Report warns offshore wind projects could be at risk as steel demand rises

Analysis by Newton Consulting said future offshore wind projects could be at risk due to increased demand for steel.

The expected surge in demand could make UK projects dependent on foreign steel unless UK production increases, but this is unlikely to happen, the analysis said. Plans to close the Port Talbot furnace were announced earlier this year.

Mr Newton said global prices could soar if the UK turned to international markets at a time when other countries were also trying to build wind farms.

Dan Parker, partner at Newton, said: “The UK offshore wind industry has ambitious targets to achieve, with the government committing to produce 50GW of wind power by 2030.

“Fundamental to achieving this is ensuring existing UK offshore wind projects are delivered on time and on budget.

“This means they need to obtain the necessary raw materials at planned prices.

“To ensure we stay on track, UK industry and government must work together to ensure stable steel supply to meet the projected peak demand as the industry adjusts to meet the 50GW target.

“It will never be easy after the Port Talbot steelworks closed in January.”

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Newton said UK offshore wind farms will require nearly 3.8 million tonnes of steel between 2025 and 2027. This will account for about 23% of the country’s steel production.

The push is part of the government’s aim to build 50 gigawatts (GW) of offshore wind in UK waters by the end of the decade, up from around 14 GW currently.