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British Steel Industry pushes for greater role in offshore wind projects

  • Publish Date: Posted 6 days ago
  • Author: Steve Walia

A study has revealed that only 2% of the steel used in UK offshore wind projects over the last five years was produced in the UK, prompting calls for government intervention. As the UK prepares for significant expansion in offshore wind generation, industry leaders are urging the government to prioritise British-made steel in its procurement strategy.

 

Wind power has become a cornerstone of the UK's energy system and contributed 29% of the nation's electricity last year. With demand for steel in offshore wind projects projected to rise to over 1 million tonnes annually by 2026, the potential for domestic steelmakers is substantial. However, much of this increased demand is likely to be for plate steel, of which we do not currently produce sufficient volumes domestically.

 

Industry experts argue that reliance on imported steel, often cheaper due to lower energy costs abroad, undermines the economic benefits of renewable energy projects. They suggest that focusing on domestic production would retain more value within the UK economy and support the government's efforts to revitalise the steel sector.

 

The government has announced a £2.5 billion investment in the steel industry, including support for transitioning to greener production methods, such as electric arc furnaces. However, further investment is needed to address capacity gaps, particularly for the types of steel required by offshore wind projects.

 

The UK has achieved some success in manufacturing wind turbine components domestically, with facilities in Newcastle and Teesside playing key roles. However, these factories still rely heavily on imported materials. Industry leaders believe prioritising British steel could bolster both the renewable energy and steel sectors, aligning industrial policy with the UK's green energy ambitions.

 

The government's new steel strategy, expected in the spring, will play a critical role in shaping the future of both industries.