Ørsted has confirmed a multi-million-pound agreement to be the first and lead customer for monopile foundations manufactured at the planned UK facility of SeAH Wind Ltd, a UK-based subsidiary of SeAH Steel Holdings (SeAH)
The deal, subject to Ørsted securing a contract for difference and final investment decision for the Hornsea Three offshore windfarm, will trigger production of monopiles in the UK for the first time.
Under the agreement, SeAH will be a key supplier of monopiles for Hornsea Three, manufacturing them at the planned new factory at Able Marine Energy Park, on the Humber – a site which is expected to become the world’s largest monopile production facility and capable of producing the extra-large monopiles required for the new generation of larger wind turbine models.
SeAH anticipates starting its manufacturing operations in 2023, with the Humber site at full capacity and peak employment by the end of the decade with a world-class set-up – discussions are ongoing over the final number of monopiles that will be supplied to Hornsea Three by SeAH’s new facility.
Working with Ørsted over an 18-month period, in July 2021 SeAH Wind Ltd took a £260M (US$351M) final investment decision for the new factory in the Humber, which is expected to create up to 750 direct jobs by 2030. Alongside this announcement, the UK Government confirmed an offer of grant support to SeAH Wind Ltd to help secure the internationally mobile investment project for the UK.
Hornsea Three was granted consent in December 2020 and will be the latest addition to Ørsted’s UK fleet offshore windfarms, with a capacity of approximately 2.4 GW.
Ørsted head of region UK Duncan Clark said, “Through collaboration across government, industry and the supply chain, this agreement represents another positive step towards creating a larger and sustainably competitive UK supply chain to support the next chapter in the UK’s offshore wind success story.
“The Hornsea Three team has worked extensively with SeAH Wind to support their investment decision to establish a new, globally competitive monopile foundations factory in the UK. We very much look forward to continuing our work with SeAH in bringing this landmark project to life and ultimately to deliver competitive monopiles from a UK fabrication facility for the first time.”
SeAH Steel Holdings chief operating officer and senior executive vice president Joosung Lee said, “SeAH Wind will play a pivotal role in the UK offshore wind supply chain. And we would like to thank Ørsted team for proceeding the negotiation with faith in SeAH Wind’s vision.
“This agreement validates our ambitious plans to build the largest possible monopiles from our state-of-the-art UK factory and it has only come about through hard work, collaboration, and a willingness to work together to help deliver on the UK Sector deal commitments.”
Energy, Clean Growth and Climate Change Minister Greg Hands said the government is putting the British offshore wind industry at the heart of the green recovery. “Today’s multi-million-pound agreement between Ørsted and SeAH Wind is a fantastic example of industry co-operation and a huge vote of confidence in the Humber region.”
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