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Scandia Questions (Talking Points)
 
On April 1, 2010 Dave Roseman, a member of the Oceana County Planning Commission, posed several question to Scandia, requesting a formal response.  Here's a sampling of those questions.
 

Preamble

 

Lake Michigan is arguably Oceana County’s most valuable natural resource.  It makes tourism a crucial part of our economy.  It has attracted many permanent and part-time residents.  Those residents have created many jobs in the real estate and construction fields, and are customers for many local businesses.  They provide a very substantial part of our tax revenues.

 

Lake Michigan and its shoreline are one of the country’s most beautiful areas.  It is a major source of fresh water for millions of Americans.  The Scandia proposal would drastically change the Lake for many generations. It would have more impact on our County than anything in the past, with the possible exception of the railroads in the 1870s.  Any such plan would need to provide overwhelming evidence that the benefits exceed the risk. 

 

This raises many concerns about the project, and those who are proposing it.  The following are some questions that are respectfully posed to Scandia.  I will post this document on http://lakemichiganpower.org for easy reference.  Economic planning is a complex issue.  Given the magnitude and potential impact of the proposed project, formal answers are requested.


Questions
 
1.   What is the size of Scandia, the number of employees, and what is Scandia’s track record?  Scandia’s website states that Scandia's Ceo. Mr. Warner, has  “22 years' experience in the region as a financial consultant in securities, commercial real estate, and wind farm project finance.”  Can you provide more details related to wind energy, especially offshore energy?  What is Scandia’s and Mr. Warner’s experience in developing large projects, especially in the energy field?  What is his technical background?
 
2.   Scandia’s address is given as 6311 Trap Line Circle, Chanhassen, MN 55317.  On the map, this appears to be in a residential neighborhood.  Is this true?

 

3.   How many employees does Scandia Offshore Wind have?  How long has Scandia Wind Offshore been in existence?  What previous experience does Scandia Offshore Wind have in offshore wind technology? Until he incorporated Scandia, what business was he in?

 
4.   What is Scandia’s relationship with Havdul Clean Energy of Norway and Alpha Wind Energy Aps of Denmark?  What are their status and track record?  I understand that Norway has greatly reduced its construction of windfarms and that most Havdul projects are presently on hold.  Has this sparked the interest in the US?
 
5.   Who would design, build and maintain the large industrial facility that is proposed?
 
6.   What is the projected cost per KWh of the electricity that would be generated by the project?  Is there a market for electricity at that cost?  How will this impact the consumer?
 
7.   Why is the proposed windfarm so near the shore?  Is there any offshore windfarm in the world that is as close to a populated shore as that which is proposed?  We understand that Scandia’s proposed technology limits them to water depths of 80 meters or less.  But we also understand that floating platforms are in various stages of development.  This would allow the turbines to be located in the center of the Lake, and would potentially allow them to be constructed and serviced onshore, and erected in place.  Floating platforms are potentially less costly than fixed platforms.  What is your opinion of the likelihood that floating technology will become available in the next decade or two?
 
8.   The supporting structures would presumably be resting on sand, and subject to movement by ice?  Are there similar structures elsewhere on sand, and in icy waters?  Would the bottom provide proper support?  Would the turbines survive impact by a slightly off-course ore boat?
 
9.   How important is the proximity to the Ludington pumped storage (LPS) facility?  The facility is connected to the grid, meaning that any power generation anywhere on the grid can use it.  Can’t any wind turbines, anywhere on the grid, use the LPS?
 
10.  You have said that you would stop pursuing the project if local governments objected.  However, I understand that you have also said that even if the State objects, you would try to have the Federal government override the State.  Is that accurate?
 
11.  The coastal waters of Lake Michigan are used by large numbers of pleasure and fishing boats, as well as large commercial ships.  Won’t the turbines be hazards to navigation in foul weather?
 
12.  Is there a possibility that homeland defense concerns will limit the use of the waters in the proposed windfarm?
 
13.  Will aircraft and marine warning lights be required for each turbine?  Foghorns?
 
14.  Will nearshore wind turbines affect wave action and beach/dune erosion?

 
15.  It is important for all interested people to have accurate information about the visual impact of the proposed windfarm.  You have shown images that may minimize the size of the turbines.  What is the vertical and horizontal angle of view of your renderings?  In 35 mm camera terms, what is the equivalent of the focal length of your renderings?
 
16.  What are the height to the hub, blade length and diameter of the supporting structure for the 5MW and 10MW turbines that are proposed?  What is the maximum rpm and blade tip speed for each?
 
17.  Mr. Dirdal has said that you would not be pursuing this project except for the various subsidies and incentives.  Doesn’t this mean that the turbines are not economically viable on their own merits?  The Government has huge deficits.  What happens when and if the subsidies and incentives are no longer available?  Are there provisions for decommissioning the turbines when they are no longer productive?
 
18.  What is the projected lifespan of the turbines?

19.  Our country, like much of the world, has economic and job problems.  We have survived much more daunting problems, and will overcome these.  We read that the Scandia project may provide thousands of jobs.  What is the likelihood that Michigan, or any other state, will become a major manufacturer of turbines and components?  I understand, for example, that General Electric is planning “to invest approximately €340 million in developing and expanding its wind turbine manufacturing, engineering and service facilities in the United Kingdom, Norway, Sweden and Germany.  It is said that Muskegon would be a prime target for the supply chain operation for Scandia.  Is this true?  How would this affect Ludington and Oceana County?
 
20.  Jonathan Karl of ABC News has reported that 80% of US funds for wind turbines have gone to foreign interests.  Do you agree with that figure?
 
21.  What do you see as the future of the current wind generator technology?  For example, Denmark has been a leading proponent of wind generators.  We read, however, “…the Danish government has cancelled plans for three offshore wind farms planned for 2008 and has scheduled the withdrawal of subsidies from existing sites. Development of onshore wind plants in Denmark has effectively stopped.”[i]  What is the likelihood that biomass, solar, or other less intrusive technologies will replace wind-powered generators?
 
22.  Noise from wind turbines seems to be a growing concern.  Wind Turbine Syndrome by Nina Pierpont MD, PhD describes some specific health issues.  What is your position on these subjects?
 
23.  There are innumerable article about the impact of wind generators on birds, bats and other flying animals, and marine wildlife.  Have any of these turbines been studied in a fresh water environment like ours?  What is your assessment of the environmental impact of 50-100 nearshore turbines?

 

24.  The risks to the Lake and to our county are clear.  The proposed project would generate hundreds of millions of dollars.  It has the potential of costing Oceana County residents tens of millions of dollars.  How could our potential losses be indemnified by the developers?