SeAH Wind has signed a binding agreement to relocate its planned £200-300m UK monopile factory to Teesside in a major blow to the unbuilt Able Marine Energy Park (AMEP) on the Humber Estuary.
The South Korean steel manufacturer confirmed that it will start construction of the factory in July on land at Teesworks that was previously earmarked for GE Renewable Energy.
It is expected that GE, which has proposed building a turbine blade factory at Teesworks, could build its plant on a second site adjacent to the SeAH Wind facility.
GE’s plans to build a blade factory have been on ice since December due to a lack of imminent UK turbine orders, as first reported by reNEWS last year.
SeAH announced its plans to invest in the UK with a final investment decision in July 2021, naming AMEP on the south bank of the Humber as its preferred site.
However, SeAH has said that due to “business reasons” it has been unable to finalise an agreement to build its monopile factory at the Able UK site.
SeAH Wind said that it will now file a planning application to build the factory on the 36-hectare site at Teesworks in late March and is expecting approval by the beginning of June.
The plant is expected to enter full operations in 2026, producing between 100 and 150 monopiles for offshore wind turbines each year and creating around 750 direct jobs.
The manufacturer is preferred monopile supplier for Orsted’s Hornsea 3 offshore wind farm, subject to the project securing a Contract for Difference in BEIS’ Round 4 auction and reaching a final investment decision.
SeAH Steel Holdings chief executive and president Joosung Lee said: “When SeAH confirmed its UK investment, the aim was to contribute to the UK offshore wind industry by working with the UK government.
“We are pleased to take the first yet significant step for this goal in Teesside. We will endeavour to make our factory globally competitive as well as become a good member of the community.”
Tees Valley Mayor Ben Houchen (pictured left) said Teesside is now the first area in the UK to be home to a monopile plant, adding it has only secured the milestone by going “further, faster”.
He added: “I’ve always said we have to move quickly to benefit as soon as possible from the opportunities and transformational projects both Teesworks and the Teesside Freeport would bring – and this is an example of us doing just that.
“We’re wasting no time in clearing land, getting up and running and developing schemes like the South Bank Quay, which has proved a massive draw to SeAH Steel as it undoubtedly will for other businesses in the offshore sector.”
Redcar MP Jacob Young (pictured right) said: “SeAH’s announcement that they’re going to bring their new monopile manufacturing facility for the wind turbine industry to Teesworks is amazing news for everybody in Teesside.
“It will bring with it 750 direct jobs and another 1,500 indirect jobs building 150 of these huge monopiles every year each weighing 1,200 tons.
“When they leave the factory they’ll go direct to the brand new quay, then out from the Tees to build the world’s largest offshore wind farm at Dogger Bank.”
Councillor Mary Lanigan, Leader of Redcar & Cleveland Council, added: “We have always known about the potential of the site and now it is fantastic to see that potential starting to be realised.
“We welcome SeAH Wind Ltd to our region and I’m sure a combination of the company’s expertise and ambition and the skills and commitment of our workforce will make this project a huge success.”