Navigating offshore wind logistics: Lessons from Denmark for Asia

As Asia eyes offshore wind energy expansion, logistical challenges in the supply chain present critical hurdles. Denmark’s 30 years of experience offers valuable insights into overcoming such bottlenecks and building robust infrastructure.

Denmark’s position as one of the world’s leaders in renewable energy is not just a tale of technological innovation and environmental commitment; it’s a story deeply rooted in mastering complex logistics and supply chain management. As Asia looks to develop its own offshore wind capabilities, Denmark can offer a roadmap to understanding and addressing the logistical challenges of offshore wind development.

It was the first country in the world to develop an offshore wind farm, built in 1991 off the coast of the town of Vindeby on the island of Lolland. Despite being decommissioned in 2017, Vindeby laid the foundation on which Denmark has built a legacy of progress and continued to refine its offshore wind expertise as a model for others to follow. Over the past three decades, the country has strategically invested in infrastructure to enhance its total capacity to 12.9 GW by 2030. That growth is underpinned by significant advances in Denmark’s logistics capacity, enabling the efficient transport and installation of increasingly large and sophisticated wind turbines.

Today’s offshore wind sector presents unique logistical challenges, due to the increasing size and scale of the structures involved. Modern turbines are colossal structures, with blades longer than a football pitch and towers reaching heights comparable to skyscrapers. Transporting them from manufacturing sites to offshore locations requires specialised vessels, equipment and meticulous planning.

One of the primary bottlenecks is caused by limited availability of specialised installation vessels and equipment. Existing or available vessels are not often suitable, leading to potential delays and increased costs.

This, in particular, presents a challenge for Asian countries that are in the early stages of building out their supply chains and lack the logistical capabilities of their European counterparts.

Adequate yard space and vessels to move and store parts in the early stages of a project are a must, along with reliable logistical support throughout, to prevent delays or overspends. And that means working with ports that are expanding or tailoring their infrastructure to support the demands of offshore wind operations.

Denmark has invested billions over the last 20 years to develop port infrastructure capable of supporting large-scale offshore projects. Ports like Esbjerg have transformed into specialised hubs equipped with heavy-lift cranes, expansive storage areas and deep-water access, streamlining the supply chain and reducing project timelines.

In Asia, ports need to follow that example if they are to realise their offshore wind potential. Some have already started. The development of bespoke wharves at the Port of Taichung in Taiwan that will cater exclusively to offshore wind projects, for example, is a step in the right direction. In September this year, South Korea’s Ministry of Trade, Industry, and Energy announced the launch of key initiatives to bolster renewable energy capacity, including a public-led project and a comprehensive roadmap aimed at transforming offshore wind. The MunmuBaram Floating Offshore Wind Project (based in Ulsan, South Korea) has completed the Environmental Impact Assessment (EIA). But other ports and countries need to make similar moves sooner rather than later if they are to meet to their anticipated long-term energy goals.

Solutions and Innovations

Technological innovation can play a pivotal role in overcoming the logistical hurdles inherent to offshore wind projects. Denmark is still investing in research and development to enhance wind turbine technology and improve operational efficiency such as partnerships with international entities to advance the technology required for offshore wind energy mooring and anchoring.

By continuously improving and investing in its technologies, Denmark is working to maximise its energy output and minimise costs, fostering greater collaboration with partners worldwide. Innovation is key to staying competitive in this rapidly evolving sector.

Regulatory frameworks also play a significant role in logistical efficiency. The Danish Energy Agency’s streamlined licensing and construction processes provide transparency and predictability for investors and operators. Such regulatory clarity is essential for attracting investment in offshore wind projects. When investors know what to expect, they are more likely to commit their resources.

Lessons for Asia

There is immense potential in Asia for offshore wind energy, thanks to vast coastlines and strong wind corridors. Countries like Vietnam, South Korea, Taiwan, the Philippines and Thailand have recognised that potential but face significant logistical challenges in scaling up their offshore wind capabilities.

To replicate Denmark’s success, they must build local expertise and infrastructure, including:

• Port infrastructure development: Upgrading ports to handle large turbine components, with facilities for heavy lifting and ample storage space.
• Specialised vessels and equipment: Investing in or leasing vessels capable of transporting and installing modern turbines.
• Skilled workforce training: Establishing programmes to create a workforce skilled in the unique demands of offshore wind logistics.
• Supply chain enhancement: Developing a robust supply chain that can manage the complexities of project cargo and logistics.

Experience does not come overnight. If Asian nations want to become market leaders, they need to ensure they build their experience today to support themselves tomorrow – not least, constructing an effective supply chain that can efficiently manage the procurement, transport and installation processes for increasingly large offshore wind farms.

International Collaboration

International collaboration helps accelerate offshore wind and energy development globally. An example can be seen in the way in which GAC Denmark collaborated with partners in Germany, Sweden and the United Kingdom to develop undersea pipelines in the Baltic Sea as part of Europe’s drive for energy independence.

Asian nations can benefit from knowledge transfer, by tapping into the best practices in logistics and supply chain management that Europe has been developing for decades to the immediate challenges while building local capabilities for the future.

The regulatory environment, however, is crucial. Strategic investments coupled with supportive local policies and regulatory frameworks can attract investment and expertise to develop long-term renewable energy projects. That is what has helped Denmark and Northern Europe in general to become an offshore wind powerhouse over the past 30 years.

The path to unlocking Asia’s offshore wind potential lies in addressing the challenges head-on. Denmark offers a blueprint for success, highlighting the importance of strategic investments, innovation, and collaboration. By focusing on enhancing logistics and supply chain capabilities, Asian nations can beat the bottlenecks, ensure timely project execution and contribute significantly to global renewable energy efforts.

The time for action for the region is now. With the right investments and partnerships, Asia can very much establish itself as a global leader in offshore wind energy.

Opinion piece by Sebastian Jonsson, Managing Director of GAC Denmark. Jonsson specialises in offshore support and marine services for wind energy projects across the North Sea. With over 10 years of experience in the logistics sector, he advocates for strategic investments and international collaboration to advance the global offshore wind industry.