Ørsted has announced a multi-million-pound agreement to be the first and lead customer for monopile foundations manufactured at the planned UK facility of SeAH Wind Limited, a UK-based subsidiary of SeAH Steel Holdings (SeAH).
Under the agreement, SeAH will be a key supplier of monopiles for Hornsea Three, manufacturing them at the planned factory at Able Marine Energy Park, on the Humber – a site 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 discussions ongoing over the final number of monopiles that will be supplied to Hornsea Three by SeAH’s new facility.
The deal, subject to securing a Contract for Difference and Final Investment Decision (FID) for Hornsea Three offshore wind farm, will play a leading role in triggering the production of monopiles in the UK.
In July 2021 SeAH Wind Ltd took a £260 million ($351 million) FID for the new factory in the Humber, which will be coupled with a grant from the UK government.
Energy, Clean Growth and Climate Change Minister Greg Hands, said: “Today’s multi-million-pound agreement between Ørsted and SeAH Wind is a fantastic example of industry cooperation and a huge vote of confidence in the Humber region – demonstrating how our commitment to tackling climate change is helping to unlock investment across the UK as we build back greener.”
Hornsea Three was granted consent in December 2020 and will be the latest addition to Ørsted’s UK fleet offshore wind farms – with a capacity of approximately 2.4GW.
Once complete, the project will be capable of providing clean electricity to more than two million UK households.
Duncan Clark, Head of Region UK at Ørsted, said: “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.”
Joosung Lee, COO and Senior Executive Vice President at SeAH Steel Holdings, 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 a faith on 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.”