SeAH Steel’s British subsidiary is nearing the completion of its factory, which is set to produce up to 200 monopiles annually, creating 2,250 jobs during the construction phase. The Tees Valley area is transforming into an eco-friendly city as offshore wind supply chain companies move in. Domestically, the expansion of offshore wind power is crucial, requiring collaboration with overseas companies, with increased economic contributions and the internalization of operations and maintenance.
On June 25th, a visit to Tees Valley in the northeast coast of the UK revealed a transformed area where the defunct SSI Steel plant once stood. Leading this change is SeAH Wind, a UK subsidiary of the Korean company SeAH Steel, focusing on producing substructures for offshore wind power. The SeAH Wind factory in Tees Valley is in its final stages with a 99% completion rate, set across a sprawling 90-acre site, equivalent to 30 soccer fields, and stretching over 800 meters.
The facility plans to produce up to 200 monopiles annually for North Sea offshore wind farms. Monopiles, towering at 120 meters with a 50-meter diameter and weighing several thousand tons, required port reinforcements in Tees Valley to support their weight. This has attracted other offshore wind equipment companies to the area.
The docks at SeAH Wind were stocked with offshore wind tower components from GE Renewable Energy, indicating growing global investment in Tees Valley. Alec Brown, the mayor of Redcar and Cleveland, attributed the region’s emergence as an offshore wind supply chain hub to “global partnerships.” The UK’s energy transition strategy involves securing turbine supplies from European nations and the US, with projects from companies like Orsted and Equinor. These policies have revitalized the local economy by promoting foreign investment and job creation, evidenced by SeAH Wind generating 2,250 construction jobs and 1,500 supply chain positions.
With offshore wind projects reviving the local economy, public acceptance issues have diminished, leading to reinvestment of additional tax revenues into the area. As the UK aggressively expands its offshore wind sector, Chinese companies are eyeing the market, though security concerns create cautious responses, while South Korean companies are welcomed.
To rapidly expand domestic offshore wind power, it is suggested that local supply chains be maximized, with collaboration with foreign companies to address deficiencies. While Korea possesses capabilities in producing monopiles, jackets, floating structures, and cables, it lacks sufficient capacity for nacelles, blades, and turbines. Despite the challenges in commercializing 15MW-class Korean turbines by 2030, experts advocate for establishing joint ventures for technology transfer and meeting supply shortages.
Even without domestic turbine brands, the UK has emerged as an offshore wind leader. Japan, also lacking a national turbine brand, recently attracted a GE Vernova factory to promote technology collaboration with local companies, aiming for nationalization of wind power facilities. It’s emphasized that even if collaboration with foreign companies is necessary, internalizing operations and maintenance (O&M) with high local economic impact is essential for Korea. Reinforcing the training and capacity of local companies is crucial, according to Professor Kim Beom-seok from Jeju University’s Department of Wind Power Engineering.