Research commissioned by Oceantic Network indicates that the continued development of offshore wind in the USA could expand domestic steel production, increase fabrication capacity and support economic activity in the sector.
The analysis finds that offshore wind development over the next two decades could generate about USD 42 billion in demand for US steel used in towers, foundations and vessel components. According to the study, this demand could support more than 186,000 jobs across steel mills, fabrication yards, shipyards and related supplier industries.
The research assesses steel demand associated with 70 GW of leased and proposed offshore wind projects in the USA and compares it with existing and planned steel mill and fabrication capacity. It concludes that recent upgrades to US steel mills, including more than USD 3 billion invested in facilities in Kentucky, Ohio and Texas, could enable domestic producers to supply up to 80% of the plate steel required for offshore wind projects.
The study also estimates that offshore wind projects could require about 22 million tonnes of steel. With additional investment, US fabrication yards could meet up to 78% of demand for towers, monopile foundations and transition pieces. Without further expansion of domestic fabrication capacity, the analysis suggests that less than 10% of the potential market could be supplied locally.
The research, titled *U.S. Steel Demand from Offshore Wind*, was carried out by Lumen Energy & Environment on behalf of Oceantic Network.
