- The UK faces a looming shortage of domestic steel for offshore wind expansion.
- Offshore wind projects are expected to drive over 75 per cent of steel demand.
A recent analysis by UK consultancy Newton warns of a looming shortage of domestic steel. The report estimates the UK needs 6.1 million metric tonnes of steel by 2030 to meet the government’s 50GW offshore wind capacity goal. Over 75 per cent of the steel demand is expected from offshore wind expansion projects. Between 2025 and 2027, 3.8 million metric tonnes of steel will be crucial for new wind farms. UK’s steel production has declined for decades. Major steelmakers like Tata Steel UK are struggling. Efforts to modernise facilities, like Port Talbot steelworks, are underway. The goal is to transform into an electric-powered producer of recycled steel. There are fears of outstripping domestic steel production capacity. This could lead to increased reliance on costly imports.
Imported steel could inflate offshore wind development costs. It could also disrupt project timelines. Calls for government intervention to bolster domestic steel production are growing. Dan Parker, a partner at Newton, stresses the urgency of collaborative efforts. Securing a steady supply of steel is crucial. It’s necessary to prevent derailing the 50GW target for offshore wind. Renewables sector stakeholders urge more funds for the upcoming CfD auction. This is crucial to support additional offshore wind projects. Meeting the 50GW target remains a challenge. However, the offshore wind sector’s growth potential is undeniable.
Newton’s survey highlights support for a specialised steel supply chain. This is especially important for emerging areas like floating wind. The UK must strengthen and expand its domestic steel production capacity. This is essential for supporting the offshore wind industry. This will help navigate challenges and secure the UK’s position in the clean energy transition.