The UK’s pursuit of its 50GW offshore wind target by 2030 could encounter a significant challenge as industry experts highlight a substantial increase in steel demand.
A report by consultants Newton suggests an additional fifth of steel supply will be required between 2025-2027 to meet government-set goals.
Concerns arise over the strain this surge in demand will place on the UK’s steel industry, especially with the closure of furnaces at Port Talbot, potentially necessitating greater reliance on international steel markets.
Offshore wind farms, vital to the nation’s renewable energy strategy, heavily rely on steel, particularly for their foundations.
The impending demand peaks could lead to price spikes, affecting project timelines and budgets unless steps are taken to ensure a consistent and cost-effective steel supply, according to the report.
Dan Parker, Partner at Newton, said: “The UK’s offshore wind sector has ambitious targets to meet, set out by the government’s commitment to produce 50GW of wind power by 2030.
“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 have planned for.
“To ensure we’re not blown off track, it is imperative that UK industry and government collaborates to ensure a steady supply of steel that can meet the predicted demand peaks as industry flexes to meet the 50GW target.”
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