Offshore wind projects face potential risks due to an upsurge in demand for steel, highlights a recent report by consultancy group Newton. The analysis underscores the looming threat to British projects, primarily reliant on steel imports amid insufficient domestic production.
Steel Demand Surge Threatens Offshore Wind Initiatives
The report underscores concerns regarding the anticipated surge in demand for steel, posing challenges for the UK’s offshore wind sector. With the closure of furnaces at Port Talbot earlier this year, domestic steel production constraints exacerbate the reliance on foreign suppliers.
Newton’s partner, Dan Parker, emphasized the critical role of steel availability in meeting the government’s ambitious target of generating 50GW of wind power by 2030. Timely project delivery hinges on uninterrupted access to raw materials at planned prices, he stressed.
Urgent Collaboration Needed to Mitigate Risks
To circumvent potential setbacks, Newton advocates for concerted efforts between industry stakeholders and government entities. Parker highlights the imperative for collaborative strategies ensuring a steady steel supply to accommodate the industry’s burgeoning demands.
Offshore wind projects in the UK are projected to require nearly 3.8 million tonnes of steel between 2025 and 2027, accounting for approximately 23% of the country’s steel production. This surge aligns with governmental ambitions to escalate offshore wind capacity to 50 gigawatts by the decade’s end.
Government Targets and Industry Response
The UK government’s commitment to expanding offshore wind capacity underscores the urgency for streamlined steel supply chains. The envisioned growth from 14GW to 50GW necessitates proactive measures to address looming challenges in the sector’s supply chain dynamics.
Addressing steel supply constraints emerges as a pivotal priority to ensure the seamless realization of offshore wind initiatives and bolster the nation’s renewable energy transition.
Source：news.sky.com
