Mutual benefit: Steel investment could secure British-made steel for offshore wind boom and shore up national security
10 March 2025
Analysis commissioned by UK Steel shows that in the last five years less than 2% of steel used in UK wind farms was fabricated in the UK, and almost none using UK made steel. Despite having the capacity to produce over half of the steel needed for offshore wind, the UK remains overwhelmingly reliant on foreign steel to achieve net zero for energy generation in the UK. Research shows the British steel sector can already supply up to 13 million of the 25 million tonnes of steel needed for offshore wind over 25 years and with the right investment, this could soar to meet almost all of our future steel requirements for offshore wind expansion.
The urgency for a strong domestic steel industry extends beyond renewables and is now a national security imperative. Offshore wind experts, LumenEE, point out that uplifting UK steel capacity and capability will mutually benefit national defence needs. Yet, underinvestment in fabrication and production facilities is holding the industry back, risking our ability to meet demand, secure national supply and support the manufacturing of defence products - locking the UK out of a £21bn economic opportunity in offshore wind and beyond.
With a decisive business plan yet to be set out in the Steel Strategy and the National Wealth Fund, UK mills could bridge the gap between supply and demand. The statistics released today show steelmakers could meet up to 86% of offshore wind plate requirements with investment. This means keeping billions in the UK economy, securing thousands of skilled jobs, and ensuring Britain has the infrastructure to support its own industrial future, instead of handing billions to steelmaking abroad.
Gareth Stace, Director-General, UK Steel, said:
“LumenEE’s research is clear that investing in UK steel is about securing our own supply, controlling our own future, and ensuring British industry isn’t left behind. If we want to build the next generation of infrastructure, from offshore wind farms to defence and transport networks, we need to produce the steel here at home.
“With the right investment, we can turn this around and put UK steel at the heart of our energy and security future. This is a once-in-a-generation chance to build our industrial strength and reduce our dependence on foreign steel. The Government must act strategically to ensure Britain has a steel sector fit for the future and meets growing security and energy project demands.”
Supportive statements: RenewableUK's Head of Supply Chain, Ajai Ahluwalia, said:
"This report highlights the vast scale of the industrial opportunity for the UK if we’re able to ramp up the production of steel to manufacture large high-value components such as turbine towers and foundations for offshore wind projects here and abroad. This aligns well with our sector's Industrial Growth Plan which shows that overall we have the potential to triple the UK's offshore wind manufacturing capacity over the next ten years and secure our position as a leader in a surging global market. Steel production can be an engine of economic growth, and we’re committed to work closely with the steel industry and the Government to establish ways we can attract billions in private investment and ensure we’re internationally competitive".
Jonathan Clemens, Chief Executive Officer, British Constructional Steel Association, said:
“The publication of this report sets out the how to for British industry to capitalise on this significant opportunity by working together across the supply chain. The BCSA fully supports a UK first approach for fabrication which will help generate and maintain well paid skilled jobs, innovation and investment across the UK.”
Anil Sayhan, Programme Director, Offshore Wind Growth Partnership, said:
"Phase Two of the Bill of Works project confirms that with the right investment, the UK has the capability and capacity to supply the majority of the steel required for offshore wind.
“As the newly appointed Delivery Body for the Industrial Growth Plan, Offshore Wind Growth Partnership is committed to supporting this ambition by applying the report’s recommendations to strengthen UK fabrication and steel supply capacity to deliver long-term value for communities and businesses across the country."