UK offshore wind to drive GBP 21bn steel demand by 2050

The UK offshore wind sector will need between 20 million and 25 million tonnes of steel in the 25 years from 2026 to 2050, creating a GBP 21 billion (USD 26.5bn/EUR 25.2bn) opportunity for the steel industry, according to a report by UK Steel, unveiled on Tuesday.

The report, entitled "Public Procurement of Steel: Time for new thinking for a thriving industry," aims to provide a policy blueprint for the government’s Steel Strategy and sets out proposals for greater use of UK-made steel in taxpayer-funded projects. One of the recommendations is that in future contracts for difference (CfD) auctions, the government should evaluate the bidders’ contributions to sustainability, resilience and local content. These criteria should apply to at least 30% of the volume auctioned annually, in line with the EU's approach under its Net Zero Industry Act.

“This is the first time that the offshore wind sector’s technical steel requirements have been laid out for Government, the renewable industry and suppliers to see, component by component,” said RenewableUK CEO Dan McGrail.

“If the Government and steel industry carefully invests the GBP 2.5 billion steel fund in response to this huge growth area, then the wind industry’s Industrial Growth Plan, UK steel production, fabrication and national supply chains can all fall into step as a huge economic boon for the UK,” he added.

“We look forward to working closely with steel manufacturers and fabricators to help them capitalise on the significant opportunities presented in the Bill of Works to foster a stronger UK supply chain,” said Offshore Wind Growth Partnership Programme Director, Anil Sayhan.