Challenges Presented by Brownfield Sites to Major Projects Berlin, Germany Annraoi Caffrey, ESBI Project Manager & Finbarr Quigley, ESBI Senior Consultant 30th March 2012

Synopsis The availability of green field sites for new build Power Projects is becoming a rare luxury with brown field sites presenting less difficulty for required infrastructure, services and planning consents in addition to a greater acceptance from environmental opposition groups. Every brown field site presents its own unique challenges which require various skill sets to be applied as the specific site demands. This presentation explores the challenges associated with a brown field site and demonstrates a proven approach to progressing a project from due diligence through to construction; using our experiences of a recent 860MW CCGT plant which is progressing on a former coal fired site in the UK.

ESB International in brief… A multi-disciplinary engineering, consultancy and O&M business 1,100 employees Annual turnover approx €110m Projects completed in 115 countries Current operations in >20 countries Wholly owned by ESB Group (Irish state-owned) 35 Year Track Record in International Consultancy

ESB International - Locations

ESB International - Locations

Dublin Bay Power, Ireland 412MW CCGT Commercial Operation 2002 Brown Field Amorebieta, Spain 755MW CCGT Commercial Operation 2005 Green Field ESBI Recent Projects

Coolkeeragh, Northern Ireland 400MW CCGT Commercial Operation 2006 Brown Field Marchwood, Southampton UK 840MW CCGT Commercial Operation 2009 Brown Field ESBI Recent Projects

Aghada, Cork, Ireland 435MW CCGT Commercial Operation 2010 Brown Field Carrington, Manchester, UK 860MW CCGT NTP 2012 Brown Field ESBI Recent Projects

 Cooling  Existing Cooling Source  Reduced Capex  Environmental  Residual Site Risks  Contamination  Existing services and structures  Disruption to existing industrial stakeholders  Suitable for CCR/ S  Availability of land Benefits vs Challenges of Brown Field  Good infrastructure connection  Gas Transmission System  HV Grid  Transport Routes  Good planning context  Reusing Brownfield Site  Industrial zoning  Visual impact  Regeneration MW CCGT

The Carrington Project

Original Coal Fired Station

Site Overview Gas SupplyHV Substation WaterS ource

Proposed Development

Key Challenges Experienced Route for Gas Pipeline Existing Buried Structures Contamination Invasive Plant Species

Routing of Gas Pipeline

Pipeline Carrington Power plant site 2.4km Welded steel 600mm dia 19.1mm thick 70barg Gas Supply

1.2km

Canal Culvert Culverts Landfill Canal

Canal Culvert Culverts Landfill Canal Culverts Landfill Canal

Canal Culvert Culverts Landfill Canal

Horizontal Directional Drill

Culvert Entry Horizontal Directional Drill Exit Ground Level Bedrock 30m Structure 1200m long drill

Pipeline Outcome Risks successfully addressed prior to award of fixed price construction contract Financial Commitment prior to Financial Close Engineering Resource Requirement Extension of Develop Phase Programme Pipeline detailed design contract Proved viability of pipeline route Detailed design available Significant Saving on Pipeline Construction Contract relative to Design & Build Risks addressed thus reducing Client’s exposure (time & cost) Project Value Increased

BuriedStructures - Identifying - Removal - Mapping

Site Issues Existing foundations supported on piles Inadequate drawings of foundations Very limited information on ground conditions Contamination Issues –Localised hotspots –Japanese Knotweed –Asbestos Existing HV cables and drains crossing the site

Original Coal Fired Station

Site Overview

Solution Options Option 2 Selected with the following objectives: Provide Information for EPC Contract Negotiation Prepare Site for handover to EPC Contract Option 1 Include in EPC Contract scope Single all inclusive contract Option 2 Prep work in advance of the EPC Contract Client invests upfront to manage risk

What we did?

Foundations more extensive than Desktop Study

Additional existing piles - Original estimate 3,500 - Final total 5,579

Contract Delivery Proven Methodology –Risk Workshops –Project Risk Logs –Geotechnical Risk Log –Lessons Learnt Reviews & Log –Safety Workshops Zero LTI Goal Safety Initiatives Interactive Safety Workshops with Contractors –High Level Steering Committee

Buried Structures Outcome Risk successfully addressed prior to award of turnkey (fixed price) contracts Financial Commitment prior to Financial Close Engineering Resource Requirement Extension of Develop Phase Programme Significant Saving on Cost relative to that proposed by EPC Significant Variation in scope Risk addressed thus reducing Client’s exposure (time & cost) Proposed Design now Site Specific Site Value Increased

Buried Structures Outcome Risk successfully addressed prior to award of turnkey fixed price contract Financial Commitment prior to Financial Close Engineering Resource Requirement Extension of Develop Phase Programme Significant Saving on Cost relative to that proposed by EPC Significant Variation in scope Risk addressed thus reducing Client’s exposure (time & cost) Proposed Design now Site Specific Site Value Increased

Conclusion Robust Project Risks mitigated Fixed price construction contracts Experience Lessons Learned Project Delivery Methodology Advance Works

Thank You Any Questions?