Offshore wind supply chain and ports in Teesside and the Humber
Offshore wind will supply the future energy needs of the UK, and companies operating in the offshore-wind super clusters of Teesside and the Humber will make this happen.
The UK has the world’s largest offshore wind energy market, and it is set to grow with the development of 2 new offshore wind ports in Teesside and the Humber.
This is a unique opportunity for companies that manufacture high-value offshore wind components, as well as those operating in associated sub-component and systems supply chains.
Teeside and the Humber
Foreign direct investment
(Offshore wind, Sustainable infrastructure, Clean energy)
Sector and market opportunity
The 2 new offshore wind deep-water installation ports will create opportunities for Tier 2 and 3 suppliers and component manufacturers looking to supply market leaders and world-renowned companies.
There will also be opportunities for companies in the marine sector, including:
- inspection and maintenance services
- geophysical and geotechnical surveys
- security operations
- cargo delivery
- crew transfers
The region offers a wide range of testing facilities, ample physical space for investment and an offshore wind cluster that can support companies’ projects in the sector.
Global offshore wind capital expenditure is estimated to be worth £130 billion by 2034 and the UK’s wind sector is growing exponentially.
Teesside and the Humber are global leaders in this sector and growth is expected in the high-value manufacturing of blade materials, monopiles, jackets, turbines and nacelles.
There will also be opportunities in the innovation and development of critical sub systems, operations and maintenance services and associated marine solutions.
The regions are 2 of the world’s most prominent offshore wind clusters, with more than 486 hectares of dedicated manufacturing space.
They offer a well-established supply chain, including monopiles, cables and blades with an affordable cost-base and new upgraded deep-water heavy-duty quays space.
Teesside and the Humber have 4 airports with local and international connections.
The regions are well connected by train to major towns and cities across the UK, including fast trains to London. Both areas are also well connected by road with routes to London, Scotland and the South of England.
The Humber and Teesside Freeports are easily accessible and are renewable energy-focused hubs for global trade and investment, with tax incentives and customs support available to investors.
Local talent and skills
The area has 3 universities with highly trained graduates in the renewable energy field, and 5 world class research organisations.
The offshore wind supply chain offers 15,205 direct jobs and 10,888 indirect jobs.
Research and expertise
The region is home to world class research facilities, such as:
- The Offshore Renewable Energy Catapult
- Aura Innovation Centre, Materials Processing Institute
- Teesside University – Centre for Sustainable Engineering
- Durham Energy Institute – Wind Energy Group
The University of Lincoln and partners are also home to the Greater Lincolnshire Institute of Technology and Lincoln School of Engineering and Engineering Hub, developed with Siemens.
It is also the base of 2 research groups with interests in sustainable energy, power systems, and industrial digitalisation and systems intelligence (IDSI).
North of England
The North of England is recognised as a global centre for creativity and design and attracts thriving international investment. This heritage of expertise and manufacturing know-how is well established on the world stage, and historically gave birth to the Industrial Revolution.
Enabling clean growth
Offshore wind growth is an integral part of the UK government’s 10-point plan for a green industrial revolution, which was published in 2020.
Offshore wind, its supply chains and ports will provide the backbone of renewable energy needed to decarbonise the UK by 2050.
Local and national government support
By 2030, the government plans to quadruple offshore wind capacity by backing innovations and investing to bring jobs and growth to the nation’s ports and coastal regions.
The 40 GW offshore wind target could help bring £20 billion of private investment into renewable energy. Coordinated offshore wind connections could also deliver up to £6 billion in consumer savings by 2050.
This could significantly reduce environmental and social impacts on coastal communities across the UK.
SeAH Wind, a UK-based subsidiary of South Korean SeAH Steel Holdings, was established in February 2021 to enter the global offshore wind power substructure market.
In July 2021, it was announced that SeAH would build the UK’s first monopile production facility at Able Marine Energy Park on the south bank of the Humber Estuary. The company has committed to investing a total of £260 million over the next 3 years.
Manufacturing operations are expected to begin in 2023, reaching about 240,000 tonnes, to respond to the sharp increase in UK and global demand for monopiles.
Ørsted develops, constructs and operates offshore and onshore wind farms, solar farms, energy storage facilities and bioenergy plants, and provides energy products to its customers.
The company has invested over £10 billion constructing UK offshore wind farms, helping to transform coastal communities across the UK.
Its Hornsea One wind farm, off the Yorkshire coast, is the largest in the world and produces enough energy to power more than 1 million homes.
Ørsted is constructing Hornsea Two, 89km off the Yorkshire coast, which will take its installed capacity in the UK to over 6,300 MW.
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Teesworks in North East England
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Offshore Transmission Owner (OFTO) opportunities
Bid for one or more of 13 new and commissioned OFTO assets with combined value circa £10bn auctioned between 2023 and 2025 which connect offshore wind farms to the UK onshore transmission system.
Humber Freeport builds on the region's existing strengths in renewable energy, clean growth, and advanced manufacturing, offering excellent connectivity to the UK's manufacturing supply chain.
East Midlands Freeport
The East Midlands Freeport is the UK’s only inland Freeport, with unparalleled connectivity across the country, to international cities, and home to a wide range of innovative sectors.
Freeport East (Felixstowe and Harwich)
Freeport East is a world-leading centre for clean energy production, offering a unique set of opportunities and support for investors, traders, manufacturers and suppliers. This includes access to innovation, technology and new collaborative partnerships.
Thames Freeport is Britain’s trading future. With 1,700 acres of development land across 3 zones along the Thames River, it is at the centre of Europe’s biggest consumer market.
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