Feasibility of Investment in Blue Growth multiple use of space and multi-use platform projects; results of a novel assessment approach and case studies

Gordon Dalton, Tamas Bardocz, Mike Blanch, David Campbell, Kate Johnson, Gareth Lawrence, Theodore Lilas, Erik Friis-Madsen, Frank Neumann, Nikitakos Nikitas, Saul Torres Ortega, Dimitris Pletsas, Pedro Diaz Simal, Hans Christian Sørensen, Afroula Stefanakou, Ian Masters

Research output: Contribution to journalArticlepeer-review

28 Citations (Scopus)
227 Downloads (Pure)

Abstract

Blue Growth is the creation of economic activity and jobs at sea, while multiple use of space makes efficient use of the available sea area by combining industries. Clearly there are many combinations and many value propositions. However, most technologies to date are considered blue sky concepts, with little robust techno-economic analysis demonstrating profitability.

The paper begins by providing a comprehensive review of Blue Growth and multi-use in Blue Growth; both in policy as well as the wide range of current technologies, including ocean energy, offshore wind energy, offshore aquaculture and desalination.

The Maribe H2020 project provides the vehicle for the research element of the paper. The major contribution is a new methodology for selecting, filtering, developing and ranking business propositions for multiple-use of space (MUS) and multi-use platforms (MUP). Application of the method for the first time identified three case studies where Blue Growth combination projects can be economically viable, with attractive internal rate of return (IRRs). Results presented for the case studies report standard investment metrics and show the relative contribution of each product (energy, food, water) to the system profitability, as well as socio-economic impact. Existing companies were fully engaged in the process. Co-creation between sector experts and industry led to both improved business value propositions and robust assessment of investment readiness. In contrast to the presumption that large scale platforms are commercially attractive, the highest ranking case study companies required smaller capital expenditure (CAPEX) and operated in niche subsectors.

In conclusion, the positive economic performance of the case studies should provide confidence for the EC as well as investors that MUS and MUP have viable economic futures leading towards commercialisation. The macro and micro assessment methods will be particularly useful in other Blue Economy contexts and in other multiple product contexts.
Original languageEnglish
Pages (from-to)338-359
Number of pages22
JournalRenewable and Sustainable Energy Reviews
Volume107
Early online date16 Mar 2019
DOIs
Publication statusPublished - Jun 2019

Keywords

  • Aquaculture
  • Blue Growth
  • Multi-use platform
  • Multiple-use of space
  • Ocean energy
  • Techno-economics

ASJC Scopus subject areas

  • Renewable Energy, Sustainability and the Environment

Fingerprint

Dive into the research topics of 'Feasibility of Investment in Blue Growth multiple use of space and multi-use platform projects; results of a novel assessment approach and case studies'. Together they form a unique fingerprint.

Cite this