Rising steel demand poses threat to future offshore wind projects

(MENAFN) Analysis conducted by consultancy group Newton suggests that future offshore wind projects may face challenges due to an increase in the demand for steel.

The anticipated surge in demand might result in British projects having to depend on foreign steel unless there is a significant increase in UK production.

However, this seems unlikely given recent announcements about the closure of furnaces at Port Talbot. Newton warns that if the UK resorts to the international market when other countries are also constructing wind farms, it could lead to a global spike in steel prices.

Newton partner Dan Parker declared: "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've planned for. To ensure we're not blown off track, it is imperative that UK industry and government collaborate to ensure a steady supply of steel that can meet the predicted demand peaks as industry flexes to meet the 50GW target. After the closure of the Port Talbot steelworks in January, this is no mean feat," he added.

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