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2.13.5 Impact: It is expected that aspects of this design solution will also be of use to SPR and Vattenfall’s future pipeline of offshore projects. Learnings fromthe EA1 Project should also result in foundation fabrication cost savings on the next EA Zone projects and SPR’s St Brieuc project.[C3,I6] {iii}


2.14 Foundation Fabrication


2.14.1 Fabrication lessons learned: Vattenfall and SPR’s experience in contracting and installing jacket foundations resulted in lessons learned including the need to promote close collaboration between the chosen foundation designer and the elected fabricator. Although the design of the foundationwill have differences, this experience gives EA1 confidence to drive competition in this package. [C3, C5, I5] {ii}


2.14.2 Action taken to reduce barriers to entry: EA1 recognises some of the barriers to entry in thismarket (including having sufficient financial strength and serial production facilities) and the challenges in fostering UK content in this area, that is why as part of itsmarket engagement/PQQ activities EA1 has:


 Brought together certain suppliers to explore partnering opportunities to strengthen theirmarket offering and support necessary investments. These actions are intended to deliver long-termsupply capacity and cost of energy reduction. EA1’s activity is evidenced by the ‘Letters of Acknowledgement’ EA1 has received fromcertain fabricators.


 EA1 has included organisations not normally associated with offshore jacket fabrication as part of itsmarket engagement and PQQ process in an effort to highlight the opportunity and bring new entrants into themarket [C1, C2, C4, C5] {ii, iii}


2.14.3 Broad market engagement and open tender process: EA1made contact with 104 suppliers for this package, many with different industry backgrounds including oil & gas. Of the suppliers engaged 75 (72%) were either less established or new to offshore wind and included 12 new suppliers fromthe Far East. [C1, C2, C4, C5] {ii, iii}


2.14.4 Forty seven suppliers were subsequently issued a PQQ in June 2014, 21 (45%) of these suppliers are new to the offshore wind industry. Ten of these suppliers were contacted for pile fabrication only.[C1, C5] {ii, iii}


2.14.5 Initiatives underway to increase competition and optimise design: As part of the PQQ process EA1 is exploring a number of initiatives to increase competition and UK benefit. which include: [C1, C2, C3, C4, C5, I3] {ii}


 Multiple suppliers of foundations (up to two fabricators), to enable use of smaller or newer players where the risk of using themfor the whole project would be too great.


 Separation of supply ofmain foundation structures and pin piles scope. Up to two suppliers are being considered for pile supply only.


 Providing foundation suppliers an additional option to put forward their own design solutions if they consider this could improve the foundation and deliver cost reduction.


 Understanding the triggers to unlock investment in next-generation seriesmanufacturing facilities using technology fromother sectors as a keymeans for reducing cost.


 Provision of additional geophysical, geotechnical andmetocean data if necessary tomaximise quality of design, thereby reducing lifetime cost.


 Designs optimised in dialogue with a steel supplier andWTG supplier.  Challenge and support to fully explore the cost of energy benefits of semi-standardisation of designs to facilitate lower costmanufacture and installation.


2.14.6 In line with EA1’s strategy for eachmajor package it has requested supply chain plans fromcertain suppliers involved in the tender process (as described in 2.8), provided in Annex 8. The highlights of each plan are described below. [redacted] [C1, C2, C3, C4, C5, I1, I1, I2, I3, I4, I5, I6, S1, S2, S3, S4, S5] {ii}


2.14.7 An order for the EA1 Project foundation fabricationwould: [C1,C4,C5,I2,I5] {ii, iii}


2.14.8 Impact: The actions described above address all of the criteria relating to competition, as outlined in Annex 1. Key package-specific impacts at a project level are: [C1,C2,C3,C4,C5] {ii, iii}


 New investment in one ormore UKmanufacturing facilities, including via partnering, dependent on suppliers chosen and also decisions taken on other projects.


 Multiple suppliers enabling increased competition and opportunity formore suppliers to deliver. Page 13 of 30


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