1. Towards a model for European Seas Observatory Network Implementation Michael Gillooly, Glenn Nolan and ESONIM team A Specific Support Action funded under EC FP6 ESONET NoE All Regions Workshop Barcelona, Sept. 5-7 th 2007

2. ESONIM ESONIM is a Specific Support Action (SSA) funded by FP6 that builds on the EU FP5 Project ESONET (The European Seafloor Observatory Network) The main aim is to facilitate the establishment of a European Seafloor Observatory Network (ESONET) by providing EU Member States with generic technical, legal and financial models and cases to establish one or more pilot cabled seafloor observatories.

3. ParticipantContactCountry Marine Institute – Lead M.Gillooly/G.Nolan CSA Group Ltd N.O’Neill IFM-GEOMAR O. Pfannkuche IFREMER J.F. Rolin Alcatel (ASN) N.Hazell University of Aberdeen I.G. Priede Goodbody Ltd C. O’Rourke Philip Lee Solicitors P. Lee University of Göteborg P. Hall ESONIM Project Partners (Authors)

4. WP1: Project Management Define the ESONIM project’s management structure and reporting procedures. WP2: Scientific Justification To provide the over-arching specification of user needs and justification for the establishment of a European seafloor observatory network WP3: Engineering Design To identify the most appropriate technical design and engineering solutions for a cabled ocean observatory. The opportunities for industry involvement in the design, manufacture, deployment and operation of the system will be addressed in this work package. WP4: Financial Model To produce a 10 year cash-flow forecast for a cabled seafloor observatory with the European Seafloor Observatory Network (ESONET). WP5: Legal Framework To provide the overall legal context and framework for the implementation of a cabled seafloor observatory. WP6: Implementation Model To analyse and integrate the results of Work Packages 2-5 to develop a technical and financial project appraisal for a test case seafloor observatory that meets the criteria established by lending institutions. WP7: Dissemination & Promotion To disseminate the information and knowledge gained within ESONIM to the widest possible audience using multiple communications methods. European Seafloor Observatory Network Implementation Model (ESONIM) IMAGE SOURCE: GEBCO NORTH EAST QUADRANT 7 Hovland Md BENGAL Belgica Md Canyon BIOTRANS

5. Science Users by category (questionnaire):

6. CeltNet Route (indicative) Cable route designed using Irish Seabed Survey Data Scientists defined sites Route engineers joined the dots!

7. Engineering design: (CeltNet example case) CeltNet Cable lengths (Courtesy ASN)

8. Indicative Budget: (CeltNet example case)

9. ESONIM Business Model MS Excel based software tool Allows user to input realistic capital and operating costs for their observatory site Allows user to profile schedule of node deployment Different grant aid scenarios Cost of Servicing debt (built-in function) Compare required and potential revenue over lifetime of the observatory Generates balance sheet Examine viability of the observatory over its lifetime Assists with lobbying for Observatory funds

10. ESONIM Model Screen Grab

11. Infrastructure Capital costs (indicative) Indicative cost ~ €60M

12. Node Deployment Costs Indicative Cost €25M

13. Cost of finance (debt)

14. Operating and Maintenance costs

15. Scenario 1: 70% Grant Aid, 30% debt, Scientists fund instruments from project budgets

16. Scenario 2: 100% Grant Aid, No debt, CeltNet funds 30% of instrument costs

17. Legal WP addresses issues including: Structures Procurement Risk Environmental and planning Permits Contracts Warranty IP Etc.. …and has generated legal template documents

18. National marine agencies and other partners D+C ContractorOperator Porcupine SPV ESONIM Foundation Marine Institute Heads of Agreement Shareholders Agreement (project–specific) Appointment of Agent Legal WP: Partnership Structure

19. Linkage to EU Initiatives: (Individual Implem. Plans) ESONIM model –Science/ stakeholders –Engineering design –Financial model –Legal/contracts  ESONET NoE  Implementation Plans – Mediterranean – Atlantic (CeltNet) – Stand-alone (acoustically linked site)  EMSO  European Marine Seas Observatory Core Body 11 ESONET Sites Available September 2007 2007-2008 2008-2012

20. Final Thoughts ESONET Science and Societal Case Proven Engineering Solutions available Significant Europe wide co-operation Time for incremental step – development of robust business case and push for national and Commission funding to roll out infrastructure

21. Thank You Thank you Partners European Commission - particularly Alan Edwards and Witold Cieslikiewicz Many others who have advised and helped with particular thanks to Chris Barnes, Peter Phibbs and the Neptune Team