In the model, it is assumed that synergies exist between aquaculture and wind
farms, especially related to transport and labor costs. This synergy is set at a
relatively low percentage, only expecting benefits from combining transport,
operations and maintenance. Thus not the installations, as this would increase
(perceived) risks. For wind farms, we set costs for labor and transport (all concerning only O&M) at respectively 759 and 429/ha/year (note that one wind turbine
takes up 78 ha (500 m security circle)). The expected synergy is set at 5% of these
costs (Lagerveld et al. 2014).
Based on these input parameters, the model shows that the proposed production
system for offshore mussel production in wind farms is profitable. Given the estimated costs, price and production, the overall profit to be made is €38 million if the
full 4000 ha is allocated to mussel production. This is based on a production of
170,000 tons, revenue of €159 million and a total cost of €121 million.
Another option investigated was ‘to do nothing’ with the vacant space within the
wind parks. This option was included to assess the “costs” of single-use. It is
important to note that doing nothing means that some of the potential synergy is not
made us of. This is calculated at 71 €/ha/year (roughly €5500 per turbine per year).
As offshore cultivation of mussels is not yet an established practice in the North
Sea, the input parameters are subject to a certain degree of uncertainty. Sensitivity
analysis was therefore performed to shed light on the economic consequences of
changes in (i) lower base price for mussels, (ii) lower mussel yield, and (iii) higher
cost for mussel production. It was shown that growing mussels is no longer profitable if the price of mussels drops below 0.70 € kg
−1 , if the production drops to
30.5 tonnes ha
−1 , if fixed costs increase to 31,000 €, or if transport costs increase to
14,500 € (Fig. 10.4). All sensitivity analyses showed a linear pattern and the results
suggests that the model is quite robust as a reduction or increase of the input
variables of −25%, −26%, 22% or 25% for price, yield, fixed costs and transport
costs respectively still results in a profitable mussel cultivation system.
When it comes to multi-use in the North Sea, the combination of offshore mussel
production and wind energy is considered to be the most promising combination. In
this case-study, we assessed the economic feasibility of this combination.
Based on the available information, we estimated input parameters. Model
results confirm that a good business case is achievable. There is a lot of uncertainty
about the data but the sensitivity analysis shows that within the present business
case, there is room for higher costs or lower yields.
In this sort of setting, synergies are lost in a single-use scenario. The analysis
shows that the achievable synergies are—due to great differences in turnover—
relatively high for the aquaculture sector but relatively low for the wind energy
sector. A challenge remains to convince the wind energy sector that the synergies
are worth the effort and risks.
10 Economics of Multi-use and Co-location
245
farms, especially related to transport and labor costs. This synergy is set at a
relatively low percentage, only expecting benefits from combining transport,
operations and maintenance. Thus not the installations, as this would increase
(perceived) risks. For wind farms, we set costs for labor and transport (all concerning only O&M) at respectively 759 and 429/ha/year (note that one wind turbine
takes up 78 ha (500 m security circle)). The expected synergy is set at 5% of these
costs (Lagerveld et al. 2014).
Based on these input parameters, the model shows that the proposed production
system for offshore mussel production in wind farms is profitable. Given the estimated costs, price and production, the overall profit to be made is €38 million if the
full 4000 ha is allocated to mussel production. This is based on a production of
170,000 tons, revenue of €159 million and a total cost of €121 million.
Another option investigated was ‘to do nothing’ with the vacant space within the
wind parks. This option was included to assess the “costs” of single-use. It is
important to note that doing nothing means that some of the potential synergy is not
made us of. This is calculated at 71 €/ha/year (roughly €5500 per turbine per year).
As offshore cultivation of mussels is not yet an established practice in the North
Sea, the input parameters are subject to a certain degree of uncertainty. Sensitivity
analysis was therefore performed to shed light on the economic consequences of
changes in (i) lower base price for mussels, (ii) lower mussel yield, and (iii) higher
cost for mussel production. It was shown that growing mussels is no longer profitable if the price of mussels drops below 0.70 € kg
−1 , if the production drops to
30.5 tonnes ha
−1 , if fixed costs increase to 31,000 €, or if transport costs increase to
14,500 € (Fig. 10.4). All sensitivity analyses showed a linear pattern and the results
suggests that the model is quite robust as a reduction or increase of the input
variables of −25%, −26%, 22% or 25% for price, yield, fixed costs and transport
costs respectively still results in a profitable mussel cultivation system.
When it comes to multi-use in the North Sea, the combination of offshore mussel
production and wind energy is considered to be the most promising combination. In
this case-study, we assessed the economic feasibility of this combination.
Based on the available information, we estimated input parameters. Model
results confirm that a good business case is achievable. There is a lot of uncertainty
about the data but the sensitivity analysis shows that within the present business
case, there is room for higher costs or lower yields.
In this sort of setting, synergies are lost in a single-use scenario. The analysis
shows that the achievable synergies are—due to great differences in turnover—
relatively high for the aquaculture sector but relatively low for the wind energy
sector. A challenge remains to convince the wind energy sector that the synergies
are worth the effort and risks.
10 Economics of Multi-use and Co-location
245