UK Steel Industry Calls for Government Support in Offshore Wind Power Projects

The UK steel industry is urging the government to commit to using British-produced steel in the country’s expanding offshore wind sector. Despite wind energy now accounting for nearly a third of the UK’s electricity generation, less than 2% of the steel used in offshore wind projects over the past five years has come from domestic mills, according to consultant Lumen Energy & Environment.

A new government steel strategy is expected to be released this spring, spearheaded by Business Secretary Jonathan Reynolds. The strategy aims to expand the UK’s steel manufacturing capacity, addressing challenges including the rising costs of decarbonisation. Gareth Stace, chief executive of UK Steel, has called for prioritising British-made steel in offshore wind projects, suggesting it would strengthen domestic supply chains and offer broader economic benefits.

Demand for steel in the UK’s offshore wind sector is predicted to exceed 1 million tonnes per year between 2026 and 2050, with a peak of more than 2 million tonnes annually. This represents a significant increase from the current 300,000 tonnes used each year. However, the majority of this future demand will be for plate steel, which is not produced in large quantities within the UK. Industry leaders have said that investment in new facilities to meet this demand depends on government policies that prioritize local manufacturing over imports.

Stace argues that such policies would not only help reverse the decline of the UK steel industry but also incentivize steelmakers to invest in the sector. He has called on the government to consider British steel as the default option in public procurement decisions. “Using British steel would ensure that large-scale spending remains within the UK economy, creating jobs and boosting local manufacturing,” he said.

The government has already committed to supporting the domestic steel industry, with a £2.5 billion support package. This funding is intended to help projects like replacing traditional blast furnaces with electric arc furnaces at plants in Port Talbot and Scunthorpe. However, there are still significant challenges, with factories in Newcastle and Teesside assembling turbine components and building monopiles that rely on imported steel. This underscores the need for a cohesive industrial strategy that strengthens the UK’s steel production capacity.

As the UK’s offshore wind industry continues to grow, industry leaders are calling for urgent action to ensure that British steel plays a central role in the country’s green energy future.