Presentations

Abstract

The Offshore Wind Decarbonisation Pathway, 2024, identified that the input of materials from the supply chain accounts for 60-80% of the lifecycle emissions of a typical offshore wind farm, of which steel contributes over 50%. While emission profiles vary depending on project size, location, and foundation type, the reliance on carbon-intensive steel production remains a major source of emissions. The reduction of the carbon emissions associated with manufacturing steel is essential to meet global Net Zero targets and advance offshore wind decarbonisation. Although technologies for producing lower-emission steel are available, developers face barriers including limited supply and significant price premiums compared to conventional steel. The industry faces a catch-22 situation: developers struggle with limited access to lower-emission steel and the associated price premiums, while the supply chain lacks sufficient incentives to invest in scaling green steel production. Overcoming this challenge will require the implementation of targeted business models, supportive policies, and market mechanisms that drive investment and adoption of low-emission alternatives across the OSW supply chain serving developments in Europe.   Decarbonising the steel industry demands broad cross-industry collaboration, and while existing initiatives are making meaningful progress, offshore wind presents distinct hurdles. Its procurement and ownership structures prevent the transfer of price premiums to end consumers, complicating efforts to embed green steel into project delivery. This project aims to address these challenges by evaluating the specific needs and barriers of different stakeholders in the OSW industry. The key output will be the development of an OSW Green Steel Action Plan, outlining incentive mechanisms and strategic recommendations, informed by economic conditions and industry perspectives. The Action Plan, due to be published in spring 2026, will be informed by active industry dialogue and engagement with steel manufacturers and fabricators, offshore wind developers and governments.