engineering consultancy. The market offers significant opportunities under two growth scenarios: Rapid Development (21.1 GW) and Moderate Development (9.3 GW) by 2035. Key service areas, including environmental assessments, surveys, and engineering support, present a pathway for AUSENCO to expand into this sustainable energy market.
INTRODUCTION
Offshore wind energy is rapidly gaining traction as a major renewable energy source globally. AUSENCO aims to enter this market, leveraging its existing expertise in environmental assessments and engineering consultancy. This project explores the Canadian offshore wind market’s growth potential and provides a phased strategy for AUSENCO to secure a competitive edge. Key objectives include estimating revenue potential, identifying skill gaps, and formulating a cost-efficient entry strategy.
A phased business entry strategy focuses on market intelligence, investment readiness, and contract securing while emphasizing strategic partnerships and cost-effective resource use. With targeted investments and a clear plan, AUSENCO can establish itself as a key player in the offshore wind market and contribute to the global renewable energy transition.
| S.No | Category | Fixed Wind Turbine | Floating Wind Turbine |
| 1 | Development and Project Management | 156000 | 195000 |
| 2 | Turbine Cost | 1300000 | 1690000 |
| 3 | Balance of Plant – Cables, Substation offshore and Onshore | 783900 | 2210000 |
| 4 | Installation and Commissioning | 845650 | 481000 |
| 5 | Operation and Maintenance per annum | 97500 | 92300 |
| 6 | Operation and Maintenance Total (25 years) | 2437500 | 2307500 |
| 7 | Decommissioning | 429000 | 195000 |
| 8 | Contingency and Insurance | – | 351000 |
| Total Cost per MW | $5.95 M | $7.08 M |
Figure 1 : Offshore Wind Turbine – Cost Distribution
METHODS AND MATERIALS
Data Collection: Market data on offshore wind growth projections for Canadian provinces. Cost estimates for services such as regulatory assessments, surveys, and consultancy
Market Analysis: Forecasted offshore wind capacity across Canadian provinces.
Scenario Development: Revenue projections based on service-specific costs.
Strategic Planning: Designed a three-stage entry approach to penetrate the market while leveraging AUSENCO’s existing strengths and capabilities.
Cost Optimization: Incorporated resource-sharing and offloading tasks to reduce overheads
Figure 2 : Offshore Wind Farm Project Timeline
Figure 3 : Offshore Wind Market Prediction in Canada by 2035
DISCUSSION
The phased market entry strategy enables AUSENCO to address industry challenges, including competitive pressures and resource constraints, while capitalizing on its expertise in environmental and engineering services. Strategic measures like partnerships and targeted investments ensure operational efficiency and alignment with market needs.
Figure 4 Investment Distribution
RESULTS
AUSENCO’s entry into the Canadian offshore wind market is driven by two growth scenarios: Rapid Development (21.1 GW) and Moderate Development (9.3 GW) by 2035. Revenue potential ranges between $156M and $355M, focusing on three key service areas: environmental regulatory assessments, surveys, and engineering consultancy. The strategic phased approach highlights cost-efficient resource allocation and market-focused services to capture opportunities in this expanding sector.