Creeping steel demand could threaten UK offshore wind projects
Rising demand for steel in the UK, and the potential price spikes that could follow, could delay the future expansion and development of British offshore wind projects, a new report has warned.
British wind projects will have to start relying on foreign steel unless production in the UK is “ramped up,” which would be “unlikely” after plans to close the furnaces at the Port Talbot steelworks were announced earlier this year, the report said.
Consultancy Newton, which authored the report, said that if the UK turns to the international market while other countries are also trying to build steel-hungry wind farms, global prices could spike.
UK offshore wind farms will need close to 3.8m tonnes of steel between 2025 and 2027, Newton said. That would be around a quarter (23 per cent) of the country’s steel production.
The warning comes as the government works towards its target of developing 50 gigawatts (GW) of offshore wind power by the end of the decade.
Newton partner Dan Parker said: “Fundamental to reaching this target will be ensuring existing UK offshore wind projects are delivered on time and on budget.
“This means they need the requisite raw materials to be available at the price they’ve planned for.
“To ensure we’re not blown off track, it is imperative that UK industry and government collaborate to ensure a steady supply of steel that can meet the predicted demand peaks as industry flexes to meet the 50GW target.
“After the closure of the Port Talbot steelworks in January, this is no mean feat.”