eere.energy.gov 

Water Power Technologies Office Peer Review 

Marine and Hydrokinetics Program 

MHK Manufacturing and Supply 

Chain Needs Assessment 

Jason Cotrell 

National Renewable Energy Laboratory 

Jason.cotrell@nrel.gov, 303.384.7056 

February 14-16, 2017 

Washington, D.C.

Source: NREL 25663

NREL/PR-5000-68362

NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance for Sustainable Energy, LLC
2 | Water Program Technologies Office eere.energy.gov 

Project Overview 

Title: Marine and Hydrokinetic Manufacturing and Supply Chain Needs 

Assessment 

The Challenge: A robust marine and hydrokinetic (MHK) manufacturing and 

domestic supply chain: 

1. Reduces the cost of manufacturing and assembling components

2. Improves component reliability

3. Enables design innovations

4. Provides high-quality U.S. manufacturing and supply chain jobs.

Project Objective: Identify U.S. manufacturing and assembly needs, 

opportunities, and possible actions that support the U.S. MHK supply chain as 

well as reduce the levelized cost of energy (LCOE) for MHK devices. 

Partners: No additional formal partners other than stakeholder involvement. 
3 | Water Program Technologies Office eere.energy.gov 

Technology 

Maturity 

Deployment 

Barriers 

Crosscutting 

Approaches 

• Enable access to testing 

facilities that help 

accelerate the pace of 

technology development 

• Improve resource 

characterization to 

optimize technologies, 

reduce deployment risks 

and identify promising 

markets 

• Exchange of data 

information and 

expertise 

• Identify potential 

improvements to 

regulatory processes 

and requirements 

• Support research 

focused on retiring or 

mitigating environmental 

risks and reducing costs 

• Build awareness of 

MHK technologies 

• Ensure MHK interests 

are considered in 

coastal and marine 

planning processes 

• Evaluate deployment 

infrastructure needs and 

possible approaches to 

bridge gaps 

• Support project 

demonstrations to 

reduce risk and build 

investor confidence 

• Assess and 

communicate potential 

MHK market 

opportunities, including 

off-grid and non-electric 

• Inform incentives and 

policy measures 

• Develop, maintain and 

communicate our 

national strategy 

• Support development of 

standards 

• Expand MHK technical 

and research 

community 

Program Strategic Priorities 

• Test and demonstrate 

prototypes 

• Develop cost effective 

approaches for 

installation, grid 

integration, operations 

and maintenance 

• Conduct R&D for 

innovative MHK 

systems & 

components 

• Develop tools to 

optimize device and 

array performance and 

reliability 

• Develop and apply 

quantitative metrics to 

advance MHK 

technologies 

Market 

Development 
4 | Water Program Technologies Office eere.energy.gov 

• Support project demonstrations to 

reduce risk and build investor 

confidence 

• Assess and communicate potential 

MHK market opportunities, including 

off-grid and non-electric 

• Inform incentives and policy 

measures 

• Develop, maintain and communicate 

our national strategy 

• Support development of standards 

• Expand MHK technical and research 

community 

Technical Approach 

Market 

Development 

The Impact 

• Informed actions and investments that best 

support the U.S. MHK industry. 

• Potential impacts: 

1. Support identification of new market 

opportunities 

2. Reduce LCOE 

3. Increase U.S. manufacturing of MHK 

equipment 

4. Increase number of U.S. jobs 

• Final product: Summary project presentation and 

report that can be used by industry and DOE 
5 | Water Program Technologies Office eere.energy.gov 

Technical Approach 

Project Scope 
6 | Water Program Technologies Office eere.energy.gov 

Technical Approach 

1. Surveyed available information 

– Extensive literature review 

– Site visits and stakeholder interviews 

2. Down-selected MHK technology focus

– Availability of reference model information 

– Larger number of U.S. companies 

– Larger U.S. resource potential than tidal or current devices 

3. Performed MHK manufacturing SWOT analysis 

– Literature review results 

– Stakeholder interview sand site visits 

– Internal brainstorming session 

4. Analyzed supply chain capabilities and opportunities 

– Fabrication 

– Wave energy converter (WEC) assembly 

– Transportation and logistics 

– Installation and maintenance 

5. Documented results 

– Comprehensive presentation 

– Executive presentation 

– Summary technical report 

0

100

200

300

400

500

600

700

General US

Manufacturing

Competitiveness

MHK Road Map or

Strategy or Policy

MHK Supply Chain

Development

Number of pages and type reviewed 

0

1

2

3

4

5

6

WEC

manufacturer,

fabricator, or

assembler

Assembly and

installation firm

Advocacy

organization,

state

organization or

university

Stakeholders Interviewed
7 | Water Program Technologies Office eere.energy.gov 

Accomplishments and Progress 

Comprehensive presentation and technical report were 

completed in 2014, providing: 

Information needed to make strategic decisions about potential U.S. 

manufacturing investments by: 

1. Identifying U.S. WEC manufacturing and assembly gaps, challenges, and opportunities 

2. Creating a framework and recommendations for strengthening U.S. WEC manufacturing 

competitiveness 

Recommendations for addressing U.S. WEC manufacturing gaps and challenges 

Key opportunities to improve U.S. MHK manufacturing competitiveness 

 
8 | Water Program Technologies Office eere.energy.gov 

Results 

Recommendations for addressing U.S. WEC manufacturing gaps and challenges 

include: 

1. Ten recommendations are identified for increasing domestic demand for WECs to increase 

economy of scale, supplier interest, investment, and innovation 

2. Supporting design for manufacture activities, increasing lot size, facilitating exchange of ideas, 

and tracking manufacturing and logistics costs will help reduce the moderate costs of U.S. volume 

manufacturing, including labor costs, finance, capital equipment/plant, and port-side labor for 

assembly 

Key opportunities to improve U.S. MHK manufacturing competitiveness include: 

1. Increasing supplier and WEC workforce interest in WECs through the characterization of 

opportunities in international markets and continued support of technology development, 

component, and system testing 

2. Using component reliability (the key U.S. competitive advantage), LCOE reduction potential, and 

market value as metrics, the following technology areas have the most potential for achieving 

Clean Energy Manufacturing Initiative objectives: 

i. Power-take-off (PTO) components 

ii. Structure and prime mover 

iii. Mooring and foundation 
9 | Water Program Technologies Office eere.energy.gov 

Project Plan & Schedule 

• Project started in October 1, 2013. 

• A comprehensive internal report was delivered December 

24, 2014, with a three-month delay due to a competing MHK 

priority. 
10 | Water Program Technologies Office eere.energy.gov 

Project Budget 

• Project was funded in late FY13 with $260k and all 

funds have been costed. 

Budget History 

FY2014 FY2015 FY2016

DOE Cost-share DOE Cost-share DOE Cost-share

$0 $0 $0 $0 $0 $0
11 | Water Program Technologies Office eere.energy.gov 

Research Integration & Collaboration 

Partners, Subcontractors, and 

Collaborators: 

This was primarily a National 

Renewable Energy Laboratory project; 

however, the project was made 

possible by the 12 stakeholders who 

participated. 

Communications and Technology Transfer: 

• An internal technical report was delivered in 2014 that can be 

used by decision makers to inform future investments 

• There would be value in vetting the report with stakeholders and 

publishing it externally. 

0

1

2

3

4

5

6

WEC

manufacturer,

fabricator, or

assembler

Assembly and

installation firm

Advocacy

organization,

state

organization or

university

Stakeholders Interviewed
12 | Water Program Technologies Office eere.energy.gov 

Next Steps and Future Research 

FY17/Current Research: No follow-on work is planned for FY17. 

Proposed Future Research: 

• Update, vet, and publish the comprehensive internal report and 

presentation 

• Support the development of key opportunities to improve U.S. MHK 

manufacturing competitiveness, including 

1. Increase supplier and WEC workforce Interest in WECs by quantifying export 

market potential 

2. Perform Clean Energy Manufacturing Analysis Center cost-sensitivity analyses for 

the most promising supply chain opportunities in PTO components, structure, 

prime mover, mooring, and foundation