Welcome
to the EBC Seminar on
Massachusetts:
Leading the Way on Ocean
Management
Energy Facilities Development in
Massachusetts’ Coastal Ocean
Environments
Where do we go from here?
Moderator: Charlie Natale, President, ESS Group, Inc.
Engineers
Scientists
Consultants
www.essgroup.com
OFFSHORE ENERGY FACILITIES AND
THE MASSACHUSETTS COASTAL OCEAN
Pathway to the Future?
• Explore the Challenges of Currently Proposed Offshore
Energy Facilities Already Under Review
• The Relative Importance of Ocean Management
Planning in the Ability to Use the Coastal Ocean as an
Important Regional Energy Pathway
• Where Do We Go from Here?
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CORMA Legislation (June, 2006)
Ocean Sanctuaries Act Revisions
Chapter 91 / CZM Authority
EOEA Oversight and Management
GUEST PANELIST PARTICIPANTS
• Dennis Duffy
 Vice President for Governmental and Regulatory Affairs, EMI
/ Cape Wind Associates – Offshore Wind Energy
• Rob Bryngelson
 Vice President, Excelerate Energy LLC, Northeast Gateway –
Deep Water Port Facility
• Dr. Edward Krapels
 Principal, Anbaric LLC / Neptune Transmission Partners,
Neptune RTS – Interstate Submarine Electric Cable
Transmission
• Ralph Child
 Partner, Environmental Section, Mintz, Levin et al
Duke Energy – Maritimes and Northeast – Gas Pipelines
THE MASSACHUSETTS COASTAL OCEAN’S
ROLE IN REGIONAL ENERGY SUPPLY INITIATIVES
1. Energy Generating Facilities
 Renewable Energy
 Nuclear Energy
2. Submarine Electric Cable Transmission Facilities
 Local Distribution
 Regional / Interstate Energy Transfer
3. Marine-Based Transportation & Fuel Supply
 Natural Gas
 Fuel Oil
 Associated Interstate Commerce
4. Other Uses
 Telecommunications
 Sand and Gravel Mining
THE DILEMMA OF REGIONAL ENERGY SUPPLY
1. Fuel Costs Discouraging Investment in New Land-Based
Energy Facilities
2002
2006
Natural Gas Prices ($ per thousand cubic feet)
$2.20
$13.50
Fuel Oil Prices ($ per barrel)
$45.00 $75.00
Gasoline Prices ($ per gallon)
$1.50
$3.15
2. Regional Load Growth Demand Continues (annual Net Energy for Load)
Demand
% Change from
Previous Year
2002
127,000 GWh
+ .7%
2005
135,000 GWh
+ 2.2%
THE DILEMMA OF REGIONAL ENERGY SUPPLY (cont.)
3. Increasing Cost for Electricity
Costs (Cents / kWh)
2002
9.5 c
2006
12.9 c (forecast)
CAPE WIND OFFSHORE WIND ENERGY PROJECT
CAPE WIND LOCUS MAP
The Northeast Gateway
Energy Bridge™ Deepwater Port
--Project Overview
Presented to
Environmental Business Council
Ocean Management Act Symposium
July 13, 2006
Northeast Gateway Deepwater Port
Deepwater Port Project Facts
• Based on Excelerate Energy’s proprietary Energy
Bridge shipboard regasification technology
• Port will be located in federal waters roughly 13
miles south-southeast of Gloucester
• A dual-buoy system will be capable of ensuring
continuous delivery of natural gas
• Throughput capacity available will range from 400
to over 800 MMcf/d
• Only project that can be in-service by 2007
Northeast Gateway Deepwater Port
Key Project Features
Away From Population
And Infrastructure
Well Offshore – 12+ miles
6
90% Reduction in NOx
Lower Marine Impact
Closed-loop
Vaporization Only
Minimal Air
Emissions
5
3
Decreased
Environmental
Impact
Minimal Infrastructure
Requirements
2
1
7
Robust Design
Minimal Water Usage
Extreme Weather
95% Reduction in Intake
Tolerance
98% Reduction in Discharge
400 To 800 mmcfd
Throughput Capacity
Baseload and Peaking
Capabilities
4
Northeast Gateway is
the optimal solution
for New England
In-Service Targeted
for December 2007
Rapid Time to Market
8
Energy Bridge™
System Overview
The Energy
Bridge™ system
is based on
proven
technology used
for over a
decade in the
harsh North Sea
marine
environment
When not in use,
the buoy will
remain 80 to 90
feet below the
surface
High Pressure Pumps
And Vaporizers
Reinforced LNG
Storage Tanks
Oversized
Boiler
Traction
Winch
Buoy
Compartment
Energy Bridge™
Regasification Vessel
Northeast Gateway Deepwater Port
Application Process and Timeline
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ENFs filed with EOEA
DWP Application filed with USCG
Completeness Determination
Data Request (Clock Stopped)
Response to Data Request
Clock Resumption
DEIS / DEIR Release Date
DEIS / DEIR Comment Period Ended
DEIR Certificate Issued
Record of Decision (Est.)
Final License & Related Permits (Est.)
Commencement of Operations (Est.)
March 15, 2005
June 13, 2005
August 18, 2005
November 18, 2005
December 2005
March 29, 2006
May 19, 2006
July 3 / 7, 2006
July 7, 2006
December 2006
1Q and 2Q 2007
4Q 2007
Northeast Gateway Deepwater Port
Site Location
Massachusetts:
Leading the Way on Ocean Management
Panel Member
Offshore Wind Energy – Dennis Duffy
Massachusetts:
Leading the Way on Ocean Management
Panel Member
Deep Water Port Facilities/LNG – Rob Bryngelson
Massachusetts:
Leading the Way on Ocean Management
Panel Member
Offshore Natural Gas Pipelines – Ralph Childs
Massachusetts:
Leading the Way on Ocean Management
Panel Member
Offshore Electric Transmission
–
Dr. Edward Krapels
Responsible Offshore
Energy Facilities:
DC Transmission Cables
Ed Krapels
Anbaric LLC
Anbaric LLC
Developers of independent electric transmission projects
The Challenge
• How to meet Massachusetts' Coastal
electricity demand with minimal
environmental impact
• Focus on Boston market:
– Aging power plants (New Boston, Salem)
– Extremely high cost of building new plants (Mystic)
– Overdependence on nat gas;Desire for green
power;
– Complex New England transmission system
– Shifting regulatory regime
Anbaric LLC
23
Independent transmission development
Boston’s Situation
• Overall power adequacy
– OK until 2012 or so…
– To get new capacity by 2012, development efforts have to start
in 2007
• Cost of building new plants
– The next baseload urban power plant likely to cost up to
$2000/kw ($1.2 billion for 600MW facility) compared with
$700/kw ($420 million) in more accessible areas
– No one stepping forward to build plant on merchant basis
• Green power
– Boston is extremely dependent on LNG… has little “power
portfolio diversity”
– Wind development opportunities both north and south of
Boston… with transmission implications
Anbaric LLC
24
Independent transmission development
Sub-Sea Transmission
• Sub-sea transmission broadens the power
choices of urban areas
– The Neptune example:
• Long Island Power Authority award in 2005 to build a
sub-sea, 660MW HVDC line to PJM
• LIPA Chairman Rich Kessel announced Neptune would
save Long Island ratepayers more than $1 billion in
power costs
• The cost of the cable + capacity in PJM + energy savings
< cost of gas-fired capacity on Long Island
• Bottom line: Sub-sea transmission from
“distant markets” to urban areas can be
good for reliability and is economically
efficient
Anbaric LLC
25
Independent transmission development
Neptune
Anbaric LLC
26
Independent transmission development
Massachusetts:
Leading the Way on Ocean
Management
The Commonwealth’s Proactive Role in the
Effective Management of Massachusetts Ocean
Resources
Senator Robert O’Leary
Commonwealth of Massachusetts
Massachusetts:
Leading the Way on Ocean Management
Thank you for Participating
and
THANKS TO OUR SPONSORS