The British steel sector has issued a compelling call for governmental commitment to domestic procurement amid ambitious offshore wind expansion plans. Recent data reveals a stark reality: a mere 2% of steel utilised in UK offshore wind projects over the past five years originated from British manufacturers, according to research conducted by Lumen Energy & Environment.
Wind power has emerged as a cornerstone of Britain’s energy infrastructure, generating 29% of the nation’s electricity in 2023. The anticipated demand for steel in British offshore wind installations is projected to surge dramatically, reaching an average of 1 million tonnes annually between 2026 and 2050, with peak requirements exceeding 2 million tonnes.
UK Steel’s chief executive, Gareth Stace, emphasises the significant opportunity presented by the offshore wind sector. The organisation advocates for preferential treatment of British-made steel in government procurement strategies, despite typically higher production costs compared to international competitors. This price differential is largely attributed to elevated energy expenses in the UK.
Business Secretary Jonathan Reynolds is set to unveil a comprehensive steel strategy this spring, addressing the industry’s capacity enhancement whilst navigating decarbonisation challenges. The government has already earmarked £2.5 billion for sector investment, with substantial allocations directed towards Tata Steel’s Port Talbot facility transition to electric arc furnaces.
The scale of potential domestic demand is noteworthy, with Lumen’s analysis indicating that offshore wind requirements through 2050 will exceed the combined steel needs of UK defence, highways, rail, and government buildings by nearly sixfold. However, the current limitation lies in British manufacturing capabilities, particularly regarding plate steel production at necessary volumes.
Manufacturing developments show promise, with facilities like the Smulders site in Newcastle upon Tyne and SeAH’s Teesside plant demonstrating Britain’s commitment to wind energy infrastructure. These installations, however, currently rely on imported steel, highlighting the pressing need for enhanced domestic production capabilities.
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