Assessment Framework to Determine the Economic Feasibility of Multi-use Platforms

Publication: Report
Citation: Araujo, Ariel et al. 2021: Assessment Framework to Determine the Economic Feasibility of Multi-use Platforms. Deliverable 3.2 of the Horizon 2020 project "Multi-use Offshore Platforms Demonstrators for Boosting Cost-effective and Eco-friendly Production in Sustainable Marine Activities" (UNITED).

This UNITED report provides an economic assessment framework aimed at guiding the evaluation of multi-use platforms in European seas. It focuses on assessing financial costs, revenues, and the economic efficiency of integrating various maritime activities. The goal is to understand the viability and added value of combining different uses, such as aquaculture, renewable energy, and tourism, within the same marine space, emphasizing sustainability and economic growth.

Evaluation of economic efficiency

The report presents a comprehensive evaluation scheme to determine the economic viability of multi-use platforms. Both direct and indirect costs and benefits are analyzed to draw conclusions of multiuse combinations against single uses scenarios. This approach enables stakeholders to understand the economic implications of different combinations of uses in the maritime space.

Generating revenue and cost savings

The focus is on identifying sources of revenue and potential savings through the synergetic use of maritime areas. The report looks at how the combination of activities such as renewable energies, aquaculture and tourism can not only increase profitability, but also reduce operating costs.

Sustainability and growth potential

Sustainability is a central theme in the economic assessment. The report emphasizes how multi-use platforms can contribute to environmental preservation and social welfare. It also highlights the potential of these platforms to promote a more sustainable and economically viable use of ocean resources.

The transformative power of multi-use platforms demonstrates how innovative economic assessments and synergies between different maritime activities can promote the sustainable use of marine resources.

Business Analysis of United Pilots

Year 2022

Publication:Report

The UNITED project report "Current Environmental Assessment and Status of the Pilots" provides a comprehensive overview of the current environmental assessments and status of various pilot projects. These projects included a variety of multi-use concepts in the marine environment, including the combination of offshore wind energy with shellfish and kelp cultivation, offshore wind and solar energy, shallow estuarine aquaculture and kelp cultivation, and tourism. The report looks at the environmental aspects of these pilot projects and assesses their environmental impacts, regulatory requirements and existing environmental assessment results and monitoring capacity.

Revision of the Current Environmental Assessment and Status of Pilots

Year 2020

Publication:Report

This UNITED project report deals with the development of an environmental assessment framework to determine the ecological feasibility of multi-use platforms. This assessment framework is based on the practice of environmental impact assessment (EIA) and applies an integrated cumulative effects assessment (iCEA) in the scoping and identification phases of key impacts. The report aims to assess the added environmental value ("benefits") of multi-use in the marine environment.

Assessment Framework to Determine Ecological Feasibility of Multi-Use Platforms

Year 2021

Publication:Report

The report addresses training and capacity building to ensure safe and efficient ocean multi-use operations, with a focus on societal engagement and educational objectives.

Year 2023

Language: English
Authorship: Ariel Araujo

Dr. Manuel Lago

Hugh McDonald

Lina Röschel

Dr. Nico Stelljes

Rianne Van Duinen (ACTeon)

Youssef Zaiter (ACTeon)
Funding: European Commission, Directorate-General Research & Innovation (DG Research & Innovation), International

European Commission, Research Executive Agency (REA), International
Year: 2021
Dimension: 84 pp.
Project: Multi-use Offshore Platforms Demonstrators for Boosting Cost-effective and Eco-friendly Production in Sustainable Marine Activities (UNITED)
Project ID: 33000
Table of contents: Click to show full table of contents

Executive summary
1. INTRODUCTION
1.1. UNITED: Introducing the project
1.2. Objectives of this report
1.3. The overall UNITED Assessment Framework
1.4. Current status of socio-economic information in the five UNITED pilots
1.5. Structure of this report
2. SETTING THE SCENE: UNDERSTANDING THE ECONOMICS OF MARINE MULTIUSE
2.1. Introduction
2.2. Policy landscape in the EU governing multi-use of marine space
2.3. Economic characterisation of type of marine uses in Europe
2.4. Developing an (economic) typology of ocean multi-use
2.5. Proposed characterisation of marine uses
2.6. Baseline and options
3. WHY CARRY OUT AN ECONOMIC EVALUATION?
3.1. Who needs economic evaluations?
3.2. Potential relevant public policy decision-making support tools:
3.3. The way forward: Partial Cost-Benefit Analysis
4. UNDERSTANDING THE COST AND BENEFITS OF MULTIUSE
4.1. Private costs and benefits of multi-use activities
4.2. Externalities
4.3. Resource costs
4.4. Valuing economic costs and benefits
4.5. Final ecosystem services and the identification of beneficiaries
5. PRELIMINARY GUIDANCE TO UNDERTAKE THE ECONOMIC ANALYSIS OF MULTIUSE IN THE UNITED PILOTS
Step 1: Environmental, social and economic characterisation of marine use/s
Step 2: Baseline and Alternatives
Step 3 Scoping for possible impacts
Step 4: Identify and calculate cost and benefits for baseline and options
Step 5: Discounting and calculate decision criteria
Step 6: Dealing with uncertainty: Risk and Sensitivity test
Step 7: Report quantified and non-quantified results
6. THE UNITED BUSINESS ANALYSIS FRAMEWORK
6.1. Setting the scene: the need for and objectives of a business analysis framework
6.2. The Business Analysis Framework within UNITED
6.3. The Business Analysis Framework
STEP 1: Describing the multi-use pilot and their TRL level
STEP 2: Mapping the pilot context - PESTEL
STEP 3: Business model canvas
STEP 4: SWOT analysis
STEP 5: Financial analysis and risk analysis
STEP 6: Evaluation and control
7. CONCLUSIONS, LINKS TO OTHER AREAS OF THE PROJECT AND NEXT STEPS
8. REFERENCES
APPENDIX A
APPENDIX B
Keywords: Coastal + Marine

Economics

financial costs and revenues, ocean multi-use, economic efficiency, UNITED Assessment Framework, socio-economic information

Baltic Sea, North Sea, Mediterranean Sea, Aegean Sea, Germany, Denmark, Belgium, Greece, Middelgrunden, Kastelorizo

economic framework, business framework, decision support tools, cost-benefit analysis, business model canvas