3.3 Innovate product design to reduce material demand and support the nature-positive transition In the young and fast-growing offshore wind industry, innovative product design is crucial to improving efficiency, quality and market expansion. It could also be transformative in mitigating nature- related impacts and dependency, supporting the nature-positive transition. Companies are already investing in technologies that are kickstarting the shift in the sector’s business models. At the core of this transition is material innovation, which aims to improve the functionality of offshore wind turbines while reducing their environmental impacts and designing for nature enhancement. For instance, offshore wind structure designs that require fewer materials (e.g. lattice structures that use less steel) and those that are easier to disassemble improve practicality, potentially save costs and allow for better recycling and reuse.143,144 For example, Vestas has recently introduced their modular “click-on” nacelle design, which addresses the challenges of transporting large offshore wind components, facilitates customization and upgrades, and makes reuse easier.145 One of the most significant innovations that could transform the industry and its impact on nature is the development of floating wind technologies. Floating wind is opening new sites for offshore wind installation in deeper waters (between 60-1,000 m). These locations farther out at sea typically have the advantages of stronger winds and lower competition with other marine industries such as shallow-water fishing and aquaculture.146 Furthermore, floating wind has a lower impact on ocean use and noise than fixed-bottom turbines, as it requires less seabed infrastructure and avoids pile driving. The mooring of the anchors and subsea cables can also serve as artificial reefs for invertebrates and small fishes.147 While these technologies have potential nature- related benefits, other risks to nature may arise and must be proactively considered. For example, while floating turbines may reduce seabed disturbance, they may introduce new challenges, such as species entanglement. Partnerships between offshore wind companies and start-ups and accelerators are crucial to enhance biodiversity knowledge and facilitate investments in nature innovation while supporting business model improvement. These should be sought before a new technology is deployed on-site to facilitate learning and further innovation across the wider industry. Coalitions such as the 1000 Ocean Startups provide a platform to connect the key players needed to accelerate innovation for ocean health. Offshore wind structures could also present an opportunity for testing nature-enhancing technologies in real-life conditions, especially for the marine ecosystem. For example, Vattenfall collaborated with start-up Spoor to implement artificial intelligence (AI) technology that records the 3D flight behaviour of seabirds in the immediate vicinity of their offshore wind farm off the coast of Aberdeen. The information and data will be used to advance the understanding of collision risks and improve the planning of new offshore wind farms.148 Since 2022, RWE has launched regular innovation competitions149 with the aim of recognizing start-ups that develop solutions to improve the impacts of offshore wind farms on marine biodiversity, circularity or system integration. The award helps winners accelerate the commercialization of their solutions, offering grant money, expert knowledge and the potential opportunity to deploy their technology at one of RWE’s sites. RWE’s latest competition on floating wind focused on the promotion of co-use to support local marine users (especially fisheries) and measures to address impact on wildlife.ARC Marine, the winner of RWE’s Floating Wind Co-use Competition 2022, is known for their innovative Reef Cubes150 that create artificial reefs for marine life, offering a plastic-free and low-carbon alternative to concrete. RWE is currently testing these nature-inclusive design reefs in the Swedish Baltic Sea, in collaboration with Linnaeus University and cable service provider Baltic Offshore Kalmar. The goal is to see how the artificial structures can create an attractive marine habitat, particularly for blue mussels, algae and fish species.151CASE STUDY 4 How RWE innovates and supports start-ups for marine biodiversity Offshore wind structures could also present an opportunity for testing nature- enhancing technologies in real-life conditions, especially for the marine ecosystem.Priority action 3 Nature Positive: Role of the Offshore Wind Sector 34

Nature Positive Role of the Offshore Wind Sector