Offshore Wind Represents £21BN UK Steel Opportunity

Wedoany.com Report-Nov 27,Up to 25 million tonnes of steel will be needed in the next 25 years for offshore wind investment around the coast of Britain, according to a report by LumenEE for UK Steel.

This single opportunity alone is worth approximately £21bn in steel purchases.

To ensure taxpayer money stops being spent on importing foreign steel for major infrastructure projects, UK Steel is setting out recommendations to ensure, where reasonably possible, steel made in the UK stands at the front of the queue when government is making purchasing decisions.

To do this is a win for the government, for the UK steel sector and for the highly skilled, well-paid jobs that the steel sector provides, said the report.

It added change is clearly needed so offshore wind demand and the ways it can drive growth for the steel sector and the UK are built into the forthcoming Steel Strategy.

RenewableUK chief executive Dan McGrail said: “UK Steel’s report, and work produced by LumenEE, could not be more timely.

“The technical findings illustrate the components our sector will need for the next quarter of a century and work in lockstep with the template set out in the Industrial Growth Plan paper.

“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.

“If the government and steel industry carefully invests the £2.5bn 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.”

Better data and a full understanding of the challenge will shape the much-anticipated government Steel Strategy and ensure London can strategically invest its £2.5bn National Wealth Fund share earmarked for the sector.

UK Steel director-general Gareth Stace said: “The UK steel sector stands ready to partner with the government to build a strong Steel Strategy that prioritises homegrown production.

“Strategic procurement can transform taxpayer investment into a win for the economy, safeguarding well-paid jobs and revitalising our industry.

“The LumenEE findings on offshore wind alone illustrate what’s at stake: £21bn in steel purchases that could drive a major upturn in UK production.

“Without decisive action, we risk losing this opportunity and continuing to fund foreign competitors instead of our own economy.”